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Summertime may be vacation time for many, but the
activity in Boomer marketing seems to be continuing
at a hectic pace.
This week, for example, CNBC is doing a special on
the impact of the Boomer segment on business and
industry. The story includes observations from an
interview
done earlier this year at the Boomer Project.
Look for the report on Thursday evening, August 10,
at 8:00pm local time.
In addition, the Boomer Project has been invited to
moderate a panel discussion on "Redefining the Rules
of Advertising" as part of the Focalyst
Executive Forum taking place September 28-29,
2006 at Jazz at Lincoln Center in New York City.
Lastly, we're putting the finishing touches on our
new book, Boomer Consumer, being
published
later this fall. More news on it in coming newsletters.
Meanwhile, here are some interesting stories on the
best and brightest in Boomer marketing this month:
Death and Boomers
At every stage of life, Boomers haven't just changed
an industry, they've transformed it.
Boomers didn't just rebel against "the Establishment"
and refused to buy cars made in Detroit. They
transformed the U.S. automobile industry by buying
cars made in Japan and Germany
(which are now built here, ironically.)
They didn't just exercise once they graduated
college, they created a whole new health
and fitness industry. (More irony: Growing up
Boomers heard "go get some exercise, go play."
Now, Boomers themselves say "I'm going to go get
some exercise, I'm going to work out." They've
turned what was once "play" into "work.")
And now, for some, they aren't just dying, they are
transforming the death industry.
First, they are writing their
own obituaries. Read the one penned by the late
Fred Clark,
who wrote his six months before his own
death. The best line: "He had a life long love affair
with bacon, butter, cigars and bourbon."
You can get your own tips for a better obit at the
International Association of Obituarists (we are
not
making this up).
Second, Boomers are planning "funerals" that are
more lively, if you'll pardon the pun. Here's a New York
Times article about this trend.
Lastly, in that same article, we learn that some
Boomers are creating lasting video memorials to their
own lives. And spending thousands to do so. Check
out the Easy Tribute Creator
software to get started on your own video.
This is one Boomer marketing trend that should last
until, well, the last Boomer goes.
Ants and Grasshoppers
If you've watched any TV in the last six months
you've seen countless commercials from
Financial Services marketers trying to attract aging
Boomers.
Ameriprise and Fidelity and
Nationwide and The Hartford and Wachovia and
everyone else are aggressively targeting aging
Boomers to get them to develop a plan for the day
when they no longer are earning income and
have to rely on their savings and Social Security to
fund their lifestyle.
In Financial Services industry-speak, it's planning
for "decumulation" of wealth instead of
accumulation of it. (We thought the word
was "distribution" but maybe we're Old School.)
Despite being inundated by these commercials, we
hope they work and inspire Boomers to get
moving.
Otherwise, we're in for a dismal future.
You see, Boomers, as a group, have done a lousy job
of saving for "retirement." According to a
GAO (Government Accounting Office) analysis of the
2004 Survey of Consumer Finances by the
Federal Reserve Board, some 67% of Boomers
own financial assets like stocks, bonds,
IRAs, mutual funds,401(k)s and the like.
But that also mean 33% of Boomers own no financial
assets
at all! That's over 25 million people!
What's troubling is that compared to their parents,
Boomers will have to 1) fund more of their
own retirement because they typically don’t have
pensions, 2) plan on funding a longer
retirement period due to advances in longevity, and
3) allocate more money for healthcare
costs as a percentage of their retirement funds.
This doesn't bode well.
We're reminded of Aesop’s fable about the ant and
the grasshopper:
The Ant and the
Grasshopper
In a field one summer's day a Grasshopper was
hopping about, chirping and singing to its
heart's content. An Ant passed by, bearing along
with great toil an ear of corn he was taking
to the nest.
"Why not come and chat with me," said the
Grasshopper, "instead of toiling and moiling in
that way?"
"I am helping to lay up food for the winter," said
the Ant, "and recommend you to do the
same."
"Why bother about winter?" said the
Grasshopper; "We have got plenty of food at
present."
But the Ant went on its way and continued its toil.
When the winter came the Grasshopper had no
food and found itself dying of hunger - while
it saw the ants distributing every day corn and grain
from the stores they had collected in
the summer. Then the Grasshopper knew: It is best
to prepare for days of need.
The issue facing Boomers when it comes to
retirement planning is that it is up to them to “get
it right.” It won’t be done for them by the
government or their employer.
“Getting it right” has two critical parts: formulating
the right plan and then implementing
it.
To date, the majority of Boomers have done neither.
Maybe the Herculean marketing effort by every
financial services industry player will motivate
Boomers to act more "ant-like."
Or the "days of need" will be sad ones indeed.
"Aging Boomers"
The comic strip "Cathy" put the term "aging Boomers"
in perspective recently.
Boomer Media Consumption
Last month we reported that NBC had done a deal
with YouTube. Our conclusion was that
advertisers would need to use "new media" like
YouTube to reach young adults, and old media
like the Boob Tube to reach Boomers.
This month, along comes advertising legend Pat
Fallon's new book "Juicing the Orange:
How to Turn Creativity Into a Powerful Business
Advantage." In it, Pat observes:
"The future of advertising is to become experts on
how media is consumed, and by whom."
Obviously we are of like minds with Mr. Fallon.
Which is why we think Jeff Taylor's new online effort,
Eons,
will not be very successful (Taylor founded
Monster.com). We see two significant obstacles
Eons will need to overcome.
First, Eons presents itself as a "MySpace" for those
50+. Well, all evidence we've seen is
that Boomers don't use the Internet for social
networking. They grew up doing RL (real life)
networking and they use the Internet and Web
primarily for research, information and
communications. Not to establish and build
friendships and relationships.
We doubt Eons can change behavior.
Second, Eons is only for those "50+." To us, that's
age-based marketing and not the best
approach to take if targeting Boomers. In our
research we've learned that a Boomer's
chronological age is rarely relevant. Instead, Boomers
track time with how they feel and their
life stage. Age is incidental to their daily lives, yet it
is a requirement for participation
on the Eons site. We think this is a mistake.
Not to mention that the "50+" label groups everyone
over 50
into one homogeneous group. We know the
generation gap between Boomers and their parents,
millions of whom are still alive, is significant.
Many Boomers don't want to be part of a group or
organization that is also for their parents,
as AARP is finding out.
Time will tell if Eons succeeds or not, or evolves into
a product more for the Boomer generation and less
for a chronological age.
Volunteering Update
Those self-absorbed "Me Generation" Baby Boomers
certainly couldn't be the most important component
of volunteer organizations across America, could
they?
According to a national report from the Corporation
for National and Community Service, Boomers
are significantly important volunteers.
The data:
- There are 65.4 million volunteers in the U.S. as of
2005. While Boomers are about 25% of the adult
population over 18, they are 40% of the volunteer
population.
- One out of three Boomers volunteers.
- Only one out of four traditional seniors (those
65+) volunteers.
- Because there are so many more Boomers than
seniors period, over 25 million Boomers are volunteers
compared to only 8 million 65+ volunteers.
Any organization which relies on volunteers -- civic,
political, community, religious, professional, cultural,
social, environmental, youth, sports, arts,
educational -- should have a strategy for recruiting
and retaining Boomer volunteers. They are and will
continue to be your workforce for years to come.
The Corporation for National and Community Service
has a strategic plan that should
help guide your efforts.
Hiring the Boomer Project
Companies and organizations hire the Boomer Project
to provide marketing research and consulting
services on how to better market to Boomers. In
addition, we are often hired to provide on-site
training to sales, customer service and marketing
personnel, and to give presentations and seminars to
internal
and external audiences.
Contact Jocelyn
Tice to learn more.
Also, if you have any comments or questions
about any of the information presented here, please
let us know at
comments@boomerproject.com.
Matt Thornhill
The Boomer Project
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