Baby Boomer Buying Power
- Understanding the Cultural Value Mosaic of the 50+
Consumer
Spending power of
baby boomers will increasingly be shaped by 6 underlying principles, or
"cultural values". These values− such as efficiency, social responsibility,
and transparency− represent the characteristics 50+ consumers look for in
products and services. The following insights are based on a series of
research projects by Idea Couture, a global strategic innovation and
experience design firm.
October 26, 2009 -- The
6 cultural values are integral for businesses wanting to capitalize on the
spending power of baby boomers. More than any other consumer demographic,
the 50+ crowd is more interested in content and are less concerned with the
platforms and portals that will cause them time and aggravation. "Enough
with the tricks and the gimmicks and the hidden costs," They say. "At this
age, I want to know what I'm buying, who it's from and why I'd even consider
buying it."
These insights are
redefining the attitude and spending power of the aging consumer and were
gathered over a series of research projects conducted in the health,
healthcare, financial, insurance, and travel sector. Businesses will need to
align company values with consumer values in order to benefit from baby
boomers and their tremendous purchasing power.
Top Cultural Values−
Highlights
Note: The listed values are in no particular order
Transparency: Show Me
The Money
Baby boomers are looking for practicality, flexibility, and convenience.
They already are− and will continue to look for products and services that
tell a product or service story as it really is. The older consumer is aware
of gimmicks, flaws and hidden costs and the recent economic downturn has
only reiterated the broken promises, murky messages and fine print. 50+
consumers are curating their products and services based on what can be
seen; simplicity and clarity will continue to win the battle for loyalty.
Efficiency: Skip The
Pork. Where's The Beef?
For 50+ consumers, better is better. From easy-to-use interfaces that engage
them more fully in online experiences to cost-cutting measures that deliver
only those features they desire, businesses that demonstrate improvements in
product and service efficiency will capitalize on older consumers who want
to spend time and money their way.
Context: Beyond The
Empty Nest
There is more to baby boomers than growing old, retirement, and pending
health concerns. 50+ consumers are as complex and diverse a market as any;
they have active lifestyles, hobbies, volunteering commitments, second
careers and travel pursuits. Just like the younger generation that's being
raised on crowd sourcing and co-creation, they want their products and
services− especially in financials, insurance, and travel to meet the
context of their own very specific needs, desires and lifestyles.
Security: Putting A Lock
On The Future
50+ consumers have been affected by the past year's economic downturn, but
it's not only their future they fear for but also their kids' futures. Baby
boomers have increasingly been rewarding the brands and businesses they
believe are offering the best value − cultural and otherwise − in order to
help lead the next generation to make wiser, more secure choices.
Ethics: Fair Play Wins
The Game
How businesses do business is a primary concern for the older consumer. Baby
boomers were raised in an era where jobs were more secure and companies were
more like families. Ethics play a major role in their shopping habits. The
50+ crowd values honesty, integrity, employee and consumer appreciation, and
will chose brands and businesses that employ these and other ethical
qualities.
Social responsibility: Purchasing For Tomorrow
Many 50+ consumers see social responsibility slightly to the left of ethical
business practices. However, that doesn't mean that those boomers to the
right are not equally as focused on business behaviors. Concerned about the
future generation, they place equal, if not more, hope on businesses than
they do on governments to lead us all into a better tomorrow. As a result,
their product and services choices are based on the choices businesses make
and communicate regarding sustainability, stewardship and corporate giving.
Idea Couture
Idea Couture is a global strategic innovation and experience design firm.
The company brings together interdisciplinary thinkers to fill a void in the
marketplace between strategic consultants, customer insight firms and design
studios. They leverage design thinking, social technologies and deep
customer insights to help transform business. Idea Couture works across a
broad spectrum of industries, including fast-moving consumer goods,
electronics, telecommunications, healthcare, financial services, media and
publishing, and luxury goods. Clients include Fortune 500 companies in the
US, Canada, UK and China. The company is currently expanding its global
footprints and opening offices in Shanghai and Mumbai
