If you find where young people predominate the population, you will also find marketers in retail, services and restaurants that will be in those locales to hopefully create lifelong customers—even in areas with smaller populations. I have lived in two college towns in my life — Ft Collins, Colorado and College Station, Texas– and was always amazed at the expense that retailers, service agencies and restaurants would go to place themselves in front of their customers-to be-in for the next one-half century.
This installment of Money Magazine’s Best Places to Live focus on the towns and cities with the youngest populations. Not surprisingly, many of these same markets are college towns.
And the youngest population markets?
So why target the younger population that often has less spending power? At younger ages, the cost to attract a new customer is often perceived to be the most affordable over an individual’s life since their opportunity cost is often the least in their life span (corresponding with a minimal net worth).
Vilfredo Pareto, an Italian economist and sociologist, created the 80/20 rule in the very early 1900s that essentially says that 80 percent of the value rises from 20 percent of the effort. In the 1930s a quality management pioneer, Dr. Joseph Juran, used Pareto’s rule to separate the vital few from the trivial many—again the 80/20 rule. Hence the importance of the young upcoming population to be customers for life as they are the vital few.
To read the list of the entire 25 cities included in the list, click http://money.cnn.com/gallery/real_estate/2013/08/12/best-places-youngest.moneymag/index.html