KEEP THEIR WALLETS INTACT
Editor’s Note: This is the final post in a six-part blog series, covering key items marketers need to know when targeting Baby Boomers (individuals 50 years and older).
Boomers don’t mind spending their hard-earned cash
It is clear that the over-50 demo has lots of money. Many marketers operate under a mistaken assumption that they do not, or will not, spend that money. Once again, statistics and changes in social norms prove that is not the case.
- Boomers account for nearly $230 billion, or 55 percent, of consumer packaged goods sales.
- Boomers outspend younger adults online 2:1 on a per-capita basis.
- Americans over 55 spend 50 percent of all vacation dollars in America.
- 55- to 64-year-olds outspend the average consumer in nearly every category, including: food away from home, household furnishings, entertainment, personal care, and gifts.
- Women over 50 spend $21 billion on clothes annually.
The recent recession changed the way many people spend their money, including the 50+ demographic. More than 60 percent say they regret the way they spent money and ran up debt in the past. Many are swapping credit cards for a cash/check/debit card payment strategy. If your product or service offers good value for the money, the 50+ market is ready to listen.
Think like a Vimarcian
With millions of Boomers, there are certainly plenty who are spending money on luxury items and taking more trips. In general, once a person reaches 50 and beyond, priorities shift from material things to experiences. Offer a rich or new experience to the Boomer audience, and you are ticking off two boxes for them — the search for novelty and change, evidenced by the growing divorce rate for those over 50, and their desire for experiences that add depth to their lives.
Since Boomers are not overly concerned about leaving an inheritance, giving them attractive new options for spending now will net profits. River cruises are growing rapidly in popularity, almost exclusively among those 50+. The river based cruises offer more chances to take side trips, and even from the water, the sightseeing is terrific. Boomers are looking for experiences they will remember, and ocean cruises offer less in the way of cultural interactions. New types of travel or educational opportunities will sell well to a 50+ market.
Below are three recent campaigns that speak this demographic's search for value (click on the images to enlarge).
Outlet Shoppes of the Bluegrass
ARGI Financial Group
Check out the whole Anatomy of a Boomer series here