OLDER PEOPLE DON’T HAVE MONEY
Most older people are poor and living on pensions. They don’t have a lot of money to spend.
PEOPLE OVER 50 CONTROL ABOUT 3/4 OF THE NATION’S WEALTH
The 50+ enjoy a median net worth that’s about double the average. A lower percentage of 65+ adults are on welfare than any other age group.
OLDER PEOPLE ARE RELUCTANT TO PART WITH THEIR MONEY
They’re stingy and inclined to hang on to what discretionary income they might have.
THE 50+ SPEND MORE THAN ANY OTHER DEMOGRAPHIC GROUP
People over 50 are responsible for more expenditures than any other group in Canada - some $35 billion a year. They spend more per capita in supermarkets, tend to dine out four or five times a week, and account for the lion’s share of spending in leisure travel, financial services and many other categories.
THEY STICK WITH THE TRIED AND TRUE
Older people aren’t willing to try new brands. They’re close-minded, so why bother trying to market to them? Their brand loyalty was formed years ago. Younger people are less brand loyal so there’s a bigger opportunity to convert them into lifelong customers.
50+ ADULTS TODAY ARE NO MORE BRAND LOYAL THAN UNDER 50’S
The false assumption of brand loyalty is based on outdated experience with an older generation. Recent studies have shown the boomers are very different from previous mature adults. In most categories, there are no significant loyalty differences between young buyers and boomers. And, it stands to reason that, in the categories where younger people have demonstrated less brand loyalty, they’re no more likely to stay loyal to your brand than any other.
MATURE CUSTOMERS AREN’T A LONG TERM PROPOSITION
Mature customers offer limited potential since “they’re going to die soon anyway” (actual comment by an advertising agency staffer). Older people are generally in poor health and many are in institutions.
A 50 YEAR OLD TODAY HAS 30 YEARS OF BUYING STILL AHEAD
Life expectancy in Canada is currently 79.7 years. 85% of mature adults describe their health as being excellent to good. Fewer than 5% of persons 65+ are institutionalized. Thanks to medical advances and healthier living, today’s 50 year old can expect to enjoy an active lifestyle for another 30 or so years. That leaves a lot of time to purchase goods and services.
ONCE THEY HIT 50, PEOPLE START SCALING BACK
On a household basis, they don’t account for as much business as younger customers. Their kids have left home and their household expenditures are dropping.
BOOMERS DON’T STOP SPENDING
Far from scaling back, today’s 50+ not only control 55% of discretionary spending power, they continue to exercise that power. They own 50% of credit cards, buy 50% of luxury cars and spend 74% more on a typical vacation. And nearly one in five house-holders age 50+ still has children at home.
THEY’RE NOT THE TARGET GROUP FOR MOST PRODUCTS
Marketing to mature customers only makes sense for products designed exclusively for them.
THE 50+ GROUP IS SIGNIFICANT IN VIRTUALLY ALL CATEGORIES
They don’t just buy hearing aids or burial plots (and, denture ads to the contrary, virtually all of them under 75 still have their own teeth!). They’re big spenders on clothes, cars and cosmetics. They’re exploring new vacation opportunities and joining health clubs in record numbers.