Digital marketing has become very important in the marketing mix to reach a larger customer base more cost effectively. Social media, online marketing and other marketing tools are mostly focused on millennials and tend to overlook an affluent customer base of baby boomers. Spending power increases with age, therefore it is very important for the brands to take the baby boomers along in their journey of building brand advocacy.
The recently conducted study commissioned by ICLP (A Collinson Group Company) reveals some interesting data points about consumer behaviour.
Retailers’ lack of focus on Baby Boomers is evident by the 90 per cent who are not devoted to brands they engage with the most, i.e. they don’t feel a high level of passion, commitment or intimacy towards them, and are likely to cheat with competitors.
Why is this the case? Because Boomers feel they are not rewarded and recognized for their engagement with the brands.
– 64 per cent feel that they do not get offers tailored for them and that they are not recognized as somebody but anybody, whereas; 74 per cent feel that they are not rewarded for brand advocacy, which means no rewards for recommending the brand to others.
– 65 per cent said that brands did not know about their previous purchase, whereas; 68 per cent said that the brands didn’t greet or gift them on their birthdays.
Baby Boomers are the most affluent generation, spending $230 billion in consumer goods. They were the first generation to widely invest in retirement accounts, and now those accounts are paying off. They were also raised by a generation that survived the Great Depression. This means that, while Baby Boomers can afford to spend money, many are reluctant to do so without a compelling reason.
– Unfortunately, only 46 per cent feel that their favourite retailer has their best interests at heart and that their custom and loyalty is rewarded.
So, what can the brands do to increase the frequency of purchase among this valuable generation?
– Increase trust: 71 per cent of Boomers said they would buy more if they trusted the brand more
– Understand them better: 80 per cent of the boomers would buy more if the brand understood their needs and requirements better
– Personalized communication: 78 per cent of the boomers prefer being recognized as an individual and not just anybody
– Relevant and consistent recommendation: As many as 88 per cent boomers felt that they would purchase more if they were recommended consistently
– Curate conversations: 67 per cent boomers said that their direct messages and posts tagging the brands were not responded to
Country Head and GM, ICLP India, Anurag Saxena said, “Brands typically target their mobile and online marketing efforts at millennials because they consider them to be the most valuable generation, and thus they overlook Baby Boomers, who are highly influential and are often the affluent shoppers. Our research reveals that Boomers feel undervalued and overlooked, so it’s important to give this extremely important customer base what they want and need – a personalized customer experience that is responsive and communicative.”
“The more retailers use these data-driven insights to create a meaningful marketing strategy that specifically appeals to Boomers, the more emotionally connected they will feel towards your brand, turning this age group into repeat, loyal customers,” he concluded.
ICLP Report reveals that Baby Boomers, though often retailers’ most affluent audience, aren’t loyal customers because they feel undervalued and overlooked