44-65: “NEW CUSTOMER MAJORITY” Source: Ageless Marketing, David Wolfe & Robert Snyder
“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing
“Marketers’ attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.” —Peter Francese, founding publisher, American Demographics
“The New Customer Majority is the … ONLY … adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder, Ageless Marketing
“Households headed by someone 40 or older enjoy 91% of our population’s net worth. … The mature market is the dominant market in the U.S. economy, making the majority of expenditures in virtually every category.” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is pretty weird when you consider age 50 is right about when people who have worked all their lives start to have some money to spend.” —Marti Barletta, PrimeTime Women
“One particularly puzzling category of youth-obsession is the highly coveted target of men 18-34, and it’s always referred to as ‘highly coveted category.’ Marketers have been distracted by men age 18-34 because they are getting harder to reach. So what? Who wants to reach them? Beyond fast food and beer, they don’t buy much of anything. … The theory is that if you ‘get them while they’re young, they’re yours for life.’ What nonsense!” —Marti Barletta, PrimeTime Women
We are the Aussies & Kiwis &Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult &demanding, the most service & experience obsessed, the most vigorous, (the leastvigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the world—and we will be the Center of your universe for the next twenty-five years. We have arrived!
“You are headed for commodity hell if you don’t have services.” —Lou Gerstner, on IBM’s revolution (1997)
IBM to IBM
In the 1990s, with its old businesses in retreat, IBM began a rapid & radical transformation from hardware to services.
“Never mind computers and tech services. IBM’s radical new focus is on revamping customers’ operations—and running them.” —Headline/ BW
Planetary Rainmaker-in-Chief!“[CEO Sam] Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—towardradically differentbusinessmodels. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500billiona year —that technology companies have never been able to touch.” —Fortune
$50B* *IBM Global Services/ “Systems integrator of choice”
IBM is the poster child of this “movement.” In the early ’90s, new CEO Lou Gerstner was ordered by the board to break up the company. Before complying, he made a round-the-world customer tour. He discovered that his customers were not by and large dissatisfied with IBM’s products—they were upset that their vast array of IBM products had not been integrated in a way that allowed the client to achieve promised enterprise-wide gains in business effectiveness.
Gerstner found a small extant consulting unit—and recast it as IBM Global Services; its goal was to use the new tools to enable no less than total enterprise transformation. In surprisingly short order, Global Services became the dog that wags the tail— a $50 billion++ unit, essentially the world’s largest consultancy, that indeed assists re-imagining/re-inventing/re-positioning their entire firm!
(As to the IBM on the slide—the “M”/machine is now more or less secondary.)
UPS to UPS
“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.” —ecompany.com “It’s all about solutions. We work with customers on creating and running better, stronger, cheaper supply chains.” —Bob Stoffel, UPS senior exec
UPS still has 10s of thousands of trucks, but it is also becoming a major provider of integrated logistics services—the future is UPS as master of the all-important supply chain.
“Rolls-Royce now earns more from tasks such as managing clients’ overall procurement strategies and maintaining aerospace engines it sells than it does from making them.”