CRM - November 2008 - (Page 22)

Generational Spending Age by the Numbers Act Your Age! {Consumers Do.} WHAT DIFFERENCE DOES AGE MAKE? In general, age is just one of any number of arbitrary parameters companies can use to segment their customer bases. Family size certainly matters, as does geography—and income level and gender are arguably more definitive traits. But age, and, more to the point, an age range—well, that allows us to engage in something we really value in American life: We get to feel as if we’re part of a group. An us and a them. A set of boundaries—however blurred they may be—by which we can affirm our membership in a subset of society that is, to whatever degree possible, just like us. Surrounded by those we resemble, we feel empowered. Not just through numbers, but through community. But here’s the sticking point: We’re not really that much like each other. No two Baby Boomers, for example, are identical, nor would they make identically desirable (or profitable) customers. Even the generations themselves are a bit arbitrary: Not everyone agrees on their start and end points. But until the day arrives when we can truly engage each customer on a one-to-one basis, the goal remains being able to profile the target audience as best we can. We’ve tried to gather some useful metrics on this spread, and in the articles that follow, to illustrate the very different ways in which each of these four generations are engaging with—and impacted by—today’s economic realities. U.S. Internet Users Tell* about a TV Show or Web Site They Enjoy, by Age, Millennials [Generation Y] (13–24) Generation X (25–41) Baby Boomers (42–60) Matures (61–75) Overall Average Average Number of People that February–March 2007 17.7 9.2 6.3 5.9 9.7 *face-to-face, over the phone, via IM/texting or e-mail Source: Deloitte & Touche USA, “The Future of Media: Profiting from Generational Differences,” provided to eMarketer, April 16, 2007. U.S. Households with Total households (thousands) % of households Before-tax income (average) After-tax income (average) Spendable discretionary income (average) Born after 1981 Born between 1965–1981 Born between 1946–1964 Born before 1946 Total 2,993 21,944 29,666 18,078 72,681 58.6% 64.2% 67.9% 57.6% 63.5% $52,709 $86,212 $105,580 $70,189 $88,753 $44,538 $68,524 $81,941 $58,466 $70,511 $12,833 $22,562 $29,754 $19,500 $24,335 Discretionary Income, by Generation of Head of Household, 2006 Note: income figures are in 2005 dollars; population as of March 2006 Source: The Conference Board, “A Marketer’s Guide to Discretionary Income,” provided to eMarketer, November 8, 2007 22 CUSTOMER RELATIONSHIP MANAGEMENT | NOVEMBER 2008 www.destinationCRM.com http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - November 2008

CRM - November 2008 Contents Front Office Feedback Reality Check Customer Centricity The Tipping Point Working with the Years CRM on Twitter Virtual Spenders Contact Centers Chatting to Success The Complexity Chasm Required Reading Generational Spending: A Special Report Who, What, Where, When, Y The Slackers’ X-cellent Adventure The Boomer Boom The Matures Endure Boosting Productivity North of the Border Changing the Channel Invicta’s Thrill of Victory Secret of My Success Connect Re:Tooling Pint of View

CRM - November 2008

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