Archive for household income
What Makes You… You?
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I’ve been working on this post for quite some time. It’s purely conceptual in nature and I’m unsure of where it will go or even what it means to a degree. It’s just something that’s been mulling around in my brain for a while and I’m trying to figure out if it’s valid or valuable or if I should just move on.
My wife who is my de facto editor for most of my posts said that while she liked the general gist of this post that it seemed pompous. Great, so I’m an asshole. Well hopefully you won’t see this post as pompous but reflect on yourselves and what makes you… well you. Hopefully, you’re not an asshole.
“Human DNA consists of about 3 billion bases, and more than 99 percent of those bases are the same in all people. The order, or sequence, of these bases determines the information available for building and maintaining an organism, similar to the way in which letters of the alphabet appear in a certain order to form words and sentences.”
So where does culture fit into the mix of your DNA? Is there such a thing as cultural DNA? If you google cultural DNA there are several views of what it might be. There doesn’t seem to be any real consensus and it’s a term that seems to be applied to a myriad of things from corporate culture to the content of one’s character and more. I’d like to apply this term to people as individuals and how you’re “defined” as it relates to marketing, advertising, brand choice and purchasing decisions.
In the marketing universe typically we bucket consumers. And we bucket them as simply as possible to ensure that we reach the greatest number of people. Age, Gender, Race, Geography, Household Income. Occasionally we’ll create custom segmentations and create fancy names for those segmentations and it’s all very clever and smart. We’ll do focus groups and ethnographies in the interest of getting to know “you”.
But what really makes you… you?
I like to think of consumers as a little bit more complex.
If you think about it everyone has what I’d like to think of as cultural DNA. It’s the what makes you… you.
I’ll use myself as an example.
I myself would say that I’m defined by at least 20 different cultures/sub-cultures/communities built up throughout my exposure to a variety of people and experiences throughout my life. This would include, Black culture specifically as it relates to the Civil Rights movement, Beat Generation writers, 60s drug culture, 80s preppy culture, 80s punk culture, early action sports culture, traditional sports culture, feminist culture, Italian-American culture, gay culture, Higher Ed Academia, NYC prep-school culture (yes it’s a culture) and so on. Then you throw in things like birth order and family legacy and things get even more complicated.
Put another way one way you could define a part of me is by my design sensibilities. I would say that I’m more “Dwell” then “Architectural Digest”. If I were to try and understand why I would guess that it was most closely related to my grandfather who was an architect who studied under Mies Van Der Rohe. Thus it’s very likely that my grandfathers design esthetic influenced my design sensibilities and in turn to this day influences purchase decisions related to various brands I migrate to.
Now what happens when you take the complexity I’ve discussed and two interesting people end up bearing children, their kids end up amassing the cultural DNA from both of their parents in addition to the cultural DNA they continually amass from external sources and sub-cultures.
And thus even more interesting and complex people are hatched.
So I guess the question is how do we take this and make it useful. Help.
Thinking Creatively About Consumer Segmentation
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Today, one can argue that the consumer marketplace is exceptional fractured. As a society we may do things in groups but what these groups look like has changed dramatically. Companies segment consumers all sort of ways but it generally involves falling back on household income, gender and race or ethnicity. For the purposes of any efficiency in marketing it is still required to find the greatest number of individuals to market to. But the reality is as most commercials will show, there’s really very little actual insight there.
Take a look at most commercials and they either simply push a product or play off a general consumer sentiment. Beyond that there is usually very little there to actually connect with the consumer.
Not too long ago I was approached by the agency for New Era, the baseball hat and apparel company. They said that there was a flaw in their segmentation of customers and wanted help understanding what it was and perhaps a better way to segment their customers. They segmented them by “Urban”, “Suburban” and “Fan”. The flaw was simple. You could reside in suburbia, have urban sensibilities and be a fan. Furthermore it didn’t really tell you anything about their customers. We designed a segmentation based on how people wore their hats. The initial breakdown was as follows:
So how does this new possible segmentation inform?
It can inform in multiple ways. It enables us to truly understand the consumer and what social groups they might belong to. Are they action sports kids? Maybe. But that’s not good enough. Because there are sub-cultures within action sports groups. Are they action sports hip-hop kids or action sports metal kids? BIG DIFFERENCE. Are they college frat boys? Are they girls? Are they “rad” girls or “bad” girls or “good” girls or “emo” or “goth” girls or “preppy” girls?
If you map the types of hats to sales you can identify patterns or anomalies that will heavily dictate what and how much product you might supply to various retailers. You can identify where you might participate in or sponsor events. You can identify which radio stations you might advertise on or if you do at all. The insights and variables are virtually endless.
As the consumer landscape becomes increasingly fragmented, it’s not something to be scared of or intimidated by but it is necessary to get out of your traditional comfort zone and start being creative with understanding your customers. And funny thing is, the more you actually show that you truly understand your customer, the greater loyalty you will inspire.
“When I was four years old
they tried to test my I.Q.
they showed me a picture
of 3 oranges and a pear
they said,
which one is different?
it does not belong
they taught me different is wrong…”Ani DiFranco
As the 2010 Census is being compiled one thing that we can most certainly be assured of is that we’ll probably recognize America as considerably different then it was say 20 years ago. We will see far more examples of other races, religions and ethnicities. While the census is used for lots of very important things, in the past it has been the single greatest overall driver of marketing decisions.
This being the case we can also be assured that marketing to said demographics will become increasingly challenging as well as remarkably inefficient and hardly cost effective. This is in large part because of what I like to refer to as “cross-culturalization”. This is simply where people from multiple ethnicities, races and religions share like interests.
In the past, marketers have traditionally marketed to people by finding the most similarities possible to reach the largest swath of people generally via demographics and household income otherwise known as “buying power”. Just consider the term, “general consumer”.
Is there really still such a thing?
Furthermore how people define themselves will hardly be answered by the census.
Zuckerburg would have you believe that Facebook’s fate to continue to remain relevant rests largely with the growing of the “Groups” functionality. No doubt he’s read Seth Godin’s “Tribes”. Interestingly enough today there was an editorial in the New York Times by David Brooks about “Flock Comedies” and shows like Dick Van Dyke, The Waltons and The Cosby Show being replaced by shows such “Friends”, “Sex and the City”, “How I Met Your Mother” and “Glee”. The editorial makes the argument that these “…shows also serve one final purpose. They help people negotiate the transition between dyadic friendships and networked friendships.”
Arguably the Internet has exploited people’s ability to group themselves and congregate together well before Facebook. Following a blog might be the simplest means of identifying with an interest or a group.
One question Facebook may want to confront is whether a group’s identity or brand is diminished by it being on Facebook. By its sheer size, Facebook is the Wal-Mart of social media regardless of whether or not it cares to admit it. ASMALLWORLD would not be the brand that it is if it were on Facebook. Perhaps there could be opportunities for Facebook to private label groups able to utilize Facebook’s functionality. But, let’s be honest, one thing about associating with a certain group is the notion of exclusion and to be a part of a certain group requires a degree of legitimacy or street cred.
Then there is the very real fact that there are some groups that people don’t want to be openly associated with. Take being gay, in which Facebook was recently accused of likely “outing” gays.
One of the simplest descriptions of Facebook I ever heard was, “It’s a TV channel I can turn on to see what my friends are doing.”
So let’s run with that. One could make the assertion that Facebook is really akin to an original big three TV network before cable where at any given point a marketer can reach the largest number of people. Let’s call Google the largest of the big three. Google however will always have search relevance for its ad platform. With Facebook though it has to provide relevance by interest. And here Facebook is actually becoming cable before our very eyes with groups becoming channels such as the Disney channel or Spike or Lifetime. However the same way marketers struggle to get a relevant message across requires understanding your audience.
And this is where groups come in.
What Zuckerberg isn’t saying is that basically groups will become a giant ad serving platform. Take for example the group “Mom’s Who Need Wine” which has about 336K+ followers on Facebook. Not too shabby a number, right? And where better to offer up any number of specific offers, Groupon like capabilities and so on based on hosts of data and data mining and insights to prospective advertisers.
At its core, I think Facebook is right culturally about the concept of groups. But I think Facebook has some considerable uphill battles. One is trust. The other is why Facebook? Facebook Groups is where the wannabes will live. The legit groups will be places like ASMALLWORLD or ShredUnion. As an advertiser, do you want to be where trends begin or where trends go to die (e.g. Wal-Mart). For that I suggest you ask Grant McCracken, author of “Flock and Flow”. Furthermore, if you start a group like “Moms Who Need Wine” why should Facebook make all the revenue off a group they didn’t even start?
Zuckerburg and the team at Facebook will position groups as what Facebook users want. And truth be told, that’s a load of crap. Groups is a way to make money. In interviews with Facebook staffers, nobody talks about the needs or wants of consumers… they talk about not being “… surprised if only 5% or 10% create groups,” noting “that’s 25 to 50 million people — not a small number by any standard.” Those are Nielsen numbers. Another factor to consider is what are real groups such as “Mom’s Who Need Wine” versus fad groups such as “Sorry But I Can’t Hear You Over This SunChips Bag” which currently has more than 51,000 friends.
So the question is what consumers do. And that, as I think we’re readily aware by this point, is anyone’s guess.
