Customer service and ad relevance are two keys to attracting the Baby Boomer generation. Great sales are important, but most women in this age category want to see advertisements focused on age-appropriate apparel and fashion tips. Loyalty requires a relationship with brands willing to demonstrate customer value through great service. They must show value, remain persistent, and continually offer simple options and features on Web sites.
This generation not only has power in numbers -- with an estimated population of 74.9 million in 2015 -- but also a significant ability to spend with the highest proportions of income and wealth, according to the 2015 CrowdTwist Loyalty Program report. The report was commissioned to understand attitudes toward loyalty and rewards programs and what activities motivate this market segment to remain engaged with a brand.
Overall, Baby boomers hold 34% of estimated net worth dollars and earned 39% of total income dollars. With its strong work ethic and commitment to jobs, this demographic has more disposable income. They use the Internet to search for answers and read recommendations before making purchases, and social media to stay in touch and share news with family and friends. This group also relies on television, newspapers, magazines, and radio for information.
Convincing them to spend money requires meaningful messages that speak to their needs. Loyalty programs must remain simple, easy and provide value. Some 65.8% of baby boomers participating in the study point to non-compelling rewards as one reason for opting out of a loyalty program.
Complexity, however, will deter baby boomers more. It will cause them to stray from participating in a program or from using a feature on a Web site. About 49.1% said they would opt out of a program when it's too complicated. From registration and participation to earning points for actions and reward redemption, keeping things easy remains very important.
In fact, Baby Boomers are 10.4% more likely than millennials and 15.7% more likely than Gen Xers to want to take surveys to earn points. While 86.6% said they would take a survey, 36.2% said they would visit a Web site, and 33.7% would open and read emails.
It may require brands and retailers to show Baby Boomers how to benefit from loyalty programs and why their products and services help enhance their lifestyles.
While Baby Boomers are interested in loyalty programs that help them save money, they also favor cash back or credit, free products, and the chance to use loyalty program points to make charitable donations, according to the study.
The Baby Boomer generation prefers to engage with brands doing the things they like most, such as taking surveys, visiting Web sites, and reading emails, according to the report. Some 48.4% of those surveyed admit they want to earn points for engaging in a loyalty program, but 71.2% say they don't earn points for engaging through tweets, posting comments or reviews, opening and clicking emails.