Lower income US consumers spend an average 40% of their budgets on luxury products and services

New Ideas in MarketingEssential news for marketers, summarised by YouGov
September 14, 2020, 1:50 AM UTC

Younger generations saw personalised marketing messages about a quarter of the time, as per Formation.ai.

While only one-fifth of American lower income consumers reported receiving personalised marketing from brands, on an average they spend 40% of their budgets on luxury products and services. There is an upward trend among varied income brackets, depending on the frequency of marketing touchpoints and personalisation tactics.

Other overlooked consumers who receive only 14% of personalised messages are Baby Boomers. However, the younger generations reported receiving a quarter of personalised marketing messages.

With consumers who shop once a year (9%) exceeding those who shop once a month (7%), brands should create tailored offers to reach inactive consumers. Christian Selchau-Hansen of Formation.ai, says using 1:1 personalisation at scale can create “robust loyalty programs” and engage consumers at an individual level.

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