We are all so focused on reaching out to the millennial cohort that I worry we neglect the baby boomers.
The 2020 Census will provide the most up-to-date count of the baby boom generation, now estimated at about 73 million. Born after World War II, from 1946 to 1964, the oldest boomers will turn 74 this year. When the last census was taken in 2010, the oldest had not even turned 65.
Since then, about 10,000 a day are Turning 65. By 2030, all boomers will be at least age 65.
Baby boomers hold $2.6 trillion in buying power. They’re credited as one of the wealthiest generations to date.
The AARP defines Baby Boomers as age 50-74. I want to share a couple of facts about the Baby Boomer generation. These figures include both the older and younger boomers.
According to the AARP, the 50+ market accounts for 57% of all consumer wealth
- The 50+ market will grow by 15 million over the next 10 years. That’s nearly triple the growth of the 18-49 market.
- Boomers command 71% of all of the nation’s wealth.
- The 50+ market make 39% of all online purchases.
- Boomers account for 51% of entertainment spending and 57% of big ticket purchases including new cars.
- These households are also spending more than the other generations, with Epsilon reporting that Boomers spend $548.1 billion annually, a figure nearly $200 billion more than the next highest spending generation (Gen X).
What are Baby Boomers buying?
- Home Improvements
- Insurance products
- Travel – Baby boomers expect to take 4 to 5 leisure trips in 2019. (Source: AARP)
- Entertainment
- Health and Well-being
- Auto
- Retail goods
- Real estate
- Pets – Boomers make up 46.8 percent of pet spending. (Source: Pet Age)
For most marketers, the Baby Boomer demographic is the “bread and butter” of a business. Marketers cannot neglect them. Baby Boomers see what they want and they can afford to buy it. Thy are easily reached by direct mail and digital advertising. In fact, baby boomers have embraced digital advertising and comfortably make purchases on-line.
- 67 %of baby boomers own a smartphone. (Source: Pew Research Center)
- CNP transactions make up 40 percent of credit spending on Visa for consumers ages 60 to 69. (Source: Visa). CNP means card not present
- 27 % have ordered groceries online for home delivery. (Source: Statista)
- 46 % rely on Cyber Monday for their holiday shopping. (Source: Deloitte)
- 41 % use digital coupons while they’re grocery shopping in stores. (Source: AARP)
- 53 % prefer shopping online over physical stores. (Source: Deloitte)
One last important point, Baby Boomers are environmentally conscious. As a matter of fact, 59 % of Boomers were willing to pay extra for socially compliant, sustainable products. (Source: Deloitte)
Check out these direct marketing trends for 2020.