The problem with big numbers is that they are big. My focus has always been toward the MICRO side of economics rather than the macro. Market research taught me to stay focused on the individual aggregation of numbers and when the subject of standard deviation is raised, it is always a deviation from a point.

Macro thinking lumps like people together in large groups. If they are in a group, they must act the same and as a result myths are born out of the generalizations created by the formation of groups.

For marketers, the biggest trap a CMO can step into is lumping what we believe are like people together. It’s conventional wisdom. Throughout my career, I have watched generalization flourish BECAUSE IT’S EASY.

I LOVE FIGHTING CONVENTIONAL WISDOM and when I read a recent study by the AARP published by the Associated Press I knew they had hit a sweet spot for me. Conventional wisdom suggests that baby boomers are self-centered, technology-challenged, affluent and retiring early. The AARP research dispels four myths:

• Boomers are the “Me Generation.” In reality, 70% feel a responsibility to make the world a better place, sort of like we felt back in the 60s. Fifty-seven percent try to buy from companies that give back to their communities and 24% recently volunteered for a charitable cause.
  
  
• Boomers can’t handle technology. Eighty-two percent use the Internet for financial transactions, gaming and downloading music. Seventeen million own an MP3 Player and 29 million own a digital video recorder.
  
  
• Boomers are wealthy. While this is the wealthiest generation in history, only 9% are truly affluent. Twenty-five percent have no savings accounts or investments outside of their homes and almost 40% have no life insurance.
  
  Boomers are retiring early. Actually, only 11% plan to stop working when they reach retirement age and many already
• have second careers.
  
  

So far, we’ve just focused on Boomers. What about everyone else? How are all the other “generations” being stereotyped? Kids are lazy. Soccer moms drive SUVs, and the list goes on.

Our new wisdom is the Sixth Star strategy. It’s not about WHO your customers are. It’s WHAT they do, and WHEN they do it. Even this statement needs to be more micro. It’s what they do and when they do it with specific reference to your brand and your category.

Effective use of the Sixth Star strategy requires the following:

1. Purge stereotyping out of your thinking. It does not matter whether your customer is old or young, Caucasian or Hispanic, has an MBA or a GED, etc. It’s their dynamic buying pattern of your brand that is the critical dynamic.
   
   
2. Have a database of customers that is more than a notepad of names and addresses and transaction details. Get specific. Turn your database from a billing tool to a marketing tool.
   
   
3. Stop focusing on what happened yesterday and begin to understand the underlying purchasing trends – and more importantly, stay focused on targeting opportunities. Organic growth begins by being able to generate new business from existing customers.
   
   
4. Do not remain static. Understand that all the new technologies can be driving demand for your product away. A few weeks ago, I urged you to stay focused on you customers. I’m doing it again but from a different perspective. Changing your core business will not save your brand in a time of chaos. Changing how you stay focused on your customers will save your brand.
   
   

It’s the second quarter and the clock is ticking. It’s spring and that means you should be thinking about “spring cleaning.” Make it a priority to clean up your database. If it’s full of garbage, clean it up. If it is incomplete, fill it in. Without solid data about your customers, the Sixth Star strategy won’t work and it’s back to stereotyping.

Bring in lunch. You’ve got work to do.

P. S. Last week James Ramey from BHI wrote:

You make some very good points in this AH-ha! that would on their own make for excellent future editions. INSTANT ANXIETY is a much bigger issue then just at the pump. Consumers are feeling anxiety every time they open their wallets. As such, marketing messages (already battling to be heard above the noise) is further deteriorated by the fact that consumers aren't listening. The Sixth Star is critical in that companies with meaningful customer relationships will be the best suited to survive. STAGFLATION is also a bigger issue in that the economy appears as though it will continue to worsen. As such, consumers will begin to make more serious and more permanent economic adjustments to their otherwise reducing budgets. The Sixth Star is critical in that companies that deliver on their value proposition (product, service, and support) stand the best chance to retain their customers in a down economy. DECREASE IN DISPOSABLE INCOME is also a much bigger issue then companies realize. Never before have companies had to face the reality that the current generation may not be better off then its predecessors. THINK ABOUT THAT! Many markets have been built on the notion that because people have more money they will pay more for the convenience, service, and brand recognition that comes with owning particular products. When you take away this assumption, you are left with a reality that would indicate that much of marketing has failed to do its job in creating and building customer advocates. The blurry line between product promotion and true marketing becomes clearly evident when the economy becomes a decisive factor. The Sixth Star is critical in taking a more well rounded approach to marketing