Anti-social or just busy with other things, half of the affluent say they do not participate in any type of social media according to the Spring 2011 Affluent Market Tracking Study conducted by The American Affluence Research Center.
Some highlights from the study:
- In contrast to the March general Consumer Confidence Index of The Conference Board, which fell over 10% to the low levels last seen in Fall 2010, the affluent, who account for about half of all consumer spending, report a better outlook for the economy and their personal spending plans.
- Spending plans for all 17 products and services tracked by these surveys are much stronger than in the Fall 2010 survey.
- There is also improvement in the plans to make major expenditures such as for a new auto, a cruise, and a vacation home.
- While 65% of the affluent own a smart phone or a tablet (or both), the remainder have regular access to a computer. Half of the affluent say they do not participate in any type of social media.
- Among those that do participate in social media, only a quarter say they use social media to receive regular communications about product and related information from a manufacturer or retailer. In other words, only 12.5% of the affluent say they are using social media to receive regular product information from a manufacturer or retailer. This relatively low number (12.5% of the affluent) may be surprising given all the amazing statistics being circulated by various research and traffic tracking companies about the volume and growth of e-commerce, the ubiquitous mobile devices, and the urgent emphasis to invest time and money into various forms of mobile apps and promotional activities online through proprietary sites and social media. It is important to understand who will actually be reached through mobile devices and social media (and whether the ROI is reasonable), what technology is needed to be compatible with the various different mobile and other receiving devices, and who might be missed if communications are limited exclusively to these channels.
- About 59% of the affluent say they are not familiar with the concepts of private residence or destination clubs. Concept familiarity, which is essentially the same as in 2007, is strongest among the younger (59 and under), higher income, and higher net worth groups.
- About 10% of the affluent say they will seriously consider acquiring access to a vacation home during the next 12 months. Plans to make an acquisition increase as age declines, income increases, and net worth increases. About 2.9% are considering two types of vacation home acquisition. Wholly-owned homes are the most favored type of vacation home access. Wholly-owned homes used primarily on a seasonal basis are more popular than those used frequently throughout the year. The only exceptions are the 50 to 59 age group, the under $200K income group, and the lowest net worth group.
Overall, this is good news. Among the successful, outlooks are more positive and spending plans are up.
Remember that insights based on good research and data can help you identify opportunities and threats and adjust your marketing strategies and plans accordingly.
