According to the National Club Association’s 2009 Private Club Operations Report, the average age of a private club member is 57. This means in order to ensure your private club remains financially viable with a healthy, engaged membership body, private clubs must have a comprehensive understanding of the most significant age group of its members: the Baby Boomer generation. When aiming to understand the Boomer generation, private clubs should be aware of what defines the Boomer generation, including their spending habits, lifestyle preferences and, probably the most important, how to market and engage the Boomer generation. How well clubs adapt to the changing demographics of Boomers will influence the success of programs and offerings.
Who Are the Boomers?
Ask ten people to define Baby Boomers and you’ll most likely receive ten different answers. However, the general consensus regarding what is a Baby Boomer relates to their age and their societal attitude. Boomers are defined as persons born after the 2nd World War and prior to the mid-1960s—resulting in a current age range of 45-65 years old. Boomers have been known to be further divided into two segments; those born between 1945 thru 1955 (Cohort I) and those born between 1955 thru the mid-60s (Cohort II).
At a median age of 55, Boomers are expected to enjoy longer life expectancy than previous generations. The population of adults older than age 65 is expected to more than double between 2010 and 2030, growing from 35 million to 72 million. By 2015, those older than age 50 will be one-third of the entire workforce. Because of their increased life expectancy, Boomers, as a whole, may not have secured enough wealth to ensure a comfortable retirement, which means many are working beyond the traditional retirement age of 65. All together, the U.S. has roughly 80 million people that can be categorized in the Boomer Generation.
Understanding the Spending Habits and Purchasing Power
Boomers are known to have accumulated the most wealth of any generation and have the highest income potential. They have also felt the least effect of the unemployment dilemma as only 6.3 percent are unemployed (compared to the national average of close to 10 percent). Additionally, the Boomers, one-third of the U.S population, control 70 percent of the U.S. net worth, staggering evidence of their wealth. However, although they’ve amassed the most wealth, they are also the group that has felt the biggest impact of the economic downturn, as their retirement savings have taken the largest hit. Not surprisingly, they are least likely to bounce back as the economy improves. This dilemma has caused the generation to shun the pre-recession consumerism attitude by spending less and gravitate toward thrift and frugality. Surprisingly, one area in which they are not cutting back their spending is their entertainment budget. In a U.S. survey of consumer spending, those over the age of 50 have made no cuts to discretionary entertainment spending. If they understand the value of products and services, they are willing to spend the money, making Boomers the most reliable source of consumer spending. This makes effective club communications with the Boomer Generation even more important than with other generations.
The Rise of the Boomer Woman
“The Women’s Market opportunity is number one and there’s no close second for the foreseeable future …” according to Tom Peters (bestselling author on business management practices). The increasing trend of Boomer women accumulating wealth is common knowledge, but the magnitude is less recognized. In 2010, women will own 50 percent of U.S. Stocks and control 60 percent of the wealth. In addition, women influence 94 percent of purchases in the U.S. The notion that a husband would take care of a woman financially is outdated, as only 3% of women believe in that proposition today. Clubs must dispel the notion that women only influence large purchasing decisions and recognize the progressive concept that women are making big-ticket spending decisions.
The Boomer woman is active: women represent 20 percent of golfers nationwide (5.8 million), though for the most part, view golf as a social outing, not a test of their physical and emotional stamina. Also, their demand for spa services has increased exponentially: 70 percent of those utilizing spa services are women.
Insight into Their Lifestyle
As the life expectancy of the U.S. population increases, Boomers see their stage in life still full of vigor and promise. Sixty is considered the new 40 and Boomers are continually working past the traditional retirement age of 65 both out of necessity and by choice. They choose to continue living an active lifestyle and have no plans on settling into a retirement community. They continue to see themselves as active individuals capable of living an independent lifestyle for the foreseeable future. In short, many Boomers aren’t retiring anytime soon and they aren’t looking for retirement living options. Tailoring your activities to support this active lifestyle is essential to ensuring that your members are engaged and satisfied.
Communicating and Marketing to the Boomers
Not only does the Baby Boomer generation make up a vast majority of private club members, they also have the financial means to afford the discretionary spending private club membership entails—granted they understand the value. This makes communicating with the group of utmost importance. Below are tips take into account when communicating with the Boomer generation to ensure your message is effective and caters to their age’s idiosyncrasies and habits.
- Boomers are looking to “live” their life; they don’t want to be spectators. They want to be active participants.
- They have very discerning taste and they have no problem paying for something they value.
- Your message should be honest and authentic. Goods and services must live up to expectations. Boomers make decisions based on word of mouth referrals and happy members will be a valuable recruiting tool for new members.
- Boomers see themselves as younger images of themselves, i.e., as younger than they are in actual age. Use younger images when communicating with this generation to ensure your message conveys effectively.
- Use messages that resonate with and reflect their core values. Understand their generation and consistently align your message with their values to maximize effectiveness.
- Fun sells. If they’re “wowed” with their experience, they’ll be happy to continue patronizing your club. Messages that encourage sensory stimulation are the most effective.
- They expect value for their money. Ensure that your communication carries a clear message of value. They have the means to spend, but they must understand the value proposition.
Considering that the average age of the private club member is 57, it is important that private clubs have a thorough understanding of the Boomer Generation: who they are, how they’re defined, their values, spending habits and how to effectively communicate with them. With an in-depth understanding of this generation, clubs can effectively leverage their biggest resource of private club members and prospects, ensuring a healthy and viable membership.
Robert C. James, CCM, is executive director of Westchester Country Club in Rye, N.Y. and chairman of the NCA Foundation. Joel Nepomuceno is NCA’s assistant marketing director.