Profiling People in Transition – and the Marketing Opportunities They Present

October 7, 2013

This article is included in these additional categories:

African-American | Automotive | Boomers & Older | Financial Services | Hispanic | Household Income | Real Estate | Youth & Gen X

Scarborough-Profiles-of-Consumers-in-Transition-Oct2013Consumers going through life changes make attractive targets for marketers in certain verticals, according to [download page] a report from Scarborough. The study takes a look at the demographics and attitudes of consumers going through five major life changes: those planning on getting married; expecting the birth of a child; planning a move; planning to buy a home; and expecting the birth of a grandchild. Each group presents opportunities for some marketers.

Engaged Couples: Looking to Make Purchases

The report indicates that there are 9 million engaged couples in the US (adults planning to get married in the next year), 48% of whom are Millennials and 39% Gen Xers. Engaged couples are also twice as likely as the average adult to self-identify as Black, and 40% more likely to identify as Hispanic.

This group of adults are prime fodder for auto marketers: they’re twice as likely as the average adult to plan to buy a vehicle in the next 12 months, according to the study. Real estate professionals take note: they’re also nearly 4 times more likely to plan to buy a home.

Financial services marketers may have to work a little harder to reach this group: 73% of the engaged couple surveyed have no life insurance, and 71% have no investments. At the same time, they are 61% more likely to take out a personal loan, and 36% more likely to disagree that they hate to borrow money.

In fact, the researchers indicate that engaged couples over-indexed for every item tracked that consumers “plan to buy” over the next year.

Parents-to-Be: Still Looking For Home And Car

The US has 8 million parents-to-be, defined as adults who expect the birth of a child in the next 12 months (apparently some are clairvoyant). As can be expected, the vast majority of this group are Millennials (47%) or Gen Xers (49%), while 20% self-identify as Hispanic. (This year, roughly 17% of Americans are Hispanic, according to a recent study.)

Parents-to-be are also on the lookout for major purchases: they’re 79% more likely than the average adult to plan to buy a vehicle in the next 12 months; and 3 times more likely to plan to buy a home in the next 12 months.

This group is more involved with its finances than engaged couples. They’re 45% more likely than the average adult to have a 529 plan/college savings plan, 38% more likely to have a 401K plan, 29% more likely to have a personal loan, and 27% more likely to have an auto loan.

They also have some money: 24% boast an annual household income of $100,000 or more.

Movers: Primed for Insurance?

Roughly 1 in 8 Americans plan to move or change address in the next 12 months, per the study, 42% of whom are Millennials. Apparently everyone’s in the market for a vehicle, as these adults are also 75% more likely to plan to buy a vehicle in the next year than the average adult.

It’s not too surprising that 56% of movers are renters, and that they’re 90% more likely than all adults to live in an apartment. But there’s room for growth when it comes to insurance: 54% have no homeowners or renters insurance. Some may simply not find it affordable: movers are 21% more likely than the average adult to have an annual household income of less than $35,000.

Previous studies from Epsilon and Zillow have found that movers tend to be big spenders, and are quite liberal with their brand loyalties. They’re far more likely than non-movers to have recently changed insurance brands, for example.

Homeowners-to-Be: One-Third Have No Property Insurance

Meanwhile, 14 million adults plan to buy a house, condo or co-op in the next year, says Scarborough, 48% of whom are Gen Xers and 29% of whom have a child living in the home aged 5 or younger.

New homeowners – who are 54% more likely than the average adult to self-identify as Hispanic – should (intuitively) be prime targets for property insurers. In fact, 34% of these individuals have no homeowners or renters insurance and will soon be in the market.

Grandparents-to-Be: Not Agent-Averse

Finally, 9 million American adults expect the birth of a grandchild in the next 12 months, 58% of whom are Baby Boomers and another 15% of whom belong to the Silent Generation.

1 in 5 grandparents-to-be plan to buy a new vehicle in the next 12 months. Interestingly, while 55% have life insurance, 17% have no auto insurance and 25% have no homeowners or renters insurance. These grandparents-to-be aren’t agent-averse: they’re 30% more likely than the average adult to have used an insurance agent at a local office.

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