Micro Marketing to Boomers

We are no longer a nation of mass consumers. Although we consume massive amounts of products, goods and services, our connection to what we consume is increasingly at a very individualistic decision.

Where we once strived to keep up with the Joneses, now we don’t even want to be like the Joneses. We are celebrating our uniqueness. Nowhere is this more evident than with the Baby Boomers.

To lump them into one demographic group is of no value to businesses wanting to tap into the enormous amount of wealth and spending power that is settling into the hands and bank accounts of those born between 1946 and 1964.

The safest way to enter into a marketing relationship with boomers is to remember that all the things you think you know are probably not so. At every phase of their lives, this huge and hugely diverse group of consumers has changed everything in established behavior expectations. And it continues to do so.

The first wave of boomers, those called the leading edge, are the most affluent. They make up 70% of the U.S. households with incomes of at least $75,000 and assets of $200,000 or more. Although the earliest are now in their early 60’s, they are not busy preparing for retirement. Far from it. And that’s created an abundance of micro markets for those savvy enough to know what leading edge boomers want. Such as:

Health. Those in their late 50’s and early 60’s today are collectively in far better health than their parents were a generation ago. And, just in case they do get ailments, the medical industry is ready for any and all afflictions. From “restless leg syndrome” to “chronic dry eye”, there is money to be made in treating every itch or twitch.

However, with boomers it is never about aging. If you want to sell to them, never talk to them about getting older. Boomers are reinventing aging. “60 is the new 40” is the leading edge boomer mantra. They are getting younger.

Wellness. Companies that offer ways to stay young are a boomer’s best friend. From natural and holistic products to the skillful enhancements of cosmetic surgeons to the sparkle of whiter teeth, the first boomers have redefined wellness to be synonymous with appearance. Boomer vanities extend into lifestyle as well. Regular appointments at fitness centers, gyms, massage therapists, nail salons, yoga classes, and spas are part of the lifestyle. Nutrition Business Journal estimated the value of wellness as a boomer industry at $440 billion a year in the year they started turning 60.

Retirement. For early boomers retirement isn’t a consideration now. Retirement is something they’ll consider when they get old, like around age 80. In the interim, they are simply reinventing their lives to indulge their interests, passions, and egos. At 60 they are planning entirely new careers, starting businesses, using their experience to consult, write, or do public speaking, spending their time traveling, enrolling in colleges to follow their passions or doing volunteer work. When surveyed, 81% of leading edge boomers indicated they would continue “working” past 65. This is an active group that isn’t about to sit on the sidelines.

Technology. The boom in technology was accelerated through the innovation of boomers like Bill Gates and Steve Jobs who were born in the mid 50s – the middle of the baby boom years. But the early boomers quickly became the first early adapters to the technology. As long as technology simplifies their lives, and is relatively easy to master, early boomers will be a lucrative target audience for high-tech living.

Shopping. One of the most interesting facts about boomers is the change in their spending habits. By the time they’ve reached 60 they have acquired most everything they want and need. And, they’ve matured enough to not spend just for the sake of spending. What they will spend on, though, are dream products. This is the time they’ll splurge on something they’ve always wanted, from a Ferrari to a beach-front vacation home.

But even with the beach-front home, the boomers are putting a different twist on the second home. Boomers are less likely to be tied to a second home that is a permanent residence and much more likely to indulge in split ownership of homes in multiple locations, giving them 3 or 4 residence destinations.

Boomers are very brand influenced and brand loyal. They are the first generation to grow up with advertising as a permanent part of their culture. For boomers, brands equal quality, dependability and status. And that’s important to know if you are planning to sell to boomers. Basically, boomers have reached the age where they know what they want and what they like. Good luck trying to change their minds.

The three factors that will most influence a boomer’s decision to buy are:

1. Will the product or service make life easier? Boomers definitely want to uncomplicate their lives and will spend money to do it.
2. Will the product or service save time? In earlier generations 62 was considered a retirement age and retirement meant slowing down with lots of leisure time. Not for boomers, however. Boomers created the fast-paced, activity-filled lifestyle, and they aren’t planning to slow down at 60.
3. Is this a product or company they can rely on? Reputation, trust, and quality need to exist if you are going to sell to leading edge boomers. They are savvy consumers who can smell snake oil a mile away.

When selling to early boomers it is good to remember to focus on all the reasons and ways the product or service can make life easier, save time, and be something they can rely on. If you have all three, you’re likely to have a happy customer who is happy to spend.

As you craft your marketing, advertising and sales messages for these boomers, it is wise to remember that even in this niche of the boomer generation, micro groups exist that each need to be communicated to with unique messages. Claritas identifies the wealthiest of these in their Affluent Empty Nests segmentation. They include: “Upper Crust,” “Money and Brains,” “Big Fish, Small Pond,” and “Second City Elite” profiles.

In the Central PA market we have leading edge boomers from three of these four profiles. (Money and Brains skews to larger urban areas.) If you have the products or services they want, need and will buy, you are at the beginning of a customer boom that should drive your business for at least twenty years.

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