Potential: Population aging is creating new economies.
Within the next four years, age 50-plus American consumers will control 70% of the disposable income in the United States,11 dominating purchasing decisions for decades to come. For example, in 2010 alone, Boomers and their parents spent over US$3.4 trillion.15 With this kind of spending power, this group expects you to meet its needs, wants, dreams and desires, if you intend to gain its business.
How can you and your organization benefit from population aging’s surge? It comes back to focusing on providing a product or service that interests older adults. From housing to travel, career training to wellness programs and services, there is tremendous potential for organizations that become laser-focused on this market.
If you’re wondering if you really need to adopt this focus, ask yourself the following questions:
What is the cost of action? What changes will your organization need to make to maximize this opportunity? What will you need to invest in terms of time, energy and money to ensure your optimal return on investment?
What is the cost of inaction? How much business might you lose if you take a wait-and-see approach? Will your competitor become the top-of-mind brand?
What is the cost of reaction? What will it mean to your organization if you eventually have to make wholesale changes, instead of incremental ones, to address this group’s needs?
The real question is: How will you respond to this opportunity?
A thought to ponder: An aged economy will be driven by the expectations that older adults have formed from a lifetime of experiences. This will create major opportunities for businesses that can meet these expectations, and significant challenges for those that can’t.
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