Let’s decelerate the conversation about the importance of Millennials. Sure, they are 80 million strong, and seem to be the clear consumer target for most brands, but marketing efforts are too focused around Millennials. It’s time for brands to bring Baby Boomers back into the picture.
Baby Boomers’ free-spending tendencies and access to greater than average disposable income make for an intriguing, lucrative market segment for your brand to target.
Instead of focusing our attention on a potential market, we should turn to a more promising demographic- the tried and true Baby Boomer generation.
Even though Millennials represent a major potential buying force, our findings show they are reluctant to actually spend money. Millennials face an overwhelming amount of college loan debt, which keeps them from contributing economically to our society. Millennials aren’t eating out and they aren’t buying homes. In fact, one in five are boomerangs, meaning they live in their parent’s homes, and are eating at home more often than the general population.
A new lens
In 2015, there were an estimated 74.9 million Boomers. They have a spending power of $2.3 trillion, and some estimates show this demographic controls 70 percent of disposable income in the U.S.
Boomers, free of family financial obligations and focusing on new possibilities, will likely spend in ways that Millennials won’t or simply can’t. Since many Boomers have more disposable income, they are eating out more. In fact, Boomers buy an average of 193 restaurant meals a year, according to Restaurant Hospitality Magazine.
Boomers are also easier to reach and engage with as a brand, because so few brands are even targeting them. Baby Boomers spend the most across all product categories, but are targeted by just five to 10 percent of marketing campaigns, according to Jami Oetting of Hubspot.
Strategy, the secret sauce
Millennials are often praised for their tech savviness, but boomers are equally as interested in technology. A Google/Ipsos study of consumers 45 and over found that the amount of time spent on the Internet and traditional television viewing were comparable. The study found that the Internet is the top source for Boomers to gather information on topics of interest. If Boomers are flocking to the Internet, your brand better be there too.
By implementing an Internet marketing strategy, your brand can measure engagement and optimize campaigns over time. So combining the use of linear TV along with a layer of measurable tools like search and email marketing, a campaign has a precise mix to reach and motivate the Boomer audience into action.
No matter which channels you use to market your brand, you need to understand how diverse boomers are. Because of the diversity, marketing segmentation is essential. Segmentation by life stage and other factors is important to effectively get the right message to the right audience at the right time. Segmentation is key.
The Holy Grail
The holy grail for restaurants is frequency of visits. One of the most important variables to frequency is loyalty. And Boomers are brand loyal when you meet their needs.
Creating a lifetime customer is the most important reason why you should be focusing on this audience.
Completely ignoring Millennials is out of the question. Their importance to brands is clear−they represent the future for the brand. Just don’t target Millennials at the expense of Boomers.
Pretty soon you’ll hear about Gen Next and why you should target this emerging group. But until then, trust me, Boomers will reward the brands that speak to them on their terms. If you provide a level of hospitality that respects who they are, they will reward you by opening their wallets and opening them often.