Captivating Connections.

banking on boomers.

Could banking on Baby Boomers be a financially sound investment?

"Financial services companies should brace for Baby Boomers retiring and moving their assets out of current retirement accounts. However, being attuned to those customers and offering new, income-generating products will help companies capture a share of the 'money in motion,' according to Deloitte's 'Mining the Retirement Income Market' study. Insurance companies, mutual fund providers and banks also could get a piece of the pie.

Retirees are concerned about being able to generate income that will last throughout their retirement. This gives financial companies, particularly those that previously focused on insurance, an opportunity to develop new products -- but they must first address internal issues surrounding operations and products, the study advises.

'Insurers face a critical decision about whether to unbundle insurance coverage from asset management offerings and how best to achieve this because their ability to assume these risks is a core strategic advantage over players in the other sectors,' said Rebecca Amoroso, head of Deloitte's U.S. insurance practice, in a statement."

the battle of the boomers (sexes).

Of course there are differences between generations. And clearly there are differences between the sexes. But what about differences between sexes in the same generation?

 

New research looks at the differences between Boomer women and men; quite timely considering that “never before in the history of this nation have so many men entered the 50+ life stage. Nearly 6,000 Baby Boomer men turn 50 every day, and a Boomer male turns 60 about every 15 seconds. This generational march to 60+ will continue for the next 17 years.”

So what does this mean in terms of men vs. women?

“Demography by itself does not predict the future course for this generation. The idiosyncratic Boomer value set, inspired by the social and cultural revolutions of the 1960s and 1970s, adds dimension to future scenarios. How so for Boomer men?

 

First, this generation of men has experienced the consumer power that came with being at the top of the nation's traditional social hierarchy. When they were young adults, Boomer men were favored with jobs, wage and salary advantages, and access. Social status influenced them to resonate with heroic marketing archetypes such as the Marlboro Man and the Shelby Ford Mustang.

Second, they remember standing side-by-side with female peers during long months of struggle to achieve greater economic and social equality for women. Many protested for greater racial inclusiveness. A man coming of age in the Sixties and Seventies learned to empathize with the underdog and challenge authority. An iconic magazine ad campaign for the Volkswagen Beetle – ‘Think Small’ -- embodied the underdog achieving celebrity status.

Third, Boomer men have a feisty history, and they've transformed every life stage they've occupied. For example, they ushered in the yuppie and gravitated to products such as the BMW sports car and Mont Blanc pen, reflecting their well-honed sense of technology, design and luxury. Today, iPhone and Mini Cooper fill the iconoclast's wish list.”

Ok, enough with the men. What about the gentlemen versus the ladies?

“Boomer men and women share many core values. For example, based on NMI's Healthy Aging/Boomer Database, 81% of Boomer women and 78% of Boomer men strongly or somewhat agree with taking responsibility for health matters: 'I'm very concerned about my personal health and am actively managing it.'

Both sexes strongly or somewhat agree that exercise is a primary way to promote healthy aging (94% of women and 92% of men). Both genders strongly or somewhat believe vitamins and nutritional supplements promote healthy aging (75% for both genders). Both believe that maintaining independence as they age is of highest priority (98% of women and 96% of men).

However, upon closer study of NMI data, noteworthy gender differences emerge. When asked if they would like to live to 100-plus years old, 61% of Boomer men strongly or somewhat agree, while 53% of Boomer women hope for such advanced old age. Concerning a belief that the best years of life are still ahead of me, 77% of women strongly or somewhat agree while 68% of men share this degree of confidence in the future.”

who is on which social network?

So we looked at what people were doing on Twitter this morning.

But, how about looking at who is on which social networks?

According to Anderson Analytics, "Twitter has become more popular than LinkedIn, more than half of U.S. consumers who tap social networks belong to more than one, and that those who belong to a social net are four times more vocal about products and services than those who don't."

How can this info be useful?

"Anderson's study aims to help marketers understand the type of people who frequent each social network. For example, it debunks the myth that Facebook attracts only kids. In fact, the Anderson study suggests that the ideal age group for Facebook spans from 15 to 34, but 44% of 35- to 44-year-olds and 30% of 45- to-54-year-olds say they have profiles, too.

And while more people are experimenting on social networks, only 10% of users report having ever created a duplicate or experimental profile. More than half of social network users have associated their profiles with a brand, company or product. While much has been written about negative nature of Web 2.0 and blog posts, social network users are more likely to say positive things about brands, companies or products."

Interesting.

OK, so let's break down the usage:

"The average user logs into a social network account about four times daily, five days a week, and spends about one hour per day on the network. About 31.8% are business users; followed by 26.3%, fun seekers; 21.8%, social media mavens; and 10.1%, leisure followers."

And what about the different generational breakdowns?

"About 90% of those surveyed from the WWII generation on a social network say they use Facebook; compared with 23% on MySpace; 17%, Twitter; and 4%, LinkedIn. Females comprise 63%, compared with 37% men.

The study suggests that advertisers looking to connect through social networks will likely find consumers ages 15 to 24 on MySpace, versus 18 to 34 on Facebook, 15 to 34 on Twitter, and 18 to 44 on LinkedIn, according to Anderson."

boomer men - the new 'it' target?

According to Steve French, executive vice president and managing partner at the Natural Marketing Institute, Boomer Men are the new 'it' consumer target. As he explains, "even though men may amount to a minimum of purchases for a product or service, they should not be forgotten. If you're never targeting them, you're never going to get the purchase."

Based on new research from the NMI, "40% of men over the age of 50 said they are not feeling increased stress because of the economy, compared with 30% of women in the same age group. In addition, Baby Boomer men are taking on more family shopping roles and are more likely to buy brand-name products. The survey found that about one-third of Baby Boomer males are the main household grocery shopper, up from 20% ten years ago. While in the store, about half (46%) of these men are willing to purchase brand names over store brands, compared with about 26% of women.

'They are more connected to a national brand, than with the wider selections that women may be aware of,' French tells Marketing Daily. 'Men may also associate a house brand back to the days when it was an inferior product.'"

Interesting.

BET launches new cable channel.

Is now the right time to launch a new media property? Viacom seems to think so...

"Viacom, the owner of BET, is forming a new cable television channel for middle-aged African-Americans, heightening the competition for the minority viewing audience.

The channel, to be named Centric and scheduled to make its debut in October, will be formally announced at an event for advertisers Thursday night. Centric will complement BET, executives say, by appealing to an older and more affluent audience.

The 29-year-old BET, available in 89 million homes, is the dominant network for black audiences. It attracts roughly four times as many viewers as TV One, its main competitor, which is owned by Comcast and Radio One and available in about 47 million homes. BET, with its reality shows, movies and music videos, primarily draws a teenage and young adult audience."

it's all about the oldies (but goodies).

'Back in the day' (uh, a few years ago), nobody wanted to market to Boomers & Matures. It was like they didn't exist. It was all about us young'ns.

Well, things are different these days, kids...The NYTimes covers "a growing trend as the recession grinds on: an increasing interest in marketing goods and services to consumers age 50 and older. Among those aiming more at the older demographic are giants like Chrysler, Kraft Foods, L’Oréal, P&G and Target.

The interest has also been a boon to media outlets that appeal to older viewers. CBS, home of '60 minutes' and the 'CSI' franchise, is first in the network ratings, and while all magazines have had their advertising pages hammered, some titles for more mature readers, including AARP magazine and Family Circle, have suffered smaller downturns."

So what's going on? Why the change?

"Those attitudes have been changing, for a couple of reasons. One is the recession, which makes older consumers who may have paid off mortgages seem a safer bet than younger ones who may get laid off in last-hired, first-fired downsizings.

'Especially in this economy, with marketers’ budgets under so much stress, they would prefer to spend dollars on today’s sales instead of thinking about establishing brand loyalty,' said Howard Shimmel, senior vice president for media product leadership at the Nielsen Company.

The other reason for the change is demographic. The estimated 78 million people born from 1946 to 1964 — who have long set the agenda for Madison Avenue because of their numbers — are aging. The first boomers are turning 63 this year, and the youngest are turning 45."

recession impacting gen xers/boomers the most.

As brands and marketers work to figure out how to best reposition themselves and connect with their targets, it's interesting to understand and see how the current economy is impacting different age groups, and that Gen Y and Matures are being impacted the least:

"With the latest news showing that most Americans are continuing to hold back on spending, it looks as if Gen Y and senior citizens may be the exceptions, according to new research from Retail Forward.

When it comes to things like using coupons, buying in bulk, batching trips and switching to private labels, 'I expected the most conservative people to be the oldest people,' says Mandy Putnam, VP of the Columbus, Ohio-based consulting company. 'But we're seeing that seniors on the upper end of the income scale are not changing their behavior. And the same seems to be true of Gen Y crowd. Perhaps because many of them don't yet have houses or investments, they don't feel as worried.'

Gen X and Boomers, on the other hand, are making more conscious changes. 'Among Baby Boomers, there's more interest in giving up national brands for private labels,' she says. Only 18% of 18- to 24-year-olds say they are purchasing more private or store brands, compared with nearly a third of shoppers age 45 or older.

'Younger people are more likely to have given up restaurants or their daily Starbucks,' she says, adding that nearly a third of shoppers age 25 to 34 are cutting back on everyday splurges, compared with 25% or fewer shoppers in all other age groups."

boomers and technology: how to get your message booming.

Think you can't reach Boomers online?

Think again!

"Like other adult Internet users, boomers prefer to talk face-to-face about products, brands or services. Some 93% of baby boomers were very or somewhat likely to share product information with friends, according to a ThirdAge/JWT BOOM survey.

The digital channels they use to communicate their news follow a familiar pattern: E-mail and the telephone were more popular with older boomers, while more younger boomers used mobile phones, instant and text messages, social networks and blogs, according to BIGresearch."

Obviously this is a generation that will always find more comfort in face-to-face contact, since that is what they know best. However, as their technology and online proficiency increases, so does their usage and reliance on them.

"However, given the choice between instant messaging, text messaging or sending an e-mail, 80% of younger boomers and 87% of older ones still preferred the “old-fashioned” digital channel, according to a May 2008 white paper from ExactTarget."

booming thanks, in part, to boomers.

This may not be a good time for those in the world of finance, but it certainly is for those in fast casual chain restaurants:

"Fast casual chains are bucking the trading down trend. Buoyed by healthier offerings and a narrowing price gap compared to quick-service restaurants, chains like Panera Bread and Chipotle are seeing a continued sales surge.

Two research reports show sales in the segment shot up more than 13% last year, and experts predict the growth to continue.

Mintel, Chicago, cites a 13.2% increase in the sector to $11.5 billion last year. Technomic, Chicago, pegs growth at 13.3% and estimates the category to be around $17 billion.

Why is the sector thriving in a so-so economy? Partially, it's because of demographics. Fast casual benefits from having a younger consumer base that has more discretionary income. At the same time, it attracts a more affluent audience. 'There is at least equal or greater likelihood of use among higher income household adults,' said David Morris, senior research analyst at Mintel.

boomers and social networks...not happening.

We know that Boomers are online, and doing different things online. Learning how to use the Internet late in the game, though, they tend to be more into reading than into participating, as they still don't 100% trust the privacy issues and don't feel the need to share.

It's also not the only way that they keep in touch, since they were raised with phone calls, letters, and (gasp) face to face contact.

"According to a recent ThirdAge/JWT Boom study, people over age 40 participate heavily in word-of-mouth and value personal recommendations and expert opinions, but they have not embraced social networking or blogs despite being heavy users of other online services,.

Boomers want to connect and interact with others in their communities around shared interests and common issues, but they use more traditional web communications tools, such as email, to keep in touch."

It's not very shocking. Despite their knowledge, there seems to be certain parts on the Internet that inherently attract younger groups than them.