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50+ Marketplace Rules50+ Marketplace RulesThat Work TodayThat Work Today
New Priorities forNew Priorities forBoomers, Retirees and SeniorsBoomers, Retirees and Seniors
© Medina Associates 2011
A Presentation forA Presentation forThe Direct Marketing AssociationThe Direct Marketing Association
DMA2011 ConferenceDMA2011 Conference
Kurt MedinaKurt Medina
PresidentMedina Associates
www.medinaassociates.comwww.medinaassociates.comClick RESOURCESClick RESOURCES
Password “DMA2011”Password “DMA2011”Free Book
For AllAttendees
20 Years Ago, marketers thought that 20 Years Ago, marketers thought that everyone in the 50+ Marketplace was a everyone in the 50+ Marketplace was a “Senior”“Senior”..and that they were all OLD ...and that they were all OLD ...Today, marketers think that everyone Today, marketers think that everyone in the 50+ Marketplace is a in the 50+ Marketplace is a BoomerBoomer … …and that they are all HIP!and that they are all HIP!
Both ViewsBoth ViewsAre WRONG!Are WRONG!
What must my company do to make sureits 50+ marketing is relevant?
Know Whom You Are Marketing to
The Three Most Meaningful The Three Most Meaningful Mature Market SegmentsMature Market Segments
The Three Most Meaningful The Three Most Meaningful Mature Market SegmentsMature Market Segments
Pre-Retirees
ActiveRetirees
Seniors
Age 50-63 Age 64-74 Age 75 +Age 50-63 Age 64-74 Age 75 +
(All ages are approximate at best)(All ages are approximate at best)
Comparing The SegmentsComparing The Segments
Pre-Retirees
ActiveRetirees
Seniors
Age 50-63 Age 64-74 Age 75 +Age 50-63 Age 64-74 Age 75 +
BoomersBoomers WorldWorldWar IIWar II
SilentSilentGenerationGeneration
Depres-Depres-sionsion
How Do We Slice the How Do We Slice the 50+ Mature Market?50+ Mature Market?
How Do We Slice the How Do We Slice the 50+ Mature Market?50+ Mature Market?
THE BOOMERS!THE BOOMERS!
BoomersBoomersBoomersBoomers
New ways (or even revisitingNew ways (or even revisiting old ways) of reaching them old ways) of reaching them are going to be needed are going to be needed
Time ConstrainedTime Constrained– Working LongerWorking Longer– Less interested in reading Less interested in reading
“junk” mail“junk” mail– Don’t have time for seminarsDon’t have time for seminars
BoomersBoomersBoomersBoomers Financially ConstrainedFinancially Constrained
– We generally assume that allWe generally assume that all Boomers are well off and Boomers are well off and free-spenders, especially on free-spenders, especially on themselves. themselves.
– The term “Well Off” is changingThe term “Well Off” is changing with the recession … and with with the recession … and with reality. reality.
– As a result …As a result …
55+ Workers55+ WorkersTOTAL Savings & InvestmentsTOTAL Savings & Investments
55+ Workers55+ WorkersTOTAL Savings & InvestmentsTOTAL Savings & Investments
• Includes IRA’s• Does not include homes
$100K-$249K13%
$250K+ 23%Less Than
$10K29%
Employee Benefit Research Institute 2010
$10K-$49K19%
$50K-$99K15%
BoomersBoomersBoomersBoomers Instead of being Impulse Buyers, Instead of being Impulse Buyers,
The Boomers are becoming The Boomers are becoming information seekers. information seekers.
They want information They want information beforebefore making any important or large making any important or large financial decisions. financial decisions.– Preferably quicklyPreferably quickly
– Preferably customized to Preferably customized to theirtheir individual requirements individual requirements
BoomersBoomersBoomersBoomers
Don’t trust …Don’t trust …– MarketersMarketers
– InstitutionsInstitutions
Do trust …Do trust …– Impartial expertsImpartial experts
– Their friendsTheir friends
– Folks who workFolks who work with them with them one-on-one one-on-one
– ThemselvesThemselves
Create Create promotional promotional approaches that approaches that Educate beforeEducate before you sellyou sell
The Caregiving Burden on The Caregiving Burden on Middle-Age Families: Middle-Age Families:
1990 - 20201990 - 2020
The Caregiving Burden on The Caregiving Burden on Middle-Age Families: Middle-Age Families:
1990 - 20201990 - 2020
# of Teens # of Teens or Olderor OlderParentsParents
Supported Supported Per FamilyPer Family
Neal Cutler-American Institute of Financial Gerontology
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
2000 2005 2010 2015 2020
Teen-Age Support Ratio Older Parent Support Ratio
Not only are the Not only are the numbersnumbers
of aging parents increasing … of aging parents increasing …
But Boomers are far more But Boomers are far more committed to caring for their committed to caring for their older parents than were older parents than were previous generations. previous generations.
USC School of Gerontology 2007
Boomer AttributesBoomer AttributesBoomer AttributesBoomer Attributes
Boomers like to think ofBoomers like to think of themselves as special themselves as special
Offer them somethingOffer them something “unique to them” “unique to them”
“ “Insider” tipsInsider” tips
Offer them access to a Offer them access to a VIP list VIP list
Customization – NOT “Mass”Customization – NOT “Mass”
Boomer AttributesBoomer AttributesBoomer AttributesBoomer Attributes
Boomers seek VALUE ... Boomers seek VALUE ... As THEY define it As THEY define it
How Do We Slice the How Do We Slice the 50+ Mature Market?50+ Mature Market?
How Do We Slice the How Do We Slice the 50+ Mature Market?50+ Mature Market?
ACTIVE RETIREESACTIVE RETIREES
Active RetireesActive RetireesActive RetireesActive Retirees
The most exciting part about being an ACTIVE RETIREE …
… are the new and EXPANDEDHorizons that you give yourself
Income Change 2000-2010Income Change 2000-2010Income Change 2000-2010Income Change 2000-2010
$ Change
+2%
-.4%
-14%
-9%-11%-20%
($12,000)
($10,000)
($8,000)
($6,000)
($4,000)
($2,000)
$0
$2,000
$4,000
<25 25-34 35-44 45-54 55-64 65+
Census Bureau 2011
EntrepreneursEntrepreneursEntrepreneursEntrepreneurs
Leading Edge Boomers and just-Leading Edge Boomers and just- retired active retirees are more retired active retirees are more likely to start a new business than likely to start a new business than any other age range any other age range
110,000 new businesses 110,000 new businesses per monthper month started by this age group started by this age group
Ewing Kauffman Foundation 2010
““Me”Me”““Me”Me”
Retirement is a time when it’s “OK” to Retirement is a time when it’s “OK” to start thinking about “Me”start thinking about “Me”
– What can I learn?What can I learn?
– What haven’t I done?What haven’t I done?
– What can I do?What can I do?
– How do I/WE want How do I/WE want things to be? things to be?
70, the new 70
65%
32%35%
68%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less Than 20 Years More Than 20 Years
Pre-Retiree Active Retirees
How Many Years How Many Years Will You Live Will You Live
After Retirement?After Retirement?
How Many Years How Many Years Will You Live Will You Live
After Retirement?After Retirement?
LIMRA 2010
Who’s Providing for Who’s Providing for Whom?Whom?
Who’s Providing for Who’s Providing for Whom?Whom?
Nearly half of all retirees (44%) areNearly half of all retirees (44%) are providing some sort of financial providing some sort of financial support for family members. support for family members.
– Children make up 53% of that pot.Children make up 53% of that pot.
– Grandchildren make up 37%.Grandchildren make up 37%.
– Parents/other relatives make up 10%.Parents/other relatives make up 10%.
Schwab “Families & Money” Survey 2010
How Do We Slice the How Do We Slice the 50+ Mature Market?50+ Mature Market?
SENIORSSENIORS
When is Someone When is Someone “Old”?“Old”?
When is Someone When is Someone “Old”?“Old”?
0%
5%
10%
15%
20%
25%
30%
50 55 60 65 70 75 80 85+
Under 50 50 & OverRoper 2003AARP 2009
Life Expectency Life Expectency of 65 Year Old Coupleof 65 Year Old Couple
Life Expectency Life Expectency of 65 Year Old Coupleof 65 Year Old Couple
97%
82%
61%
38%
17%
6%
0%10%20%30%40%50%60%70%80%90%
100%
80 85 90 95 100 105Probability of One Spouse Still Living at Various Ages
Mouton & Co. 2010
PERCEPTION OFPERCEPTION OF“PRODUCTS FOR SENIORS”“PRODUCTS FOR SENIORS”
PERCEPTION OFPERCEPTION OF“PRODUCTS FOR SENIORS”“PRODUCTS FOR SENIORS”
Would you purchase a product Would you purchase a product designed for a “senior”?designed for a “senior”?– Yes … 29%Yes … 29%
– No … 71%No … 71%
Why Not?Why Not?– ““The products are dull”The products are dull”
– ““The products are over-simplified”The products are over-simplified”
– ““The products are not aimed at my lifestyle “The products are not aimed at my lifestyle “
Nikkei Marketing Journal 2004
(Asked of Seniors in Japan)
Seniors Seniors vs Adult Childrenvs Adult Children
Seniors Seniors vs Adult Childrenvs Adult Children
Products and Services for true Seniors often Products and Services for true Seniors often are marketed to adult children instead of to are marketed to adult children instead of to the seniors themselves.the seniors themselves.
With some exceptions, this is a mistake.With some exceptions, this is a mistake.
– The Senior is the Decision Maker.The Senior is the Decision Maker.
– The Adult Child is the Influencer.The Adult Child is the Influencer.
Usually, you DO want to start aUsually, you DO want to start a dialog … but the Senior decides. dialog … but the Senior decides.
Appeals For …Appeals For …Appeals For …Appeals For … Boomers (Pre-Retirees)Boomers (Pre-Retirees)
– Uniqueness … New SolutionsUniqueness … New Solutions– Offer answers up frontOffer answers up front
Active RetireesActive Retirees– Value & Values … Expanding HorizonsValue & Values … Expanding Horizons– Value for themselves – not justValue for themselves – not just
in comparison to “neighbors” in comparison to “neighbors”– GrandparentingGrandparenting
SeniorsSeniors– Independence … Comfort … EaseIndependence … Comfort … Ease
The 50+ Markets The 50+ Markets and Today’s Digital Worldand Today’s Digital World
The 50+ Markets The 50+ Markets and Today’s Digital Worldand Today’s Digital World
80%
7%
68%
5%
57%
3%
45%
2%
27%
1%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
50-59 60-64 65-69 70-74 75+
On-Line InternetOn-Line InternetAccess by AgeAccess by Age
On-Line InternetOn-Line InternetAccess by AgeAccess by Age
Pew Internet Project May 2011 & Aug 2011
65+ … 14%
50-64 … 38%
ANY 50+ SOCIAL MEDIA USAGE
ANY TWITTER USAGE
Who Owns What?Who Owns What?Who Owns What?Who Owns What?
88%
64%
43%
26%
3%
68%
47%
30%16%
6%
48%
28%
10%3%2%
0%
20%
40%
60%
80%
100%
50+ Boomers Active Retirees Seniors
Cell Phones Desktop Cmptr Laptop CmptriPod/MP3 Kindle, Etc.
Pew Internet 2011
Opportunity AreasOpportunity AreasOpportunity AreasOpportunity Areas Optimize your website for Optimize your website for
search engine identification.search engine identification.
Create a “Resource” location on your Create a “Resource” location on your website that is regularly updated.website that is regularly updated.
Gather names and email addresses Gather names and email addresses throughout your site.throughout your site.
Encourage visitors to send articles Encourage visitors to send articles and informational papers to their and informational papers to their friends.friends.
BE ACCESSIBLE!BE ACCESSIBLE!
Don’tsDO’s
Medina’s50+ Rules
of The Road
Use Contrasting Use Contrasting Colors in GraphicsColors in GraphicsUse Contrasting Use Contrasting
Colors in GraphicsColors in Graphics
Older eyes have a different Older eyes have a different color perspective than yours color perspective than yours
Introduce New IdeasIntroduce New Ideasby Starting withby Starting with
Familiar ConceptsFamiliar Concepts
Introduce New IdeasIntroduce New Ideasby Starting withby Starting with
Familiar ConceptsFamiliar Concepts
You’ll engage an older You’ll engage an older mind much more quickly mind much more quickly
Hurry, Hype or Hustle Hurry, Hype or Hustle Your ProspcectsYour Prospcects
Hurry, Hype or Hustle Hurry, Hype or Hustle Your ProspcectsYour Prospcects
The more you push, the lessThe more you push, the less they will respond. They they will respond. They DON’T TRUST “marketing”. DON’T TRUST “marketing”.
Use IconsUse Iconsin Your Promotionsin Your Promotions
Use IconsUse Iconsin Your Promotionsin Your Promotions
Visual memory is retainedVisual memory is retained better than verbal memory better than verbal memory
Buy AmericaBuy AmericaBuy AmericaBuy America
AdWeek Media/Harris Poll 2010
44%
61%66% 75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
18-34 35-44 45-54 55+
More Likely to Buy Something If Made in America
Use Scare TacticsUse Scare TacticsUse Scare TacticsUse Scare Tactics
Positive Approaches of Positive Approaches of Benefits Gained will almost Benefits Gained will almost always outpull negative always outpull negative possibilities. possibilities.
HUMANIZEHUMANIZEYour PromotionsYour Promotions
HUMANIZEHUMANIZEYour PromotionsYour Promotions
The LARGEST single error madeThe LARGEST single error made in 50+ marketing is the use of in 50+ marketing is the use of impersonal approaches that don’t impersonal approaches that don’t reach your prospect on a visceral reach your prospect on a visceral gut level. gut level.
Use TestimonialsUse TestimonialsUse TestimonialsUse Testimonials
Real People are much moreReal People are much more believable than any company believable than any company message … AND they add message … AND they add HUMANITYHUMANITY..
Create “Stories”Create “Stories”in Your Promotionsin Your Promotions
Create “Stories”Create “Stories”in Your Promotionsin Your Promotions
Storytelling is another “humanizing”Storytelling is another “humanizing” technique … and one which has technique … and one which has great appeal, especially for Retirees great appeal, especially for Retirees and Seniors and Seniors
Use Glossy Paper or Use Glossy Paper or Plastic TabsPlastic Tabs
Use Glossy Paper or Use Glossy Paper or Plastic TabsPlastic Tabs
The glare from glossy paperThe glare from glossy paper will reduce readability to a will reduce readability to a major degree for older readers major degree for older readers
Plastic Tabs can’t be openedPlastic Tabs can’t be opened properly. Use paper tabs. properly. Use paper tabs.
Use Closed Face Use Closed Face EnvelopesEnvelopes
Use Closed Face Use Closed Face EnvelopesEnvelopes
Closed face envelopes containClosed face envelopes contain letters inside … from real people letters inside … from real people … AND they also add … AND they also add HUMANITYHUMANITY..
50+ DRTV 50+ DRTV “Rules of the Road”“Rules of the Road”
Start with 2-4 seconds of Start with 2-4 seconds of non-messagenon-message space to space to get attentionget attention
Keep main points as simple as possibleKeep main points as simple as possible
Use graphics to reinforce voiceUse graphics to reinforce voice
Use repetition for major point(s)Use repetition for major point(s)
No fast cuts. Let the viewer’s mind dwell on the No fast cuts. Let the viewer’s mind dwell on the imageimage
120’s are preferable for direct selling120’s are preferable for direct selling
800# 800# on-screenon-screen 3 times and minimum of 30 3 times and minimum of 30 seconds in a 120 second commercialseconds in a 120 second commercial
A major conflict can exist betweenA major conflict can exist between Corporate Branding Goals and Corporate Branding Goals and DRTV Response DRTV Response Goals Goals
DRTV DRTV Branding vs ResponseBranding vs Response
DRTV DRTV Branding vs ResponseBranding vs Response
2 Humana
Kurt MedinaHANDOUTS
www.medinaassociates.comGo to RESOURCES
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