Engage Baby Boomers to Boost Your Bottom Line

Engaging Baby Boomers will boost your bottom line

Baby Boomers are the key to increased sales

At the end of December 2014 I wrote an article on the last Baby Boomers turning 50. It documented the spending power and immense opportunity of this generation, which is largely ignored by advertisers (only 10% of marketing dollars target this demographic).

A new report by the Fung Business Intelligence Centre reiterates that the Baby Boomer market will continue to grow for yet another 20 years. In releasing the report, FBIC Executive Director/Head of Global Retail and Research, Deborah Weinswig, noted: “Just as they have at every other stage of their lives, Boomers are now redefining what it means to be old. On the whole, they are healthier, richer and more active than previous generations of older Americans. Younger Boomers (ages 55 to 64) earn and spend more than the average U.S. consumer, and significantly more than the avidly courted Millennials.”

Baby Boomers Spend

According to the report, younger Boomers will outspend Millennials by nearly $8,000 annually and the typical U.S. consumer by $5,000 with spending occurring across most categories. They will account for more than half of all dollars spent on groceries in 2015 with a focus on health and wellness. They also will outspend Millennials on eating at home, entertainment, household furnishings, pet supplies and personal care.

Baby Boomers Are Tech-Savvy

Marketers need to get over the outdated notions that older adults are baffled by high-tech devices and shun the digital world. That is so 15 years ago! They may Baby Boomer's are technologically saavy and avid online shoppershave been late to the game, but once on board, they fully adopted the technology. In the Seattle market, nearly all Boomers (95%) own a computer and access the internet – same as the total adult market. The percentages owning smartphones and tablets also closely match. They average 8.7 hours a week on the internet, compared to 9.5 for total adults in the market. As noted in the previous Boomer post, Boomers com­prise one-third of all social-media users in the Seat­tle mar­ket, and nearly 30% of online TV and online video view­ers, mak­ing them not only a lucra­tive tar­get, but one in which reach and fre­quency are achieved rather quickly.

Behold the Baby Boomer Grandparent Market

The grandparent market is and will continue to present a huge potential for retail sales. According to the report, nationally, The grandparent market is booming and spending!grandparents will increase from 65 million in 2010 to 80 million in 2020. There currently are nearly 930,000 grandparents in the Seattle-Tacoma DMA. If they grow at the same pace as national projections, they will account for more than 214,000 market adults in less than five years!

Baby Boomers Redefine What it Means to be “Old”

Beauty/Skin care, fitness, entertainment, health-food and home furnishings and home-improvement categories present significant retail potential as Boomers align their styles with their needs. That will include downsizing moves as well as second-home purchases. Nearly 80,000 plan to sell their home in the coming year. Sixty thousand plan to buy a new home and 222,000 are second-home owners.

Bottom line: There are 1.4 million Baby Boomers in the Seattle-Tacoma market with money to spend and a desire to spend it on products and services that reward them or make their lives easier or better. Given their sheer size and economic clout, Boomers will remain the most influential and forceful consumer group for years to come. Smart marketers will embrace this untapped potential by offering fresh and imaginative product development, tailored customer services and innovative marketing strategies. In most cases, all it takes is adding a Boomer-perspective twist on an existing product or service. Are you up for the challenge…and rewards?

To learn more about the demographics, media and shopping habits of Seattle’s Baby Boomer market, check out our previous post, Youngest Baby Boomers Turn 50.

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Seat­tle Media Maven is open to your sug­ges­tions for con­tent and always wel­comes tips, feed­back, ques­tions – what­ever is on your mind about the Seat­tle mar­ket and the media that serve it! Use the Com­ments box below or email us at seattlemediamaven@seattletimes.com.
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