BCG Report: Don't forget about your mature consumers.

BCG's Center for Customer Insight conducted global research on mature consumers, debunking myths about them. Marketing to mature consumers is more profitable than previously believed. They spend more, show brand loyalty, are resilient, and influence younger consumers.

Consumer brands constantly seek new markets that offer steady growth and fresh opportunities in today's challenging business environment. However, many fail to realize that there is a multi-trillion-dollar market right in front of them: the one billion consumers aged between 50 and 70 worldwide.

Mature consumers aged 50 to 70 hold a significant portion of the global consumer spending. According to BCG's Center for Customer Insight, in 12 markets that were studied, they accounted for 27% of spending in nine product categories, which amounts to around $7 trillion annually. In India, these consumers were responsible for 15% of spending, while in the US and China, they accounted for 30%. In Japan, the UK, Germany, and Spain, they accounted for 40% of spending.

Mature consumers use social media platforms daily and appreciate the convenience of online channels. 46% of them purchase apparel online compared to 36% of younger consumers. The 50-70-year-old segment is likelier to influence younger consumers, especially for big-ticket items like vehicles and investments.

According to Aparna Bharadwaj, a BCG managing director and partner who leads the firm's Center for Customer Insight globally and is a co-author of the report, “Mature consumers are often ignored by brand marketing, largely because of some lingering misconceptions; they are perceived as being price sensitive and reliant on brick-and-mortar stores for their purchases. Nothing could be further from the truth. But marketers fail to recognize their role as trendsetters and struggle to engage them through conventional marketing techniques.”

Brands shouldn't ignore mature consumers. As societies age, this demographic will become increasingly important. But, traditional marketing techniques may not work on them. According to the BCG report, brands looking to engage with mature consumers should target the top 20 percent of spenders, also known as "vibrant mature consumers," and approach them differently than younger consumers. To effectively reach this group, brands should create personalized omnichannel customer journeys, communicate transparently and honestly, and focus on persuasion.

Marketers often need to pay more attention to mature consumers, who are more challenging to win over but are more loyal to brands once they decide. Vibrant mature consumers are precious due to high spending and loyalty. They are estimated to be 3x more valuable to apparel, healthy snacks, health supplements, and skincare brands and over 4x more valuable to alcoholic beverage and investment brands than young consumers. Brands must adopt KPIs to avoid undervaluing mature consumers' long-term ROI and optimize marketing budgets. Mature consumers use social media platforms daily and appreciate the convenience of online channels. 46% purchase apparel online compared to 36% of younger consumers. The 50-70-year-old segment is more likely to influence younger consumers, especially for big-ticket items like vehicles and investments.

This Article is based on the “BCG Publication: Don’t Overlook Your Mature Consumers”