It seems to me that there are two dynamics at play when a consumer shifts from one demographic to another. The first is the individual and the second is the brand.

My point of view is that we have reached a stage in marketing where the age demographic has become secondary. How do consumers act the day after their birthday? Not much differently than they did the day before. Not many of us “retire” at 65; some new seniors “re-fire” – we may alter our lifestyle and buying patterns but today it’s not because of age. Many other social and economic forces have a much greater influence on spending than age.

This leads to the second more serious dynamic and that’s you, the brand. In my new demographic, I can get senior discounts now. (The AARP card I received ten years ago has never been used because, like Peter Pan, I refused to grow up.) However, last Thursday, it was official. Yet, only a few brands acknowledged my birthday and none made the attempt to focus on my age.

I believe it is smart marketing not to directly promote based on age, perhaps with the exception of insurance companies where age is a major factor. I put my age/date of birth on every document I complete, including all the “loyalty” programs I belong to. I have come to expect an acknowledgement of my birthday and we encourage clients to offer something in celebration of completing another trip around the sun. I want marketers to know my age and I want to see what they do with it. Granted, it’s still early in this new journey into the world of senior discounts, but the stage is set.

This week’s AH-ha! suggests that brands know the demographic changes and apply that knowledge to the pattern shifts that take place in what the consumer does. This requires customer knowledge and the resources to monitor the metrics and then craft campaigns to turn that knowledge into marketing power.

The Marketing Implications

I hope I am able to write these weekly e-newsletters for another 192 issues because while I might vary from my main theme of creative analytics, I will never stray. Successful marketers, whether the brand is a $15 haircut, footwear, airplanes, gasoline, computer servers, software or hair color products, must do three things beyond the obvious of presenting a fantastic product and backing it up with 5-Star customer service.

• Focus on the customer’s demographics and know everything you can about the customer. When there are keystone events and changes in those demographics, incorporate them into the knowledge database
  
  
• Capture every transaction and interaction with every customer. Understand how each customer does business with you, what they buy, how often they buy and what changes are taking place in their buying habits
  
  
• Put all this information together and use it to influence the customer’s next purchase. Information kept in a vacuum is wasted knowledge and unfortunately, too many marketers with good information do not know how to use it to maximize the impact of the brand. Let the genie out of the bottle and turn the power of database marketing loose. The impact on brand sales is stunning and it will generate long-term organic growth

Marketers have many excuses why they don’t make better use of database marketing tactics but from our experience there is only one real excuse. THEY EITHER DO NOT HAVE THE DATA OR THE DATA THEY HAVE IS WORTHLESS. As a result, marketers often find it easier to try new technologies and strategies before they exploit what they have in hand.

The bottom line is that in an environment where the customer directs how and when the interaction with the brand takes place, and how the sale will be made, the brand has to be very careful to manage how the interaction takes place. To be successful, the brand has to engage the customer and the message has to be on point. Only through creative analytics will this happen.

This week, find someone who is having a birthday and try to understand how it is influencing his or her lifestyle and purchasing behavior. Don’t be surprised if you get some stares because none of us want to grow up. At least I don’t.

Have a fantastic week.

Interesting points this week regarding social networks. I agree with some - advertising and trying to sell in these social networks is a waste. But I disagree with the statement "I am not convinced that social networks are the place for brands to be, both from a strategic and an ROI perspective." There are many niche social networks that if you participate (the key word in social networking) you could see qualified traffic and sales for your business. If you honestly participate and provide value to others in the community people will look to you as an expert and when they are ready to make a purchase decision they will look to you.

Thanks for the feedback. I would counter that the key words are not social networking but rather “participation” and that’s something brands have not learned how to do. I hope others will add their thoughts, too.