Does your business have products or services of interest to customers classified in the baby boomers market? If so, you should be targeting baby boomers with your marketing campaign … it is a significant business opportunity and growth for the next 20 years.
Related: 11 Steps to Media Framing Messages for Optimum Engagement
Baby boomer years … relevant facts about baby boomers
Why a significant market opportunity, you say? Consider these facts (Statistics source: Tom Peter’s blog) about the baby boomers market segment:
One USA boomer is turning 65 every 8 seconds…that rate will continue for the next 20 years.
USA adult population will have grown by 23 million in the 10 years between 2006 and 2016.
Ages 18-49 will have grown by 1 million … age 50+ will have grown by 22 million.
At age 50, we effectively have … a full 50% of our healthy adult life ahead of us.
An average American will buy 13 cars in the course of a lifetime …7 after age 50.
Age 55-plusers are … more active in online finance, shopping, and entertainment than those under 55.
Boomers inherit $8.4 trillion in the next few years; 70% of boomers will inherit on average $300K.
The net wealth of households headed by 65+ is 47 times greater than the net wealth of households headed by someone <35; 20 years ago the ratio was 10:1.
The traditional approach.
The traditional approach
Have you noticed that almost no advertisers or marketers target the boomer segment? It is as if they didn’t exist, isn’t it? These guys are living in the past.
Previously generations selected a brand between the ages of 18 and 25 and rarely switched. And that became the target age for advertisers and the myth of today.
The truth.
Baby boomers … the truth about this segment
According to an August 2012 Nielsen study, Baby Boomers account for nearly half of consumer packaged goods spending and will control 70 percent of disposable income within five years.
And in addition, a Gallup poll found that as people enter their 50s, their attitudes about their finances start an upward climb.
Americans entering their 50s and older are:
More likely to say they “feel good about the amount of money they have to spend”
Less likely to worry that they’re spending too much money
More likely to say they have the ability to “make a major purchase, such as a car, appliance or significant home repair”
More likely to say they have enough money to “do what they want to do”
So it’s surprising that less than 5 percent of business marketing and advertising targets this “most valuable generation”.
Business examples … of those who get it
Some innovative companies like Apple understand the importance of the Boomer target segmentation. Boomers account for 41 percent of people who buy Apple computers notes a Nielsen report. Just notice the commercials for the Apple iPad, if you doubt this. The message is timeless and ageless.
Many recent marketing campaigns are starting to get it. To celebrate its birthday, the shoe company commissioned portraits featuring people born in 1928, when the company was founded. And Dodge marked its 100th year in business with a commercial whose snippets of wisdom featured centenarians. The message? You learn a lot in 100 years.
Business example … and those who don’t
Many businesses are always in an obsessive search for a fountain of youthful consumers. A major business in the packaged goods industry worried that targeting boomers would make its brand look old. That despite data that its consumer base was between 47 and 70.
Baby boomers – the demographic of 76 million Americans born between 1946 and 1964 – are a golden market for businesses.
Have you added this target segment to your business strategy yet? What are you waiting for?
Do you have an experience on your team’s business’s market segment targeting to share with this community? Have any comments or questions to add below?
Need some help in capturing more customers from your marketing strategies? Creative ideas to help the differentiation with potential customers?
All you get is what you bring to the fight. And that fight gets better every day you learn and apply new ideas.
When things are not what you want them to be, what’s most important is your next step.
Test. Learn. Improve. Repeat.
Are you devoting enough energy to improving your marketing, branding, and advertising?
Do you have a lesson about making your marketing strategy better you can share with this community? Have any questions or comments to add in the section below?
Mike Schoultz is the founder of Digital Spark Marketing, a digital marketing and customer service agency. With 40 years of business experience, he blogs on topics that relate to improving the performance of your business. Find them on G+, Twitter, and LinkedIn.
Digital Spark Marketing will stretch your thinking and your ability to adapt to change. We also provide some fun and inspiration along the way.
More reading on marketing strategy from Digital Spark Marketing’s Library:
Peter Drucker once said: The purpose of a business is to create a customer. Creating a customer … sounds pretty basic, doesn’t it? It is equally or more important to create customers that create customers. In both instances, the process begins with knowing your customers well. That goes without saying, doesn’t it? Segmentation targeting by generational differences can be of particular significance in this regards.
Currently, the demographics of customers span five generations. These generations are the Mature/World War II Generation, Baby Boomers, Generation X, Generation Y/Millennials, and Generation Z.
In addition to the many differences among individuals within generational cohorts, businesses must contend with different preferences between generations. And to accomplish this they must know and apply these generation preferences. Let’s take a look at these generations and their preferences.
The Five Generations in the United States and Canada in the Workforce
Silent generation (1923 – 1944
Baby Boomers (1945 – 1964)
Generation X (1965 – 1980)
Generation Y/Millennials (1981 – 2000)
Generation Z (1995-2015)
These generation labels are primarily used in the United States and Canada. Other regions throughout the world use some of these labels, though the ages of their members of these groups tend to differ.
Related: An Actionable Approach to Target Market Segmentation
Mature/World War II Generation … The Silent Generation
Veterans (WWII Generation) or also known as the Silent Generation – Born before 1944
Significant Influences
Great Depression, the New Deal, WWII, the G.I. Bill, Pearl Harbor
Characteristics
Patriotic, loyal, fiscally conservative, faith in institutions
The silent generation came of age in the years following the Great Depression and WWII. To understand this generation, think “American Values” – civic pride, loyalty and respect for authority.
They attend more symphonies than rock concerts, watch more plays than pick-up softball, and eat more steak than tofu. At work, they are the classic “keepers of the grail” and an irreplaceable repository of lore and wisdom.
Members of this generation are 70 years or older. Although most members have retired from the labor force, they comprise a wealth of valuable knowledge and experience. We believe this generation views work as an obligation: they respect authority and tend to take rational approaches to shop.
Economic prosperity and recession, expansion of suburbia, television, Vietnam, Watergate, protests and human rights movements, sex, drugs, and rock ‘n’ roll
Characteristics
Idealistic, competitive, question authority, desire to put their own stamp on things, challenge institutions
Boomers grew up in the post-WWII era when the economy was the healthiest the country has ever known. Parents and teachers taught them, “You can be anything you want to be, including President of the U.S.” They turned the organizational hierarchy on its head, revolutionized the workplace, and devoted themselves to 60-hour workweeks.
Baby Boomers are approximately between the ages of 45 and 64. The older members have begun to retire from the labor force. This generation occupies most of the senior-level management roles. They are often stereotyped as extremely focused on work, and they possess a strong work ethic.
When Communicating with Boomers
Take time to establish rapport
Link your message to company vision and values
Acknowledge their work ethic
Generational differences … generation X (Gen-Xers) – Born 1964 to 1981
Significant Influences
Sesame Street, MTV, the Game Boy, the personal computer, divorce, AIDS, crack cocaine, missing children on milk cartons and missing parents at home.
Characteristics
Eclectic, resourceful, self-reliant, distrust of institutions, highly adaptive to both change and technology.
Gen-Xers grew up amidst corporate layoffs, recession, inflation, and the Watergate hearings. Technologically adept, they want a more fun and flexible workplace. They complain their older co-workers “live to work” while they simply “work to live.”
Generation=Xers are approximately between the ages of 33 and 53. The oldest members could be entering senior-level management roles while the younger members are pursuing mid-career supervisory roles. Many members of Generation X embrace diversity, technology, and entrepreneurship.
When Communicating with Gen-Xers
Get to the point
Avoid buzzwords, cliché, and hyperbole
Lighten up
Nexters (Generation Y / Millennials) – Born 1980 to 2000
Significant Influences
Fall of the Berlin Wall, expansion of technology and the media, a mixed economy, natural disasters, violence, drugs, and gangs.
Characteristics
Globally concerned, integrated, realistic, pragmatic, cyberliterate, media savvy, and environmentally conscious
Millennials are coming of age in an era in which it’s once again popular to be a child. Digital in diapers, they see the world as connected, global, and round-the-clock. Although they’ve only begun to arrive in the workplace, and they are still “works-in-progress”, it appears they may be new-fangled versions of their WWII grandparents and great-grandparents.
Generation Y or the Millennials are approximately between the ages of 19 and 39. The older members are in the labor force while the younger members are still completing their formal education. This generation is known for being optimistic and goal-oriented: they are known for enjoying collaboration and multitasking, are comfortable embracing emerging technologies, and appreciate meaningful work.
When Communicating with Nexters
Be positive
Be open to their ideas
Generation Z – Born after 2000
Weaned on smartphones, these kids are the first true digital natives. For many families, this gadget-savvy group that is up on most things Web is the go-to source for information. This gives Gen Z significant influence over household purchasing decisions and behaviors.
This generation is also more brand aware than any before it. Note, a child of this generation can recognize almost 100 brands by age 3.
Our takeaways
It is critical for businesses to segment its customers by generations. Learn about and talk through generational issues so as to assist in building customer relationships.
In engaging customers, acknowledge and appreciate differences. In moving forward, continue to develop your knowledge of each generation’s preferences.
So what’s the conclusion? The conclusion is there is no conclusion. There is only the next step. And that next step is completely up to you.
It’s up to you to keep improving your customer attention and focus. Lessons are all around you. In many situations, your competitor may be providing the ideas and or inspiration. But the key is in knowing that it is within you already.
All you get is what you bring to the fight. And that fight gets better every day you learn and apply new lessons.
When things go wrong, what’s most important is your next step.
Try. Learn. Improve. Repeat.
Are you devoting enough energy to improving your continuous learning for yourself and your team?
Do you have a lesson about making your customer focus better that you can share with this community? Have any questions or comments to add in the section below?
Mike Schoultz is the founder of Digital Spark Marketing, a digital marketing and customer service agency. With 40 years of business experience, he blogs on topics that relate to improving the performance of your business. Find them on G+, Twitter, and LinkedIn.
Digital Spark Marketing will stretch your thinking and your ability to adapt to change. We also provide some fun and inspiration along the way. Call us for a free quote today. You will be amazed at how reasonable we will be.
Check out these additional articles on customer insights from our library:
The Story of How JetBlue Turns Customers into Advocates
Should a Business Send Customers to Competitors?
An Actionable Approach to Target Market Segmentation
Creating a customer … sounds pretty basic, doesn’t it? It is equally or more important to create customers that create customers. In both instances, the process begins with knowing your customers well. And the customer generations help.
That goes without saying, doesn’t it? Segmentation targeting by generational differences can be of particular significance in this regard.
The purpose of a business is to create a customer.
–Peter Drucker
Currently, the demographics of customers span five
generations. These generations are the Mature/World War II Generation, Baby
Boomers, Generation X, Generation Y/Millennials, and generation Z.
In addition to the many differences among
individuals within generational cohorts, businesses must contend with different
preferences between generations. And to accomplish this they must know and
apply these generation preferences. Let’s take a look at these generations and
their preferences.
The Five
Generations in the United States and Canada in the Workforce
These generation labels are primarily used in the
United States and Canada. Other regions throughout the world use some of these
labels, though the ages of their members of these groups tend to differ.
Mature/World War II Generation … The Silent Generation
Veterans (WWII Generation) or also known as the Silent Generation – Born before 1944
Significant Influences
Great Depression, the New Deal, WWII, the G.I. Bill, Pearl Harbor
Characteristics
Patriotic, loyal, fiscally conservative, faith in institutions
The silent generation came of age in the years
following the Great Depression and WWII.
To understand this generation, think “American Values” – civic pride,
loyalty and respect for authority.
They attend more symphonies than rock concerts,
watch more plays than pick-up softball, and eat more steak than tofu. At work, they are the classic “keepers of the
grail” and an irreplaceable repository of lore and wisdom.
Members of this generation are 70 years or older. Although most members have retired from the labor force, they comprise a wealth of valuable knowledge and experience. We believe this generation views work as an obligation: they respect authority and tend to take rational approaches to shop.
When Communicating with the Silent Generation
Acknowledge their experience
Use good grammar and clear
pronunciation
Link your message to company
history
Baby Boomers – Born 1945 to 1964
Significant Influences
Economic prosperity and recession, expansion of suburbia, television, Vietnam, Watergate, protests and human rights movements, sex, drugs, and rock ‘n’ roll
Baby boomers.
Characteristics
Idealistic, competitive,
question authority, desire to put their own stamp on things, challenge
institutions
Boomers grew up in the post-WWII era when the economy was the healthiest the country has ever known. Parents and teachers taught them, “You can be anything you want to be, including President of the U.S.” They turned the organizational hierarchy on its head, revolutionized the workplace, and devoted themselves to 60-hour workweeks.
Baby Boomers are approximately between the ages of
45 and 64. The older members have begun to retire from the labor force. This
generation occupies most of the senior-level management roles. They are often
stereotyped as extremely focused on work, and they possess a strong work ethic.
When Communicating with Boomers
Take time to establish rapport
Link your message to company
vision and values
Acknowledge their work ethic
Generation X (Gen-Xers) – Born 1964 to 1981
Significant Influences
Sesame Street, MTV, the Game
Boy, the personal computer, divorce, AIDS, crack cocaine, missing children on
milk cartons and missing parents at home.
Characteristics
Eclectic, resourceful,
self-reliant, distrust of institutions, highly adaptive to both change and
technology.
Gen-Xers grew up amidst corporate layoffs, recession, inflation, and the Watergate hearings. Technologically adept, they want more fun and flexible workplace. They complain their older co-workers “live to work” while they simply “work to live.”
Generation=Xers are approximately between the ages
of 33 and 53. The oldest members could be entering senior-level management
roles while the younger members are pursuing mid-career supervisory roles. Many
members of Generation X embrace diversity, technology, and entrepreneurship.
When Communicating with Gen-Xers
Get to the point
Avoid buzzwords, cliché, and hyperbole
Lighten up
Nexters (Generation Y / Millennials) – Born 1980 to 2000
Significant Influences
Fall of the Berlin Wall, expansion of technology and the media, a mixed economy, natural disasters, violence, drugs, and gangs.
Millennials are coming of age in an era in which it’s once again popular to be a child. Digital in diapers, they see the world as connected, global, and round-the-clock. Although they’ve only begun to arrive in the workplace, and they are still “works-in-progress”, it appears they may be new-fangled versions of their WWII grandparents and great-grandparents.
Generation Y or Millennials are approximately between the ages of 19 and 39. The older members are in the labor force while the younger members are still completing their formal education. This generation is known for being optimistic and goal-oriented: they are known for enjoying collaboration and multitasking, are comfortable embracing emerging technologies, and appreciate meaningful work.
When Communicating with Nexters
Be positive
Be open to their ideas
Generation Z – Born after 2000
Weaned on smartphones, these kids are the first true digital natives. For many families, this gadget-savvy group that is up on most things Web is the go-to source for information. This gives Gen Z significant influence over household purchasing decisions and behaviors.
This
generation is also more brand aware than any before it. Note, a child of this
generation can recognize almost 100 brands by age 3.
The bottom line
It is critical for businesses to segment their customers by generations. Learn about and talk through generational issues so as to assist in building customer relationships.
In engaging customers, acknowledge
and appreciate differences. In moving forward, continue to develop your
knowledge of each generation’s preferences.
So what’s the conclusion? The conclusion is there is no conclusion. There is only the next step. And that next step is completely up to you.
It’s up to you to keep improving your customer attention and focus. Lessons are all around you. In many situations, your competitor may be providing ideas and or inspiration. But the key is in knowing that it is within you already.
All you get is what you bring to the fight.
And that fight gets better every day you learn and apply new lessons.
When things go wrong, what’s most important is
your next step.
Try. Learn. Improve. Repeat.
Mike Schoultz is the founder of Digital Spark Marketing, a digital marketing and customer service agency. With 40 years of business experience, he blogs on topics that relate to improving the performance of your business. Find him on Twitter, and LinkedIn.
Digital Spark Marketing will stretch your thinking and your ability to adapt to change. We also provide some fun and inspiration along the way.
More reading from Digital Spark Marketing’s Library:
10 Laws of Customer Experience Design
What Little Things Small Businesses Can Do To Build Customer Relationships
Customer Experience Improvements Begin with Understanding Their Value
