Baby Boomer Insights

Boomers, Gen Y gravitate toward electric bikes

2008-08-17T21:43:40-04:00

We moved our oldest daughter, Katy, this weekend to her first "real adult" apartment (the three she had in college didn't count, apparently, because she didn't have to pay for them!). We didn't see the apartment until we arrived on Saturday, following the moving truck. It was so nice, I threatened to come live with her for a change!

She and her roommate looked at dozens of places before deciding where to live. At the top of Katy's list of "must haves" was that it had to be close to work in Buckhead. She hates commuting. So when I saw this story today about how people are snapping up the new electric bikes, I thought of her.

According to the AP story I read, people who are buying these bikes are looking to reduce their carbon footprint, get some exercise, and save money on gas. Those are all priorities for a lot of people in Katy's (Y) generation.

But guess what? It's the Boomers who are especially interested in these pricey bikes. One person interviewed, who is 60, said she selected it for all the same reasons a Gen Y would, but also found it a good way to get the kind of exercise that helps to treat her arthritis.

Like hybrid cars, also popular with Boomers, electric bikes are also getting sleeker, more stylish and can vary tremendously in price.

Already, these bikes are very popular in Europe and China. In fact, according to this article, there are 70 million electric bikes in China, and about 2.6 million are rolling off the shelves every year.

I'm not at all surprised that Boomers are attracted to these quasi-scooters. After all, we were among the first to buy hybrid cars, in part because we do care about the environment (we even look for vacations that let us help the environment in some way). We also have the money to drop $1500+ on the coolest electric bike we can find.

Watch for more of us to start riding them to work, to visit with friends and even to get in some afternoon exercise after work. What a great solution to Boomers' desire to get fit, look good, and, of course, look cool while we're doing whatever we're doing (whether it's reducing our carbon footprint or reducing our wrinkles by heading to the spa or to the doctor for Botox shots).

Obama to announce his VP via text message: "my vp iz..."

2008-08-11T17:26:56-04:00

I remember staying up to watch Jay Leno one night to find out if "The Arnold" was going to announce his candidacy for Governor of California. I thought it was a clever idea to go on the reigning late-night talk show to make such a declaration (and I wasn't disappointed).

Over the years, most politicians have used pretty conventional means for getting out key messages. Usually, a rally or press conference has been the vehicle of choice. Now, Senator Obama, "the presumptive Democratic nominee" (are you as sick of that phrase as I am?) has decided to shake things up a bit.

Last night, Obama sent a text message to his supporters to let them know he'll be announcing his VP choice via text message some time between now and the Democratic National Convention. Those who want to be the "first to know" can sign up to receive the notice by texting "VP" to 62262 on their cell phones. Of course, he's encouraging folks to spread the word and help sign up even more people.

With two weeks until the Convention starts, there will no doubt be a flurry of activity and stories about this tactic, which is clearly intended to show Obama as the candidate for change, even if that change is just in a new-fashioned way to make an old-fashioned announcement.

I'm a Boomer who gets several text messages a day from my Gen Y kids, who use it as a primary method of communication. I even bought a new phone recently just so I could text back faster. To me, texting is a necessary evil, not a preferred way to communicate.

Frankly, I plan to find out who the VP candidate is from whichever reporter breaks in to tell me after getting the message on his/her cell phone.

Something as anticipated as this particular announcement deserves more than a gimmicky high-tech mass mailing. I want to see the reaction of a crowd and feel the passion of the candidate when he says the name of his choice. It's just the Boomer in me, I suppose. But then, I don't think Obama is trying to appeal to me as much as he is to my kids, who would love to get a message from the Senator.

I hope the Senator can/will track sign-ups by age. I'd love to know how many Boomers sign up to get the news this way. Meanwhile, count me in the group that still wants to get big news from big news sources. Brian Williams or George Stephanopoulos: I'll be looking for you!

The Volunteering Report of America shows Boomers like to give back

2008-08-02T22:31:53-04:00

I've written here before about the fact that Boomers are big on "giving back" to their communities but a new study, just released days ago, shows just how much. The Volunteering Report of America provides details on volunteerism in all 50 states and in 163 cities.

According to the press release, brought to my attention by Megan Griffin, this new report is the most comprehensive ever assembled on the subject of volunteerism in America.

Some highlights Megan shared with me that I think you'll find particularly interesting:

> Between 2005 and 2007, an average of 31.2 percent of Boomers volunteered each year, giving an average of 52 hours per volunteer per year.

> The Midwest was the biggest beneficiary of Boomer volunteerism. Some 36.9 percent of Boomers there volunteer.

> Volunteer retention is always an issue and this study shows that Boomers want to engage in activities that that tap their professional or managerial skills (almost 75 percent indicated that would entice them to continue to volunteer). What they don't want is to be relegated to general labor or supply transportation (give them those tasks and you'll retain only 55.6 percent).

Boomers will double the number of volunteers in America over the next few decades, but to take advantage of their generous spirit and willingness to get involved, organizations will need to think carefully about how to recruit and retain them.

One way to do that is to consider how your volunteer opportunities offer Boomers a chance to stretch a little. The Volunteering Report of America showed, for instance, that the phenomenon of "voluntourism" continues to attract Americans, including Boomers. This is certainly in line with the study my company, Edelman, and our marketing arm, Strategy One, conducted last year. We learned Boomers are looking for volunteer activities that let them also contribute to opportunities like saving the environment and giving back to victims of natural disasters... and they want to do all of this with their grandchildren. So it wasn't surprising to learn that in addition to an increase in Boomer volunteerism, we're seeing Gen Y get aboard the volunteerism train as well.

But pay attention: organizations that don't have a strategy for recruiting and retaining volunteers, especially Boomers, will suffer. After all, between 2006 and 2007, more than a third of Americans dropped out of the volunteer ranks.

Want to know how your state - and perhaps even your city - stack up? Check out this section of the Volunteering In America web site to learn how the study was done and where volunteerism stands in your neighborhood.

Boomers and Gen Y: when it comes to shopping, their habits tend to be exact opposites

2008-07-27T21:58:38-04:00

In just a couple of weeks, my youngest daughter Sydney, who is about to turn 19, is moving into her first apartment as she enters her sophomore year at Georgia College and State University. In the process of shopping for this new place, I discovered that we have exact opposite online habits.

Sydney goes online and checks out everything from Ikea to Target to Wal-Mart and even small boutique shops. She already has a good idea of how she wants to decorate her bedroom and bath in particular, so to her the hunt is about finding what she has in her head, then going to the store to buy it. Some things she's willing to buy online, but mostly she sees the Internet as a huge catalog that helps her save gas by showing her exactly what's where. Then, there's the hybrid. Some items she ordered online but requested they be shipped to the store for pickup.

I'm the opposite. While I like to use the Internet too, I find a lot of value in just going to the stores and getting ideas by walking around, looking at suggested designs (which Ikea excels at showcasing). Then, when I see what I like, I want to find it cheaper online and order it. Often, of course, I actually order from the online site of the store I visited, but if price is a key driver, I'll focus on the best deal. And I want it to come to me - either at my office or home. I don't fetch.

Well, I just learned that my method is actually becoming the standard for Boomers. A recent study by the US Annenberg Center for the Digital future revealed that two-thirds of consumers between 50 and 60 prefer to research items inside a store, but buy online. And over half of consumers 70+ followed this pattern.

So what's the lesson for retailers? First, understand the importance of providing multiple channels for doing business with you. No matter the age, people expect your online store to be a rich resource, easy to navigate and easy to make a secure purchase.

Given the expected uptick in the number of 50+ users on the internet, also take into account the wisdom of using a larger typefont and lots of images.

But don't stop there: make sure your sales people literally think outside the box they're standing in and suggest that customers also check out your store's web site too.

Warning! Retire too soon and you may outlive your savings!

2008-07-17T01:02:31-04:00

If you're planning to retire, yet still maintain your current lifestyle, you may want to rethink that strategy, based on the results of a new study released this week. According to Ernst & Young, Boomers need to get a better grip on reality. Few will be able to live in retirement like they do today without depleting their savings completely.

You can read the details of the study here from Sunday's Washington Post. Here's the net, net: longer life spans plus poor saving habits plus the lack of a robust employee pension plan equals potential disaster. According to this study, commissioned by Americans for Secure Retirement, the average middle-class Boomer now retiring will have to cut back on his/her standard of living by 24 percent. Boomers who plan to retire in seven years should plan a 37 percent cutback in spending.

Several potential solutions are offered (none of which work alone). But the most intriguing to me is the notion that Congress can help fix the problem. The ASR coalition recommends that Boomers buy annuities (essentially, an investment made now that provides you with an income beyond Social Security in retirement). To stimulate this strategy, they want Congress to pass legislation that would make annuities easier to obtain and reduce the tax burden at payout time. ASR suggests taxes be eliminated completely on 50 percent of the annuity payout, up to $20,000 per year. (BTW, many ASR members are insurance companies that sell annuities.)

I personally think annuities are a great option and Lord knows I'm all for reducing my tax liability at every turn, but it seems to me this solution won't affect enough Boomers for it to make a significant dent. After all, the "mass affluent" - Boomers who have $100k+ to invest - make up only 30 percent of the Boomer population. Some 67 percent have less than $100k to invest, according to Forrester. So while a legislative solution on the surface seems to be a good one, I'm suggesting it's only a piece of the puzzle and shouldn't be viewed as, "That's the ticket!"

For instance, what the study doesn't take into account is that a majority of Boomers don't intend to retire at the standard retirement age of 62; instead, they plan to work several more years, perhaps by re-careering completely or by working part-time. I don't know about you, but I don't have a single retired friend who hasn't cut back on his/her lifestyle or standard of living once they retired. Moreover, most prepared for their retirement by gradually cutting back their lifestyles.

Here's what marketers need to take away from this: Boomers first and foremost want control. So if you have a financial service or product to offer them, especially in their pre-retirement and retirement years, you need to be able to show them how it will help them gain control over their destinies.

Don't try scare tactics such as "You're in danger of outliving your savings!" It turns them off. Instead, evoke a positive emotion and response by guiding them to a proactive solution. Leave the OMG-style headlines to the guys who are trying to sell more newspapers.