Generation X - the generation between the Baby Boomers and the Millenials - are often overlooked by marketers. This group (born between 1965 and 1984) actually have incredible purchasing power behind them and could represent a lucrative market for your business. While small, this forgotten generation is ready-to-spend and may have more money than the younger Millennial generation. So what is so special about Generation X and why should your business be carefully considering them as a niche target market?
1. Generation Xers have an appetite for risk
This generation is made up of people who are in the prime of their careers, with greater earning and decision-making power. This presents an important opportunity for brands who might want to engage. It is interesting to see that Generation Xers invest more in cryptocurrency than Generation Z (born -1997 - 2012) and Millenials (born 1981 - 1996), probably because they have more spare cash as a result of their maturity and age. This also shows that Generation Xers have a better appetite for risk and will exercise this in light of the higher reward it could result in.
2. Generation Xers have better financial security
This generation was raised with the understanding that being successful meant putting in the hours and working hard. Many have built up a strong financial nest egg and will be willing to invest this in the right place. Post-Covid, this generation is now more willing to spend some of these savings on things that enrich their lives. This might be in the form of subscriptions, better audio-visual equipment or more travel, for example. These smaller purchases don’t threaten their overall security but will improve their lives day-to-day, and so are highly attractive.
Further to this, this generation is still working so they can invest in things like travel, while still knowing that their income is renewable. Bear in mind though, that while this generation is willing to spend, they want to make sure that they get value in return. This means that they will spend a lot of time doing research, comparing options and pricing and making sure that whatever they invest in will bring maximum reward.
3. Generation Xers are more playful
This generation has had the joint experience of living in both the real and digital world. They remember what it was like to only play with physical toys, but also remember their first Gameboy. In this sense, they have a better understanding of how the digital world shapes today’s generation and so digital marketers can communicate with this generation far easier than they might with Baby Boomers for example.
4. Generation Xers favour connection and experiential choices
Businesses engaging with this generation should bear in mind that Generation Xers want connection and a good customer experience. This needs to be personalised and authentic, otherwise, they won’t engage. Here marketers really need to do their homework on their customer base and ensure that all communication is tailored to the customer, that they are not spammed with hit-or-miss advertising and that all communication is carefully tailored to the customer’s specific needs.
The bottom line
Businesses need to be very aware that people born in different years will be raised differently and so will have vastly different needs when it comes to marketing. Generation X is often overlooked as a lucrative market, but here you can see that not only is this an oversight but that this generation actually holds an important opportunity for businesses which are able to plug in and service this highly engaged, hungry market.