- Posted By: tandem11
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As a society, we focus a lot of our attention on Millennials and Gen-Xers. But what about Baby Boomers? Wayne Best, Chief Economist at Visa, Inc. recently discussed Baby Boomer spending habits in an interview with n>genuity Journal, a podcast covering relevant topics within the payments industry. Here are some of his most interesting points:
1. Working = Spending
Many Baby Boomers are continuing to work, with plans to retire much later in life than we’ve seen with past generations. There are several overlapping reasons for this trend, including the accumulation of debt among Boomers, the remaining impact of the Great Recession, and a general lack of skills for today’s job market.
…Because Boomers are still working, they are still spending. Work is correlated with spending on things like vacations and travel. Other big areas for spending include grocery, home goods, insurance and healthcare.
2. Baby Boomers ARE a Unique Generation
Your assumptions about consumers over the age of 60 might not be true. Boomers are active online and widely participate in CNP (card not present) transactions online. The Baby Boomer generation also spends more on fast food than previous generations have in their senior years.
3. Boomers Appreciate Online Security and Privacy
This generation is in fact willing to purchase products and services online, but only when the sales process is secure. Pay attention to the number of steps it takes to get to the checkout process, and keep loading times short and sweet.
Any time you collect information, whether it’s through a loyalty program or through an eCommerce checkout, ask for permission and make it clear how the information will be used.
11 Million Strong
This generation has a large presence that isn’t going away any time soon. 11 million people will be over the age of 60 in the year 2020. For the imminent future, this generation will continue to spend money and play a heavy-handed role in the national economy.
Whatever You’re Selling, There’s a Better Way
Tandem Payment is a one-stop shop for all your payment needs. We work with small and mid-sized merchants, from the corner coffeeshop to the neighborhood orthodontist. Listen to Dr. Matthew Olmsted, the founder of Olmsted Orthodontics (Oak Ridge, NC) talk about his positive experience working with a local Tandem representative: