‘Millennials’. That’s invariably the answer I get from startup founders to my question, ‘Who is your customer?’
I have two problems with this:
- Millennials as a market segment is way too broad. It’s like saying, you’re ‘laser focused’ on every adult in the world up to age 35. Come on. Even Facebook started with Harvard students.
- If you have to start (segmenting your market) with an entire generation however then Boomers may be a better bet. After all, while Millennials are up to their necks in college debt, living with their parents, chasing disappearing jobs, “70% of the disposable income in the U.S. is controlled by baby boomers.“
HubSpot pulled together 25 stats on why Boomers are the overlooked generation when it comes to finding customers, aka marketing. Here are a few to whet your appetite:
- 50% of the U.S. population will be over the age of 50 by 2017.
- Boomers own 80% of all money in savings and loan associations.
- Boomers spend more time online than millennials: 51% of baby boomers spend 15 hours per week online, while only 41% of millennials spend the same amount of time online.
- 82% of baby boomers belong to at least once social networking site.
- Globally, the spending power of consumers age 60 and older will hit $15 trillion by the end of the decade, up from $8 trillion in 2010.
You may want to re-think who you want as your customer.
Two Types of Boomer
There are two distinct types of Boomer. Understanding the relative motivations and aspirations can make a big difference to your success. I was inspired to write this piece two years ago following a rare out-of-school season holiday, and observing Boomers in the wild. I finally got round to publishing it on my personal blog last week.
6 Times More Loyal
Kevin Tynan (SVP Marketing at Liberty Bank for Savings) cites Accenture research that shows Boomers are 6 times more loyal to their primary financial institution than younger customers. He explains that, while Millennials might be a longer-term bet, Boomers offer a faster route to profits for a while yet.
No-one Cares About Your Product
I couldn’t resist including this rant by Mitchell Harper (5x entrepreneur) on why “no one gives a shit about your product (or mine). People care about themselves and about solving their problems. Position your business to do that and watch your sales take off.” I couldn’t agree more…
2nd Startup Bank Crowdfunds £1 million in Minutes
Tandem is yet-another a UK startup app-only bank. It just raised £1 million from private investors over the Seedrs crowdfunding platform – in 15 minutes. As I said when Mondo raised the same amount in 96 seconds recently, this headlines are highly misleading. The fact is, depending on your approach it takes months, even years, to build the awareness and community you need to put yourself in a position to do these kind of raises. Well done Tandem.
Is Seed Funding Expensive?
Crowdfunding is one way to get seed funding, accelerators are another. Mattermark crunched the numbers on 700 startup accelerators in the UK, Eurozone, Canada and US to see where startups get the best deals. Hint: It’s not the UK.
Automated VC Fund
David Z. Morris at Fortune discusses The DAO (a Distributed Autonomous Organisation). A new form of leaderless, decentralised Venture Capital fund built on the Blockchain & Smart Contracts. It has already raised $100 million worth of cryptocurrency (ether on the Ethereum blockchain). You have until 28 May to become an ‘investor’ at which point you’ll be eligible to vote on how the funds are invested.
Will Smart Contracts Replace Professionals?
There’s a lot of hype about Smart Contracts in general, and how they’re going to decimate the professional classes. Brian Patrick Eha at American Banker argues that Smart Contracts are more likely to be used as tools rather than replace bank lawyers. He adds that said lawyers will have to become more tech savvy in the process. Hmm.
Disrupting The Disruptors
Neal Gorenflo at Shareable, wrote: “What if Uber was owned and governed by its drivers? What if Airbnb was owned and governed by its hosts? That’s what an emerging movement is exploring for the entire sharing economy in an upcoming conference, Platform Cooperativism.” Meanwhile, here’s a round-up of real-world examples of Platform Coops that are blazing the trail…
Tech is Hijacking Our Minds
Tristan Harris (Ex-Design Ethicist & Product Philosopher @ Google) walks us through 10 ways in which tech is hijacking our minds. Ultimately, we need to stay alert and fight for tech to be on our side to “help us live, feel, think and act freely.”
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