Don’t Ignore Baby Boomers

Quick quiz: Which generation is huge in size, interested in experiences, loves to travel, owns digital devices and is active in social media? Millennials? No, it’s actually Baby Boomers. Surprised? The Baby Boomer generation tends to be overlooked, but they are an important consumer segment.

Baby BoomersQuick quiz: Which generation is huge in size, interested in experiences, loves to travel, owns digital devices and is active in social media?

Millennials?

No, it’s actually Baby Boomers. Surprised? The Baby Boomer generation tends to be overlooked, but they are an important consumer segment.

This population — born between 1946 and 1964 — are 74 million strong and have more disposable income than any other generation. They are more likely to be in the upper-income group. According to Pew Research, 27 percent of boomers are in the upper income group, which is the highest figure of all generations. Principal economist at Kantar Retail, Doug Hermanson, notes:

“Upper-income Boomers can sustain their pre-recession spending and be a strong driver of the consumer economy over the next five to 10 years. They have the money to spend. It’s a different mindset of saving before and now saying, ‘I’ve got to spend it while I’m here.’”

Let’s dig into these mass affluent Baby Boomers. These are defined as those who have $100,000-$250,000 in household income and over $250,000 in savings. They are an optimistic bunch, with 77 percent saying their goal is to have an interesting life.

Over 80 percent say they live a healthy lifestyle, and they are much more likely to give to charities. Pew Research reports that Boomers are living longer, with an average life expectancy of 80 years old, up from 68 in 1950. Many are now entering their retirement years. While about half of all adults say they feel younger than their actual age, 61 percent of Boomers are feeling more spry than their age would imply.

So what drives spending for this important segment? Quality is important to the mass affluent Boomer, with nine out of 10 saying they are more likely to value quality over brand name. They also like to shop within brands they feel an emotional connection with. And over 70 percent of Boomers across all income levels say the fact that they “like” a retailer is a driver of retail selection.

So, now that we have seen how they like to spend money, let’s take a look at what this generation plans to spend money on. About a quarter of Baby Boomers in the mass affluent category say they will spend more money in general in the coming year. Baby Boomers at the higher income level are more likely to prefer experiences over things: 73 percent of them say they prefer to spend money on experiences, vs. 69 percent of Millennials. Their spend categories emphasize travel, home improvement and charities.

Additionally, Synchrony Financial consumer surveys reveal the following:

  • The highest category of future spend will be travel. About 40 percent of mass affluent Boomers plan to spend more on travel next year. AARP estimates Baby Boomers spend more than $120 billion annually on leisure travel.
  • The second highest spend category is home improvement, with 32 percent of Boomers spending more on home improvement in the coming year, and 22 percent spending more on home furnishings.
  • Boomers are much more likely to say that they give to charitable causes, with 79 percent saying they plan in increase their charitable giving.

The Digital Divide: Boomers and Technology

Let’s take a look at the most talked-about difference between Baby Boomers and younger generations — digital technology. The reality is that the Baby Boomer population is on-par with younger generations when it comes to smartphone ownership, online shopping and social media access. Three out of four Baby Boomers own a smartphone, up 19 percent from a year ago. The generational divide exists in the usage of digital devices. Synchrony Financial’s research studies show that Boomers are much less likely than Millennials to use their smartphone for a multitude of tasks — from shopping to texting to social media postings.

But contrary to what some may think, Boomers have a great deal of access and interaction with social media. Ninety-two percent of Boomers say they have access to a social media channel — mainly Facebook (82 percent of Boomers have access to Facebook, up from 76 percent only a year ago). But they not influenced by social media for purchases. Only one third say they purchased a product after seeing it on social media, which is a significantly lower figure than that of younger generations: For Millennials, that number tops 70 percent.

How well does your business cater to this large and important segment of the population? Generalizations are difficult for any population of this size, but in general, Boomers are optimistic, secure and not done spending. Brands who provide a great shopping experience, high quality and seamless digital technology will go far in attracting this important segment.

Sources: All data is sourced from the following three studies, unless otherwise noted: Synchrony Financial 2016 Loyalty Study, Synchrony Financial 2016 Affluent Survey and Synchrony Financial 2016 Digital Study. All references to consumers and population refer to the survey respondents.

Note: The views expressed in this blog are those of the blogger and not necessarily of Synchrony Financial.

Landing Pages: This Worked, That Didn’t

Nothing derails an email conversion faster than the wrong landing page. Good emails tell a story to the recipient. It may be the story of a sale, how things work or what’s going on. Whatever the story, it needs to flow continuously from beginning to end. Any break introduces distractions that can divert the participant from the preferred action. Today we are reviewing emails and their landing pages from two companies that offer home improvement items for this edition of “This Worked, That Didn’t.”

Nothing derails an email conversion faster than the wrong landing page. Good emails tell a story to the recipient. It may be the story of a sale, how things work or what’s going on. Whatever the story, it needs to flow continuously from beginning to end. Any break introduces distractions that can divert the participant from the preferred action.

Every component of an email has a simple purpose: Move the person reading it to the next step. The purpose of the subject is to motivate the recipient to open the email. Once opened, the content should be a continuation of the subject and provide information for the next step.

Today we are reviewing emails from two companies that offer home improvement items for this edition of “This Worked, That Didn’t.” The emails—found in the Email Campaign Archive—are similar in content and creative, but very different in execution. The challengers are Build.com and Rejuvenation.

Both emails have a do-it-yourself subject line. Build.com uses “Make Your Outdoors a Masterpiece” and Rejuvenation has “Update a Hardworking Bath with Lighting, Hardware, and Accessories.” Recipients gearing up for home improvement projects would find the subjects appealing.

The Rejuvenation email (Image 1) has a photo of the beautiful bathroom. The copy at the top of the photo reads: “Hardworking Spaces: Bathroom Simple, warm, practical – a rustic bath will stand the test of time.” A button under the copy has a link to “Shop Bathroom.”

Clicking on the link takes the potential buyer to a landing page (Image 2) that continues the story started in the email. The same image is featured in the email and on the landing page. The headline on the landing page, “Time-Tested Bathroom,” is consistent with the copy from the email. The copy following the headline says:

For a bathroom that stands the test of time, consider borrowing design ideas from that other hardworking space: the kitchen. An apron-front sink and butcher-block counters stand up to just about anything, and will only get better with age. Burnished metals with a timeworn patina suit this understated aesthetic perfectly. Try a pair of Kent wall brackets in Antique Copper and beaded mirrors in Bronze finish for warmth and sparkle.

Featured products continue the story immediately following the copy. This is an excellent example of using an email to move people from their inbox to the shopping cart.

The build.com email starts out well too. It has a photo (Image 3) of an exquisite house with a sunset backdrop and beautiful lighting. The copy tweaks the subject line into “Make Your Outdoors an Oasis.” The button at the bottom of the image reads, “Get Started,” creating an expectation of additional information on how to get this look. There is another link at the lower left corner that is barely visible. It reads, “Sea Gull Outdoor Lighting.” One expects that the link will take you directly to the lighting used at this house.

The beautifully crafted email takes a surprising turn when you click on the Get Started link. Instead of information on how to create the look or the products used, the landing page is the company’s outdoor department (Image 4). The first thing you see is a lawnmower. Scroll about halfway down a very long page and you’ll find information on how to light up your night. Before you get there, you pass a video on grilling and the segment on indoor living outdoors. Only the most dedicated email recipients will search the page for the information they’re seeking.

The Sea Gull Outdoor Lighting link is also disappointing. Instead of going to the product page, the potential customer is taken to the outdoor department. Getting to the featured item requires choosing from thirteen outdoor lighting links or doing a site search. There is nothing easy about finding the items featured in the email. A search of “Sea Gull Outdoor Light” yields 2,606 products. Good luck finding the ones featured in the email.

The winner of the landing page challenge is Rejuvenation. To insure that your emails are always on the winning side:

  • Make links take people to the page they expect to see. If you don’t have an appropriate page, either build one or change the email message.
  • Keep the path from first click to checkout as short as possible. The longer the path, the more likely people will leave.
  • Tell a continuous story. Continuity keeps people moving forward. A good story answers questions at the right time and removes all resistance to completing the final call to action.