Demographics, Home Size, CRM: Who's Buying the Biggest Homes?

Today's new home marketplace can be thought of as a made up of a series of age-related buyer segments : boomers, millennials and Generation X'ers to name the most recognized.

Millennials are largest segment; Gen X'ers are buying largest homes!

Millennials are re-visiting previously developed home preferences, says Clare Trapasso in a recent Realtor.com article, as they're leaving the "fantasy, pace and possibilities" of big-city living and moving out to the suburbs.

Yes, the "burbs", and that's just the first of a series of major changes being noticed in the new home marketplace.

Another is the changing relationship between buyer demographic groups and home size. Today, Gen X'ers (generally thought of as those with birth years between 1965 and 1985) are buying the largest homes. They're the most likely to have children, with schools as "top of mind" and often have their parents living with them, as well.

While the average Gen X'er home is 2,200 square feet, Millennials typically purchased 1,720 square foot residences.  Boomers were in the 1,800-1,920 range with the larger homes going to younger Boomer buyers.  Jonathon Smoke, chief economist at realtor.com, notes that "older boomers are trying to downsize."

Of course, home size varies by regional price points.  The relationship between size and demographic group remains constant, however.

What does this have to do with CRM?  A good CRM system allows you to "slice and dice" information so you're able to associate profile information with individual prospects and then search through your database, using software tools, to locate those prospects meeting specific criteria.  Do you have more of your largest floorplan units available?  Consider creating a demographic-specific search and develop a followup email focused on home size -- highlighting local schools and suggesting alternative uses for extra bedrooms!

CPS•CRM features customized prospect profiles; we can show you how to slice and dice data to market effectively!

55+: Ideas to Fine-Tune Your Marketing Messages

Many marketing studies (and our own Solutions blog!) spend quite a bit of time talking about the Gen X and Gen Y audience.

As they should: these demographic groups constitute a significant buying segment in today's economy -- whether you're selling big ticket items such as homes and cars or day-to-day products including cable, groceries and cell phone plans.

Interactive touchscreens, CRM: nuanced messaging!

Nevertheless, the Baby Boomer generation is still a noteworthy demographic in terms of purchasing power; fresh insights, based upon Nielsen NeuroFocus consumer neuroscience research, suggest revisiting preconceptions and marketing approaches for this demographic.

In essence, mature minds respond differently to messages, input and information.  Differently doesn't mean less or slower or diminished.

No one wants to be considered "old" or be treated as such -- particularly this generation.  60 is the new 50, right?  Stereotyping doesn't work.

But, did you know that mature brains respond better to positive advertising messages and actually have broader attention spans than Gen X and Y? This enhanced attention span suggests more nuanced messaging is not only appreciated but critical. 

Nuanced shouldn't suggest busy or overly-detailed, however; this generation doesn't like clutter or rapidly changing graphics/information. Progressive Grocer's Boomer Brain Marketing Assumptions: Think Again article suggests, "While the messaging can be complex, the delivery and format should be simple."

Implications for your marketing efforts? Imagine you're 55+ (and take the above comments into consideration): when viewing the Colonial Heritage interactive touchscreen "welcome" image, what message do you take away?  Engaging, peaceful, serene, inviting?  Wouldn't you like to explore more?

Interactive touchscreen sales tools respond very well for this generation: the delivery and format can be specifically designed and consumers are able to progress through your marketing information at their own speed.

Consider your CRM activities, too.  Make your product "top of mind" with easy-to-recall messages -- and utilize an automated CRM system providing repeated follow-up with your prospects.  Keep the messaging positive and highlight what your consumer will gain with the purchase.

Boomers might be a consumer segment frequently overlooked; nevertheless, they continue to exert a major marketplace influence in terms of purchasing power.  Enhance your impact with nuanced messaging!

Interested in exploring how to enhance your marketing program to better respond to not only Boomers but Gen X and Y? We'd love to talk to you regarding SalesTouch and CRM 2.0 software products!