Is Your Credit Union Missing Out on Baby Boomers?

Just think in three short years, 50% of the U.S. population will be 50 years old or older, yet many times we overlook this staggering demographic as we develop our business and marketing plans. Why?

It’s almost always because of two very common myths about this segment of the population which includes the so-called Baby Boomers—the roughly 80 million men and women born between 1946 and 1964. Looking back Boomers have been the most marketing-friendly consumers in the history of American business. They love their brands and their sheer numbers alone has amplified the impact of their choices.

Myth 1: Older consumers don’t use technology to make purchases or research purchasing decisions.

Fact: According to a report by The Nielsen Company and marketing group BoomAgers, Boomers comprise of one-third of all online users and social media users, and a full 33% of all Boomers characterize themselves as heavy users of the Internet. That’s about 29 million people! The 50+ segment are prolific online shoppers spending almost $7 billion online, and the Internet is their primary source for comparison shopping. Boomers are also more brand-loyal than younger people with 63% reporting they remain with a brand they like, compared with 53% of all online adults who say they’re brand loyal.

Myth 2: Younger consumers have most of the purchasing power today.

Fact: In fact, the Nielsen data shows that in the next three years, Boomers are predicted to control nearly three-quarters of all the disposable income in the United States. When they retire, almost 70% of Boomers say they’ll spend more time—and more cash—on their hobbies.

Other tidbits from the Nielsen report:

• Boomers are plugged in. They comprise about 40% of wireless service customers and 41% of them buy Apple computers.
• Boomers’ use of social networking with 53% on Facebook.

And yet… Despite all this, less than 5% of advertising dollars are targeted to adults 35 to 64 years of age.

So what’s the overall take-home message from all this?

Boomers are one of the most valuable generations in terms of marketing and they are too valuable to ignore. Marketing is many things, but it is first and foremost a numbers game.  As we have established, the number of Boomers is large, and they add up. If they are loyal members in your credit union do your best to keep them.  If not, figure out a way to win them over before the competition does.

By Vickey Morris, SCMS, CCUE, CUDE, VP Marketing, Cornerstone Credit Union League