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WHO ARE THE AFFLUENT?

Representing 20% of all households in the United States; Affluent households, those earning in excess of 100k annually, account for almost 60% of the total household income nationwide.  That’s 60% of the total 2008 household income of 8 trillion dollars!

WHY DOES IT MATTER?

No doubt this consumer segment represents a significant amount of all disposable income.  And while the numbers might catch our attention, what matters most has nothing to do with the dollars.  For those affinity brands positioned in the ‘product & services’ market space, affluent consumers are by far their greatest prospects.  Not just because of their disposable cash, but because of their lifestyle, tendencies, and habits.  Affluence matters most because of what we know about the profile of this consumer category.

THE BASICS

• Average Household income in this segment exceeds 195,000.00 in 2008
  
•  Liquid assets averaged in excess of 500,000.00
• Average age is 48.4
• 2/3rds achieved college degree or higher
• 91% are married
• 97% own their residence

BUT DID YOU KNOW

• Almost 50% of their disposable income is spent on household items, travel, and apparel
• They spend more annually on personal insurance than electronics
• Over 80% visited Home Depot or Lowe’s in 2008
• Over 80% shopped at Wal-Mart in 2008
• Search engine of choice is Google
• High readership of People, Time, Nat Geo, SI, & Newsweek magazines

This savvy consumer segment also ranks in the highest category for technology use.  Over 97% are connected to the web (both home and mobile).  This is also the highest consumer segment for online purchases, purchasing everything from airline tickets to home appliances.  Want to talk to this group?  I would be thinking technology…

So whether your affinity brand represents the latest must-have gadget, or fund-raises for the most worthy causes, this is a market segment you need to know about… and there’s much to know.

Few things are more disturbing than knowing someone out there is struggling to remember your name, the name of your product, or your company.  Think about how often you try to recall the name of a person, product, or event, to no avail.  For most of us this is a daily occurrence: while you remember the commercial last night on ‘House’, you cannot, with certainty, recall the product being promoted.  This is a common reality anymore due to the artistic drive of most creative efforts in advertising.  For many the desire to win awards is often greater than the challenge for  marketing excellence.  That is the where the messenger takes center stage and the message is lost.

ENDANGERED SPECIES

All brands periodically face the realization they could face extinction.  These feelings are usually accompanied with anxiety and an overwhelming sense of lack of control. I’m writing this because of today’s economic climate. Few could have predicted the current crisis facing so many fortune 500 companies.  Could any of the big 3 US automakers actually cease to exist by this time next year?  You better believe it. Change is inevitable and a direct attribute of a free market.  Just ask Tiger, who is loosing his multi-million dollar endorsement contract with GM. (i.e. the messenger overshadowed the message?)  Sure, it appears to be about cost cut-backs, but market correction is about more than just dollars.  It’s about finding new ways to accomplish results.  It’s what I call ‘brand obligation’.  What worked before will not be sustainable.

RESHAPING IS IN-VOGUE

Many of the affinity brands we represent desire to reshape their products and services during these uncertain times, and rightly so.  But more importantly, it’s also a good time to reintroduce yourself to the world.  Especially if changes and improvements to your products and services have been an outcome of these difficult times.  Reshaping seems to be in-vogue.  Consumers are paying close attention to the market corrections underway.   Case in point?  Chevrolet introduces the Chevy Volt.  (not due until 2010 or 2011 - yet very relevant)

RELEVANCE IN THE MARKETPLACE

Reshaping, as a result of relevance is what is in-vogue.  Now would be a good time to take the advantage and say, “hey world, here we are, over here!”.  And then give them a reason to care - and remember your name, again.

JUST LIKE BEST FRIENDS

Three simple words that best sum up all that we do.  None can be omitted without a significant detriment to the others.  It’s very logical and easy to identify which comes first, and which comes last, thus leaving only one for the middle.  But all three are in constant motion, lifting the others to greater heights.  Like three best friends working together.

Capable of beginning with any of the three, but always following form, function, and motion for predictable results.

Simple, yes.  Complex, yes.  Brilliant, yes.

(Some days we just need to be reminded. Today was one of those days.)