For many retailers, Baby Boomers are their bread and butter. 4 in 5 attribute nearly 50% of their sales to this post-war generation – and with their global spending power set to reach $15 trillion by 2020, their value is increasing.
But profiting from this lucrative consumer group, many of whom benefitted from the economic boom of the late 1980s, and are now reaping the rewards of final salary pension schemes, is not a given. Baby Boomers are savvy about where they spend their money, and therefore retailers need a highly targeted marketing strategy formulated around Boomer behaviors and requirements.
Here are some of the key Baby Boomer traits that retailers should be capitalizing on:
Don’t mistake older for old fashioned
Baby Boomers may be aged 50+ but that doesn’t mean they are stuck in a retail time warp. In fact, according to Immersion Active data, the majority feel very comfortable with online shopping, and two thirds routinely purchase goods through an ecommerce website.
For this audience, a smoother user journey is very important. They are not technology natives like their younger counterparts; digital retail is not intuitive. However, if retailers can provide clear navigation, their spending power is highly valuable.
Connect the dots between channels
Offering a consistent and relevant omnichannel experience is very important to capturing the Baby Boomer market. More than half (52%) of Baby Boomers are influenced by retail websites (as we have already discussed), salespeople and advertising, according to Synchrony Financial research.
This means that retailers need to ensure that each touchpoint contributes equally to a single, cohesive customer journey. There’s little point investing in their physical offering if it’s disconnected from their ecommerce platform and vice versa. Brand identity, tone of voice, and functionality are critical across all channels. The more connected an experience retailers can provide, the better.
Find opportunities to upsell
Of all the generations, Baby Boomers have the greatest disposable income. This creates a huge cross-selling and upselling opportunity for retailers – if they have the store technology to enable richer service.
Investing in a mobile POS system is one way to increase average transaction values. With access to real-time stock information, store associates can make tailored recommendations of complementary products when serving the customer.
Give them value for money
Value doesn’t always equal price, but it is important for Baby Boomers to get a good deal in return for parting with their hard-earned money. After all, this generation were born into a post-war world, when finances were tight and life was challenging.
Therefore, retailers must make sure they clearly outline each product’s value proposition, so Baby Boomers can easily see the benefit they will gain from their investment. Again, mobile POS can prove a useful tool within the store environment, as it enables front-line personnel to look up rich product information, such as demonstration videos and other customer reviews, to convert the sale.
How to target Baby Boomers is one article in a series that iVend Retail is producing on the distinctive behaviors of different consumer demographics. Read our article on how to target Millennials here.