BIGGEST CONSUMER GROUP IN NORTH AMERICA
Baby boomers alone make up about 40% of the market share in North America. Add their aging parents to that number, and you’ll realize just how influential the 55+ demographic is. Over 50% of all consumer goods and services are purchased by people over 55 – if not for themselves, then on behalf of someone else – a parent, even a child or grandchild. If not buying for themselves, which they often are, they are buying for or influencing the buying decision of those around them, particularly their aging parents.
So, when you are selling products or services geared for seniors, you will want to message the adult children of these seniors as well. Most seniors will tell you they make their own decisions, but what we find is a high percentage seek the advice of their adult children along the way. isn’t it logical that marketing to the 55+ demographic is critical for growing businesses? We think so.
MORE AFFLUENT THAN YOU THINK
Statistics continually show that 70-80% of the disposable income in North America is controlled by persons over 55. If not already in the hands of baby boomers, this wealth will be passing soon into the hands of the younger generation through inheritance.
The senior generation is well known for its penchant to save. Baby boomers are known for working hard to acquire wealth but they are increasingly willing to spend this wealth, whereas their parents preferred to hold onto it for a “rainy day”. Seniors are recognized for their desire to spend less on themselves so they have something to give their children and grandchildren. Boomers are less reticent about spending. In fact, some marketers have coined them as “the big spenders” because of their willingness to buy nice things for themselves and others.
MORE ACTIVE AND HEALTHIER THAN EVER
We’re seeing older people indulging in activities and interests that were unheard of 10-20 years ago. 70 is the new 50 they say. While disease does take a toll among an aging population, the 55+ group is not sitting back and accepting it without a fight. Instead, they are joining health clubs and physical-based activities in droves. They have reset their expectation on what aging will look like, and we are no longer seeing people fixated on retiring at 65. Instead, they are starting new careers and becoming entrepreneurs.
With healthier eating habits, and a medical establishment that is continually finding new ways to combat the effects of aging, people over 55 are benefiting. The result is a more active population, higher expectations, and an attitude that says, “let me give it a try”. Even those who find themselves restricted due to ailments are boosting the efforts of the medical profession with homeopathy, alternative medicine and in-home services… so that they can stay independent as long as possible.
Pay attention to how you market your product or service – are you catering to the image of illness or wellness? The 55+ consumer identifies with healthy, energetic and independent imagery, even if their current circumstance is otherwise.
PENT UP DESIRE TO SATISFY THEIR DESIRES
The 55+ generation, more than any other, exhibits spending habits that say, “Finally, it’s time I invested some time and money in ME.” After years of holding off on vacations, new cars, bigger houses, many are realizing that with the limited time left in their life, they want to make the most of it. They are looking for ways to feed their pent-up desires for that luxury sports car, that once-in-a-lifetime excursion to Machu Picchu, or relaxing at a 5-star tropical resort. This pent-up desire cannot be underestimated.
It is driving the auto market, vacation home purchases and the travel industry, to mention just a few. They’ve worked hard to pay off their mortgage, put their kids through school – now they’re ready to play and enjoy life to its fullest.
READY FOR HIGH TECH
People over 55 have become quite comfortable with technology. They are quick learners and understand the benefits of saving time through automation and applied technology. Their personal time is important to them, so why waste it when there’s a software application that can do it for you in a fraction of the time. While they weren’t born with technology, it has become part of their lives and they are increasingly relying on it to supplement their lifestyles.
While many are turning to the Internet to shop for particular items, the key benefit provided by the Internet is information and research. The 55+ consumer is ravenous for information that helps them with their buying decision. Videos, product reviews, asking their social media contacts for input… these are all attempts to be a savvy shopper and not be taken advantage of. The 55+ group is becoming increasingly skilled at online shopping, but still prefers to make important purchases through transactions that involve face to face interaction.
Service and integrity feature high on their purchase criteria. Companies that provide the ease of technology with the intimacy and exactness of personalized service stand to win big with the 55+ consumer group.
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