If you’re scrambling about today searching for a last-minute Christmas gift for the Millennial in your life, many a marketing expert will urge you to think outside the (gift) box when it comes to shopping for them. The younger generation, they’ll remind you, is increasingly more interested in acquiring experiences than acquiring things.
And don’t you forget it.
While you shouldn’t, what shoppers – and, even more importantly, brands – really should be told as we prepare to enter 2016 is to think beyond Millennials when thinking outside that aforementioned box.
After all, Millennials aren’t the only generation today that’s interested in experiences. People of all ages are, and it’s important for brands to not lose sight of their longstanding audiences because they’ve begun focusing too heavily on the trendiest one.
Until (much) further notice, Generation X and Baby Boomers do still matter – probably much more than many might think. You wouldn’t know that from much of the marketing buzz going around today, however.
Most recently, in a study leading up to the 2015 holiday shopping season, PWC reported that “Millennials (ages 18-34) are the retail prize this holiday season” as they’re primed to spend $63 billion, “which would be more than they spent last season.” The study then went on to state that 52 percent of Millennials’ holiday spending will likely go toward experience-related purchases, such as travel and entertainment, versus 39 percent for “older shoppers.”
Now, while those numbers are interesting, it’s notable that the PWC report seems almost pre-disposed to hyping Millennials and their clout in the holiday economy. Now 75 million strong in the United States, there’s no doubt that Millennials very much do matter and will continue to become more important. But it’s kind of important to, you know, remember there are still 245 million other Americans kicking around who fall outside that 18-34 age range.
And they matter too.
Curiously, the PWC report doesn’t state exactly how much Millennials spent during the 2014 holiday season, leaving unclear how much more they’re projected to spend in 2015. And the report practically casts aside the “older shoppers” (presumably anyone over the age of 34) who also are interested in getting (or receiving) experiences over things.
Beyond all of that, it should be noted that this wide swath of more established “older shoppers” – composed primarily of Gen X and Baby Boomers – still carry considerably more spending power than most Millennials still trying to find firm economic footing. In terms of total dollars, that 39 percent of the older shoppers’ holiday expenditures almost certainly exceeds the 52 percent chunk of whatever Millennials will spend, probably by a significant margin.
Earlier this week, one of our Twitter followers asked us, “Are Millennials the most studied generation?” That question is a difficult one to answer with any certainty, but with today’s influx of personal data from social media and other technologies and Millennials’ affinity for such mediums, they very well might be.
But for brands, the moral of this story is to not let Millennials also become the most overhyped generation. They’re important, to be sure. And as companies move forward, it’s important to cater to them by going beyond just selling products and services to deliver the experiences they desire. But, at the same time, it’s equally important to think about how brands can create experiences for older generations desiring them, as well.
Especially if they have with more money to spend.
To read more of AE Marketing Group’s insights about customer experience, simply click here.