Is the silver-coloured centre of the new pound coin an ingenious nod to those most likely to spend it?
According to an Institute of Customer Service report, the so-called ‘silver pound’ economy is estimated to be worth £43 billion in annual spending. Echoed by the Government’s latest Family Spending bulletin, Baby Boomers are not afraid to spend money making them a lucrative market, particularly if you’re in the business of travel, home improvements, cars or alcohol. Spending by the over 65s on household goods and services, for example, has increased 57% in the last five years, compared to just 12% by 30-49 year olds.
As CS Lewis said “You are never too old to set another goal or to dream a new dream.” Baby Boomers are living testament to this, prepared and able to spend more on themselves as they realise their post mid-life goals and dreams. Spending growth in this group is predicted to continue rising at twice the rate of younger shoppers. While Millennials show a surprisingly high level of brand loyalty, Baby Boomers more importantly “show me the money”.
All the signs point towards the over 50s becoming an increasingly important sector of the consumer market both in number and average spend. Millennials are predicted to be the first generation to earn less than their parents, feeling the effects of the financial crisis for longer through the likes of lower pay rises, increasingly insecure and precarious employment and zero-hours contracts.
Despite this, many businesses continue to focus on the Millennial market, investing in a potential long-term customer loyalty. By
doing so, and not capitalising on the spending capacity of Baby Boomers, it’s believed UK businesses are losing out on up to £27 billion of revenue.
Some feel intergenerational inequalities are swinging back too far in favour of Baby Boomers. But for those with the goods and services this group desires, use those shiny new pound coins with their silver centres as a reminder of where your advertising budget might be best spent.