Experiential Economy Finally Arrives

For several years, trendspotters have been talking about the experiential economy–that the time would come when consumers chose experiences over material things. 2005 might be the year that it finally arrived. As the Baby Boomers have matured (note that we don't say aged, since there is a whole segment of them that are only in their forties) they have less interest in acquiring more "things." In fact, the Leading-Edge Boomers who are turning 60 beginning in January are starting to try to figure out how to rid their lives of "things." They are thinking "downsize," and part of that is to eliminate getting and giving gifts for which they have no need. Rather, they are choosing to spend their money on experiences that will give them memories, easily stored and easy to take with you, no matter where you are.

Thus, we've seen myriad friends in their mid to late 50s who have chosen a family cruise for the Christmas or Hanukkah holidays, or a ski trip, or a trip to Spain to visit a family where they once enjoyed a stay as an exchange student, or a bareboat Caribbean jaunt with good friends. The ones who didn't go away this year are planning what they will do next December.

In his book, Advertising to Baby Boomers, Chuck Nyren suggests that Boomers are less likely to buy packaged cruises and other kinds of trips and more likely to want to plan their own experiential travel and they will rely on the Internet to do it. "We want to rattle lots of [computer] keys, have our mouses pounce and bite off appetizing chunks of graphics and descriptions from all sorts of sources–and build unique variegaqted vacations. Some smart dot.com entrepreneur will partner with thousands of travel companies, resorts, hotels, museums, airlines, car rental companies, and build a modular travel and reservation website. Myriad tempting experiences will be offered. The website will calculate the price of eact activity, cataloging and coordinating everything."

We offer one caution to Nyren's wisdom. The Baby Boom does come in segments. There are the adventurous travelers who have "been there, done that" and are looking for new experiences. There are also the more conservative, less well-traveled group that defines adventure as something more low-key, where the relaxation comes because someone has planned the trip to the last detail. Whatever you offer in the way of experiences, you need to know which segment of the Baby Boom is your natural audience and then go for it! The Experiential Economy has definitely arrived.

Free e-newsletter offers data insights

One of our favorite e-newsletters is issued occasionally by New Strategist Publications. Editor Cheryl Russell, who is also the editor-in-chief for New Strategist and a trained demographer, is one of the best at ferreting out the meaning behind the scads of numbers that the government and other organizations publish, often with little commentary. Ms. Russell comments on such issues as the true effect of the middle-aging of the baby boom on the social security system, or whether young people stand on political issues. Of course, the newsletter also carries tidbits of data from the reference books that New Strategist publishes as well as announcements of new books. But the highlight of each newsletter is Ms. Russell's analysis. Read it and you will often find yourself reading similar comments days later in the mainstream media. To sign up for this free e-newsletter, click here.

Tech-savvy moms

If you pay attention to the media, you would think that the only internet-savvy people on the face of the earth are aged twenty and younger. Yet, many moms are the tech leaders in their own families. Most moms today are in their thirties and forties, squarely in the GenX group, born between 1965 and 1976. The average first-time mom is 25.

This means that most moms today grew up familiar with computers. When today's average mom was only age 12, AOL was already sending out those disks to get people to sign up. They had Walkmans and video recorders. By the time she went to college, many students had a computer. By the time she had her first job, computers were an integral part of it, and internet access followed shortly.

Moms today spend a lot of time on the internet checking out product information, looking for recommendations from other mothers, shopping, and keeping in touch with their friends and family.

Companies that want to get the attention of the tech-savvy person in the family, may find mom is the main gatekeeper. To learn more about today's moms and the ways that they rely on the internet, see a new book from the principals at The Wonder Group, Marketing to the New Super Consumer Mom & Kid.

Baby Boomers Respond to "Fairness"

We've heard lots of horror stories lately about credit card companies charging a $39 late fee for a late payment of $1.72 or even 1 cent. It makes no sense and it is bound to get these companies in trouble with Baby Boomers who have a heightened sense of fairness. Beginning January 1, Leading Edge Baby Boomers in the U.S. (born between 1946 and 1966) will begin turning age 60. These are the folks with the most discretionary income in the U.S. and they are big spenders on situations where credit cards are often used--dining out, air travel, and gifts for others. Credit card companies are urgently courting these folks, but the policies many companies have adopted regarding late fees may send Baby Boomers scuttling away. As Baby Boomers age, they have more time to research companies and purchase decisions.

In his book, Marketing to Leading-Edge Baby Boomers, Brent Green writes, " 'The Golden Rule' will become fashionable again as a way to differentiate a company from its competitors... Differentiate by demonstrating justice and fair play." Exorbitant late fees for minor oversights do not seem to demonstrate fair play.

A Gift of Branding

Tom Asacker, author of A Clear Eye for Branding, is a dynamic speaker that keeps audiences on the edge of their seats. People ask for Tom's slides all the time, but he rarely shares them because, as he says, they are not very compelling when viewed out of context.

For a limited time, however, Tom is offering an Ebooklet that you can download from his website to give you his views on how to create a strong and enduring brand. You can go to his site, www.acleareye.com and download "On Branding: A Visual Presentation." It's available only until the end of December so don't wait. It will take a few minutes to download as a pdf. But once you have it you can review it whenever you want to and it will help you clarify your own views on branding, I can guarantee.

Black History Month

Authors Pepper Miller and Herb Kemp, whose book What's Black About It? was released a few months ago have some advice for companies that are thinking about a campaign related to Black History Month in February. They suggest going beyond the "short, slow retail month of February," creating a long-term campaign that shows respect for the achievements of Black Americans and downplays their products. Many African-Americans are turned off by retail fliers, for example, that exploit Black History Month just to try to get more customers into their establishments. A better way to build rapport with African-Americans and other ethnic groups would be advertising campaigns that featured achievements of different ethnic groups throughout the year, rather than limiting such campaigns to one month a year.