THE BOOMER GENERATION: Booming or Busting?

In terms of service, Baby Boomers are independent, with a can-do attitude. They like to dig in and get their hands dirty if needed to overcome obstacles on their own. By the numbers, 86 percent of Baby Boomers have used automated self-service technologies, Nuance's research found.

When their problems are too complex to be solved alone, Baby Boomers are a little more particular, though. They want companies to value their time, so for them maybe more than for Xers or Millennials, the benefits of an automated call-back option when all the agents are tied up cannot be overstated.

Research also suggests that Baby Boomers in particular are more inclined, and perhaps in a better financial position, to pay a premium for better customer service.

"Younger customers have less to spend and are more tuned in to how things work, so they can appreciate an iPhone with limited service and good online help when they need it. Boomers, on the other hand, might want the full demo and don't mind paying extra for help," says Denis Pombriant, founder and managing principal at Beagle Research.

And then, they want a no-nonsense approach. "For Millennials and some Gen Xers, competent, well-made products with in-line or embedded automated services might be fine for a growing list of things. For Boomers, more hands-on engagement will be needed to seal the deal," Pombriant says.

BAD EXPERIENCES CAUSE DEFECTIONS

And when companies fail to deliver the level of quality service that is expected, Baby Boomers are just as likely as members of other age groups to end the relationship. Today, 65 percent of Baby Boomers admit to having stopped doing business with companies because of bad customer experiences, up from 56 percent in 2014, according to Nuance’s research.

Those numbers are identical for Gen Xers. Millennials come in slightly higher, at 72 percent.

Based on this data, CrowdTwist recommends that companies emphasize the repeated value of their brands to keep their fickle Baby Boomer customers coming back to them. Conversely, companies looking to sway Baby Boomers to switch to their products or services must clearly show a value in doing so.

Gilmartin agrees. When dealing with Baby Boomers, "companies should identify the value of their products or services as meeting the life needs of prospective customers and position their company, product, or service as a gateway to desired meaningful life experience," he says.

"When selling to these populations, focusing on product features often results in a losing strategy, especially early on in the process," Gilmartin adds. "Research has shown that [older] customers' final decisions are not the direct product of the reasoning process; in fact, emotions drive Boomer and older customers in their purchase decisions. The reasoning process will confirm their decision, but it doesn't start there."

And then, the messages that companies send out should resonate with the values and motivators of Boomers, Gilmartin concludes. "Although all of us have basic values and motivators that drive us, we manifest them differently as we move through the spring, summer, fall, and winter of life. Selling to Baby Boomer and older customers is different primarily because of this shift in the manifestation of human values. Our need for identity, relationships, purpose, gaining knowledge, growth, rejuvenation, and recreation are always with us, but we manifest them differently as we grow older."

It follows, then, that tailoring every aspect of Baby Boomers' interactions with brands—from marketing to sales and customer service—to their unique needs will help companies build customer loyalty and position them for success as the demographic continues to change in so many ways.

"Companies are making a bit of headway in how they treat us," Kovacs says.

Following the advice above and investing more than 5 percent of their advertising dollars into this financially powerful cohort will go a long way toward improving these efforts.

Senior News Editor Leonard Klie can be reached at lklie@infotoday.com.

CrowdTwist's 5 Tips for Engaging ?Baby Boomers

• Be relevant. Craft meaningful messages and engage them with products and services that speak directly to their needs.

• Keep loyalty programs simple.

• Continually demonstrate the value of loyalty programs. Show them how they can benefit from participation and how the products and services offered can enhance their lifestyles.

• Offer exceptional customer service. Treat them well and go beyond expectations for quality service.

• Feature engagement-based activities in loyalty programs. Reward them for taking surveys, visiting Web sites, and opening email.