Why Gen X Deserves a Spotlight in Your Marketing Plan
As the world fixates on Millennials and Gen Z, it's easy to overlook the influential and substantial Generation X demographic. Sandwiched between Baby Boomers and Millennials, Gen Xers are an often-neglected yet powerful force in today's consumer landscape. With a high level of disposable income and a strong online presence, this generation warrants more marketing attention. Here's why:
1. Financial Power
Gen X boasts a significant portion of today's wealth and income. A study by the U.S. Labor Department reports that Gen X outspends other generations on housing, clothing, dining, and entertainment. In the U.S. alone, they command over $2.4 trillion in spending power. Today, this cohort, generally ages 44 – 59 are in their peak earning years. If your marketing growth only focuses on Gen Z, remember that there is probably a Gen X’er who is paying their phone bill. Ignoring Gen X in marketing efforts means missing out on a financially potent demographic.
2. Digital Adaptability
Contrary to popular belief, Gen Xers are tech-savvy and frequent users of social media. A Forbes article notes that 35% of U.S. social media users are Gen X. They seamlessly integrate technology into their lives and participate in digital trends. Marketers shouldn't overlook this generation's presence on popular platforms like Facebook, Instagram, and YouTube. Furthermore, this is the generation that adapted to computers, the internet, smart phones, apps, online shopping, and the digitization of music. They consume media across a broad spectrum of devices and platforms and they are multi-channel shoppers.
3. Loyalty and Authenticity
Gen X values authenticity and responds well to transparent marketing strategies. Yes, it is true! Gen Z is not the only cohort that values authenticity! Gen X are more likely to stay loyal to brands they trust, especially those that align with their values. A study by Kantar revealed that 63% of Gen X consumers prefer to buy from companies with a strong social purpose. By creating genuine connections and ethical initiatives, marketers can foster long-term relationships with this generation. This group of consumers tend to over index in retail loyalty programs. If you have invested in building a strong brand, it makes sense to appeal to a consumer segment with a track record of brand loyalty.
Of course, consumer targeting is closely tied to the product and service being marketed. But there are very few categories where Gen X doesn’t participate. And there are some categories where they dominate - financial planning & wealth building, wellness, and travel to name just a few. These are the people planning for retirement, for their kids’ college and a trip to Italy. Not only does Gen X have the financial power, but they are also poised to spend.
The last reason to give Gen X a spotlight in your marketing plan? Because when the competition zigs, you should zag. There is no shortage of articles about the “Top 5 campaigns for Gen Z”, but the evidence would suggest that campaigns targeting GenX may yield higher returns.