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Twixters and Kippers
By Lou Lasday
Just when you thought you knew everything about the psychographics (lifestyles) and demographics (age, income, education, etc.) of your total customer base, a new and exciting opportunity emerges.
Closing in on the X-generation, tweens, boomers, empty nesters and seniors is the newest and fastest-growing segment of the big spenders as percentage of income.
It's the most recent example of marketing segmentation. It's the emergence of "Twixters" as a distinctive marketing segment. The American Marketing Association has issued a special report stating that market researchers and sociologists have been busy identifying and defining this exciting new segment, which has become so prominent that Time Magazine devoted a recent cover story to it.
The big questions to answer as a marketer is, of course: Who are these people? How can I reach them most effectively? What motivates them? And how can I profit with them?
Twixters are the emerging market of young consumers between the ages of 21 and 29, "betwixed" and between being on their own and who still live with their parents. Additionally they may or may not soon be transitioning to rental housing. They have fairly good educational backgrounds, often taking up to six years to finish four-year college programs. They have no mortgage or real estate tax obligation.
They are willing to move quickly to a new job and are relatively content with their simple lifestyles. Interestingly, they aggressively want to develop both male and female personal relationships although they are not making any moves to get married, establish families or take on adult-type responsibilities that the previous generation did almost automatically.
Overall, while they may not have big incomes, they are big spenders. Twixters lead widely active lifestyles. They are busy and participate in a host of unrelated activities. They are involved in athletic events, sports participation and music. They regularly attend movies, outdoor community events, young adult functions, school reunions, sports bars, walk the length of shopping malls, enjoy diet soda, simple meals and deep conversations - usually on a cellphone.
Additionally, the Twixter segment is present in many developed countries. In England they are know as "Kippers" - kids in parents' pockets eroding retirement savings. In Germany, they're called "Nesthockers" - nest squatters.
The segment, internationally and domestically, share certain well-defined characteristics you'll want to focus on. They tend to have a virtual sleepless lifestyle, make major decisions in a joint "think" with friends and overspend, especially in areas of dining, entertainment, auto, clothing and electronics.
In other ways, they are more traditional than you might expect. They trust their parents, their teachers, their clergy and established institutions.
So here's the big idea: If your customer base is comprised of older, well-established, high-income buyers, here's an opportunity to establish a solid relationship with the next generation of these very same people. That's really who they are - in the development stage. Capture just a small percentage of this active segment as they grow and become loyal, financially independent and responsible. Then, you've got a niche audience with the longest lifetime value to you!
Banking and financial
If you're a financial services professional, such as banking, brokerage or insurance, remember this group is seeking relationships. They want instant gratification, giveaways, perks and straight talk. If you can give this to them, they might just give you a half-century of their buying power.
Please know, however, they won't see your advertising message in the daily metro newspapers. They read niche weeklies, study local direct mail, surf the net and are influenced by specialty magazines. Try offering them a personal invitation to an early evening focused seminar and a light menu. Give a popular book on youth and money. Offer a starter-pack for starter people.
Hospitality counts
Restaurants and hospitality services can win this segment with value-added offerings such as widely extended happy hours, complimentary hors douvres, good neighbor-corporate welcome parties, buffets and loyalty programs.
Realty
Real estate professionals have a huge opportunity to build trust in relationship marketing that will endear the future executive or entrepreneur to you early on. Consider being the source for no-money-down lower priced condos or promotional rental complexes geared to young singles. Suggest parent guaranteed low-down mortgages and price advantaged sublets. Many of these people will move three and four times within your trading area. That's the lifetime value of each Twixter client for you. It's the icing on the cake and with their referral you'll get the cake too.
Legal advice
Our legal professionals will do well soliciting client-parents to review their children's leases, merchandise contracts, employment documents and more. Then try to initiate a relationship for young lawyers in your firm with these future clients.
The more clarity you can gain about the attitudes, beliefs and realities of Twixters or of any life segments, the more you will be able to build lifetime relationships that will certainly bring you years of enjoying repeat sales and growing profit.
Lou Lasday, an independent marketing adviser who resides on Longboat Key, creates action-oriented strategic corporate initiatives for Gulf Coast emerging companies. A career direct response executive, he has been a general partner of a national marketing communications firm and regional president of the American Marketing Association.
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