Right now approximately 15% of Australia’s population is over 65.
By 2050, the number of people over 65 is forecast to increase to over 20% of the total population.
Furthermore, Baby Boomers will be the single largest consumer of products and services in the future according to a report by the McKinsey Global Institute released last year (2016). In their report, McKinsey suggests that any organisation that ignored this consumer, did so at their peril.
In fact, compared to previous generations, Baby Boomers are …
– cashed up;
– technology literate;
– fitter and healthier.
They are also bigger spenders than Millenials.
Given these facts, why are Baby Boomers ignored?
3 Reasons Why Baby Boomers are Ignored
- Lack of understanding.Young people dominate marketing departments, advertising, and PR agencies. They generally don’t understand Baby Boomers and simply aren’t aware of the opportunity they represent.
- Lack of insights.Organisations don’t know what they don’t know. There is a severe lack of knowledge and understanding of people in this age range if age brackets in surveys finish at 55, 60 or 65 – as outlined in our white paper.
- Legacy approaches to marketing.Market growth has historically come from younger generations. The Baby Boomers were those younger generations. They were the post-war boom for baby products, then young family products and services, then older family products and services and so on. Baby boomers are now over 50. They became older. Not old. Simply older. Organisations seem to have ignored this fact.
Understanding Baby Boomers
The first step to understanding Baby Boomers is to let go of assumptions.
For example, in one conversation with older people recently, a gentleman in his 60’s said that he knew younger people would see him walking down the street and think “there goes an old codger”. His problem with the label was that it wasn’t how he felt and therefore didn’t consider it relevant. He considered himself fit, healthy, and actively engaged with the world – despite his grey hair, wrinkles, and slower pace of walking. How we may perceive a person with these characteristics probably differs significantly to how they perceive themselves.
Looking to dive deeper? Download our White Paper to get a deeper sense of Boomers.
Filled with facts gathered from around the world, and sharing insights from our own proprietary research, this Paper reveals the impact of ageism and the basis of the opportunity available to astute businesses that embrace this ever-growing age group.
What does this mean for business?
Organisations seeking to reach this market must:
- Undertake relevant research to gain insights into the needs and wants of Baby Boomers for the products and services offered.
- Question possible assumptions and stereotypes of the over 50’s by internal staff and external suppliers.
- Educate staff about this generation. Education can occur in a number of ways including training, reverse mentoring employment programs, intergenerational design teams, or ongoing engagement with older people through community groups.
To explore the potential of the over 50’s it is vital that an organisation investigates the market for insights. Doing so identifies opportunities providing the knowledge and basis to innovate for success. Investigative techniques include bespoke research; customer journey maps; and key stakeholder interviews, to name a few.
If you’d like to know more, please contact us.