BY Denise Gibson
Are your accounts targeting the consumers who have the most reason to spend? I’m talking about Generation X. This cohort doesn’t receive as much attention as the larger millennial or baby boomer groups. But Generation X spending is poised to grow significantly in the next eight years.
Why Generation X is a Rising Economic Power
A Nielsen report emphasizes that Gen Xers have entered their prime spending years. These consumers are still supporting their kids, often paying for college tuition. Around 25% of the college tuition paying population falls into the Gen X category, according to AudienceSCAN data.
These consumers are directing resources and making buying decision regarding the care of their parents. AudienceScan reports that around 25% of U.S. adults who are caregiving for an elderly or disabled family member are Gen Xers.
Caring for family members likely means multiple forms of support, including financial. With the strain on their household finances, around 8% of Gen Xers will be looking for a new financial planner in the next year. This is 25% higher than other adults.
How to Reach Gen Xers
Media Formats
AudienceSCAN data reveals that, in the past 30 days, Gen Xers were most likely to respond to mobile smartphone app or text messages — 45%. Interestingly, they were 11% more likely than other U.S. adults to respond to radio advertising.
What does their response look like? 52% go with an online search while 41% visit the advertiser’s website. These actions speak to the need for your accounts to maintain consistent messaging across media formats.
How to Capture Gen Xer Attention
Once they have the attention of this target audience, your accounts want to optimize their chances of tapping into Generation X spending. They can do that by using the right messaging.
Like most U.S. adults, Gen Xers like to buy items that make them feel healthy (42%) or comfortable (41%). But they are far more likely than average to purchase products that make them feel hopeful.
And then, there are aspirations. Gen Xers, who are roughly age 45 to 60, feel the future rushing at them. They are 33% more likely to be proactive about planning for their retirement. C. Lee Smith, SalesFuel CEO, points out that in addition to AudienceSCAN data for this year, “We also provide 5‑year trend data.” For Generation X consumers, the percentage of the cohort interested in retirement planning has been increasing. This is an important data point to share with your accounts.
Favorite Purchases of Gen X Consumers
Your adult beverage accounts should know that Gen Xers over-index in their weekly consumption of wine, beer and spirits. Wine is a favorite of this demographic, with 25% of Gen Xers enjoying a glass on a weekly basis. In addition, they are 9% more likely than other consumers to belong to a subscription-based beer or wine club.
The fashion and beauty vertical remains a key part of Gen X spending. World Data Lab projections, reported by Nielsen, indicate that Gen Xers will significantly increase their spending on beauty services and personal care products in the next decade. These projections are supported by AudienceSCAN findings.
Around 30% of Gen Xers pay for hair coloring, permanents or styling services. They also over-index when it comes to spending on cosmetics and contact lenses.
When life becomes too stressful for Gen X consumers, they turn to personal service providers. Body massage services and facial or other day spa services are popular with these consumers.
Conclusion
With Generation X spending poised to reach its peak in the next several years, your accounts have a can’t‑miss opportunity. Talk with them about how the best way to target these consumers. And remember to incorporate AdMall’s AudienceSCAN and consumer spending data into your presentations.
