Baby Boomers are the new frontier
by Michael B. Perini, ABC
perini & associates
Do you feel when it comes to marketing of new products or services, “Over the Hill”? Many marketers have believed that the target age should be the 18-34-year-old group. Older than that? Sorry, your opinion doesn’t much count! You are out of the marketing “gene pool”.
Well not so fast! Maybe your DNA is still useable to those who crunch consumer preference data. Here’s why!
A USA TODAY and CBS NEWS series of reports is turning the marketing world on its head. And for me at least, being beyond that magical “34” it’s just about time! What were they thinking! Could it be that many of the marketers who study the economic landscape are under 40 or maybe, as author USA Today Bruce Horovitz, writes, “…even under 30”. Thus, they believe, many want to be and think like them.
Matt Thornhill, 50, founder of the Boomer Project, a specialty research firm says, “They forget that over 50 still have dreams.”
“The traditional thinking among marketers is that older folks spend less, have little interest in new products and have brand preferences set in stone,” writes Horovitz. But across the USA, the 77 million members of the Baby Boom generation — folks born from 1946 through 1964 — are turning that conventional marketing wisdom upside down.
As Boomers are aging and accumulating wealth, their spending is growing at a pace that’s leaving younger generations far behind. “Spending by the 116 million U.S. consumers age 50 and older was $2.9 trillion last year — up 45% in the past 10 years. Meanwhile, the 182 million people younger than 50 spent $3.3 trillion last year — up just 6% during the same decade, according to an analysis for USA TODAY of U.S. Bureau of Labor Statistics data by The Boomer Project.
And unlike the stereotype of older consumers being adverse to new things, Boomers are among the biggest buyers of new technology, new cars, new condos and lofts.
All this has some marketers taking a new look at older buyers and testing new avenues and products to tap into this gold mine. Among them: Unilever, which makes Dove soap and Lipton tea, General Mills, Lincoln, investment firm Raymond James, Best Buy, and Maidenform. Instead of treating Boomers like damaged goods, marketers for these products are notably celebrating them.
“Most marketing that targets Boomers presumes there’s something wrong with them that needs fixing,” such as age spots, wrinkles or erectile dysfunction, Thornhill says. “It’s malady-based. For the most part, it’s not accurate.”
Marketers who ignore Boomers need to be cautioned. “Boomers are about to get a lot richer. Maybe not as rich as before the recession, but richer nonetheless,” according to the USA TODAY article.
People 50 and older will inherit an estimated $14 trillion to $20 trillion during the next 20 years, according to USA TODAY.
“This is demographic dynasty,” Thornhill says. “If you don’t have a strategy for making your product relevant to 50-plus consumers, you will have a very rough time over the next 20 years.”
Marketers have to be careful their ads don’t make Boomers feel like old fogies, and avoid talking to them as if they’re under 30.
Being a Baby Boomer here’s my take, which I believe represents most of my group, for you marketers who might want to do something risky…court Boomers!
Make them:
•Feel good. You bet. Those over 50 still have feelings. I know I do! Maybe it comes in waves but nonetheless it’s there. So why not develop a whole line of products to capture the desires and emotions of the 50+. We can still dance and romance. I proved that I my niece’s wedding recently!
•Feel hip. From 2007 to 2010, the average age of a new car buyer rose from 52 to 56, according to media reports. Lincoln saw its average buyer shoot past 60 in that time. So why not an entire line of clothing that wears well, looks cool and makes the statement — smart and sassy still. We already have the car!
•Feel smart. Many Boomers seriously believe they may live into their 90s — or beyond. I know I do. Probably the vitamins but hey, its working! So why not develop services, products and experiences that reflect this incredible attitude to live for ever? An example would be a quality set of skis with built in GPS so my son can track me down the slopes. Yep, still skiing! No doubt he’s still behind me!
•Feel sexy. Design fashionable products and create travel opportunities that appeal to the young at heart still within most of us. Why can’t those over 50 wear leggings, tank tops, bikinis, board shorts and undergarments that shape and appeal! Forget the separate bathtubs sitting in the woods….no grannie panties, please! What about a hat design that says “I’m 60 and I can wear a thong!” Today’s 60, by the way in my view, is yesterday’s 30! Also, schedule cruises, flights and cross-country adventures that cater to the sense of adventure and experience of this group that’s still looking ahead rather than behind.
•Feel hungry. While Boomers may eat less as their age, they’ll pay for quality. For example, General Mills recently rolled out Romano’s Macaroni Grill frozen entrees for two. To me at my age when going to an eatery, it’s more about quality of service, quality of food, quality of experience. Isn’t it for you?
•Feel techie. What do you mean we don’t embrace tech? Boomers spend more on tech than anyone! I know a 94-year-old who has an updated computer and knows how to email, blog and text!! Remember, Baby Boomers spend an average $850 for their latest home computer — $50 more than any other group, reports Forrester Research. “People presume that Gen Y is the most eager to adopt technology, but they don’t have the spending power of Boomers,” says Jacqueline Anderson, consumer insights analyst.
So, once again for you marketers wanting to embrace those over 50+ why not appeal to our interests and ease of use and not our age! The tech giant Apple has figured it out. iPad and now The Beatles on iTunes! So has Louis Vuitton, the designer brand.
Our best years are still ahead of us. Am I right!! Say, if you are a baby boomer and need a public relations service you know now who appreciates you so please give us a call. Better yet an email or text, HA!
Finally, the cool thing is that we have all this experience and maybe some really outstanding products and services are being developed behind closed doors by those mislead marketers. Again, JUST FOR US!! About time!