Marketing to the Baby Boomers 1

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Information about Marketing to the Baby Boomers 1

Published on January 15, 2008

Author: Valeria


Marketing to the Baby Boomers:  Marketing to the Baby Boomers Why are we here today? :  Why are we here today? Do you know who the fastest growing demographic is? Who spends the most money on luxury travel and new cars? Who accounts for more than 70% of all pharmaceutical sales and 25% of all toy sales? What’s in this workshop for you?:  What’s in this workshop for you? If we’re successful today, then you should be able to: Describe/explain at least 3 significant factors about baby boomers that affect your businesses Explain how you can refocus your businesses to meet the needs of baby boomers Use and apply the materials in your business today Before we proceed, think about your service or product :  Before we proceed, think about your service or product Make “Action Notes” What you know about your target market then consider how to adjust your marketing to -meet the preferences & attitudes of this powerful demographic. Key Demographic Trends :  Key Demographic Trends Consumer activity is the key driver of your business and understanding the changing trends that are affecting consumer behavior is critical to your success. Understanding consumer activity means better planning, with fewer surprises, and increased top-line growth. Some trends about 55+ :  Some trends about 55+ 70% 60% 74% 41% 24% 80% 42% 26% Of all money market accounts and certificates of deposit Of all health care spending Of all prescription drug purchases Of all new car purchases Of all toy purchases Of all luxury travel-top leisure activity for men & women Of all museum visitors are 55 or older Higher per capita income than national average How to Sell & Connect with Boomers:  How to Sell & Connect with Boomers Every 7 seconds, someone turns 50 years old With 76 million U.S. baby boomers making buying decisions now the potential & growth from this group is enormous. “Simply based on population growth trends if product is marketed to 50+ audience & maintains market share, sales should increase by 35% to 50% in next 20 years. Conversely, a brand targeted at zero to 50 age group will be flat sales.” Rick Adler, Founder of The Senior Network Boomer factoids you need to know:  Boomer factoids you need to know They view themselves as younger than they really are (by 20 years) They live active lifestyles and travel is high among their favorites They love discounts and aren’t afraid to ask for them They grew up with TV and a very knowledgeable about advertising They are connected and comfortable with technology They are healthier, more active and expected to live longer than their parents Researchers asked boomers what they like to be called. There was NO CONSENSUS. Terms such as “active adults”, “mature,” “older adult,” “ 50 plus,” and even “middle-aged” were deemed inappropriate. Things to remember about doing business with baby boomers:  Things to remember about doing business with baby boomers Watch how your refer to them-they don’t like being called “old” –in any form Don’t assume they are brand loyal Sell experience & benefits that come with your product or service. Use images they relate to – they tend to be nostalgic, evoke positive memories, while connecting to current lifestyles What are boomers saying about turning 60?:  What are boomers saying about turning 60? Personal goals for the next 10 years? 10% mentioned spending more time with loved ones 87% taking better care of my physical health 72% wanted to spend more time on interests & hobbies 71% doing the things I have always wanted to do If someone gave them the perfect gift for their 60th birthday, what would it be? 23% could be called lifestyle gifts (first) 19% involved family ties and relationships (second) 10% spending time with their spouses, children & grandchildren 16% personal well-being. (third) Overall significance of the study::  Overall significance of the study: Boomers turning 60 in 2006 remain substantially satisfied with their lives Nearly all have some substantial life change they want: -87% take better care of their physical health -72% spend time with hobbies & interests -47% do more volunteering Work will continue to play a major role in their lives: -54% of 60 year olds (compared to all boomers) plan to go back to work in the next few years. Over half of those working now (54%) plan to quit working ASAP. -37% plan to work “until I drop.” 60 year-olds asked about changes in next few years:  60 year-olds asked about changes in next few years 57% do more traveling 45% save more aggressively for retirement 47% do more volunteer work 30% planned to move-many moving here 18% planned to move to a smaller home (but not to a less expensive home) within a three hour drive of the grandkids Boomers want… :  Boomers want… Action – packed retirement Some want to continue to work Boomers want -more activity -more amenities -more friends “This generation wants to continue to rock and roll, not sit in rocking chairs.” Dave Schreiner,VP Pulte Homes “55-75 year-olds estimated to reach 80 million-plus by 2020, the active adult market represents one of fastest-growing segments in the housing industry.” Dell Webb Baby Boomer Survey,2005 How to communicate with boomers with print materials:  How to communicate with boomers with print materials Every business needs printed materials that sell your product or service, and sell it well. Key word is See - By 2010, 20 million baby boomers will face age-related vision loss and functional vision problems. Make it easy to read: font size, clear, crisp & concise Type –size must be larger than normal. Use 12 pt type and larger Use an appropriate type-face such as Times New Roman. Never use only upper case letters. Make generous use of bullets or numbered lists Include images of single women since many of your audience will be widowed or divorced women. Choose colors carefully-use dark type on a light background. This provides contrast that older eyes need in order to see well. Remember -great words linger Electronic Marketing:  Electronic Marketing If you want to reach affluent, well-educated boomers, add online and email marketing to your print marketing. The percentage of seniors who go online has jumped by 47 percent between 2000 and 2004, making them the fastest growing demographic group on the WEB. (the Pew Internet & American Life Project, 2004) Demographics of Internet Users –Who Goes Online? Age 50-64 58% 65+ 23% Household income $50,000-$75,000 86% $More than $75,000 89% Source: Fox, 2004. N=2204. Margin of error is +/- 3%, at 95 % confidence level. Why are Boomer website visitors special?:  Why are Boomer website visitors special? Once a person enters the “retiree” demographic, he/she will be a member for life (rather than teens moving to 20s to 30s, etc. ) There are currently more than 76 million seniors and over the next 20 years More than 70 million baby boomers will reach 60. This represents unlimited opportunity to expand your company’s brand. This consumer group has the most disposable income with the greatest buying power; interested in new services to enhance their lifestyle and is currently the largest consumer in more product categories than any other market group. Fast Fact-Adults 50 and older Switching from Traditional Media to Internet :  Fast Fact-Adults 50 and older Switching from Traditional Media to Internet 67.5% say online information is accurate 60.7% use internet more than a year ago 34.5% go to more websites 35% seek out travel information 33% education 32% online purchases 22% personal finance & entertaining 77% search for healthcare information Survey by Burst Media MarketingVOX, Jan. 2006 Cohort Definitions-Birthdates :  Cohort Definitions-Birthdates GI Generation : Born 1925 and earlier Silent Generation : 1926-1945 Baby Boomers 1945-1964 Leading Edge Boomer 1946-1955 Trailing Edge Boomer 1956-1964 Generation X 1965-1979 Generation Y 1980-2000 Generation Z 2001-? Cohorts-groups with same significant life even within a specified period of time. Boomers Leading Edge & Trailing Edge :  Boomers Leading Edge & Trailing Edge Distinctive : Experiences Lifestyles Behaviors Both groups plan to work after retirement either full time or part-time Research/Segmentation Baby Boomers Study shows that Boomers Fall into 5 Distinct Groups; Will help Marketers Tactics:  Research/Segmentation Baby Boomers Study shows that Boomers Fall into 5 Distinct Groups; Will help Marketers Tactics Status Seekers: 26% Traditionalists: 23% Blue Collar Skeptics: 18% Activists: 17% Achievers: 16% Research by Boston-based research firm Chadwick Martin Bailey in conjunction with Arnold Worldwide November 6, 2006 Status Seekers::  Status Seekers: Materialistic Feels money- best measure of success Enjoy finer things Willing to pay more for brand names 31% drive a vehicle that makes a statement about their personality & style Chadwick Martin Bailey Research Firm Traditionalists:  Traditionalists More conservative political, economic & social views Smart consumers Interested in value & variety 45% say they go out of their way to buy American-made products Chadwick Martin Bailey Research Firm Blue Collar Skeptics :  Blue Collar Skeptics Fall on low end of Boomers income bracket More stressed about time & money Majority (68%) feel they haven’t saved enough for retirement. Chadwick Martin Bailey Research Firm Activists:  Activists Most politically & socially active segment Tend to be liberals Donate significant time & money to charity Concerned with the environment Brand-loyal & financially smart Chadwick Martin Bailey Research Firm Achievers :  Achievers Adopts technology early Focused on success Heavily involved in social activities 24% claim to be 1st to have new gadgets & devices Chadwick Martin Bailey Research Firm Baby Boomers impact on:  Baby Boomers impact on Travel & Leisure Fast Food Apparel/Retail Technology Health Financial Services Boomers wants:  Boomers wants Boomers love to travel Boomers like to eat out Boomers enjoy their cars & motorcyles Boomers reach out to technology Boomers health choices Boomers issues with their finances Baby Boom Travel:  Baby Boom Travel Travel & Tourism is a $1.3 trillion industry in U.S. Domestic Travel Market Report,2002 Edition, Travel Industry Assoc of America Travel ranks among the top leisure activity for men & women 50+ What do they want? Adventure & Relaxation Seasoned Travelers:  Seasoned Travelers Historical Romantics Road Warriors Luxury Seekers Cultural Explorers Experimental Adventurers Fast Food-After 50:  Fast Food-After 50 All have eaten out at a fast food restaurant in past 3 months Eat at hamburger chains more than others Leading non hamburger chains-Taco Bell & Pizza Hut Male boomers more than female prefer fast food restaurants Women boomers more than men see fast food restaurants as a place to take grandchildren “Tablecloth” restaurants greater appeal for women Howard Willens, Mature Marketing Research Food Tastes-Ethnic Foods :  Food Tastes-Ethnic Foods Most popular ethnic cuisines in US Mexican, Italian, Chinese Food tastes: bolder flavors Outlook for future Bolder flavors to tickle taste buds Ron Paul & Jacqueline Rodriguez, Technomic, Inc. Retailers :  Retailers Boomers are do-it-yourselfers who do not trust authority Home Depot has blossomed with its promotion DIY lifestyle Installation services-DIFM Aka “do it for me” Retailers:  Retailers Clothing retailers struggle to understand what Boomer women want “Are Macy’s and other department stores coming back into vogue for the baby boomer women?” AP article 4/12/07 suggests “that even retailers who sought this demographic are failing by targeting age, rather than a lifestyle”. “Meaningful special occasion gifts” for boomers: Experiences Connections Memories Self-respect Brent Green Trends in Grandparenting:  Trends in Grandparenting Retailers are paying attention: KB Toys launched Grandparents’ Reward Club in 2006 –Every Tuesday 10% discount off purchases of shoppers over 50 Babies “R” Us hosts free seminars for grandparents in select stores-baby safety & baby care It partners with Fisher-Price to sell a 60 page guide for grandparents called “Loving Your Grandbaby” Boomers & Health “You can stop “normal” aging” :  Boomers & Health “You can stop “normal” aging” “Normal” aging “isn’t normal at all”. It’s a choice you make by the way you live... The other choice is to tell your cells to grow- to build strong, vibrant body & mind.” Two master signals to our cells : Exercise Emotion Dr. Henry S Lodge, Columbia Medical School, Published March 18, 2007 Forever Young is the motto of Boomers Boomers & Technology:  Boomers & Technology A great secret becoming known even though boomers did not grow up with computers Consumers 50+ go online They bought $7 billion dollars online in 2005 “Baby boomers are the largest, most affluent, most gadget-grabbing generation in American History” Michelle Edelman, LB Works, Chicago Baby Boomers & Financial Industry:  Baby Boomers & Financial Industry “Financial services industry is not effectively marketing its products & services to baby boomers & faces a huge obstacle in keeping them as customers, because they are not loyal to financial institutions” Lisa Shidler, Investment News 3/12/2007 Customer Service :  Customer Service Central issue for financial services industry Boomers expect : Prompt & individualized customer service Not “high touch” but “individualization” Attitude “Know Me” as a “unique individual” Joan Seamster, Principal, Customer Insights Boomers :  Boomers “Financial industry is missing the women market” By age 56, average woman will be single 51% of women don’t have a spouse < 1 in 5 women have a financial adviser Investment News 3/12/2007 Women and financial advisers:  Women and financial advisers Women are twice as likely as men to first Seek advice from a financial adviser Some of the hot buttons to winning Women’s trust and confidence: Connection Communication Relationships Trust Martha Barletta, author Marketing to Women How to understand boomers? :  How to understand boomers? “Understanding human needs is half the job of meeting them” . -Adlai E. Stevenson, Jr. Marketing to Boomers:  Marketing to Boomers 1st impressions are important If you give them want they want, they will listen You may need a hook Youth Inclusion Quality & Value Reassurance Use Visuals Howard Willens, Mature Marketing Research Boomers & Nostalgia :  Boomers & Nostalgia Rock & roll is a common thread of the Baby Boom generation. Boomers like connections to music of the 60s and 70s Microsoft paid The Rolling Stones $12m to license “Start me Up” for Windows 95 Apple iMacs used “She’s a Rainbow” If your customers picks a product that does not meet their expectations You certainly don’t want them humming another Rolling Stones song “I Can’t Get No Satisfaction” Conclusions::  Conclusions: Boomers represent a large and growing segment of anyone’s market. Knowing how to do business with boomers will differentiate you from the competition. The most important tool in your marketing and sales arsenal is you reputation as an honest, ethical and helpful professional. Knowing how to serve baby boomers will grow your business. Celebration of turning 50:  Celebration of turning 50 Instead of thinking “senior”… let’s begin now by thinking “50+” …by celebrating turning 50 and celebrating the second 50 years Longevity –It’s a celebration of life:  Longevity –It’s a celebration of life “This is the first time in human history that the prospect of living a long, healthy, and productive life has become a reality for the majority of people in most parts of the world. What was once a special advantage of the few has become the destiny of many. And it is likely that this increase in longevity will continue. As important as is liberation by health, as powerful as is liberation by law, older people must be liberated, too, from stereotypes that limit their horizons. We are in the midst of the wonderful world of longevity. It is in our power to make it a celebration.” Robert Butler, 2001 Marketing to the Baby Boomers:  Marketing to the Baby Boomers “Life events mean marketing opportunities… They include new reasons and way to consume the same products they always have.” Diane Crispell, Rpper ASW It’s all about: Finding Answers Creating Solutions Thank you for joining us today Marketing to the Baby Boomers:  Marketing to the Baby Boomers Presentation prepared by Kathey Hickey Fulham, CPA, MST Certified Public Accountant Master of Science in Taxation Certified Public Accounting practice in the village of Osterville 7 Parker Road Osterville, MA 02655 508-420-3456

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