What Ethnic Groups Will Be Lucrative for DMers?
Welcome to Broker Roundtable, where each week we ask list brokers to give their opinions on issues that matter to the marketing community. This week’s question: Going forward, what ethnic groups or segments do you see as lucrative for direct marketers?
Our panel includes Don Eaker of Nexxa Group Inc., Leland Kroll of Kroll Direct Marketing and Shawn R. Salta of DirectMail.com. Would you like to be considered to be a member of our roundtable? Contact Larry Riggs ([email protected]).
Don Eaker, national director of sales, Nexxa Group Inc.:
The Hispanic market is an obvious choice. It has exploded in size over the past decades. The multi-generational household, I feel, has particular merit as well. We have a strange economic situation now that’s as difficult as anything we’ve faced since the Great Depression: multiple families are living under the same roof. Think of the combinations: Boomer husband and wife taking care of a mom or dad, or a 20-something starter family living with a set of parents until they get on their feet. College graduates unable to find a career position and living with mom and dad until he or she can afford to move out. These households, while similar in situation, have totally different needs and demographics.
There’s something else to think of in terms of demographic segmentation: Wouldn’t it be nice to drill down in that segment, and suppress any unwanted niches that wouldn’t be able act on your offer? For example, if you’re sending out information on remodeling to a list of single family homes it might be useful to know the names and addresses of people that had recently filed for bankruptcy or was in the foreclosure process so you wouldn’t have to pay for printing and postage. Segmenting audiences out of your targeted list is as important as finding your most receptive audience.
Last, but not least, with the Census showing the aging of the American population, the state of our economy and our government in turmoil, we will surely see changes in the demographics and psychographics of our American audience. New segment opportunities will surely surface in the coming years.
Leland Kroll, president, Kroll Direct Marketing Inc.:
Targeting various ethnic or age groups will continue to be very relevant for direct marketers. The use of real-time technology that we are already employing for our clients allows for specific offers reaching the African American, Hispanic and Asian ethnic groups. Real-time data enhancements allow the graphics to be tailored to each of these ethnic groups on the fly.
Another very important group is that of the senior market. Reaching this segment is very important for identifying prospects for reverse mortgages, travel, investments and insurance, as well as for health and medical offers. We have the latest technology and marketing tools at our disposal to utilize in order to make our communications more targeted, personalized and focused.
Shawn R. Salta, vice president, DirectMail.com:
Latinos and Hispanics will continue to be a thriving segment for marketers to target. However, identifying these segments is only the beginning. What has been improving and what will continue to improve through the years is the segmentation and modeling tools that allow marketers to communicate with segments within the same group differently. These models identify how they spend money, use credit and whether they buy insurance. These models also show how they perceive marketing messages and what types of media they respond to. This data not only allows us to identify a group, but speak directly to segments of the population so that our message best resonates with those individuals.
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