What do boomers want in 2006?
In an historic turnabout, older folks are looking hot. Coast to coast, marketers, politicians and media are waking to the power and sheer numbers of consumers age 50 and older.
Fidelity Investments, for example, tapped Paul McCartney, the urBeatle, to pitch its financial services. The emblem of Gen X cool, The Gap, launched Forth & Towne shops for older women. And the Rolling Stones are still touring.
Fact is, a third of Americans are graying fast. These are the nearly 80 million so-called baby boomers born between 1946 and 1964. Every 7 seconds for the next 18 years, someone in the country will hit 60. More than a million Americans are expected to be 100 or older by 2050.
Even better, boomers are expected to exercise $3 trillion in spending muscle by 2007, as more of them enter prime-time earning years, 45 to 54.
Best of all, this feisty, self-actualizing, sex-and-revolution bunch that leveraged "living" into a concept called "lifestyle" is hardly ready to turn "senior." "Every life stage offers new marketing opportunities, needs and motivations," says Carol Orsborn, partner at Imago Creative, a marketing agency that specializes in targeting boomer women.
How do you go with the flow of this lucrative age wave?
Here's a rundown on how to attract these older consumers as well as ideas about products and services that, in boomerspeak, will resonate with them.
Boomers come in different sizes and shapes
Clearly, millions of consumers born over an 18-year span are not homogenous. "While there are aspirational affinities, boomers are not a cultural or economic monolith," says Becky Chidester, CEO of RTCRM, a Washington, D.C., marketing agency.
Your first step is to pinpoint where your business best intersects it. Most market researchers divide the boomer group into three sub-segments:
1. The leading edge, born 1946-1954
2. The mid-range, born 1955-1959
3. Trailing or tail end, born 1960-1964. This group often shares characteristics with Gen X, that is, the kids of leading-edge boomers.
Broadly, distinctions among the groups add up to time and money. The oldest segment, with kids out of the house and the mortgage handled, is ready for rock 'n' roll redux. The younger segments are probably still wrestling with family and financial commitments.
Keep those realities in mind as you package your pitch and plan marketing.
Never assume boomers are too old to get the message
If you think of boomers as young at heart, flexible and educated, you'll be headed in the right directions. In contrast to previous aging generations, boomers are more likely to try unfamiliar brands than are consumers aged 16 to 34, according to "Business Week."
"You must continue to earn the loyalty of this customer at every single encounter," says Beth Zimmerman, owner of Cerebellas, a brand consultancy in Long Beach, N.Y. "Never assume they're too set in their ways or too ill-informed about other choices for where to take their business."
Once you've defined your overall message, these three marketing themes offer smart channels to develop for boomers.
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The special experience.Life continues to be an exploration for boomers. That sets up a host of potential services to offer, including special-purpose travel, such as international treks or safaris, whitewater rafting, dude ranches or wilderness outings; cultural celebrations, such as arts forums or festivals; food or culinary adventures, such as back-to-the-old-country jaunts or cooking schools.One-of-a-kind experiences can also be evoked by products, as in the feeling you get from owning a luxury or a rare treat. This might embrace upscale jewelry or watches, crafts or paintings, high-end machines, motorcycles or tools, handcrafted leather goods or furnishings and more. Just remember: Emphasize the feeling created by owning that fancy watch, not a device that tells time.
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Looking good, feeling good.If you think there's been an upsurge in health clubs or diet fads lately, just wait. The real explosion is around the corner. Business researcher FIND/SVP forecasts that anti-aging products will turn into a $56 billion market by 2007, a staggering jump of 50% since 2002.To move into this arena, consider day spa or convenient grooming and beauty services; exercise gear that tones and shapes (don't be too tough on aging bods); pharmaceuticals and nutraceuticals; health-conscious restaurants or low-fat, takeout foods; hair care and the like. Don't overlook professional and paraprofessional services, such as medical and plastic surgery, dental cosmetics, as well as vision and hearing boosters, physical therapy, massage or chiropractic services.Also keep your antenna tuned for spiritual or yoga and meditation services. Such "higher purpose" experiences are also attracting boomers who want to feel and look their best.
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Financial fitness."I deal with clients in their mid-50s to early 80s all over the country," says Alan Haft, a financial Certified Senior Advisor based in Boca Raton, Fla. "There's a common denominator. The years of accumulation are over." Everyone, says Haft, no matter the net worth, is concerned about outliving his or her money.Financial services for boomers include insurance, such as supplemental health and long-term care policies, tax advice and accounting, financial and estate planning, legal services for wills, contracts and so on.Besides word-of-mouth referrals, Haft finds seminars that offer real information to be his most effective marketing tactic. Typically, he'll mail about 10,000 invitations from purchased and in-house lists to get a 1% response, with 100 or so actually showing up. "About 30% will call for an appointment and half of those will be window-shopping," he says. In the end, one seminar might generate 10 good leads and five real deals. "But one deal over $100,000 pays for the seminar," says Haft.Marketing via seminars works when your product has a high profit margin that can cover the hefty upfront costs. "Just don't forget the food," advises Haft. "Every boomer gets four or five seminar invitations a week. The better the food, the more likely you'll get a response." Haft holds seminars in hotels and at well-known restaurants.Also look to technology and business-to-business services in this area. For instance, Impact Technologies, a Microsoft Certified Partner based in Charlotte, N.C., provides financial software and marketing tools for banks, brokerages and financial advisors. Impact's proprietary "Retirement Road Map" software, which quickly calculates how much money an individual will have to live on in later years, helps advisors develop relationships with potential clients, says J. Maxey Sanderson, Impact's vice president of product development. "Most people, regardless of economic means, want some basic awareness before they'll open up to talk about retirement or estate planning. The Retirement Road Map lets advisors give people fast definitive answers." That, points out Maxey, helps build business.
Relationships and the new family
Affluent and educated, the boomer group is lavishing attention on their grandkids. So don't forget that the oldster marketing juggernaut includes consumer electronics, trendy toys and kid experiences. SVP estimates 69 million grandparents in the US, propelling a $30 billion market.
In addition, boomer women are defying the past "old lady" stereotypes and re-inventing themselves. Imago's Carol Orsborn, who, with Jimmy Laura Smull, recently released a University of California study of professional women in their late 40s and older called "The Wisdom Years: Women of the Baby Boomer Generation and Their Search for Meaning." They found that "Women are doing things together and looking for communal experiences with one another," says Orsborn. With kids grown and out of the house, women are increasingly leaving husbands at home and sharing experiences or taking trips with women friends or groups. That may be a trek up Machu Picchu or Thursday night chorus night.
Besides the other ideas for businesses and marketing plans for boomers, make sure to tip your hat to the older women market. It's growing more powerful by the month.