Reaching Canada's Affluent: Five Things Every Marketer Needs to Know for Building Successful Strategies
With high disposable incomes and spending power, Canada's Affluent and Emerging Affluent represent an enormous opportunity for businesses to promote and sell their products and services.
But what do we really know about them - their lifestyles, the things they value, what they expect and how they spend their time and money? From improving your customer service and brand perception, to tapping into new markets for your products and services, this information can provide opportunities for you to grow your business. And understanding is the key to success.
In December 2012, we conducted surveys with 2000 Affluent Canadians, defined as having a household income of at least $150,000 or household financial assets of at least $100,000. The sample also included 200 millionaire households.
What did we uncover? A lot! The information is very detailed and drills down into numerous sectors of the economy to give you a peek at some of the high level learnings from the study.
Five Factors for Successful Marketing
Overall, the most important thing to understand about Canadian Affluents, which is true of any market segment, is their core values. And if you are looking to target Canada's most affluent customers, here are five things that you should know:
Savvy Shoppers
While the affluent have higher discretionary incomes, one thing is apparent: price and value matter! Canada's Affluent are both price and value conscious. And they are very wise with their dollars. The vast majority (94%) say that price or staying within a budget is an important factor in determining where they shop.
Likely rooted in their upbringings or mindful of their future - many being Baby Boomers - these are people who have always understood the value a dollar. They have worked hard for their money, made shrewd investments and managed their budgets carefully. However, many also felt the effects of the 2008 financial crisis, and in these post-recession days, they continue to look for value for their dollar.
Driven by Experience
There is a long-standing myth that the affluent are materialistic and motivated by acquiring possessions. But in reality, Canada's Affluent are much more driven by experiences, and not so much by money or owning `things'.
For today's affluent, it is experience that matters. They are looking for unique and special experiences to enrich their lives. Lifestyle trumps possessions and enjoying that lifestyle means something altogether different.
While they may be price or value conscious about day-to day shopping, they are willing to pay more for `memorable experiences'. For over two-thirds of Canada's Affluent this is true: 68% would rather have a special experience than buy something; 66% choose their travel based on the unique experience it will provide.
For marketers, that means creating unique and memorable experiences that stand out and make the consumer feel special. This presents an opportunity for companies to deliver a special service and, this is likely to foster greater loyalty. Personalization should be a priority for companies wanting to connect with and develop loyalty with the affluent customer and so the challenge is to market to individuals - their needs, their desires, their expectations.
Quality Goods in Store
When the affluent make their purchases, they want and they expect them to be of high quality. A vast majority (93%) say that high quality products play an important role in determining where they shop. In their minds, purchases should be worth the price and worth the effort. With discerning tastes and an appreciation for the power of a dollar, once again, it all circles back to value.
Smart Shoppers
Canada's Affluent are smart and savvy shoppers. They simply don't rush out and make a purchase. They actively seek out and research what they want and make informed decisions. Certainly, the influence and opinions of friends and family play a role in their purchase decisions, but more and more of Canada's Affluent are relying on the internet to help inform their decisions. Once online, they read articles, scan reviews from other customers and users, examine consumer reports and seek out expert recommendations before making the decision to purchase.
This has implications for marketers. First you need to be online and provide easy to access information about your products and services, and then you need to ensure that your brand delivers on its promise - because with the ubiquity of the internet and the prevalence of social media, there are many people willing to share their experiences with a brand - good and bad!
The Option of Autonomy
Canada's Affluent demonstrate their purchasing power in the way they shop. Most importantly, they want to know about all of the options that are available and they want the autonomy to make their own decisions - 92% like to have all the options and make their own decisions. As smart shoppers who do their research, when they arrive at your point of sale, they already know what they want, what they will pay and what they expect it to deliver. And if you can't meet those needs, they will find someone who can.
Concluding Thoughts
Today's affluent are not the affluent of the past. Technology and a shift in values have combined to make a new reality - while Canada's Affluent still enjoy the finer things in life, they take the time to make informed decisions, they put a high emphasis on quality, value and experience and respond to marketing that appeals to who they are as an individual, not what demographic they fit into. The challenge for today's marketer then, is to understand how these new values and the power of technology can be better understood to make wiser, more strategic marketing decisions.
