Blogs > Reaching Canada’s Affluent: 5 Things You Need to Know
May 15, 2013 Jaclyn Bickerton
Canada’s affluent have high disposable incomes and spending power, and represent a massive opportunity for businesses to promote and sell their products and services. In December of 2012, Ipsos Reid conducted surveys with 2000 affluent Canadians, defined as having a household income of at least 100,000. The sample also included 200 Millionaire households. They have put together a report and I’d like to share the findings. If you are looking to target Canada’s most affluent customers you must understand their core values. Here are 5 (FIVE) things you should know about reaching Canada’s affluent:
1. They are Savvy Shoppers
The affluent have higher discretionary income, but one thing is apparent: price and value matter. 94% of respondents say that price or staying in a budget is an important factor in determining where they shop. Canada’s affluent are both price and value conscious, and wise with their money. Many of Canada’s affluent are Baby Boomers, people who have always understood the value of a dollar. They have worked hard for their money, made shrewd investments, and managed their money carefully. However, many also felt the effects of the 2008 financial crisis, and now continue to look for the value for their dollar.
2. They are Driven by Experience.
Canada’s affluent are driven by experiences, and not so much by money or owning ‘things’. Today’s affluent are looking for unique, special experiences to enrich their lives. While Canada’s affluent may be value or price conscious with day to day shopping, they are willing to pay more for memorable experiences. 68% of respondents would rather have a special experience than buy something and 66% choose their travel based on the unique experience it will provide.
For marketers, this means that you should try and create unique and memorable experiences that stand out and make the consumer feel special. Delivering a special service to this target is likely to foster greater loyalty. Personalization should be a priority for companies looking to connect with the affluent consumer.
3. They Expect Quality Goods in Store.
Canada’s affluent want and expect their purchases to be high quality. 93% of respondents say that high quality products play an important role in determining where they shop. Purchases should be worth the price and effort to the affluent. With discerning tastes and an appreciation for the dollar, again it all comes back to value.
4. They are Smart Shoppers.
Canada’s affluent actively seek out and research what they want to make more informed decisions. They are influenced by the opinions of family and friends, but more of the affluent are relying on the internet to help make an informed decision. They read articles, scan reviews from other customers, examine consumer reports and seek out expert recommendations before coming to a purchase decision. For marketers, this means you need to be online and you need to provide easy to access information about your products and services. You also need to ensure that your brand delivers on its promise because with the internet and the prevalence of social media, many people want to share their opinions and experiences with a brand – good and bad.
5. They Want the Option of Autonomy
Canada’s affluent want to know about all of the options available and they want the autonomy to make their own decision. 92% of respondents like to have all the options and make their own decisions. The affluent are smart shoppers, do their research, so when they arrive at your point of sale they already know what they want, what they will pay and what they expect the product or service to deliver. If you can’t meet their needs, they will find someone who can.
The affluent of today are not the affluent of the past. A shift in values combined with technology has created a new reality. Canada’s affluent still enjoy the finer things in life, they take the time to make informed decisions, put a high emphasis on quality, value, and experience. They will respond to marketing that appeals to them as an individual. The challenge for marketer’s today is in understanding how these new values and the power of technology can be harnessed to make wiser and more strategic marketing decisions.
Jaclyn Bickerton, Social Media, Raven5 Ltd, Oakville & Toronto Ontario, May 2013