women’s purchasing power

The Buying Power of the Power Moms

Buying Power of Power Moms

Moms Have Buying Power

Anyone who reads my blog on a regular basis knows that moms are the most coveted consumers in the U.S. market. Their buying power tops $2.4 trillion annually, and they control or influence 85 percent of all household purchases.

Maria Bailey has written a new book called Power Moms that delves into that power of moms. In her book, Bailey acknowledges that mom bloggers are powerful influencers. However, she notes that these bloggers are only a small fraction of the 83 million mothers in the U.S. Which means that marketers reaching out to mom bloggers are leaving a lot of moms untouched – about 70 percent of them to be exact.

Power Moms Have Influence

Power Moms (those influencers that align with a brand’s goals and marketing needs) can be reached by marketers both online and offline. Moms tend to build their sphere of influence around a personal passion – whether it be cooking, entrepreneurship or service to others. The challenge for marketers is to identify that group of moms that aligns with their particular brand’s goals and needs, and then to have the knowledge, awareness and ability to tap this powerful and lucrative market.

Marketers: Does your brand reach moms in a way that is relevant to them? And moms: Do you find that most brands engage with you in a way that makes you feel understood?

Embracing My Inner Hippie : A Woman’s Life Stages

Embracing My Inner Hippie - Flower Power If I continue at this pace, I might be a full-fledged flower child by 2014. It’s been a slow transition but a clear one: I’m turning hippie. I promise you won’t run into me in the grocery store barefoot, with my floppy suede hat and bell-bottoms. No, that’s not what I mean. What I do mean is that I’m beginning to embrace something that perhaps was there all along.

My 20s and 30s were a time of accumulation. High-end home stores and high-end shoe stores were my BFFs. I had more than I could possibly use or wear. But as I moved through my 40s something kind of wonderful happened –– my world and priorities shifted. I became more comfortable in my own skin and I needed far, FAR less to make me happy. I must say, I’m truly enjoying this chapter of my life.

What does all of this have to do with marketing to women? Simple. It’s about marketers understanding a woman’s life stages, instead of the stereotypes of her chronological age. It’s about effectively speaking to her based on where she’s at in her life, and not by the date of birth on her driver’s licence. The same marketing messages that are used for women in their 20s and 30s aren’t going to work for me. I need less, I want less. But I have the money to spend on what is important to me. So, marketers take heed: this hippie has a fat wallet and a new way of thinking.

Why VW’s Super Bowl Ad Struck A Cord With Moms

One of the most popular ads shown during last week’s Super Bowl was for the 2012 VW Passat. You know, the one with the child dressed up as Darth Vadar trying to use “The Force” while the Star Wars score plays.

This commercial tugged at the heartstrings of millions of parents whose children have run around their homes flailing their light sabers. I know, because I’m one of those parents. Once upon a time I had a son that age who wore the exact same costume — attemping the exact same thing. This commercial took me on a nostalgic journey back in time, and I’m grateful for that journey. Perhaps that’s why the ad instantly went viral; it mirrored a real life situation that most parents can connect with.

But it was also one of the few ads that resonated with a key consumer demographic: Moms. We all know that a large percentage of Super Bowl viewers are women, but this sporting spectacle has also become one of the biggest family events of the year — meaning many of those women are also moms.

Patty Minglin , a marketing consultant with M2M, recently pointed out several marketing-to-mom lessons marketers can learn from Volkswagen’s success:

Focus on Family. Yes, resonating with mom is a key component to any marketing-to-mom strategy, but if your brand can create a spot that resonates with mom, dad and kids — you’ve hit the marketing-to-mom trifecta. Developing a campaign with universal family appeal does more than just bring dads (and kids and even grandparents) into the conversation, it actually gives mom the opportunity to use your campaign as a way to connect with her own family.

Tell an Emotional Story. The VW ad resonates with moms because of the whimsical and heart-touching emotional story it tells, which resonates with mom consumers. Commercials like this allow women to view a brand as smart, savvy and family/mom-friendly.

Appeal to Shared Experiences. Not only do moms have shared parenting experiences, but they also have shared generational experiences — and there are moments when those two worlds collide. What mom hasn’t watched her own children run around in super hero costumes and princess crowns and not been reminded of her own childhood experience of pretending to be Luke Skywalker or Princess Leia? That is powerful messaging that transcends beyond parenthood.

Does all this really work? It appears to be working for Volkswagen. Even before the game the spot had gone viral with millions of YouTube views. It’s also ranked at the top of almost every Super Bowl ad review list, leaving Ryan Rudnansky, featured columnist for Bleacher Report, to state, “The ad is not only ingenious in setting up things for the car at the climax, but also strikes a nerve (or a funny bone) with the general public, something all great ads do.”

Marketing to Women: Not a Niche

Women Are Not a Niche Market

When will marketers finally get it? Recently I was speaking to a professional group and was introduced as a specialist in the marketing to women “niche.” I almost choked. Once again, my specialty has been referred to as niche. Really?

Women influence 85 percent of all consumer purchases, and represent over $7 trillion in purchasing power. This is a niche market?

Yes, our team has managed public relations and marketing programs for food and baby products, but we’ve also represented men’s grooming products, motorcycle and automotive manufacturers, fast food, an airline, a real estate firm, gaming, and a major university. Why? Because eventually it all comes back to women. Women who, yes, are often moms – but who frequently have responsibility for making major business decisions as well. Like buying computer servers. And health insurance. And financial services.

According to Tom Peters, one of the world’s top marketing gurus, women are the top marketing opportunity for the foreseeable future.

Women Hold Purchasing Power

For years, women have been recognized as the chief purchasing officers for their households, and they still are the primary decision makers for household goods. But women also drive the big-ticket expenditures for themselves, their families, and their businesses. For example, women drive the purchases of:

91 percent of new homes
66 percent of computers
92 percent of vacations
65 percent of new cars
89 percent of bank accounts
93 percent of food

All this influence at the same time that 91 percent of these women feel that advertisers don’t understand them.

59 percent of women feel misunderstood by food marketers
66 percent feel misunderstood by healthcare marketers
74 percent feel misunderstood by investment marketers
84 percent feel misunderstood by investment marketers

Source: Yankelovich Monitor

The Key to Marketing to Women

It’s a scientific truth that women and men see things differently – because their brains work differently. While men think in abstract principles and have great spatial acuity, women are more accessible emotionally and think more holistically. Translating that into a brand’s marketing messages is critical in reaching this key consumer.

Does your brand truly “get” women and how they relate to your marketing messages?

Where Is the Tooth Fairy When You Need Her?

Marketing Healthcare to Women I could say my life is full –– but that’s code for frenetically, overwhelmingly busy. Too busy to take care of me –– too busy to be healthy. It’s not that I don’t know what I need to do –– it’s finding the time to do it that’s the problem.

And that’s what brought me here. Last week I had the extremely unpleasant experience of getting my wisdom teeth yanked out of my mouth. I’ve known for years that I needed to address these teeth, but I was always too busy avoiding the inevitable. It was finally a salad and fork that ultimately dealt me this hand.

Whether I’m making healthcare decisions for myself or my family, I’m definitely the one making the decisions. Novocain or anesthesia? Remove one broken wisdom tooth or all of them? Dentist or oral surgeon? Vicodin or Ibuprofen?

I walked back to the Chair Of Doom and the oral surgeon, who injected me with the Propopol that sent me off to wonderland (hello, Michael Jackson). I elected to have my wisdom teeth surgically removed –– which means cutting the gums open and breaking the tooth into pieces and pulling the pieces out. I have to admit –– it hurt, but I was trying not to be a baby in front of my son who I’m sure will eventually have to face this as well.

As a marketing-to-women specialist, I understand the purchasing power of female consumers. And though women make 90% of all consumer healthcare decisions –– some $500 billion a year -–– we are still considered a niche market in the healthcare category. In other words, marketing healthcare to women isn’t a priority for many brands.

What do women want from their healthcare providers? For starters, prescriptions that can be sent electronically to the pharmacy from the doctor’s office. Doctors that can provide resources for answers to a patient’s questions before their appointment. In general –– the same customer attention they demand from other consumer products and services. Now more than ever, healthcare marketers need to understand that women want resources they can trust, and should be looking to create lifetime relationships with these important consumers.

Do you feel your providers are marketing healthcare to you?

The Recession Will Be Over When Moms Say It’s Over

Marketing to Moms During the Recession

Though Warren Buffet recently ruled out a double-dip recession in the U.S., ultimately it’s our country’s moms who will decide when the economy starts showing real signs of recovery.

75 million U.S. moms make or influence 85 percent of all household purchase decisions, representing $2.1 trillion in annual spending power. Brands are counting on American mothers to help them survive the current economic slump, but getting moms to unleash their “purse power” continues to be a struggle.

With up to 45 percent of moms insisting they have “eliminated anything they don’t feel is absolutely necessary from their lives,” and another 29 percent having found ways to cut back on spending in response to the current economic climate, moms are putting brands, products and services under tighter scrutiny than ever before, and making sure every dollar is spent wisely.

According to a BSM Media Study, moms focus on the needs of their families first, and then look for the smaller luxuries they can afford for themselves. Instead of a new pair of boots, in this economy it might be a new magazine or lipgloss. And while nesting was a social issue in the days following 9/11, today it’s an economic one, with 81 percent of moms cutting back on eating out, and 72 percent reducing their out-of-house entertainment altogether, according to a recent USA Today/Gallup Poll.

What does this mean for marketers? It means that moms are interacting with their favorite brands in new ways – like Starbucks on a weekly instead of a daily basis, or Costco pizza instead of Friday night delivery. Experts believe this state-of-mind will continue even after the recession is over for many American families.

Moms have always been more brand loyal than men, but they require more frequent interaction and communications designed specifically for them. Marketers need to make the extra effort to build relationships with their female consumers, whether it’s through social media, influencer recommendations or customer appreciation. They need to start marketing with moms, not at them.

Are moms still loyal to your brand through these economic times?

Does “Mancession” Mean Women Will Lead the Recovery?

Mancession

Is Consumer Spending by Women Driving the Economic Recovery?

The 2007-2008 recession has hit men so much harder than women that it has even coined a new phrase: the Mancession, according to a recent Newsweek article.

Men are the victims of two thirds of the 11 million jobs lost since the recession began, primarily because they work in industries like construction and manufacturing that were most severely impacted by the recession. According to economists, they also will face a much more difficult road to recovery than their female counterparts.

American women already are the breadwinners or co-breadwinners in two thirds of their households, and it is predicted that by 2024, the average woman in America will make more money than the average man.

The Nuts and Bolts of Women Consumer Spending

American women are responsible for 85 percent of all consumer purchases; they hold 93 percent of U.S. bank accounts, 51 percent of all personal wealth, and are worth more than $7 trillion in consumer spending power—more than the entire economy of Japan. On a global level, women are the biggest emerging market in the history of the planet—more than twice the size of India and China combined. It’s a seismic change, and by all indications it will continue: of the 15 job categories expected to grow the most in the next decade, all but two are filled primarily by women.

Such a drastic shift hopefully will result in corporations sitting up and taking notice—and ensuring their products and services appeal to female consumers. Brands need to pay close attention to how they’re marketing to women, because ultimately it may be the female consumer that pulls us all out of this “mancession.”

Why Would Brands Ignore These Women?

Boomer Women Examples

Why Do Brands Ignore Baby Boomer Women?

The other night I got together with several of my friends for an evening of girltalk. One friend is a mom and business owner who recently bought a new car. Another is an empty-nester who just purchased a refrigerator and dryer. A third is a recently-divorced healthcare industry executive who just bought health insurance for herself and her daughter. And finally there’s me: the CEO of a marketing company who last month purchased new office equipment and a widescreen TV. All of these purchases were made by Boomer women, without input from a spouse or significant other.

Because I’m a Boomer woman and specialize in the marketing-to-women space, I’m particularly conscious of how I’m treated by brands. And while I am of a certain age, I’m certainly not ready to be stored in the attic. And neither are my friends. Yet, as Boomer women we’re continually marginalized by brand managers (primarily male) who don’t think any women of value exist over the age of 39.

What they must realize is that those inconsequential 45+ women are the ones that have the most money to spend on everything from vacations, to new homes, and from cars to cosmetics. Some interesting statistics on the purchasing power of Boomer women:

Boomer women buy 65 percent of new cars, and 53 percent of used cars
Boomer women spend more than $55 billion per year on consumer electronics
Boomer women control a net worth of $19 trillion and own more than 3/4 of this country’s financial wealth
Disposable incomes are highest for women aged 45-54
Boomer women are at the peak of their careers, and statistically are the least impacted by the recession

In addition, this group of women will experience the largest population growth over the next 10 years, and the largest transference of wealth from inheritances left by parents and husbands. Yet rarely if ever does one see a marketer’s target audience that extends beyond the age of 49 unless it’s for the senior market. Why?

Marketers Cannot Continue to Ignore Boomer Women

Marketers and the media need to finally realize that the women most ignored are the ones who can do the most good in an economy that continues to struggle. The time of patronizing ads and ignorance is long gone.

Does your brand ignore the largest and fastest-growing spending segment of women? Or are you one of those women that are being ignored?

The Lies Women Tell

A few posts back I touched briefly on how the book What She’s Not Telling You highlights an interesting behavior by the female consumer –– the habit of telling the “half truth” vs. the “whole truth.” Understanding this concept is so important to marketers that I decided to revisit.

Buying into a woman’s “half truth” can cost marketers billions of wasted dollars; not just in concept development and market research, but in the marketplace where it really matters. A half truth is what a woman is willing to admit, while the whole truth is what she really believes, does and buys. For example:

“I am happy with my looks” (half truth); “If given a choice, I’d like to look better than I do” (whole truth).

An example of how a half truth can negatively affected a brand is Dove’s “Campaign for Real Beauty.” This campaign broke the rules of the beauty business by putting less-than-perfect women in their plain white undies all over billboards, the media and the Internet. Talk shows went crazy and Dove was hailed as the brand that “gets it”. The PR value of the Real Beauty campaign was unparalleled. But soon after, Dove’s sales slowed and eventually flatlined. Why? Because Dove fell for the half truth that women want to feel good about their natural looks. But the whole truth is that women really want to look better than they do, which is why they spend $7 billion annually trying.

On the flip side, Procter & Gamble’s Oil of Olay identified this whole truth: “Just because I’ve earned these facial lines doesn’t mean I want to wear them,” and marketed their Pro-Age Regenerist product based on the whole truth that women want beauty products that really work. They marketed Regenerist as an alternative to invasive cosmetic surgery, and the launch became the biggest skin care launch in the mass market.

Are you identifying the whole truth when marketing to women consumers? What half truths have you told a brand?

Women’s Word of Mouth – A Marketer’s Dream

Word of Mouth Marketing

It’s well-known that women control more than 85 percent of consumer household spending. They dominate the marketplace when it comes to referring products and services to their social networks via word of mouth. Ask any woman how she found her hairdresser, doctor, or favorite wine, and she is likely to tell you that it was from a friend. Women are natural word of mouth spreaders –– they’re wired that way. With four times as many connectors between the left and right hemispheres of the brain as men, women tap deeply into that area that is responsible for bonding and connecting with others.

However, there are subtle differences in how marketers should present information when marketing to women influencers if they want them to pass recommendations along to their friends. Marketers need to enable a woman’s ability to spread the word about their brands. They shouldn’t tell women what to offer or what to say – they need to let women create their own offers or pitch themselves. Women are very protective of their relationships, and if a brand impresses them enough to make them want to tell their friends, women will find a much better way to spread the word than a marketer ever could.

So ask them about their lives. Ask for their opinions. Touch them personally. It doesn’t have to be fancy – just something to get their attention and touch their hearts.

Image from here

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