Ms. Knutson

Sales & Marketing

Reaching the Baby Boomers: The 2nd Hump in Your Generational Marketing

By Bonnie Knutson, Professor, The School of Hospitality Business/MSU

We are Jimmy Buffett, Demi Moore and Clarence Thomas. We are Bill and Melinda Gates, Dorothy Hamill and Scott Hamilton, as well as Barbie and Ken. We are Baby Boomers. Born between 1945 and 1964, we number 76+ million. From the beginning, we have been studied and written about more than any other generation because our sheer numbers have given us, and will continue to give us, unprecedented buying power. We currently enjoy $2.1 billion in spending power and control 50% of all discretionary spending...and we are set to inherit more than $10 trillion in the future. In other words, we are an economic force to be reckoned with.

Some call us the "Me" generation because we were the first group of Americans to put our own needs and desires ahead of the good of the group. We came of age in a period of great economic prosperity, marked by the expansion of suburbia, a television in every home, two cars in every garage, and a college education in our future. Our attitudes toward life and work were formed in the throws of mass marketing, Woodstock, Vietnam, the Pentagon Papers, the resignation of a President, assignations of iconic leaders, and the Miranda decision. As a result, we value individuality, personal growth, and involvement. We have high expectations and demand top service. We celebrate youth, have a health and wellness focus, and will "retread" not retire. For us, work is an adventure and rewards are deserved. And for us, the future is now.

In this article, one of a four-part series on generational marketing, we will look at the second "hump" of your hotel's four-humped customer camel - The Baby Boom generation. Boomers have reshaped each phase of life as they have passed through it, due to their sheer size and tendency towards rebellion and creativity. And they are doing so in your hotel. In their middle years now, they are characterized by a desire to stay fit and healthy for as long as possible and to maintain their youthful looks. As they age, they will redefine the term "seniors" in the same way that they redefined other life stages. With continued improvements in medicine and people living longer and healthier lives, their 70 will become the new 50.

So what products and services can your hotel offer that will be in sync with the values of this generation? Here are some ideas to get your creative juices flowing:

• *Make them feel special To appeal to this group, it is important to develop strategies to make them feel special. They have been treated that way all their lives and not only value it, they expect it. Personalizing family events (beyond the proverbial "free" birthday dinner), upgrades, and concierge services come to mind. For example, your hotel could assign an employee to go through the local newspapers and magazines every morning to see if any regular customer or member of his/her family is mentioned. If so, cut the article out, laminate it, and mail it to the customer with a personal note signed by you.** **

• Integrate technological "toys" Boomers are more au fait with technology than their predecessors and are keen to experiment with the Internet, smart phones, and the latest electronic gadgets. It's cool. Adding complimentary Wi-Fi throughout the hotel in your next renovation, interjecting video clips and/or animated elements of your facilities/services to your website, establishing online blog communities of guests or even sending the invitation to your next event on a CD or flashdrive will catch their fancy. A couple of years ago, in fact, a resort hotel used such a CD to invite meeting planners to a "fam trip" lunch and tour. Very innovative, very Boomer, and very successful.

• Redesign for an aging, active group With their interest in keeping fit and healthy, Boomers are looking for long active living, rejuvenating skin care products, and non-guilt menu choices. Based on their desire to age gracefully, live a healthy life, and maintain quality of living, the notion of healthy aging is being transformed across a myriad of industries. Many restaurants have added healthier items and/or smaller portions to their menus. Fitness centers and spa services are being integrated into virtually every hotel development. Financial planning services have taken on a longevity focus aimed at helping Boomers figure out how much money they will need to last throughout their lives. After all, this group may spend 20 or 30 years in retirement - however they define it - turning out to be their longest life stage and an exploding market for travel. But there other opportunities for this group too. For example, your hotel can change door handles from knobs to levers, make sure you always use at least a 14-pont font on your print materials, have adequate, controllable lighting, and non-slip flooring. Although they may fight aging tooth, hook and nail, the Boomers will experience deteriorating eyesight and less dexterity as they get older. They just don't want to be reminded about it.

The biggest challenge any hotel faces in marketing to members in this age cohort is that this is not a homogenous group. The Boomer generation spans 20 years and is, therefore, in various stages of life. Early boomers are empty nesters, with more time and more money. As their kids leave, they often look for leisure and travel opportunities to fill the time and energy they used to spend on activities with their children. Late Boomers, on the other hand, may still have kids in K-12 and a schedule filled with soccer games, music lessons, and homework. For them, hotels must still have a family focus. And Middle Boomers are often at the height of their career, may be divorced, or part of the sandwich age band caring for elderly parents. For them, convenience is a major opportunity for hotel marketing.

Doing more to appeal to Baby Boomers does not mean doing the same old things. Not only are Boomers different from old people in the past, but also they will be different from what they themselves were in years past. When asked at what age someone is too old to start anything new and innovative in a survey completed for "Generation Ageless," they said 86.6! See something going on here?

No matter where your guests are along the Boomer age spectrum, there are two overarching rules for your marketing strategy. First, position your hotel brand, facilities and services as "cool". No boomer ever wants to be seen as not being "cool." And second, appeal to their egotism. As Jim Cramer, host of CNBC's Mad Money, so aptly puts it: "As baby boomers age, there is a major vanity trade that's going to define [them]. You want to be in on that."

Your REVPAR will thank you.

Bonnie J. Knutson is a professor in The School of Hospitality Business in the Broad College of Business at Michigan State University. She is an authority on emerging lifestyle trends and innovative marketing. Her work has been featured in The Wall Street Journal, USA Today, and on PBS and CNN. She has had numerous articles in industry, business, and academic publications. Bonnie is a frequent speaker for executive education as well as business and industry meetings, workshops, and seminars. Dr. Knutson is also editor of the Journal of Hospitality & Leisure Marketing. Ms. Knutson can be contacted at 517-353-9211 or drbonnie@msu.edu Extended Bio...

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