Who is your next buyer? Follow the money - $2.3 trillion up for grabs

[Jim K]

Interesting piece about the $2.3 trillion in savings Americans are slow to spend since the pandemic started. Automotive is seeing some pent-up demand rebound and record profits. But Bloomberg suggests this isn't a recovery and many families will continue to hold onto their savings. Similar story in Europe, likely around the world.

So who has the money, who should you target and be taking 'orders' from? The chart below suggests you should zero in on 55+ consumers.

"...affluent clients want to dip into savings to buy new cars or swimming pools, but can’t because of shortages of goods or labor."

"Seniors and the already wealthy have experienced the biggest gains -- but they are often the least likely to spend."

More here: https://www.bloomberg.com/news/articles/2021-10-17/-2-7-trillion-in-crisis-savings-stay-hoarded-by-wary-consumers

 

[Jeff Kershner]

The chart below suggests you should zero in on 55+ consumers.

"...affluent clients want to dip into savings to buy new cars or swimming pools, but can’t because of shortages of goods or labor."

Thanks for sharing @Jim K - I know you're privy to a lot of great data. The 55+ can be a tough demo/age to market to and get to take action. Plus the 55+ demographic are very custom to hard negotiating , something that's NOT happening at the moment. On the flip side, they are more likely to have a nicer well kept trade-in sitting in the garage. Direct (mail, call - buyback) with concise messaging tends to be the most effective channel.

Anyone else with suggestions?

 

[Shawn Zents]

Thanks for sharing @Jim K - I know you're privy to a lot of great data. The 55+ can be a tough demo/age to market to and get to take action. Plus the 55+ demographic are very custom to hard negotiating , something that's NOT happening at the moment. On the flip side, they are more likely to have a nicer well kept trade-in sitting in the garage. Direct (mail, call - buyback) with concise messaging tends to be the most effective channel.

Anyone else with suggestions?

@Jeff Kershner - I agree with you and totally appreciate the research that @Jim K shared. It's valuable.

"Seniors and the already wealthy have experienced the biggest gains -- but they are often the least likely to spend." Hmmm...

@Jeff: "Direct (mail, call - buyback) with concise messaging tends to be the most effective channel." 100% spot-on and I see it everyday in our program. Age doesn't matter because there are buyers of all ages.

I believe a mix of channels that target the right buyer, with the right message, at the right time is key - regardless of age or financial status. If you focus too much on one demographic, other buyers would be neglected.

Automation is strong because no human could do it effectively, efficiently or know when to pivot. Let an individual's human behavior drive the message and partner with other tools to create a sound outreach process. Just my 2¢.

Interesting article from May 2021: https://9clouds.com/blog/does-age-matter-in-automotive-digital-marketing/