Remember, I've been discussing the 12 to 24 months we have to ramp-up our businesses to prepare for a changing economy that will probably last for at least 3-5 years after 2010, maybe longer according to top economy strategists.
You can decide to be ready or you can ignore it and be scrambling to find customers when the real problems hit. Nothing our government can do at this time will have a lasting effect on the weakening economy.
The positive impact from government fiddling will only be short lived. We must be prepared and creating our own bail-out, because they ain't going to give us one. We tend not to learn from history, and history has show the direction we are going right now, will actually extend the recession.
As a continuation of our study of the Affluent market place that has the potential to be a lifesaver for us, I want to complete my review for you today. Dan Kennedy has given us some great strategies in his book No BS Marketing to the Affluent. Here's some more of his 'Keys to the Vault' and a report from his book.
Kennedy Key to Vault #2: "Who you bring through the door matters a lot. Why not deliberately get higher value customers?"
Boomers represent more than 70% of U.S. households with incomes exceeding $75,000 and assets $200,000 and above. Over the next 30 years they will be inheriting an enormous transfer of wealth from parents because their parents believed in leaving a financial legacy to the kids.
If you believe this is just the rest of the country not New Mexico, I just did a mailing list search of only three counties in New Mexico (Bernalillo, Sandoval and Santa Fe). The list gave me 55,652 households with income over $100,000 and Investable Assets over $200,000. Is that a big enough marketplace for you?
Disney is going after this demographic in a big way. A few months ago we reviewed the Harley Davidson ad targeting this age group. It was titled "Screw It, Let's Ride." The "Screw It" referred to the bad economy news from the press.
1/3 of all boomers are from financially secure to financially independent. About half of that 1/3 qualifies as wealthy. "Within the boomer population, there is a historically unprecedented percentage of affluent and ultra-affluent consumers coupled with a historically unprecedented willingness on their part to spend their money on themselves. This is a terrific dynamic for us marketers!" Dan Kennedy
Because of their expected inheretance, the boomer generation is expected to have a wealth transfer of $7.2 Trillion over the next 30 years.
Boomers are Re-Inventing Their Lives - And You Could Profit
Disney is going after this demographic in a big way. A few months ago we reviewed the Harley Davidson ad targeting this age group. It was titled "Screw It, Let's Ride." The "Screw It" referred to the bad economy news from the press.1/3 of all boomers are from financially secure to financially independent. About half of that 1/3 qualifies as wealthy. "Within the boomer population, there is a historically unprecedented percentage of affluent and ultra-affluent consumers coupled with a historically unprecedented willingness on their part to spend their money on themselves. This is a terrific dynamic for us marketers!" Dan Kennedy
Because of their expected inheretance, the boomer generation is expected to have a wealth transfer of $7.2 Trillion over the next 30 years.
Boomers are Re-Inventing Their Lives - And You Could Profit
Dr Mary Furlong, in her book "Turning Silver into Gold: How to Profit in the New Boomer Marketplace writes: "Today, boomers are RE-INVENTING their lives. They are finding NEW places to work, NEW places to travel to (and NEW ways of traveling), NEW ways to spend their days, NEW ways to spend time with their children and grandchildren, and NEW ways to stay vital and connected as they age. Each choice represents enormous business opportunity."
Leslie M Harris, in " After Fifty: How the Baby Boom Will Redefine the Mature Market, said: "Boomers see age as a lifestyle choice rather than a chronological imperative." They are very different from their parent's generation.
So what do they want?
In his book, "Common Census: Counterintuitive Guide to Generational Marketing," Ken Gronbach reports that they know what they want. They've been buying the same oil for their cars for years and they wear tan pants. At this point in their lives, they want only three things:
1. Life made easy. 2. Time Saved. 3. Not to be ripped off.
How are you targeting your message to these wants? Note: Affluent boomers already own a lot of stuff. Consequently, boomers are SERVICE CONSUMERS more than product buyers. We want nothing as a thing; we want a thing that gives us time, convenience, freedom, or ease.
The third on the list is missed more than any other. How much do I harp on you about using guarantees? Many times in our lives we have been disappointed by our purchases and even felt ripped-off at times.
Kennedy Key to Vault #3: "Your desired customer's attitudes about things related to your product or service matter much more than any facts about your product or service."
What do you think Dan means by that?
Attitudes Governing Boomer's Spending
Age: Studies show early boomers (my age group) placed old age at 83. That's 3 years after average life expectancy. Boomers now expect to be cured of all sorts of things our grandparents accepted as incurable: breast cancer, and other cancers, heart disease and heart attacks, and other serious ailments. Optimistic faith in medical research producing cures.
Truth?
There hasn't been a new, complete cure for anything since polio. But boomers still inherently believe it will happen. That makes them not very interested in self-help, self-discipline, and so on regarding disease. Many diabetics ignore creating a healthy environment for themselves. They believe there will be a cure or maybe advancements in organ transplants to take care of the problem. So they ignore healthy eating and exercising as a solution.
Patrick Swayze Does!
Leslie M Harris, in " After Fifty: How the Baby Boom Will Redefine the Mature Market, said: "Boomers see age as a lifestyle choice rather than a chronological imperative." They are very different from their parent's generation.
So what do they want?
In his book, "Common Census: Counterintuitive Guide to Generational Marketing," Ken Gronbach reports that they know what they want. They've been buying the same oil for their cars for years and they wear tan pants. At this point in their lives, they want only three things:
1. Life made easy. 2. Time Saved. 3. Not to be ripped off.
How are you targeting your message to these wants? Note: Affluent boomers already own a lot of stuff. Consequently, boomers are SERVICE CONSUMERS more than product buyers. We want nothing as a thing; we want a thing that gives us time, convenience, freedom, or ease.
The third on the list is missed more than any other. How much do I harp on you about using guarantees? Many times in our lives we have been disappointed by our purchases and even felt ripped-off at times.
Kennedy Key to Vault #3: "Your desired customer's attitudes about things related to your product or service matter much more than any facts about your product or service."
What do you think Dan means by that?
Attitudes Governing Boomer's Spending
Age: Studies show early boomers (my age group) placed old age at 83. That's 3 years after average life expectancy. Boomers now expect to be cured of all sorts of things our grandparents accepted as incurable: breast cancer, and other cancers, heart disease and heart attacks, and other serious ailments. Optimistic faith in medical research producing cures.
Truth?
There hasn't been a new, complete cure for anything since polio. But boomers still inherently believe it will happen. That makes them not very interested in self-help, self-discipline, and so on regarding disease. Many diabetics ignore creating a healthy environment for themselves. They believe there will be a cure or maybe advancements in organ transplants to take care of the problem. So they ignore healthy eating and exercising as a solution.
Patrick Swayze Does!
Patrick Swayze, the actor from "Dirty Dancing" is suffering from terminal pancreatic cancer. They say smoking is one of the contributing factors. But he refuses to stop smoking. You see how many in our generation think?The boomer is fueling the alternative health industry, the magic treatment with nutritional and dietary supplements, herbal supplements, treatments in foreign clinics etc.
The Wellness Industry has emerged as a major business sector. Spas, organic foods, nutrition, exercise and fitness, cosmetic surgeries and procedures, beauty products and services, chiropractic, message therapy, and cosmetic dentistry. This is all because of demands from the boomer. Business week says this is a $400 Billion industry today, growing to $1 Trillion by 2020.
Boomers & Nostalgia
Emotional Nostalgia will go a long way to connecting with the Affluent Baby Boomer. Many times you'll see advertisers using very popular, well-remembered songs of boomer youth.
Dan says, "Roy Rogers is an (nostalgia) anchor for male boomers of a certain age, but...sitting on the floor in front of the B&W TV, still in pajamas, with a bowl of cereal, to watch Roy Rogers, his super horse, Trigger, and Dale Evans . . . that's a better anchor."
These types of Nostalgia Anchors are extremely useful in marketing to Boomers. That's the lure of the country store, for instance the allure of Cracker Barrel restaurants.
How to Lose a Boomer in 60 Seconds
Here's some sure fire way to turn off the boomer in your business or with your advertising. If you subject them to perceived or real DISRESPECT. (Don't call them Pops, Ma'am, Old Man, etc.) If your employees dress in ways considered disrespectful, for instance, having employees with piercing earrings in every part of the body, whole arms or necks, etc full of tattoos. Using language that is perceived as disrespect.
There was a young Irish lady on American Idol this last season. She had an amazing voice, probably the best on the show. But her whole arm and parts of her body (that showed on camera) were covered with tattoos. She didn't last very long on the show. She didn't get votes. I think one of the big reasons is the Boomer regular viewers that refused to vote for her because of her appearance.
The language your employees use can be very disrespectful. "I realize at your age you don't know much about the internet, but...." If they engage in impolite, disrespectful behavior such as talking on a cell phone while ringing up a sale the boomer will buy less and most likely walk out of the business. The boomer just isn't very thrilled with having to deal with very young disinterested employees.
Selling to the Self Employed Affluent
Self employed business owners are a significant portion of the population - statistics show that it's 20% of the U.S. Population but will account for over 70% of the affluence. Many self-employed affluents came from poor backgrounds and seldom disconnect emotionally from this past. Some even romanticize their past struggles according to Dan.
Dan gives the example of Jay Leno's star on Hollywood Walk of Fame. It's located at the corner where he was arrested twice for vagrancy. Or, that he has a massive collection of classic cars may have its roots in the fact that he slept in his car while he was homeless.
Ron Legrand is a highly successful educator and information marketer in the RE business. He travels in his two private jets, lives in a palatial estate in Florida, once worked as an auto mechanic and Dan says Ron remembers having to tell his wife they couldn't afford to get the dryer repaired. And . . . he talks about it frequently in his workshops and seminars.
These affluent boomers have sacrificed much in their life for everything they've gotten. They feel they have to put up with anything unnecessary off of anyone. They view themselves as fiercely independent. They hate rules and tend to run quickly away from a business if they start hearing any rules based language in the businesses advertising.
Who's Paying Attention To The Boomer Affluent?
How many business do you know that will set themselves up to meet every need of a boomer affluent? Disney hotel resorts at Disney World are trained this way. That's why you see them advertising for them to bring their kids and grandkids for a family reunion at Disney World. And guess what, it's working.
They admire the qualities that got them where they are now when they see it in other people and businesses. They're looking for people with stories like their own to do business with.
These people reward ingenuity, drive, persistence, and salesmanship.
They admire the qualities that got them where they are now when they see it in other people and businesses. They're looking for people with stories like their own to do business with.
These people reward ingenuity, drive, persistence, and salesmanship.
Jo Media, MasterMind member
Jo Medina, Medina Insurance agency, often talks about how her clients respond to her and refer their family and friends because she goes out of her way to share stories about her family and where she came from and how hard she has worked to make her agency a success. She has clients with several businesses, several homes and many cars. She's moving her business to targeting affluent households and business owners.
They Are Searching for Value as THEY Define It.
The affluent consumers and businesses are smart about money and getting good deals and bargains. Donald Trump brags about buying a bankrupt billionaire's oceanfront mansion our of a foreclosure. He loves to tell the story of how he then got his whole investment back by replacing all of the antiques and antique furniture with reproductions and then selling the originals. As a result, he basically got the mansion for free, a big bargain.
If given no other reason to judge your product's or service's value, the affluent will choose the best price. I'm sure you've done this yourself. We're buying a new refrigerator. Once we've decided which one we want, Linda is searching the internet and the stores for the best price. That's because no store has given us a compelling reason not to pick price as the only differentiator.
The affluent is hungry to learn as much about a subject of interest in a buying decision as possible. Linda has gone to every website she can find and to every opinion site to get info she needs on a refrigerator.
Affluents Are Information Magnets
Affluent consumers reward those businesses that teach them the key things they need to know to make a right decision. They also reward those who seem to know insider information and are willing to share it in language the affluent understands. That's one of the reasons I push you so hard to implement a printed newsletter. You will be considered an author, and authors have a higher perceived valuel in business by affluent consumers.
This is especially so in B2B. Rick Gee, (Imaging Concepts of NM) (also a MasterMind member) is a very successful salesman of high dollar document management systems (high end, high volume color office printers and storage systems). He gets higher profit margins than competing salespeople because he simply provides written proof of his expertise.
Another advantage you can bring is to take the hassle and trouble out of any transaction by doing things for your client that relieves them of mundane tasks. In the auto repair industry, the Affluent would rather you just come pick-up the car in their driveway so they don't have to mess with bringing it in and then arranging transportation back home or to work for themselves. Or, better yet, provide them a loaner car of equal or better quality to their own.
If you connect with the affluent in a way that speaks directly to them, their needs and prejudices, and offer unusual services, price becomes virtually irrelevant.
Kennedy Key to Vault #4: "Be a good news merchant. Sell optimism along with whatever else you sell."
Why would this be important to the affluent buyer, especially the boomer affluent? It's important because they have been through many downturns in the economy over their life and come out ahead. The Boomer Affluent especially is tired of hearing bad news. That's one of the reasons why you see much of the newspaper industry failing and losing readership.
We're just downright tired of it and will refuse to read it any more. Be upbeat when you write. Be upbeat when you present to your potential customer. Show them you have a great optimism for the future and they will reward you for it.
Conclusion:
Affluent and Mass Affluent consumers, business owners and company executives will continue to spend even in a down economy. They will get what they want. Travel is up; spending on natural healing products and services is up. This is why so many fortunes were built during the depression of the 1930's.
Linda and I owned 2 snowmobiles that we bought a couple of years ago to try out to see if we would enjoy it. We weren't getting time to go out on them, so we decided to sell them this year to get them out of the yard.
We put two ads up on Craig's List, on the web, one in Albuquerque and one in Colorado Springs. We had 18 calls of people ready to buy them for cash right away. They would drive to Albuquerque to get them and for full price. But, we have a sinking economy, right? People will continue to spend on what they really want. You just have to find what that is and provide it.
That makes the affluent marketplace a better target for your products and services. We just need to learn how to market and speak to them in a marketing language they respond to. We need to learn to package our products and services that meet a perceived need or desire. There is much opportunity here.
And, you need to study this group much more. Get and read Dan Kennedy's book, "No BS Marketing to the Affluent" and subscribe to his monthly affluent newsletter to keep up on the latest developments. We can help you with that subscription. Just call us at 505-260-4663.
J. Wayne Story
Small Business Marketing Strategist
http://www.marketingstrategiesrx.com/
They Are Searching for Value as THEY Define It.
The affluent consumers and businesses are smart about money and getting good deals and bargains. Donald Trump brags about buying a bankrupt billionaire's oceanfront mansion our of a foreclosure. He loves to tell the story of how he then got his whole investment back by replacing all of the antiques and antique furniture with reproductions and then selling the originals. As a result, he basically got the mansion for free, a big bargain.
If given no other reason to judge your product's or service's value, the affluent will choose the best price. I'm sure you've done this yourself. We're buying a new refrigerator. Once we've decided which one we want, Linda is searching the internet and the stores for the best price. That's because no store has given us a compelling reason not to pick price as the only differentiator.
The affluent is hungry to learn as much about a subject of interest in a buying decision as possible. Linda has gone to every website she can find and to every opinion site to get info she needs on a refrigerator.
Affluents Are Information Magnets
Affluent consumers reward those businesses that teach them the key things they need to know to make a right decision. They also reward those who seem to know insider information and are willing to share it in language the affluent understands. That's one of the reasons I push you so hard to implement a printed newsletter. You will be considered an author, and authors have a higher perceived valuel in business by affluent consumers.
This is especially so in B2B. Rick Gee, (Imaging Concepts of NM) (also a MasterMind member) is a very successful salesman of high dollar document management systems (high end, high volume color office printers and storage systems). He gets higher profit margins than competing salespeople because he simply provides written proof of his expertise.
Another advantage you can bring is to take the hassle and trouble out of any transaction by doing things for your client that relieves them of mundane tasks. In the auto repair industry, the Affluent would rather you just come pick-up the car in their driveway so they don't have to mess with bringing it in and then arranging transportation back home or to work for themselves. Or, better yet, provide them a loaner car of equal or better quality to their own.
If you connect with the affluent in a way that speaks directly to them, their needs and prejudices, and offer unusual services, price becomes virtually irrelevant.
Kennedy Key to Vault #4: "Be a good news merchant. Sell optimism along with whatever else you sell."
Why would this be important to the affluent buyer, especially the boomer affluent? It's important because they have been through many downturns in the economy over their life and come out ahead. The Boomer Affluent especially is tired of hearing bad news. That's one of the reasons why you see much of the newspaper industry failing and losing readership.
We're just downright tired of it and will refuse to read it any more. Be upbeat when you write. Be upbeat when you present to your potential customer. Show them you have a great optimism for the future and they will reward you for it.
Conclusion:
Affluent and Mass Affluent consumers, business owners and company executives will continue to spend even in a down economy. They will get what they want. Travel is up; spending on natural healing products and services is up. This is why so many fortunes were built during the depression of the 1930's.
Linda and I owned 2 snowmobiles that we bought a couple of years ago to try out to see if we would enjoy it. We weren't getting time to go out on them, so we decided to sell them this year to get them out of the yard.
We put two ads up on Craig's List, on the web, one in Albuquerque and one in Colorado Springs. We had 18 calls of people ready to buy them for cash right away. They would drive to Albuquerque to get them and for full price. But, we have a sinking economy, right? People will continue to spend on what they really want. You just have to find what that is and provide it.
That makes the affluent marketplace a better target for your products and services. We just need to learn how to market and speak to them in a marketing language they respond to. We need to learn to package our products and services that meet a perceived need or desire. There is much opportunity here.
And, you need to study this group much more. Get and read Dan Kennedy's book, "No BS Marketing to the Affluent" and subscribe to his monthly affluent newsletter to keep up on the latest developments. We can help you with that subscription. Just call us at 505-260-4663.
J. Wayne Story
Small Business Marketing Strategist
http://www.marketingstrategiesrx.com/
