Too often overlooked by marketers, the baby boom generation, quiet as it is, remains the nation’s second most important group of consumers. Many brand marketers focus their efforts on luring millennials to create lifelong loyalists. However, in the context of the overall consumer landscape, this approach fails to address baby boomers’ impact on the market. Here are five reasons why they should not be ignored.
1. Higher incomes
With 81 percent of baby boomers owning their own homes, this age group has a level of economic stability that millennials and Gen Xers don’t. This group doesn’t face the looming student loan payback challenge that influences millennials’ financial decisions. Boomers often have more disposable income thanks to their no longer having dependents. That’s why it makes sense to keep baby boomers in a brand’s marketing mix.
2. They are the nation’s second largest generation
After millennials, baby boomers are the second-largest generational group. Although marketers might be quick to dismiss boomers because they are retiring and have fewer working years ahead of them, this group represents almost a quarter of the entire U.S. population. Baby boomers generally have retirement accounts and investments that help them maintain a comfortable lifestyle. Given the size of this group and its spending power, dismissing them in your marketing strategy can mean lost opportunity.
3. Head of Households
Baby boomers are also key household-spending decision makers. The latest Census data shows that over 40 percent of household heads are adults over 55. This group, therefore, represents a segment of decision makers that impacts the way other generations will spend.
4. Influence over millennials
With 18 to 34 year old males more likely to live at home with their parents than with a spouse or partner, baby boomers have a tremendous effect on their day-to-day expenses. Marketers should take into consideration the prominent role they will play in purchasing decisions on groceries and household items.
5. Industry advantages
According to a recent Gallup poll, baby boomers reported spending heavily on things like groceries and automotive expenses. Older baby boomers also reported spending more on travel, consumer electronics and leisure activities. Marketers should capitalise on these opportunities and see how they can be top-of-mind with this group.
Knowing the extent of baby boomers’ influence plays a key role in developing a complete marketing plan. While baby boomers might not be an appropriate target for every brand, it is important to consider them when developing messaging. To help determine how to best reach this generation of consumers, it could be helpful to enlist the help of a PR firm that specialises in communications strategies for diverse generational audiences.