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Marketing and Motivating Boomers and Beyond

Archive for February, 2010

Hurray for Hollywood’s Mature Marketing Insights

Thursday, February 25th, 2010

Despite Hollywood’s infatuation with youth, half of movie tickets are bought by people over 30.

“Youth-oriented movies make or break themselves on their opening weekends,” says Bill Newcott, host of Movies for Grownups® and editor of AARP The Magazine. “But three of the highest-grossing movies of all time—the grownup-oriented My Big Fat Greek Wedding, Dances with Wolves, and A Beautiful Mind—never reached number one at the box office. How did they manage that success? It was thanks to mature audiences, who kept those movies in the theaters for months.”

That’s right, Bill, and don’t forget that many of our best known and most prolific directors, actors, and screenwriters are working until later in life and producing some of their most powerful work to date.

Imagine if Clint Eastwood’s career had ended at age 55? His last movie would have been Pale Rider. Instead, we have what is widely considered the best work of his career, including Invictus, Gran Torino, Million Dollar Baby, Unforgiven, and many more.

“Life is a constant class, and once you think you know it all, you’re due to decay. You’re due to slide. I have to keep challenging myself and try something I haven’t done before. ” – Clint Eastwood

clint-eastwoodLike most of us, Clint’s life experience has informed his acting work and his years of directing experience have honed his skills immeasurably.

At age 42, the type of movie that appeals to me now is not the type of movie that appealed to me twenty years ago. This is not unusual! We all change throughout our lives, and our tastes change along the way. That is what makes marketing to older age cohorts – Baby Boomers and Silent Generation – a greater challenge. Not only is the target moving (continuing to age), but mature consumers become more skillful in deciding if something fits their personal taste. They are a tougher sales prospect, less willing to give over precious time to be ’sold’ on something.

What do mature movie-goers willingly pay the record ticket prices for? Check out AARP’s ninth annual Movies for Grownups® awards for insight into the cinematic tastes of matures. They reflect some of the attitudes and preferences of your Boomer and Silent Gen marketing targets.

The success of Movies for Grownups® illustrates there is a hunger for thoughtful, legitimate ‘grownup’ perspectives on what is in the marketplace for mature consumers. Use the life experience and skills of mature prospects to your advantage. Approach them as adults, not children. Well-executed mature marketing is authentic. Reward the target’s interest and time by focusing on their specific concerns and respecting their experience.

Service Groups – Ageless Pursuits, Aging Members

Tuesday, February 23rd, 2010

The oldest service group in the US, Rotary International, turns 105 today.  Like many other service groups (such as the Elks, Kiwanis, et al), Rotary is facing challeges caused by demographics – an aging membership – and marketing – how to show value and relevance to younger generations.rotary24-inch

The Press of Atlantic City took a closer look at service groups and their membership in January:

The average age for members of service groups has steadily risen, and is now in the late 50s for most. Since young people have not been joining the groups, there is a fear that the average age will continue to rise and that increased health problems will prevent members from being as effective.

It isn’t that young people are not volunteering, said sociologist Peter Levine, of the Center for Information and Research on Civic Learning and Engagement at Tufts University. They just do not tend to join organizations such as service clubs, which can require weekly meetings at restaurants; annual dues of at least $100, plus meal costs; and the time commitment of serving on committees.

Instead, young people and parents of young children volunteer for events and charities that they can fit into busy work and family lives.

Rotary has been adjusting to the times with new classes of memberships and different types of clubs that meet less frequently or even online.  The service organization continues to experience strong growth overseas and achieve remarkable things.  Read the entire article here.

At Creating Results, we feel the principles and pursuits of service groups like Rotary are truly ageless – it’s a great place for Gen X, Baby Boomers the (not-so-) Silent Generation, AND Gen Y/younger people.

Todd Harff is Vice-President of the Lake Ridge (VA) service group, and our charity arm, Creating Results in the Community, has partnered with Rotary on many projects.  Most recently we sent a Shelter Box to help people in Haiti.  An added benefit is that Rotarians have been great clients. 

Rotary has 1.2 million members in 33,000 clubs worldwide.  Learn more about the organization here: http://rotary.org/EN/ABOUTUS/Pages/ridefault.aspx

And, Happy Birthday, Rotary!

Grandparent Economy

Monday, February 22nd, 2010

My Nana turns 98 today, and in her honor we present some facts about what’s been called the “grandparent economy.”  Mary Furlong describes grandparents as “wealthy and willing to spend.”  And, while Nana is a card-carrying member of the Greatest Generation, marketing to grandparents today can’t be done without a better understanding of marketing to Baby Boomers.  Read on for some spending stats and a resource for those curious to learn more.

Baby Boomers are Grandparents, Too

According to Grandparents.com, roughly half of all Boomers are grandparents and the other half are soon to follow.  Their April 2009 report, authored by demographer Peter Francese, looked at the spending habits and economic impact of grandparents and found that ”in aggregate, they buy $2 trillion worth of goods and services annually.”  Francese/Grandparents.com also found that grandparents are younger than ever before:

* “Parents first become grandparents at the median age of 50 for women and 54 for men.
* 54% of grandparents, almost 38 million, are younger than 65 years old.
* By 2010, more than half of the grandparent population (51%) will be Baby Boomers (those born between 1946 and 1964) — nearly 60% by 2015.”

(more…)

US Online Population Shifts Older, Resembles Offline

Wednesday, February 17th, 2010

eMarketer’s new data on the US Internet population shows that the online world now resembles the offline: filled with active older consumers.  Internet usage is shifting, as mature users have taken to the Web.  Those marketing to Boomers and seniors will note that eMarketer predicts this trend will continue for the next five years: “More than one-half of new users will be ages 45 and up, as many of the remaining laggards come on board.”

Here is the eMarketer chart projecting the US Internet user penetration, by age, for the next 5 years:

USInternetUserPenetrationByAge2008-20014.eMarketer

 

For those curious, here are the US Census projections related to the US population as a whole, by age:

USPopGrowthbyAge2005-2015.Census

As we noted on this blog last week, long gone are the days of thinking mature consumers are not online. Any business marketing lifestyle services to Boomers and seniors must have a well-constructed Internet strategy and design their websites so they are friendly to mature consumers.  Internet success is critical to overall success, and it will not happen overnight.

Boomers are Wounded, Worried and Wary – What That Means for Marketing

Friday, February 12th, 2010

Pop quiz: what topics were hot at this year’s International Builders Show?  A. Green Building, B. Financing (good luck, buddy), C. Social Media, or D. The psychological outlook of Baby Boomers and other active adult homebuyers.  If you answered “all of the above,” you’re today’s winner.*

Baby Boomers are wounded, worried and wary.  Even those who have survived the recent economic challenges financially are psychologically scarred.

In a white paper with 10 take-aways from this year’s Builders Show, I share the philosophy of Tim McCarthy, Managing Partner of Traditions of America, the renowned developer of active adult communities in Pennsylvania.  Traditions sales and marketing team is focused on selling only to Active Adults who have come to terms with the reality of their economic situation.  These are Baby Boomers and seniors who are ready to move forward with their lives.

Understanding the psychological outlook of mature homebuyers influences the marketing techniques Traditions of America uses.  The most effective one focuses on building the confidence of top prospects.  (Get the details in this “top 10 take-aways” white paper.)

As our team noted in the December 17 edition of Selling to Seniors, the key is to get to know who your prospects are now.

“The world could be quite a different place now than it was just a few years ago for someone, and often, shifting circumstances are beyond their control. For example, … You may be marketing to somebody who planned very well and covered all his retirement bases, but then his adult child loses their job. Or a health-care issue pops up and now he has to make adaptations. So your databases may contain the names of people who a year ago seemed like they were right in line with your product or service, but it doesn’t necessarily reflect where they are now.”

There are many ways you can take the pulse of today’s active adult consumers: lost buyer surveys, data mining and social listening are just a few ideas.  Post your ideas below.

 

* Congratulations!  Now, what did you win?  How about the chance to prove how smart you are by sharing your strategies for understanding and motivating wounded, wary Baby Boomers in 2010.  I’ll see you in the comments section.

Social Media and Boomer, Senior Homebuyers: Untangling the Web

Thursday, February 11th, 2010

Social media marketing seemed to be the topic of the hour at the 2010 International Builders Show (and other conferences I’ve attended in the past few months, such as the American Association of Homes and Services for the Aging event).  Builders and developers – of active adult communities, of intergenerational housing, of continuing care retirement communities – are all wondering how these newer online marketing tools can drive sales with Boomer and Senior homebuyers.

In a new white paper with the “Top Ten Take-Aways from IBS 2010,” tip #9 addresses Untangling the Web.  While the seniors housing industry is buzzing about social media, there are a lot of questions about whether to dive in.

Is Social Media Marketing Worth It with Baby Boomers and Seniors?

For those with 50+ age-qualified properties, question #1 often is: Should I even bother? As we’ve talked about frequently on this blog, YES.  Seniors, Boomers, folks over 40 – they’re online, and actively engaged in social media.  Just last week, eMarketer highlighted the growing presence of Boomers on social networks.SocialNetworkingUseByGeneration.eMarketer

It’s not just Baby Boomers, either.  The stats show that 36% of Internet users over 63 are actively maintaining a social networking profile.  (Roughly 13% of the entire US population is over 65.)

The short answer is every builder needs to be engaged in social media at some level.

Case Study: Using Social Media Techniques to Reach CCRC Retiree Prospects

Recently our team had the honor of working with Willow Valley Retirement Communitiesto revamp their website.  Willow Valley is the nation’s third largest retirement community, and – unlike most CCRCs which draw primarily from their local area – it’s a true destination.  Willow Valley attracts retirees from 37 states.

Their prospects are educated, active and typically in their 70s.  However, the Willow Valley and Creating Results teams recognize the gradual shift that will occur over the next decade, as the Silent Generation (born between 1925 and 1942) is joined by Baby Boomers (born 1946-1964).

Our plan for their new website was to make it not only functional and attractive, but to make the website the first stop on a prospect’s journey to retirement.  That means it has to truly engaging.  Social media techniques are built in throughout the site:

* share with a friend features – retirees can email, tweet or post content from any where in the site to their Facebook account
* videos embedded into the site from a branded WillowValley-TV channel on YouTube
* publications piped in from a digital publishing library that encourages sharing
* multiple calls for feedback and interaction (“suggest it to our librarian”)

The site is structured so that, looking ahead, the client can phase in more social engagement opportunities – message boards, blogs and comments/reviews.

Getting Social with Seniors, Strategically

Judging by the turnout at IBS social media sessions, many builders and developers are stuck on question #2 is: Where do I start?

I counsel our clients with active adult or continuing care retirement communities to start with the fundamentals, and that includes a plan.  Any business wanting to incorporate social media into their Boomer marketing should have a strategy, goals, and have a plan that shows how social engagement is integrated into their rest of their marketing program for maximum impact.

(Creating Results also offers clients a bundle of social marketing services, including education, strategy and training … but that’s another story.)

Let’s put the question to you:  In 2010, where will you start in your efforts to untangle the web and reach Boomers/senior homebuyers through social media? How can building community online drive sales for active adult and retirement communities offline?

Please share your thoughts and questions below.

Marketing Active Adult, Retirement Communities to Boomers and Beyond Requires an Internet Blueprint

Wednesday, February 10th, 2010

It’s time for tip #9 from my “top 10 take-aways” from the 2010 International Builders Show (IBS): “Untangling the Web.”

Marketing to seniors and Baby Boomers via the Web involves making full use of SEO best practices, social networking tools, interactive features, active adult friendly designs and more.  Sadly, too many builders and developers forget to approach online marketing the way they would a new home: with a blueprint for success.  I love the way eMarketer puts it: “planning and organization are no longer optional.”

At IBS, sessions related to Internet marketing and homebuyers were very popular.  It seemed like everywhere builders and developers looked at this Las Vegas conference, someone was telling them to bet some or all of their marketing dollars on the Web. Without an internet strategy – a “blueprint” –, many communities are wasting time and money.

When speaking at the 50+ New England Housing Council’s annual meeting last month, I said there are three things to keep in mind for marketing active adult and retirement communities online:

* Print is not dead
* The Internet is not free
* Internet success is not overnight success

I invite you to share your thoughts below:  In your experience, are builders and developers spending enough time on internet strategy?  What “three things” will you keep in mind for your efforts in 2010?

P.S.  The “10 take-aways” white paper I mentioned above offers additional insights and some statistics from the new NAHB Marketing to Active Adults course that can help you benchmark your Internet success.  Complimentary download here.

What is the Future of Active Adult Housing?

Tuesday, February 9th, 2010

Was 2009 the end of 55+, age-qualified, active adult housing?  It certainly was a painful year for builders, developers, and experts like myself, who had expected this market would out-perform the overall housing market during a downturn.  Instead, as I note in my Top Ten Take-Aways from IBS, mature homebuyers – primarily discretionary purchasers – exercised their discretion and stayed put.

Active Adult communities have been age-qualified; you must be 55 years old or better to live in one.  For years, this type of housing has been a sweet spot.

However, the Baby Boomers were hit hardest of all by the crash of the financial, real estate and employment markets.  Now, gone are a willingness to pay for golf course views or useless and expensive upgrades.  Is the willingness to live in an age-qualified community gone, too?

Redefining Reetirement Communities

Even before our current economic challenges, Baby Boomers were already redefining retirement, and therefore redefining retirement communities.  Tennis courts were being replaced by business centers.  Bonus rooms were used as home offices.  Research we conducted for Central Parke 55+ Resort Communities led to the establishment of an Osher Lifelong Learning Institute (OLLI) campus at their Victoria Falls community.

As I wrote for the 50+ Housing Magazine in 2007,

Working for a life.quote

What’s next?  At this year’s International Builders Show (IBS), industry experts told me the future was in:

  • Urban infill
  • Co-housing
  • Aging-in-place
  • University-affiliated senior housing
  • Intergenerational communities

Everyone seemed to have a different opinion of where the industry would go. I think that they are all right, and I’m not even a politician. I say The Active Adult Market is Dead – Long Live the Active AdultS MarketS.

The Baby Boom is a generation of roughly 78 million.  The US 50+ population is becoming increasingly diverse.  One size of housing will not fit all; indeed, it never has.

For builders and developers, the challenge is to define which 50+ subgroup you’re targeting, and to take steps to truly understand them.  Hire a good market research agency.  Comb through your database.  That prospect on your list is in a different place, economically and psychologically, than they were in 2008 or 2009.  Conduct new surveys and listening sessions to understand what they now need and desire.

What do you think?  What is the future of active adult housing?  What can builders, developers and mature marketers do to thrive in a world with many different active adults marketS?

The Active Adult Housing Market is Dead …

Monday, February 8th, 2010

and Other Real Estate Marketing Take-aways from the 2010 Builders Show

What are builders, developers and others charged with marketing active adult communities (also known as 50+ or age-qualified housing), looking for in 2010?  New marketing ideas, approaches products that could help their companies standout in a crowded and competitive market.  

In the past, these real estate professionals may have traveled to the International Builders Show (IBS) for insights and tips.  I was one of the 55,000 people who made it to IBS in Las Vegas this year (a dramatic decrease from years gone by).  I attended over a dozen educational sessions (spoke at 3), taught the new Marketing to Active Adults course for the NAHB, walked the entire floor and interviewed more than 20 builders and developers. 

The result:  ten top take-aways and tips for builders and developers who are ready to take action in 2010. 

You can download a PDF with my thoughts, findings and insights from www.CreatingResults.com/

And, every day this week I’ll share one of the more provocative take-aways in a conversation with readers of this blog.  I hope you’ll share your thoughts and best practices for marketing to mature homebuyers, ask questions, or tell me I’m flat-out wrong.  (It won’t hurt; my wife’s got me trained.)

We’ll start tomorrow with tip #4: The Active Adult Market is Dead – Long Live the Active AdultS MarketS.  Was 2009 the end of active adult housing?  Where do we go from here?

Can’t wait until tomorrow?  Get the conversation started by asking a question/leaving a comment below.


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