Marketing to Boomers and Seniors

Marketing to Boomers & Seniors: Today’s 50+ ConsumerShannon IngramPresident, GenAge MarketingCo-Founder, BoomerReviews.com

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“So come with me where dreams are born,And time is never planned.Just think of happy thingsAnd your heart will fly on wingsForever in Never Never Land”

~Peter Pan

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The Essence of the Boomer Mentality

A Forever Young Party Animal

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Agenda

• Generational Segmentation• Boomers & Pre-Boomers• Ageless Marketing• Exercise• Learn Something• Have Fun

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Generational Segmentation

• Generational Cohorts & Birth Years– GI or Greatest Generation, 1901-1924– Pre-Boomers or Silent Generation, 1925-1945– Baby Boomers or Boomers, 1946-1964– Gen X, 1965-1983– Gen Y or Millennials, 1984-2004

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Our Focus: Boomers

• Boomers & Pre-Boomers = 50+• Pre-Boomers – 46 Million– Children of Great Depression & WWII Parents– Marriage is for Life– Korean & Vietnam Wars– Big-Band/Swing– Common Values & Near-Absolute Truths– Disciplined, Self-Sacrificing, Cautions

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Our Focus: Boomers

• Baby Boomers – 73 Million– Children of WWII & Korean War Parents– Assassinations of JFK, MLK, RFK– Space Program and Walk on the Moon– Rock ‘n Roll– First Divorce Generation– Women’s Movement, Birth Control– Self-centered “Me Generation”

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Market Size

• Approximately 119 Million Boomers & Pre-Boomers in US Today

• First time 50+ Age Group is Largest Percentage of US Population

• By 2015, 50+ = 45% of US Population • By 2030, 65+ will Double to 71.5 Million

Sources: Age Wave, AARP

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Wealth

• 55+ Controls More than ¾ US Wealth • Boomer Median Income Today is 55% Greater

than Younger Gen X & Millennial • 50+ Owns 65% of Aggregate Net Worth of All

US householdsSources: International Council of Shopping Centers,

US Government Consumer Expenditure Survey

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Spending Habits

• Outspend Other Generations by $400 Billion per Year on Consumer Goods, Services

• Discretionary Purchase Decisions Include:– Decreased sensitivity to price– Increased sensitivity to affordability– Sharply increased sensitivity to VALUE

Sources: US Consumer Expenditure Survey, Forrester

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Spending Habits

• 55-64 Age Group Currently Outspends Average Consumer in Most Categories:– Household furnishings– Personal care– Entertainment– Gifts

Source: US Government Consumer Expenditure Survey

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Spending Habits

• Boomers Take Pride in the Appearance of Their Homes

• 21% Report Spending More than $10K on Home Improvements in the Past Year

• NAHB Predicts Aging in Place Remodeling to be $20-$25 Billion – 10% of All Home Improvement

Sources: Scarborough, National Association of Home Builders (NAHB)

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Granny Pods

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Spending Habits

• 96% Participate in Word-of-Mouth or Social Proof Marketing– Pass product or service info to friends– Reading online reviews

Source: 3rd Age

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Online Habits

• The Internet’s Largest Constituency is 50+• 2012 – Boomers Spent 27 hrs/week Online;

Millennials Spent 25 hrs/week• 72% of Adults 55-65 Shop Online• 47% of Adults 73+ Shop Online

Sources: Jupiter Research, Nielsen, Forrester

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Online Habits

• 89% of Adults 65+ Have Personal Email They Check an Average of 5 times/week

• The Internet is the Most Important Source of Info for 50+ Making Major Purchases such as:– Automobiles– Appliances– Large Electronics– Home Furnishings

Source: Nielsen

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Online Habits

• In 2011 Boomers Increased Use of Social Media by 60%

• 82% Research Health & Wellness Online• Top 4 online sites:

• Google• Facebook• Yahoo• YouTube

Sources: AARP, WSL Strategic Retail, Pew

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Psychology

• Unifying Turmoil – 60’s & Vietnam• Self-Empowered Identity – Be the best you can

be…• Altruism• It’s Still “All About Me”– McDonald’s 1974 & 2014• From Young Moms to Grandmoms

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Psychology: CRAZY. Sexy. Cool.

• Crazy– Denial• Optimistic• Challenging Aging Bodies• Spending

– Increase in Marijuana Usage • In 2012 for adults 50 to 54, the rate increased from

3.4% in 2002 to 7.2 % in 2012. • Among those aged 55 to 59, the rate increased from

1.9% in 2002 to 6.6% in 2012.

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Psychology: Crazy. SEXY. Cool.

• Sexy– Fitness– Vitamins– Topicals & Tablets for Everything– Fashions– Dating & Relationships– We’re NOT stupid

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Psychology: Crazy. Sexy. COOL

• Trends still matter– Refined Minimalism into Universal Design– Talbot’s, Chico’s, Tommy Bahama

• Not stereotyped “old people”• Keep working• Still have aspirations, fun

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How to Succeed in Marketing to Boomers…

DO• Practice Ageless Marketing• Use Aspirational Imagery• Appeal to Crazy. Sexy. Cool.• Have a Strong Digital

Footprint: Web Site, Social Media, Advertising

• Use Email Campaigns

DON’T• Position Your Product or

Service for Older Consumers

• Use Pictures of ‘Old People’ in Your Communications

• Talk Down • Underestimate Boomer

Value as Consumers

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Case Study: OXO

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Case Study: Builders Appliance Center

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Idiot Wind

“You’d have to be an idiot to turn your back on this humongous growth market.”

~Jody Holtzman, AARP

To paraphrase Boomer Poet Laureate, Bob Dylan, there’s an Idiot Wind blowing across corporate America…

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Exercise

• Review Magazines• Identify Best/Worst Ads and Discuss Why• Create an Ad for a Liner:– Use Aspirational Imagery– Write Copy to Connect and Relate Boomers via

Emotion– Decide on a Great Headline– Identify Someone to Share

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Reading & Research

Books:• Turning Silver into Gold:

How to Profit in the New Boomer Marketplace by Mary Furlong

• Dot Boom: Marketing to Baby Boomers by David Weigelt

Web Sites:GenAge MarketingBoomerReviews.comVibrant NationImmersion ActiveHuff/Post50Next AvenuePurple Clover

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Reading & Research

Reports:• Nielsen “America’s Most Valuable Generation”• E-marketer “Baby Boomers in the

Marketplace”

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Summary

• 73 Million Boomers + 48 Million Pre-Boomers = 119 Million 50+

• Outspend other generations by $400B/year• Average 27 hours/week online & Internet is

most important source for purchasing decisions

• Crazy. Sexy. Cool.• Practice Ageless Marketing for Success

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A DIVISION OF GENERA STRATEGIES