Think attracting Millennials is the only way to grow your financial organization’s customer base? Think again.
The Numbers Don’t Lie
While there’s no question that younger generations are important, Baby Boomers represent 35% of the population (111 million people) and roughly 42% of economic activity ($7.6 trillion) in the U.S.
This “Longevity Economy” of Americans age 50 and older represents the third largest economy in the world, and it’s only increasing. Currently, 83% of U.S. household wealth is held by people over 50.
Not surprisingly, Baby Boomers account for a majority of spending in financial services, which means it’s crucial for your financial institution to develop and maintain a strategy for attracting and retaining customers age 50 and older.
Who Are These Baby Boomers?
The first step is to get to know your 50-plus market, because the same old stereotypes about aging don’t apply here.
Baby Boomers are:
- Working longer and spending more
- Starting businesses and staying productive
- Maintaining independence through technology
- Influencing new tech development
- Volunteering and donating more
- Growing in racial diversity
Baby Boomers value:
- Choice
- Prosperity
- Ownership
- Self-Empowerment
- Community Involvement
The Right Products at the Right Time
With these characteristics in mind, evaluate your marketing plan to ensure you’re optimizing campaigns and services for the Baby Boomer crowd.
1. Refinancing Options
With thoughts of retirement looming, Baby Boomers are looking for ways to make the most of their finances. Refinancing a mortgage to a lower rate or consolidating debt could offer the perfect solution to a budget shortfall.
2. Retirement & Investment Plans
Retirement funds need to last longer and longer, which means your customers want to keep a healthy, diversified portfolio for the future. If you aren’t reminding Baby Boomers of your financial counseling services and investment products, you’re missing out.
3. New & Used Auto Loans
Baby Boomers are working longer and looking to maintain their independence, and a vehicle is key to both. In fact, Baby Boomers are the demographic most likely to buy a new car – making them integral to the success of your next auto loan promotion.
4. Home Equity & Mortgage Solutions
Similar to refinancing options, reverse mortgages and home equity loans and lines of credit can give Baby Boomers the budget flexibility they need, especially as they are the group with the most built-up equity to take advantage of.
5. Small Business Support
Thanks to greater financial resources, business networks and experience, Baby Boomers are prime candidates to become entrepreneurs. Identify ways your commercial lending services can meet the needs of their new business ventures.
6. Exclusive Clubs & Accounts
Demonstrate your loyalty to the age group with specific products and services, such as an Over 50 Checking Account or Travel Club. By offering added savings opportunities and social outings, you could tip the scales to attract more Baby Boomers.
Other Ideas to Keep in Mind
- Technology Matters – More and more Baby Boomers use digital banking, so avoid frequent updates and changes or you risk confusion and alienation.
- Community Outreach – Baby Boomers are big givers, so make sure you’re promoting your organization’s commitment to the community and volunteer opportunities.
- Good Design – Incorporate images that reflect the demographic you want to attract, and use an appropriate font size for easy reading.
Let’s Talk
Want to learn more? Call or email to get the conversation started.
Additional Resources
Data from this article and more can be found at:
https://thefinancialbrand.com/news/bank-culture/baby-boomer-banking-segmentation-61062
https://thefinancialbrand.com/news/bank-marketing/4-steps-to-connect-with-banking-boomers-36483
https://www.aarp.org/content/dam/aarp/home-and-family/personal-technology/2016/10/2016-Longevity-Economy-Snapshot-Infographic-AARP.pdf