Per a June 2022 report from Visa, the affluent segment of the population – those households that make $100,000 or more – makes up for 27 percent of the overall consumer base, but accounts for 47 percent of total spending (1). While the pandemic had a huge impact on this demographic, it’s expected that the affluent population will quickly return to being key to driving future consumer spending growth.
The demographic breakdown within this population has also changed significantly over the last several years. In 2015, Baby Boomers made up 43 percent of the affluent population, followed by Gen X at 34 percent, Millennials at 16 percent, and the Silent Generation at eight percent. By 2020, Gen X led the way with 34 percent, while Baby Boomers had dropped to 33 percent and Silent Generation to just five percent; Millennials crept up to 26 percent of the population, and Gen Z entered the mix at two percent (1).
The affluent population is changing quickly, as are their needs – and it’s crucial that you keep up with their spending habits and desires to garner their business.
While inflation and the general state of the economy rank high among the list of concerns for affluent individuals, many still believe it’s a good time to spend, with 37 percent saying that right now was a good time to make a major purchase. An additional 28 percent said that while it isn’t a good time to spend big immediately, they believe it will be soon (2).
Higher-income households were the last to return to their pre-pandemic spending habits, as they reduced spending on otherwise big categories such as travel and dining out; however, pent-up demand for these types of services means that these industries should benefit the most from their spending habits in the near future (1).
Retail businesses should also expect to see a bounce back soon, if they haven’t already. A 2023 IPSOS survey found that 26 percent of affluent households spent at least $3,000 on women’s apparel and accessories, with 19 percent spending the same on men’s apparel and accessories (3).
No matter what industry you’re in though, it’s crucial to provide a level of personalization to your customers. More than 40 percent of affluent men reported that it was important for them to shop at locations that provided personalized attention, and that they specifically sought out products and experiences that felt truly exclusive (3).
RSVP specializes in helping you reach your target audience by sending direct mail packs to single-family, owner-occupied homes valued in the top 20 percent in more than 65 markets across North America. This distinct audience is selected by factors including home value and varies from market-to-market but is consistent across the board from a demographic profile standpoint.
Looking for help reaching affluent prospects in your area? Contact the RSVP team!