Millennial Baby-boomer Echo Effect

Millennials are influencing their baby-boomer parents — and boomer parents are influencing their millennial children

Behavior transfers between millennials and their baby-boomer parents are happening more rapidly than in the past. Technological improvements and economic realities have entwined two of the largest generations in Western history and, as a result, are accelerating the rate of technology adoption. Technology is enabling closer connections between these two generations. Some 30 to 40 years ago, when boomers were in college, making contact with their silent-generation parents typically involved a short phone call on a rotary phone, down the hall from their dorm room, with a line of people behind them waiting for their turn. With few brief communications, less information was exchanged. And when they graduated, fewer of them came back to live at home than we see today.

Fast forward to the present, and millennials and their boomer parents can be in near-constant contact, able to communicate anytime and anywhere via text, WhatsApp, Facebook and a host of other channels. In addition, according to Pew Research Center in 2016, student loan debt and underemployment are resulting in nearly one-third of millennials living at home with their boomer parents. As a result, millennials are bringing their parents along on the technological wave. It comes naturally from simple interactions: “Hey Mom and Dad, have you used Uber?” “What’s that?” “Here, let me show you, it’s super easy and really useful.” “Wow that looks interesting, I’ll give it a try.” “Here, give me your phone and I’ll download it and set up an account for you.”

Millennials living at home can have strong views about technology, media and telecoms, and introduce their parents to new media apps and devices, such as Apple TV, Roku, Chromecast, Netflix, Amazon Prime Instant Video and Hulu. Changes in purchasing behavior can even go further than just what content the family consumes. Millennials have shared the wonders of Amazon Prime and Prime Now with their boomer parents, showing them how to get the necessities delivered and save them a trip to the store.

The reverse is also true. As millennials face financial and other important adult decisions for the first time, boomer parents are often trusted influencers. Where should I open a bank account? What insurance do I need? Which insurance companies would you recommend? What’s a 401(k)? What should I look for in a car? How do I get the best deal? Understanding the baby-boomer echo effect is key in reaching both generations. On one hand, it can help companies reach both millennials and their boomer parents as influencers of each other. On the other, it also means taking a more nuanced look at both generations. The boomers’ age demographic would traditionally indicate they are late adopters of the latest tech trends and unlikely to be large consumers of those channels. With the baby-boomer echo effect, we’re seeing boomers adopt technology at a higher rate, upending assumptions about their behaviors and expectations.

To learn more about how generations are influencing each other and accelerating technology adoption, download the complete report, Me, My Life, My Wallet. This is the inaugural report from KPMG International’s Global Customer Insight Program, based on comprehensive, customer-focused research methodology from Global Customer Center of Excellence and the Innovation Labs.