Affluent people think differently

We have been experiencing a dramatic shift in the affluence of the U.S. population.

The middle class has been shrinking and the upper and lower classes have been growing. According to the Global Wealth report, the United States added 2,251,000 new millionaires from 2019 to 2020. There are 13.61 million households with a net worth of $1 million or more, excluding the value of their primary residence, or more than 10% of the households in the U.S. There are 20.27 million millionaires (as of 2020) of the total U.S. adult population of 250 million, or about 8% of Americans. (“28 Millionaire Statistics: What Percentage of Americans are Millionaires?”, Darina Lynkova, July 16, 2024.)

Of course a million dollars buys a lot less today than in the 1920s and 1950s, but a much smaller proportion of the U.S. population was as affluent today as at that time. Most of the role models of advertising studied today were the leaders of the 1920s and 1950s, like Claude Hopkins, Albert Lasker, John Kennedy, David Ogilvy, John Caples and others. They were writing for a mass audience of more modest means.

Affluent customers have tremendous spending power, and their attitudes towards spending are quite different from the rest of the population. When you’re selling high-ticket items, which tend to be more profitable and require less effort than mass-market items, you should target affluent customers, because they have the means to make those purchases.

Copywriters David Garfinkel and Nathan Fraser recently discussed the difference in The Copywriters Podcast, number 378.

Oversimplified, affluent customers see the “glass is half full”. Most other customers see “the glass is half empty.” Affluent customers are already enjoying abundance; they don’t have to strive for it anymore.

Since affluent customers have most of their basic needs satisfied on Maslow’s hierarchy of needs, appealing to their basic needs, such as selling aspirational business opportunities, isn’t effective. They tend to be more concerned with self-actualization, including rewarding experiences, pastimes, satisfying relationships, health and longevity, and status symbols.

This means appeals to that are effective for other customers should be reframed for affluent customers.

Instead of saying, “Supplies are limited”, say “Only available for a select few.”

Instead of saying, “Minimize your risk”, say “Can you handle this?”.

Instead of a mass-market offer, like Capital One, make an “by invitation only” exclusive offer, like the American Express Black card.

Instead of picturing achieving goals in the future, give recognition for what has already been achieved.

Instead of being a “salesperson” with a “hard sell”, be an empathetic “trusted advisor” and “suggest” what is in the customer’s best interest. Match the customer’s vibe of confidence by showing you are confident that what you offer will meet their requirements.

Would you like to get help creating marketing messaging to appeal to affluent customers? Email me at [email protected] to schedule an initial strategy session.