August 21, 2017, posted by iq
Which Millennials Are Spending Money
Both brands and marketing agencies are focused on understanding the Millennials generation, whether it’s tips on how to best reach them, knowing how they consume content, or what industries they may (or may not) be killing at the moment.
And while the Millennial generation is the largest population segment, the truth has been that they tend to have below-average incomes and net worth. As a segment, they seek more deals and have less brand loyalty. And, as a group that saw the impact of the last great recession, they tend to be focused on saving money vs. spending it.
Sure, as this group matures and enters their prime earning years, you can probably expect a significant return on your marketing investment. But with CMO tenures continuing to decline, the pressure is on to see results now.
Fortunately, a report from L.E.K. Consulting has identified the group of Millennials that have the most to spend.
Averaging 29 years old, with kids and at least some college education, about 91% have a household income above $50,000 and are the highest spenders among the entire Millennial segment.
What’s also interesting is that when Gen Xers and Boomers were asked to think back to purchases made when they were young, they reported a greater frequency of purchases in apparel and footwear & accessories than estimated by today’s youth. By contrast, today’s youth estimate making more purchases in personal care and the home than older generations.