FDLIC Corporate Officers blog about current issues in the preneed industry and in funeral service, providing insight, commentary, and news updates.
MYTHBUSTING the Baby Boom Generation
Thursday, October 13, 2011
One of my favorite television programs is "MYTHBUSTERS" on the Discovery channel. I like watching their geeks uncover the truth behind popular myths and legends by mixing scientific method with curiosity and plain old-fashioned ingenuity. Some of my favorite episodes include:
"Can drinking a Diet Coke with a Mentos make your stomach explode?"; "Would a bull really cause destruction in a china shop?" and "Can plugging your finger in a gun barrel cause it to backfire?" All of these myths, by the way, were put to rest.
When marketing to the aging Baby Boom generation, which is a big deal these days, there are numerous assumptions made that can be incorrect. Recently, I read an Internet post by Paul Prisco entitled "5 Myths about Marketing to Baby Boomers." Here are some common myths that were noted about this huge segment of our population.
Myth 1: Baby Boomers have fierce brand loyalty. This is not the case. Baby Boomers grew up in the 1960s during a time of youthful freedom, experimentation and expression. Studies have shown that Baby Boomers are more likely to try new brands than any other demographic.
Myth 2: Baby Boomers have health and mobility issues. The perception may be that Baby Boomers are in bad health and have a hard time getting around physically. As a direct result of improvements in medical technology along with better lifestyle choices, though, Boomers are leading healthier lifestyles than ever.
Myth 3: Baby Boomers get tighter with money as they age. Baby Boomers now cite the average retirement age at around 68, and over 50 percent of Boomers will have new careers. With a genuine need to contribute to society and stay active, retirement isn't what it used to be. Baby Boomers will have disposable income while working and continue to try new things given their busy and on-the-go lifestyle.
Myth 4: Baby Boomers don't engage with technology. A recent eMarketer study confirmed almost 50 percent of Baby Boomers maintain an active social media profile. So reaching them on Facebook, Twitter and LinkedIn is now an option. While Facebook is most popular among Boomers, Twitter is also growing in popularity. Don't count them out on the mobile front either, Boomers now account for over 20 percent of smart phone users.
Myth 5: Baby Boomers don't travel that much. It is a fact that Baby Boomers have traveled more than the generation before them. They consider travel a necessity. When thinking about marketing to Baby Boomers, the granny with the walker image needn't apply. Today's Boomers are more youthful, both in brand expression and loyalty.
This year represented a significant milestone for our country, as the first members of the Baby Boom generation reached the age of 65 years old. The Baby Boom generation is aptly named. From 1946 to 1964, there was a 60% jump in the number of births compared to the previous generation. Projections by the U.S. Census Bureau indicate that those who are 65 years and older will likely increase from about 40 million people today to around 64 million by 2025.
It's hard to believe that for the next 19 years, 10,000 Baby Boomers will reach age 65 every day! Further estimates indicate that there are over 79 million Baby Boomers in the nation. This means that in 14 years, the number of people at or beyond retirement age will have expanded by 58%!
For those of us who are in the business of funeral home marketing, the time is NOW for reaching the Baby Boomer audience. No longer do we need to assume that just because a firm has enjoyed multiple generations of family ownership that the Boomers will remain loyal to the firm. This underscores the need to have an active marketing program. Because of the fact that the Baby Boomers are more active in their retirement years than previous generations, funeral home marketing should:
- Engage Boomers' interests and activity levels. For example, sponsor seminars and focus groups, celebrate special days, offer memorial events, remain active and visible in the community, request their opinions and put the information to use.
- Resonate with Boomers' lifestyles. Health, wellness, and youthfulness are all captivating topics to Boomers. At the same time, traditional depictions and stereotypes of aging seniors are rejected. Boomers also appreciate individual expression, personalization options, out-of-the box thinking, and creativity.
- Provide value for the dollar. Boomers don't mind spending money on things they desire and believe in. Boomers value experience and will pay for value when it is there. Luxury cars, hotel rooms, and vacation packages are purchased in large part by Baby Boomers. If the value is evident and Boomers desire and believe in it, they don't mind spending the money.
- Incorporate technology solutions. For many years, seniors were slow to adapt to new technologies. That is changing with Baby Boomers. Marketing options that used to be ineffective in a senior market will now be opened up for testing.
- Make way for mobility. Baby Boomers not only travel the world, they are also much more mobile than previous generations. Marketing should emphasize mobility solutions, such as the portability of preneed plans.
It is probably apparent by now that in the funeral service profession and in the preneed industry in particular, we are dealing with a tremendous shift in our market. Consider that our small niche market consisting of seniors age 65 and up is about to increase by over 50% in the next twenty years--the sheer number of new customers is staggering. Not only that, but the tastes and preferences of Boomers are decidedly different from those of their predecessors. A shift in our approach will be necessary, yes. But the opportunities and possibilities for reaching out to this new kind of consumer are virtually endless.