Don't let big salaries change you...But let it change your marketing strategy
I've been thinking a lot lately about how my consumer behavior has changed (and not changed) as a result of my rising income level over the years.
Recently, I've been consulting an agency on a marketing segmentation strategy and subsequent outbound campaigns. In the initial testing, we just weren't getting the response rates I wanted before I was willing to call the test a success and move into full deployment.
It was all about the money
Then, going back to the response data, I remembered the company had appended a vast majority of customer records with basic demographics from Experian. So, I decided to look at the results by income level.
Sure, enough, the more affluent the target got, the lower his/her response rate was. So I went back to the creative and it was embarrassingly obvious what was wrong: The messaging and promotion focused on price alone.
Sure enough, a minor tweak of the creative for the more affluent recipients immediately yielded higher results.
So I began thinking about my income ebb and flow over the years and tried to discover how it changed my behavior. I've always seen myself as a cheapskate, regardless of my affluence. Have I let my rising wages affect me over the years?
The answer is yes. But not in the ways you may think. As a marketer, its important to understand those motivations because it will drive the messaging and offer strategy for your income segments.
So many marketers ignore income level in their segmentation strategy. Big mistake!
I remember back in 2004 the first time I got a raise that pushed me into six figures. My wife and I went to dinner to celebrate, and we joked that despite our rapidly rising income over the years, we hadn't changed the kinds of cars we bought, the kinds of clothes we wore, and the places we ate. We almost didn't know how to splurge and we decided money would never change that. And for the most part, our outlook didn't change as income continued to rise.
I've certainly not yet reached what I consider true "wealth." But regardless how the wages increased, bonuses grew and stock options expanded, we changed little about the big things in our life.
However, we have become much pickier, and far more concerned about value over price.
Years and income changes later, that's still the case.
The messaging I came up with for the aforementioned marketing campaign for the affluent segments took the offer's focus away from price and promotion and put the emphasis on the value the service brings through simplifying life and offering better results.
Sure enough, results spiked.
Don't assume there's one right answer
Now, that message worked in this case, but it's in large part due to the service offered and the message matching that value proposition to higher affluence levels.
But that message may not always work.
I have plenty of friends whose personalities haven't changed as they've earned more money. Some remain impulsive in their buying, and spend all they earn whether it's $100K a year or $300K. They certainly aren't as likely to respond to value-based messages. Others see the five or six-figure bonus for the first time and go out and spend half of it. People respond differently to the same impetus.
So now I'm talking in circles, but the point I want to make is this: Don't forget income level as a segmentation strategy in your marketing. Tailor your message by earning level and match it to the product or service. Test, test, test. Make sure your messaging strategy isn't missing the mark with your most important income segments.
Recently, I've been consulting an agency on a marketing segmentation strategy and subsequent outbound campaigns. In the initial testing, we just weren't getting the response rates I wanted before I was willing to call the test a success and move into full deployment.
It was all about the money
Then, going back to the response data, I remembered the company had appended a vast majority of customer records with basic demographics from Experian. So, I decided to look at the results by income level.
Sure, enough, the more affluent the target got, the lower his/her response rate was. So I went back to the creative and it was embarrassingly obvious what was wrong: The messaging and promotion focused on price alone.
Sure enough, a minor tweak of the creative for the more affluent recipients immediately yielded higher results.
So I began thinking about my income ebb and flow over the years and tried to discover how it changed my behavior. I've always seen myself as a cheapskate, regardless of my affluence. Have I let my rising wages affect me over the years?
The answer is yes. But not in the ways you may think. As a marketer, its important to understand those motivations because it will drive the messaging and offer strategy for your income segments.
So many marketers ignore income level in their segmentation strategy. Big mistake!
I remember back in 2004 the first time I got a raise that pushed me into six figures. My wife and I went to dinner to celebrate, and we joked that despite our rapidly rising income over the years, we hadn't changed the kinds of cars we bought, the kinds of clothes we wore, and the places we ate. We almost didn't know how to splurge and we decided money would never change that. And for the most part, our outlook didn't change as income continued to rise.
I've certainly not yet reached what I consider true "wealth." But regardless how the wages increased, bonuses grew and stock options expanded, we changed little about the big things in our life.
However, we have become much pickier, and far more concerned about value over price.
Years and income changes later, that's still the case.
The messaging I came up with for the aforementioned marketing campaign for the affluent segments took the offer's focus away from price and promotion and put the emphasis on the value the service brings through simplifying life and offering better results.
Sure enough, results spiked.
Don't assume there's one right answer
Now, that message worked in this case, but it's in large part due to the service offered and the message matching that value proposition to higher affluence levels.
But that message may not always work.
I have plenty of friends whose personalities haven't changed as they've earned more money. Some remain impulsive in their buying, and spend all they earn whether it's $100K a year or $300K. They certainly aren't as likely to respond to value-based messages. Others see the five or six-figure bonus for the first time and go out and spend half of it. People respond differently to the same impetus.
So now I'm talking in circles, but the point I want to make is this: Don't forget income level as a segmentation strategy in your marketing. Tailor your message by earning level and match it to the product or service. Test, test, test. Make sure your messaging strategy isn't missing the mark with your most important income segments.