Lexington, KY - For a generation that once said it would never trust anyone over 30, aging is difficult. Baby boomers, people who were born between 1946 and 1964, now are facing even more difficult challenges than growing older: loss of jobs, loss of retirement savings, boomerang children, and aging parents. This group, which has a reputation for high incomes and high spending, is struggling. What they thought they knew has changed. What they planned for may not come to fruition. So, how is all of this affecting their spending habits?
According to some researchers, baby boomers are showing the biggest shift in values of any of the generations. It is believed that boomers over age 50 controlled trillions in annual spending, or about 50 percent of all discretionary income. But with job and retirement savings losses, this group is pulling back. Many have gone into saving mode. Others have become more price sensitive.
And here's the rub: boomers are a much more diverse group than many have thought in the past, and the research is all over the place on what boomers want and what they believe.
Some researchers separate boomers into two groups: those in the 55-64 age range and those who are 45-54. They've found the two groups are dissimilar when it comes to attitudes about Social Security and retirement. There's also some contradictory research about whether or not the boomers are the healthiest generation even though they've run, joined gyms and cut the fat for years in an effort to live longer.
Research from a group affiliated with AARP puts boomers into three groups: yesterdays, todays and tomorrows.
About 25 percent fall into the "yesterday" category. They believe life was better in the 1950s and dream of "the good old days." Marketing messages that resonate with this group reassure them that they aren't alone in their struggle and recognize their hard work and sacrifices for their families.
For the 30 percent who are in the "today" category, messages should include "living the good life" and "seizing the day." This group is more confident, healthy and satisfied with their lives than the yesterdays.
The 45 percent who make up the last group, the "tomorrows," believe that tomorrow will be better than today. They are comfortable with aging and feel or act younger than their real age. They tend to remain optimistic, even in the face of financial or health setbacks. Marketing messages for this group should focus on hope and optimism, connections/bonds, buying locally, and spiritual themes.
Another finding of this study shows that boomers in all segments are unwilling to cut back on home entertainment. Additionally, the cable network TV Land found that boomers love their DVRs.
Boomers are using the Internet almost as much as younger generations are, but they use it differently. Boomers see the Internet as a place to get information, shop, or get sports scores, while younger users see the Web as a social networking tool.
As technologically savvy as some have become, overall, boomers are still more receptive to traditional advertising than younger generations and are more likely to read the local paper and watch television news. So if boomers are your target audience, don't discount "old media."
Of course boomers aren't the only ones cutting back or changing their spending habits, and good business leaders know they should be looking at their business models to determine if changes are needed for the new economy. But to cultivate or maintain boomer customers, a few simple and affordable approaches will help. Here are some ideas to create better opportunities to serve boomers more effectively:
1. Build relationships with your customers. Consumers, especially women, respond to this approach. Ask them if you are providing what they need, and if you aren't, make some changes. They will appreciate your interest in their opinions.
2. Create marketing messages that show how your products or services provide solutions and benefits. Many ads focus on features, but what people really want to know is how your business can help them live a better life, whether that relates to time, money, convenience or whatever.
3. Be truthful in your advertising. Boomers are savvy shoppers and aren't easily fooled.
4. Make your business boomer-friendly. They are more likely to visit your business than younger generations because they like to see the merchandise for themselves.
5. Spiff up your customer service. Personal service goes a long way, especially with older shoppers who grew up in the pre-mall era. Keeping track of their purchases and offering preferred customer discounts are just two ways to personalize a customer's experience.
We hear a lot about attracting more young professionals to Lexington, and that's a worthy goal. But in the meantime, don't forget the Woodstock generation. They may not be Tom Brokaw's "greatest generation," but they are the largest.
Mary Hemlepp, APR, is co-owner of the Lexington-based public relations firm Wiser, Hemlepp & Associates. Contact her at mary@wiserhemlepp.com.