In an effort to capitalize on the next generation of buyers (19-35 year olds), retailers often overlook a segment of buyers (55+) that not only WANT to buy, but have the MONEY.
The baby boomer demographic has driven the marketplace throughout its existence. They revolutionized the baby industry when they were babies, the teen industry when they were teens and have continued to shape product development and services through every decade as they age. Now, as they head into their 60s and 70s, industries that provide products and services to this age group must find a way to meet new demands and interests different from past generations.
This isn’t the rocking chair generation. This is the generation that has rocked the retail world with their demands for better and bigger, at every evolution of their lives.
The Drum Network recently published a spot-on article by Harriet Miles, in which she points out how powerful and influential the 55+ consumer group is. You will want to read the whole article, so I’ve put a link to it at the end of this piece.
Here’s some key quotes from the article:
- Retailers and marketers are currently putting all of their eggs in the millennial basket and forgetting that they are not the only generation with money and spending potential.
- In coming years, the over-55s are expected to represent up to 86% of consumer spending growth.
- These baby boomers are finally buying everything they have always wanted, they have disposable income and they are actively seeking new things, so brands and retailers could be making a grave mistake by forgetting about them and their purchasing power.
- ….a generation who over the last decade have increased their consumer spending on an average of 4.4% a year – faster than any other demographic.
- (They are) the biggest spenders, the fastest-growing and highest-earning segment of the population.
The author goes on to describe the characteristics of the 55+ consumer, and how retailers can improve their marketing to reach this customer:
- They still crave a personalised sales experience and they want personalised attention. Stores can help deliver this through new technology, but retailers also need to consider how they train their staff to communicate with boomers in store.
- Boomers are also a convenience-driven demographic. Part of their brand loyalty rests in how convenient their shopping experience is.
- Far from being tech ignorant, they use tech as a primary form of communication with friends and family and are keen to embrace it within their shopping experiences. The older generation are just as eager for the technological revolution of retail as their younger counterparts.
- These consumers are keen to try out visualization technology, which would allow them to preview products at home before committing to purchases either online or in store. (Visualization technology) can be a new way to get boomers into their stores.
- This increasingly wealthy and growing older generation represents a big opportunity for consumer businesses and retailers, and one they should continue to pursue with interest.
LINK TO THIS ARTICLE: