Booming boomers
The RV industry has been eyeing Baby Boomers for years as a potentially huge revenue source. Estimated to be 78 million people strong, if just one in 20 Boomers enters the RV industry in the next 10 years, we’ll see an influx of 390,000 customers per year. That’s the potential to double annual RV sales.
BoomerEyes, a Boomer research and demographic intelligence authority, has partnered with JWT BOOM to track the lifestyles, attitudes and values of this influential segment with the annual Boomer Heartbeat research monitor. Their in-depth study explores Boomers’ views and perceptions on life, family, work, finances, health and wellness and technology.
“The breadth and depth of Boomers’ diversity creates a fascinating mosaic of their distinct lifestyles, attitudes and behaviors,” says Anne Wall, senior vice president of C&R Research. “Boomers are unlike any generation before them, which is why it is critical to understand the factors and influences that shape their values and views.”
Their recently released study offers a wealth of data and information about the Boomer generation. For example, nearly four in 10 Boomers are now empty nesters — and one-third of empty nesters are new to that experience and looking to spread their wings. With the kids gone, empty nesters report they have an extra $315 per month to spend on discretionary things like RV payments.
Proving that Boomers are ideally suited for the RV lifestyle, the study shows that 21 percent cite spending time with family as a top priority and 18 percent seek travel adventures. Next to financial freedom, time with family and travel are the top three Boomer dreams.
Healthy lifestyles and diet are a major concern for one in five Boomers. The ability to make their own healthy food when traveling should be a big selling point in motivating them to buy an RV.
I heard some RV dealers are ratcheting down their Internet efforts. That’s a huge mistake. The study shows that 96 percent of Boomers use computers at home — nearly three-quarters of them are heavy home Internet users. They are also opinion leaders with one in three being sought out by friends and family on how to incorporate new technology into their lifestyles. Boomers use the Internet for:
- Shopping (69 percent)
- Research (69 percent)
- Booking or planning travel (60 percent)
- Shopping for travel (58 percent)
Don’t upset the Boomers! About one third report they actively participate in online communities (chat rooms and forums) and one in 10 already maintain their own blog. What a great opportunity for quality dealers and manufacturers to garner some online exposure.
If there is a dark side to the Boomer generation, that has to be finances. About 62 percent of Boomers say their household debt is above average. Surprisingly, 42 percent report invested assets less than $100,000 which will greatly impact their ability to retire as comfortably as their parents. Yet they’ll have a much better time than the 26 percent of Boomers who report they have nothing saved for retirement.
“Boomers wield significant influence and clout on our nation both culturally and economically,” says Lori Bitter, senior partner at JWT BOOM. “Spending $2.3 trillion annually, Boomers are the largest and most lucrative segment in today’s consumer culture.”
For more information about BoomerEyes go to http://www.crresearch.com/
While finances appear to be a problem for many Boomers, it’s also apparent these folks will shop til they drop. It’s a market segment that deserves respect and lots of attention. In fact, if history proves correct, Boomers will demand both.
July 5th, 2007 at 8:54 am
It’s unfortunate that 42% of Boomers have less than $100K stashed away for their retirement. Having such a small amount saved will force many to work past the age of 65. We are, afterall, the founders of instant gratification. The “buy now” generation that is willing to finance everything instead of saving for it. Old habits are hard to break, and the Boomers will continue to spend into retirement, with little regard for the big picture.
June 29th, 2007 at 11:11 am
Howdy, Ya’ll. Hope things are going well for you and yours.
Okay….the “Boomers” (of which I am one and at the leading edge of that segment of consumers.) My own opinion? since you asked….I think the Boomer group has been, and will continue to be, analyzed to within an inch of its’ life. And out of all that poll research and supposing and best quesstimates will still come the same bottom line - we ain’t a group that, on whole, is flush with money. So don’t look to us to be prime pickin’s over the next however many years. We aren’t financially sound enough and we’re just as crazed as any other group. (Besides, our parents are gonna go through their monies for health care like crap through a goose.)
Now, on the brighter side, I would suggest this if you’re thinking that you’re going to retire on the huge profits you think you’ll make off of us - we are suckers for flash! If it’s pretty enough, and has even a few bells and whistles, we’ll nibble at it just like a big mouth bass toying with a lure. The trick will be in your making us think that we can’t live without it. Then, you’re gonna have to get us to sign quickly, before we’ve ‘reasoned’ ourselves out of that $200K+ deal. Once we know we’ve locked ourselves into the deal, we’ll move heaven and earth to make those $315+++ monthly payments (even if we have to spend OUR kids inheritance.) As my Pappy used to say “You don’t know how bad you’re hooked until your picture’s took.”
And just for the record - Boomers are nothing if we’re not savvy. We’ve been raised on the best commercials, the best fast foods and the best gimmicks ever to come down the pike. We’ve seen it all! So just treat us like we still have some sense, smooth our feathers when we act pouty or arrogant and you’ll get farther with that than you will by treating us like we’ve just gotten the day off from ‘the home.’
Ya’ll Honk As You Go By…..