Affluencers spend 40% more than affluents and, out of every consumer group, their future purchase intent is the greatest. Here’s who they are and how to advertise to them.
Tag: baby boomers
The year 2030 marks an important demographic turning point in U.S. history according to the U.S. Census Bureau’s 2017 National Population Projections. By 2030, all baby boomers will be older than age 65. This will expand the size of the older population so that 1 in every 5 residents will be retirement age.
Retailers are urged to ditch millennials in favor of older shoppers. Retailers should stop wasting so much time trying to win over millennials because theyÛªre often broke. Instead, they should target older shoppers with more money to spend. ThatÛªs a key finding from a report by Forrester Research Inc.
U.S. adults enjoy donating to their favorite charities but they don’t intend to increase what they are giving in the near future. Charities will have to compete hard to improve their bottom line and one way to accomplish this goal is to target specific age groups with certain marketing strategies. A new report from Blackbaud can help charities determine how to proceed.
Neuroscientists have been studying how the human brain responds to stimuli in a retail environment for some time now. The results of studies that have tracked shopper emotions through specially designed wearable electronic devices while they are in stores or looking at ads may help marketers sway purchase decisions. But, early research released by Nielsen Neurofocus shows that marketers will need to adjust their messaging according to the age group of the target audience.
Automakers are shifting toward targeting Baby Boomers, who have weathered the financial crisis better than millennials. According to a new study from J.D. Power and AARP, people age 50 and older now buy more than 6 of every 10 new vehicles sold — 62%. In contrast, buyers age 18 to 34 now are just 13% of the new-car market — down from 24% in 2001.
Value and practicality are at the core of any shopping experience, but beyond the basics, shoppers are looking for self identification and novelty. Moreover, retail relevance factors vary significantly by age with the biggest difference between Gen Y and Boomers. For the next generation of shoppers, shareability of the experience is much more important, as the ideal shopping experience is both self-affirming and social.
Marketers have long counted on the Baby Boomer generation to spend heavily on goods and services after retirement. But the recent economic downturn has battered the portfolios of many consumers in this age demographic. New research from AARP shows where marketers how they can best connect with Boomers as this large consumer group begins to turn age 65.
The aging Baby Boomer population and other health conscious consumer cohorts favor supplements as an affordable way to stay healthy compared to costly prescription drugs and preventable medical procedures, according to “Nutritional Supplements in the U.S., 4th Edition” by market research publisher Packaged Facts. U.S. retail sales of nutritional supplements continue to grow, fueled by growing consumer awareness about health maintenance, in addition to pressure by the media and government to enforce product accountability. Packaged Facts forecasts annual sales growth in nutritional supplements will gradually improve over the new few years and sales will exceed $13 billion in 2014, yielding a compound annual growth rate of 7%.
The quest for “the good life” continues to drive Baby Boomers to sacrifice today, so that they can enjoy the finer things tomorrow. According to MainStay Investments’ Boomer Retirement Lifestyle Study, 76% of the Baby Boomers surveyed (age 45-65 that are not yet retired) say they are willing to spend less now to invest for a more comfortable lifestyle in the future. Forty percent of the Boomers surveyed said they will have to delay retirement in order to afford the lifestyle they want to live. Besides working longer, Boomers are saving more, adjusting their portfolio allocations, and seeking help from financial advisors–in that order. In addition, the majority of Baby Boomers believe that healthcare coverage, internet connection, shopping for birthdays and special occasions, and pet care are basic needs. And about half of those surveyed consider annual family vacation or weekend getaways, having eldercare/home aid, professional hair cut/color and funding children/grandchildren’s education to be basic needs as well.
Two in three Baby Boomer women (65%) prefer to purchase apparel online because they dislike the service they receive in department stores and 13% only buy their clothes online in order to avoid the in-person hassle, according to Vibrant Nation. More than eight in 10 (84%) find sales staff are indifferent, inexperienced, invisible, and “outright rude.” An additional 32% claim an “age bias,” pointing out that younger sales associates ignore older consumers.
According to a new report by Mintel, the female Baby Boomer population is more web-savvy than ever, and they could be wielding their digital dollars at online beauty sites if retailers play their cards right. One in ten respondents to a recent Mintel survey report using some type of online retailer to purchase cosmetics and skin care aids, and the female Boomer population is expected to increase by 30.9% from 2005-2015. When looking strictly at online sales, 8% of those surveyed visit mass merchandiser sites for beauty products, 8% order from Wal-Mart.com, 8% order from Target.com, 5% patronize drugstore sites like CVS or Walgreens and 8% visit other unnamed online retailers.