Smart marketers are bucking the established practice of wooing young consumers and are turning to the largest demographic segment of our era: Canada’s 10 million baby boomers. Because of their numbers, relative affluence and sense of entitlement, boomers, now aged 41 to 60, are the power consumers.

“They make up a third of the Canadian population, account for 50% of consumer spending and have always dictated to the market, in terms of products and services,” says Don Mills, president of Corporate Research Associates Inc. , a Halifax-based market research firm that conducts twice-yearly surveys of boomers.

Financial advisors who hope to do business with this lucrative market have to understand boomers, says Mills. He has identified five boomer segments:

> The Jaded Fatalist. Believes the best years are over and is pessimistic about the future; makes up about 23% of the boomer population.

> The Self-Reliant. A conspicuous consumer who represents the quintessential member of the “me generation”; 13% of boomers.

> The Free Spirit. This boomer lives for the moment; 23% of boomers.

> The Passive Conformist. A team player with a strong work ethic who follows orders; 17% of boomers.

> The Modern Altruist. A financially well-off boomer who has his or her affairs in good order; 24% of boomers.

“Boomers’ needs for financial services clearly vary,” Mills says. “The last group has matters well in hand, but most of the others need help. We know that 2.4 million boomers have not started preparing for retirement, which is a golden opportunity for financial advisors.”

But boomers have certain sensitivities advisors wishing to work with them need to understand. For example, says Lina Ko, a “trailing-edge” boomer who heads a division at National Public Relations in Toronto that helps marketers meet the needs of baby boomers: don’t ever refer to boomers as “seniors.” Boomers may be starting to retire, but they don’t think of themselves as old. “They don’t want to be portrayed as kindly grandparents,” she says.

Savvy businesses are catering to aging boomers by fulfilling their need to look and feel good. Viagra was just the beginning. Las Vegas-based BoomerBents has released a motor-assisted tricycle called the Raptor. And last month, Phonak Canada Ltd. launched Audéo, a “personal communications assistant.” Available in flashy colour combinations, the device nestles behind the ear — but don’t even think about calling it a “hearing aid.”

GENEROUS CUTS

“Manufacturers are offering stylish clothing with generous cuts to fit heavier, older bodies,” adds Ko. “Retirement homes are marketing themselves as ‘luxury residences’ — nothing like the places in which our parents lived out their days. Restaurants are offering healthy, transfat-free food and menus designed for older eyes. They’re keeping down background noise because boomers’ hearing isn’t what it once was.”

There’s a 10- to 15-year gap between boomers’ ages and how they feel, adds Nancy Conroy, a retirement planner at the Conroy Group in Ottawa: “We’re in better health and fitter than our parents were at our age. Today, someone who’s had a heart attack can live another 30 years.”

Boomers’ approach to money is also different from that of previous generations. Boomers don’t see savings as the only way to secure their financial future, she says. Many have defined-benefit pension plans at work.

“Many of us haven’t saved the way our parents did, but our average net worth is higher,” says Conroy, 58. “My own savings are fairly low, but I own valuable real estate that is paid off.”

And, unlike their mothers, boomer women have worked much of their adult lives, contributing to family finances and often spearheading the family’s financial plan.

“Advisors who work well with women will succeed with the boomer market,” Conroy says.

As a result, advisors have an important role to play with boomers. “Boomers want it all, feel entitled to it all,” Ko says. “But they may not have the financial means to get it all.”

Younger boomers are experiencing financial uncertainty, she adds: “Many companies have abandoned defined-benefit pension plans. Younger boomers are worried that government plans may be eroded by the time they turn 65. For them, it’s a yo-yo environment; you’re on your own. They need help.”

Ko cautions against lumping boomers into one group. Un-derstanding the different boomer types is key to getting their business. “I’m single, with no children or other dependents, typical ‘me generation’,” she says. “My financial needs are different from those of the ‘sandwich generation.’ I may be willing to take more investment risk.”

@page_break@There may also be regional differences in boomers’ education and affluence. “But the biggest difference is in life stages. A person of 41 with young children doesn’t have much in common with a 60-year-old empty nester,” says Maureen Osis, president of ElderWise, a Calgary-based company that helps employers and families understand aging issues.

But Mills believes life stages are transitory. A life stage, such as buying a first home, will influence attitude and behaviour, he says, but when it passes, the boomer will revert to his or her original type.

UPBRINGING AND GEOGRAPHY

Boomer type is determined largely by upbringing and geography, he says: “We find more passive conformists in Quebec, where the Roman Catholic Church was influential in the 1950s, and more free spirits in British Columbia.”

Boomers value their individuality, notes Mara Osis, a partner at ElderWise (but no relation to Maureen): “Businesses that customize their products and services will be successful with this group. For financial advisors, this goes back to the importance of building a relationship with the client — finding out what each client’s particular wants, needs and concerns are before offering a solution.”

As well, many boomers are used to having control of their lives, she adds: “It’s important for them to run the agenda their way. Business people who want to work with this market have to be good listeners and good at adapting.”

Most boomers won’t blindly accept solutions from “experts” as their parents did. They want to know what’s in the food they’re eating. They want to know what products they’re investing their money in and how they work.

“Successful advisors will help boomers understand how financial markets work,” says Ko, “and how and why their portfolios are constructed they way they are.”

Boomers are often short of time, Mara Osis adds, and they value a professional who can offer a customized package. “But they like to get second opinions and they don’t expect one person to know everything,” she says. “Advisors need a network of professionals upon which their clients can draw. And being well connected will increase your value in boomers’ eyes.” IE