Marketers have spent the better part of the last five years trying to figure out how to market to millennials. After all, this is the largest cohort since the Baby Boomers—in fact now larger—and therefore hold a tremendous amount of spending power. It’s important to note, however, that while millennials may have tremendous spending power due to the size of the cohort, Generation X has greater spending power still.
With 29% of estimated net worth dollars and 31% of total income dollars, Generation X has more spending power than any other generation. Not only do they have that power to spend, they use it. By far, more dollars are spent each year by Generation X than any other cohort.
That reason alone should remind you that marketing to Generation X is a good investment of your time and dollars. There are several other reasons to keep this particular generation in mind.
Generation X Is Powerful
Right now, Gen Xers are the managers, entrepreneurs, heads of household, and even politicians. Several companies have recently tapped people under 50 to serve as CEO, including Microsoft, McDonalds, and Harley Davidson. They’re coming into their power and discovering the influence that comes with that power.
This generation is both supporting their children and their parents. They’re starting their own businesses. They’re spending for their own households, all the while. That’s a lot of money on the table, yet marketers still consider them the “forgotten generation.”
Generation X Is On Facebook
While the general consensus seems to be that millennials spend too much time on their phones and in their social networks, the latest data proves that Generation X is actually the Facebook addict. If you’re spending your marketing budget on reaching millennials on social media, you may just be targeting the wrong age bracket. Marketing to Generation X might be the better bet.
Generation X Loves Ecommerce
Millennials may love their online shopping, but that doesn’t mean they’re the only ones happy with ecommerce. In fact, 7 out of 10 Generation Xers shop online, for an average of $1,900 per person spent online each year.
Not only are they shopping online, but they’re also engaging with brands online, too. They research, check reviews, and watch for new products through various online channels. This generation will be wherever you are online, and often with their wallets at the ready.
Generation X Is Loyal
These buyers have been through some financial crises, with multiple recessions knocking the wind out of them. While they have tremendous spending power, they’re more savvy with their money. These buyers often join rewards programs, with 88.6% looking to save money through their loyalty.
Once a Gen Xer becomes a customer, 86% are more likely to remain a customer. They’re more likely to spend more for better quality, and if the brand they choose provides that quality, they will probably remain long-term customers.
If you’d like to explore marketing to Generation X, we can help. Give us a call to discuss your current campaigns and what you could do to reach the “middle child” consumers in the US.
