There’s no mistaking that the United Kingdom has been undergone somewhat of a transformation; new groups of consumers continue to emerge, and old ones change and evolve with time. Understanding the nuances and habits of consumers has never been more important for marketers to be able to create the right campaigns to engage their key demographics. Nigel Wilson, Managing Director – Consumer Insights & Targeting, Experian Marketing Services, writes.
But what are these changes, and how do they impact the insight we have as marketers on our key audiences? What do we need to consider when addressing these new consumers?
Social Migration – the “Rurban” Generation
As consumers, a bulk of our buying and purchasing decisions are driven by life stages – understanding how these life stages have evolved, and how behaviours are changing to suit this is a key step in understanding how brands should adopt their approach to marketing to particular groups.
As an example take Declan and Beth. Eight years ago Declan and Beth were living the suburban life in a comfortable semi in the outskirts of one of the UK’s bigger cities. Then along came their daughter Megan, and priorities began to change; the family makes the big move to a home for life in a more rural location that still enables them to have access to work and amenities.
Declan and Beth are amongst 490,000 people in Mosaic type Rural Vogue; attracted to the “Rurban” lifestyle which gives a mix of the country idyll and access to cities for work and leisure. Although often based firmly outside of the confines of the city this group maintains a strong relationship with urban life, leading to distinct spending behaviour and shopping patterns – something a brand really needs to understand if they are to continue to engage the likes of Declan and Beth.
Lets now look at how Rural Vogues shop – busy lives and poor access to local shops means that Beth and Declan are heavy users of on-line shopping for both groceries and for the purchase of other consumer goods. They are creatures of habit and have their on-line grocery shopping order set up so that it rarely changes. Therefore new retail and FMCG brands are going to struggle to capture the attention of Beth and Declan. Research from Ipsos suggests that you have 3 seconds to appeal to this group with your marketing to communicate brand, product and motivate them to act.
Cross-channel marketing combined with traditional media is one way of encouraging them to act. The regular flow of high clothing catalogues from brands such as Joules and Seasalt landing on the doorstep shows that those with a targeted offer can find ways of reaching this affluent family. In a similar vein Beth and Declan are keen to save money but do not have the time to shop around for financial products – although they are occasional users of comparison sites. They rely on their network of friends for financial advice rather than anything provided by a financial institution. Their key demands for financial products are around home improvement, that new kitchen, and also investing for the children’s education. Timing is everything in communicating with Beth and Declan and marketing that is triggered by events in their life is more likely to get their attention.
The changing role of the family
Another key change that requires marketers to ensure they are laser focused when it comes to audience addressability is when they try to reach a multi-generation household. Since 2001 around half a million more young adults, a rise of 21% to almost 3m, have joined the ‘Boomerang Generation’ as it becomes increasingly common for young adults to move back in with family for temporary financial support.
The broad brushstrokes tactics marketers use to target “adult children living at home” aren’t applicable any more. Marketers not only need to look at whom in the family they want to connect with, they need to understand the demographic make-up of these households as well.
Take for example Mosaic type Bank of Mum and Dad; this family is living in comfort with the mortgage nearly paid down and plenty of equity in their house. It is likely however that they will need to support their children financially to help them either get on the property ladder or afford rent. You can expect these to be releasing equity in the not too distant future, either from their own home or from their investments perhaps impacting spend on luxury items for themselves.
Compare them to Boomerang Boarders. Highly representative of the squeezed middle, impacted by inflation and a lack of salary increases, they are happy to support their kids but are unlikely to be able to offer them significant financial assistance.
With these Mosaic groups alone, we see significant difference in spending power and the range of products these customers might be interested in.
However targeting to the multi-generational household is complicated. Clearly the parents and the younger adults will have significant different channel preferences as well as areas of interest and disposable income. It is very important within these target groups that highly personalised cross channel targeting is employed.
In many cases, there is no single primary decision maker in the home. Purchase decisions are likely to be shared and influenced by multiple family members. Marketers need to carefully craft their communications when an older parent and a young adult or other children are sharing the same living space. Knowing that this “traditional family” also contains an aged parent dramatically changes the picture.
It’s worth the effort though. Research from the US from Mintel into this topic suggests that multi-generational parents and home owners can spend up to a third more than parents whose off-spring have fled the nest. The diverse nature of these households provides brands with endless possibilities to market with this group – as long as they understand and respond to the nuances of this household.
Endless possibilities
The significant and wide-ranging changes to the social fabric outlined above have altered the landscape of UK society beyond recognition. However this new patchwork of different groups and types presents a great opportunity for marketers. While targeting these groups is no easy task, it`s well worth the effort. With these new levels of insight, brands now have the ability to identify trends within their consumer base they would not otherwise have been aware of, and gives them the intelligence needed to create carefully crafted, highly personalised digital campaigns to ensure that consumer are reached with the right message on the right channel at the right time – every time.
By Nigel Wilson
Managing Director – Consumer Insights & Targeting
Experian Marketing Services
http://www.experian.co.uk/marketing-services/