Demographics, everyone is trying to understand it. Marketers use demographics to explain who their audience is and why their customers buy what they buy. Typically those demographics are Gen X, Gen Y, Baby Boomers, and the traditional 18-24, 25-34 age demographics, etc., but really this type of targeting is just the tip of the iceberg.
There are two demographics that will have more influence on your bottom line than you will ever know, and they don’t fit as well into the traditional categories. These two demographics are about lifestyle and mindset, and your choices reflect a state of mind, rather than a predefined cluster analysis.
Alexa, Google, and Facebook are great at giving you broad generalizations about your audience, but they can’t explain what drives this audience. Not all educated women ages 25 to 34 with children are the same. Even Neilson, Forrester, and Ipsos can’t give you an idea of who is buying your product or browsing your site.
It is not your fault; the digital world gives people the opportunity to explore their world in a whole new way. Once upon a time, in the not-too-distant past, demographic groups were exposed only to what was immediately available in the bookstore, library, on television, in newspapers, and what was exposed by friends, family, and in their homes. travels. The information was available in small bites, when the moment allowed them to be exposed.
In our new digital world, we receive information 24 hours a day. The bites a person takes can be overwhelming; the information can be searched and sent to whoever is looking. The exhibition allows consumers to expand their options, refine their interests, and delve into new interests with a click of the mouse.
So who are these two groups that you need to know about? LOHAS and ZOOMERS. WHO? I repeat, LOHAS and ZOOMERS, and no, I did not make up these terms. I have had the opportunity to pitch a new business several times to the Angels, VC and judges. The only question after each release; Who are LOHAS and Zoomers? Audiences are sure that I have created two new demographics out of thin air for business purpose.
I have not done it! LOHAS and ZOOMERS are two demographics to watch out for. It is a way of life.
So who are they? What are they about? LOHAS and ZOOMERS have a mindset, they cannot be grouped into traditional demographic groups, they are unique, and sometimes intersect in each other’s demographic subset.
YOU HAVE – Health and sustainability lifestylesSay that three times fast. So here is a bit of information about them; They make up about 13-19% of the US population, for those who don’t want to do the math, between 41 and 60 million Americans, and growing about 10% per year. The LOHAS age demographic For traditionalists, anyone over the age of 18 can fit into the LOHAS category.
LOHAS is all about health and sustainability, yours, your local community, and the global community. LOHAS cares about social justice, personal development, sustainable living, and cultural awareness. LOHAS.com is a great site that will give you an idea of the market figures.
Here is a brief overview of the LOHAS market; These numbers are available through the Natural Marketing Institute, at LOHAS.com, to name a few.
LOHAS Personal Health Marketplace – this is your HBA category. Startups are often targeting 1% of a market (not necessarily the right way to go when looking at a market), that said; this category is estimated at approximately US $ 117,000 million.
LOHAS natural lifestyle – this category is essentially home accessories and clothing, approximately US $ 10 billion. I attribute this to the simple fact that natural lifestyle options do not yet exist in droves. Bamboo, hemp, and natural dies just don’t seem profitable enough for most small or large companies to take on the market. For those who are trying to address these markets, the supply chain is too small and the economy is simply not sustainable enough to justify the venture.
Ecological building LOHAS – Pretty self-explanatory category, from Energy Star appliances, bamboo flooring to energy efficient home certification. As an HBA, this is a huge market, over $ 100 billion. The green, sustainable trend is driven by a number of factors, but that’s an article for another day. As the price of energy rises and people look for ways to lower the cost of running their homes, this category will only increase.
Worldwide, the price of electricity, energy in general, is increasing; demand is exceeded by supply, which is why voltage drops are taking place in cities around the world. This category is growing and the opportunity is huge. LOHAS is concerned and they know they can make an impact if the opportunity is available.
Alternative energy LOHAS Y Alternative transportation – two categories, just like the green buildings category is driven by the need to limit the impact on the environment. Of course, as reports of rising energy prices, declining water supplies, and rising global temperatures, LOHAS will continue to do its part, to make an incremental impact, to compensate those who don’t.
LOHAS is a mindset and demographic that should not be ignored.
There is one final category that must be examined, this industry is a monster. It is wide and segmented; each segment is codependent on the other, travel and tourism. The World Tourism Organization pegged the global travel market in 2010 at € 781 billion, which translates to roughly, you may want to sit down for conversion; approximately US $ 1.1 trillion in 2010.
Eco tourism and travel LOHAS – This category covers everything from biking through the Napa Valley or France, to cultural immersion, volunteer trips, and adventure travel. For the LOHAS segment, this is approximately US $ 42 billion, and I must mention that the adventure travel market is the fastest growing segment of the travel market.
The message … ignore LOHAS at your own risk.
I’ve talked about the LOHAS, what about the ZOOMERS? Aahhh, what a fabulous segment, they are smart, they are curious, they are in almost everything and they have the money.
We all understand boomers, born after World War II (1946-1964), or so we think. We make many assumptions that could lead us in the wrong direction.
Mistake # 1 – All boomers fall into the same demographic and mindset. Much of the media coverage and advertising tells us that boomers are beginning to retire; the images sent are of gray-haired couples riding bicycles, reading a newspaper and sitting quietly to drink their coffee.
For those under 35, when they hear “Boomer,” the first thing they think of is the Boomer from the TV show “Saved by the Bell”; his next thought is his grandparents.
Mistake # 2 Boomers are often classified as the demographic that isn’t that smart with a smartphone, isn’t that good with a computer, and doesn’t really understand the internet. Be careful not to fall into this trap.
Mistake # 3 – Assuming all boomers are retiring; Remember that 1964 was not that long ago, and this group is not yet 50 years old, and it certainly will not be retiring anytime soon. If they have retired it is because they can, and it is more likely to be a hiatus before their next big adventure in the world of work. They’ve worked hard, invested well, and can afford to take time out.
Boomers make up 65% of the net worth of Canada and the US.. I have not looked at the figures, but I am pretty sure that this is also a reasonable estimate in Europe.
My parents are “Boomers”, I promise you, if you made even one of the 3 mistakes above, you will not have captured my parents in your target audience. They are in their 60s, they have their iPhones and Blackberries, they are serial entrepreneurs, and they certainly do not understand the sweet gray couple that appears in the media.
So who are my parents? They are ZOOMERS. Who? ZOOMERS! No, I did not invent the term, it is real, it is defined and the ZOOMERS must be understood.
Zoomers are a subsegment of boomers that very few are talking about. I love this quote, I came across it when I was trying to understand the Zoomers, it is a perfect description, and credit must go to John A. Cutter in the St. Petersburg Times. Zoomers are a
“Boundless Baby Boomer who sees retirement as the fast track to a more energetic new life, characterized by a healthy life, a high level of physical activity, a pursuit of more education, and possessing technological and financial knowledge.”
In Canada, Zoomers represent 44% of the population (14.5 million) and control more than 77% of all Canadian wealth. This is roughly the same statistic in the United States.
We have websites (zoomer.ca), magazines (zoomermag.com) and radio stations (zoomerradio.ca) dedicated to Zoomers.
Zoom users are smart, crafty, and many are tech addicts. They are enterprising, they are adventurers, and they are not in favor of the boring and the mundane. Don’t call them Mr. or Mrs., they are not old enough for that. Don’t assume they want to go to bingo or an older adult’s trip to the casino. They are certainly not seniors and are embarrassed at the idea of using a senior discount.
Zoomers are likely to be the neighbors on the street throwing a loud party on a Friday or Saturday night. If you go on a trip, Zoomers are as likely to climb Kilimanjaro as 30.
For Zoomers, 60 is the new 40! I promise you, no 40-year-old man wants to be considered a senior.
Zoomers are certainly not old enough to be shut out of life and they don’t want to be sold on senior trips, senior packages, and a senior lifestyle.