Boomers Marketing Archives – Page 8 of 8 – Varsity Branding

Category: Boomers Marketing

“What’s in a name?” This line from Shakespeare’s “Romeo and Juliet” has sparked a debate that has lasted for centuries. How important is a name—whether you’re a person, a business or a Continuing Care Retirement Community?

According to a Forbes article, four signs of a great business name are that you can pronounce it, it’s not too long, it’s straightforward, and it’s catchy. “Continuing Care Retirement Community” falls short on at least two of those fronts.

That’s one reason for “CCRC NameStorm.” In this national study, a task force is researching perceptions of the label “Continuing Care Retirement Community” and investigating alternative wording that would describe our communities more accurately—and appealingly. Varsity is on the NameStorm task force, along with LeadingAge, Mather Lifeways, GlynnDevins, SB&A, Brooks Adams Research, and Love & Co.

In the NameStorm study, quantitative and qualitative research is being conducted across the country with CCRC residents, prospects and staff as well as the community at-large.

If you plan on going to LeadingAge PEAK in Washington, D.C., March 16-18, 2015, we encourage you to attend a special session about CCRC NameStorm: “What’s in a Name: a Look at the CCRC Label,” which will provide insights on the current progress of this study.

The term “Continuing Care Retirement Community” was coined quite a few years ago when this type of organization was just taking shape. Now the senior living industry is seeing the next generation of retirees react negatively to an idea of a “care” facility.

I’m sure you have experienced that negative reaction, just as we at Varsity have. Part of the issue is that the CCRC label is focused on only one piece of the story—the care piece. It’s easy for the active Boomer retiree to say, “this isn’t for me.”

As part of CCRC NameStorm, we have conducted focus groups with prospective and current resident groups at Homestead Village, a community in the heart of Lancaster County in central PA. We’re thankful to our very good clients in one of the country’s most densely populated CCRC markets for opening their doors and sharing their honest opinions. So far, we’ve found that people are excited about the possibility of a name change, but it’s a change that needs to be carefully considered. (Remember Radio Shack becoming “The Shack”?)

This will be an ongoing discussion, and it will certainly be an interesting one. We hope you can make it for the session at LeadingAge. If not, check back on the Varsity blog. We’ll be continuing to post the progress of the NameStorm study.

I remember visiting my grandparents as a child for two weeks each summer. As I grew older, I watched them transition from their working days to retirement. At that time, the shift towards retirement often meant a slower pace of life, a casual retreat from social circles and carefully budgeted spending. Even though I now value those lazy days sitting on the front porch learning from my grandparents, I didn’t realize that the journey they were on was transforming the experiences they would encounter for years to come. As consumers, my grandparents seemingly became virtually irrelevant to marketers of their day.

Oh, how things have changed. The Boomers are of utmost interest in today’s economy because, in most cases, they approach aging so differently than did their parents. They are active, independent, self-reliant and are positively anticipating the experiences ahead. The first generation to “work hard, play hard” isn’t going to slow down just because its cohorts can start collecting social security.

In my work, I have opportunity to interact almost daily with Boomers who are now at the same life stage that my grandparents were at when I was a young boy. As I listen to Boomers, I’m learning that they see their journey as anything but slow-paced, and they’ll spend a lot along the way, buying about 36 percent of new cars and accounting for 80 percent of all travel expenses. In fact, Boomers are planning to spend more money during retirement than did any generation before them. There’s no doubt about it—the Boomer experience will be different.

Given these dramatic shifts, what are you doing to position your products and services to meet the higher expectations of Boomers? Does your team understand the Boomer mindset? Is your buying process easy to maneuver? Do your organization’s physical assets capitalize on what Boomers value?

In my new role as vice president of planning and performance at Varsity, I help companies answer questions like these. By carefully evaluating your people, processes and property, we uncover opportunities to create a buying experience that resonates with today’s demanding Boomer audience.

If you would like a planning and performance assessment or have a particular challenge you would like to discuss, please email me at wlangley@varsitybranding.com.

How can marketers reach more Boomer shoppers this season? For answers, let’s turn to the blizzard of holiday shopping surveys out there.

First of all, will 2014 be dominated by Santas or Scrooges? The National Retail Foundation has tidings of joy: For the first time since 2011, holiday sales will increase more than 4%. However, a short selling season of just 27 shopping days doesn’t leave a lot of time to capture Boomer customers. So, what’s the best way to reach them? Although different surveys reached different conclusions, some common themes emerged.

The FIVE W’s of Boomer Holiday Spending

For WHOM are Boomers buying? According to the 2014 Mintel Holiday Forecasting Study, the purchase of most categories of gifts declines with age. However, women aged 55 and older are very likely to buy food to entertain the extended family at holiday meals. 82% of women aged 55 plus also buy gifts for family members, many of them earmarked for grandchildren. In fact, according to a recent Forbes article, Boomers spend a collective total of $35 billion a year on their grandkids.

WHAT are Boomers buying?
The generation that marched on Washington now leads the country in purchasing small, rectangular pieces of plastic. According to the Shullman Research Center, Boomers buy more holiday gift cards than any other demographic. 62% of Boomers purchase gift cards, more than Gen Xers (57%), Millennials (38%), and seniors (18%). Boomers are right on target with their gift choices: According to a National Retail Foundation study, gift cards are the most requested gift item for the eighth year in a row.

If your business doesn’t already offer gift cards, the holidays are a good time to start. If you already offer gift cards, consider offering them electronically. According to Pace Perspectives, electronic cards are gaining in popularity since plastic gift cards are so easily lost. In fact, 40% of 18-29 year olds admit to having lost at least one gift card.

WHERE are Boomers shopping?
According to Mintel, Boomers’ number one source for researching holiday gifts is the Internet, but many still prefer to make their purchases in the store. 43% of men ages 55 and up, and 38% of women in that age group, say they research items online, then wait to find them on sale in stores. How can you capitalize on their shopping habits? Mintel suggests offering online coupons that shoppers can redeem in the store.

WHEN do Boomers shop?
According to a recent PunchTab survey, Boomers are the least likely of any demographic to shop on Black Friday or in the entire month of November. They spread out their shopping throughout the season: 22% in September, 20% in October, 34% in November, and 21% in December. In contrast, Gen. Xers and Millennials do the bulk of their shopping in November.

WHY are Boomers buying?
During the holidays, it’s important to look at Boomers’ life stages, not just their ages. That’s because Boomers in larger households tend to spend significantly more than empty nesters in 1-2 person households. Another surprising fact reported by Mintel: Affluent Boomers do not necessarily spend more than their less-wealthy counterparts, unless they have children at home.

HOW do Boomers choose gifts?
According to PunchTab, Boomers are influenced by a number of sources. 62% ask friends and family for input, 61% browse in person, 50% check recipients’ wish lists, 39% browse brand websites, 38% read online reviews, 30% check flyers or catalogs, 24% open emails, 17% browse online magazines or blogs, 14 turn to Facebook, and 9% log on to PInterest.

Are Boomers motivated by price? Not as much as Gen Xers, according to the CFI Group Holiday Retail Spending Report. Only 23% of 55-65 year olds are influenced by sales and coupons, versus 40% of 25-34 year olds.

One final idea from Mintel to get cash registers ringing: Since only 11% of grandchildren currently give presents to their generous grandparents, how about leaving something for Boomer Santas under the tree? Art or photography classes, books for Kindle, or restaurant gift cards are all possibilities.

It looks like Boomers and a growing number of seniors are becoming fully entrenched in online media. Although they still trail their younger cohorts, this year alone, 71% of those aged 50-64 and 59% over 65 have used at least one social networking site (Facebook still rules) compared with 26% in 2010 and 1% in 2008. They also love online video sites (Winner: YouTube), and 77% are using their mobile device simultaneously with “second screens.”

But as we discovered through our most recent research, those stats are only part of the story. Check out the infographic below to see what media types they’re using, and how much time they’re actually spending there.

Infographic: A Media-Hungry Mature Market Shifts Their Appetite

MARKETING INSIGHT: We’re seeing a ton of content around the mature market and their relationship with the shifting technology and media landscape – from the downright informative to the just plain condescending. But as more Americans shift their media consumption habits, brands must also retool their content marketing strategies to satisfy prospects’ needs. On the technology side, device manufacturers need to keep access and usage top-of-mind, while on the marketing side, content producers should be cognizant of practicality and relevance.

*Source: Google & Ipsos MediaCT, “Reaching Today’s Boomers and Seniors Online,” May 1, 2013

Regards,

The Varsity Team

 “Next Generations” Still Think Communities are Unprepared for the Aging Tidal WaveWe’re not referring to retirement communities, but rather the actual towns, cities and suburbs that are facing an aging tidal wave, and are still woefully unprepared to meet the needs of the growing senior population. A large number of older adults and around half of adults under the age of 60 still believe the areas where they currently reside have few to no preparations in place for the future, according to a new survey released by the National Council on Aging (NCOA).

The new survey, produced by NCOA, UnitedHealthcare and USA Today, showed that seniors have maintained a positive outlook in terms of their future and the aging process in general. When it comes to their health, most express little concern about their current health status, and not surprisingly, many report not investing in activities that are important to help manage their health for the long-term.

On the financial front, most seniors surveyed expressed a comfort level with their current financial situation, but are somewhat concerned about the financial impact of living longer. More than half of respondents (53%) said they are concerned about whether their savings and income will last the rest of their lives, while 33% were not concerned.

Both retirees and those retiring in the near future intend to rely on Social Security as their main source of income, shown in the survey as 43% and 41% respectively. Nearly 19% reported difficulty in affording living expenses, based on their current income and savings.

Community support was another issue altogether. Most seniors (71%) agree their community is “responsive to the needs of seniors.” But only around 30% of people aged 60 and older don’t believe the community is prepared to meet the future needs of an aging population, and a full 45% of those 18-49 don’t believe communities will be prepared to meet those needs at all.

Friends and family remain constants: seniors also say that staying connected with family and friends is important to maintaining a high quality of life.

You can read the executive summary report from The United States of Aging Survey here.

MARKETING INSIGHT: As far back as 2005, aging population studies were showing that while many communities have some programs to address the needs of an aging population, very few have a comprehensive assessment of what it would take to make their community “elder friendly.”

That’s also reflected in the retirement living industry, where there’s currently a major gap between family expectations and changing resident needs, and an industry completely unprepared for the “next generations.”

There needs to be a better way to educate the public on planning for the future, about their living accommodations and unexpected illnesses that are sure to increase as the population ages. Likewise, smart communities and the retirement living industry will need to find ways to inform their current residents – of all ages – on what products and services are available to help them, and how to access them. Click here for a “community checklist,” courtesy of About.com.

Regards,

The Varsity Team

Boomer and Senior Healthy Eating Moves to the Snack Aisle Here’s good news for Boomers and seniors who like to snack: Apparently, you’re increasingly looking for items that help you stay healthy and active – something we uncovered in our own research, and now verified by the food manufacturing industry.

Milk producer Fonterra North America studied the snacking habits of more than 600 healthy Americans between ages 50 and 75 and found that more than half believe the ability to stay active has a greater impact on their health than their weight, although 30% also said they already have weight issues.

Fonterra also found two extremely polarized schools of thought when it came to those cravings. At one end of the spectrum, a large number of “unwavering indulgers” knows they have health issues and shouldn’t pick up that Twinkie, but they do it anyway. On the other end are three snacking segments who are active and willing to make real changes in their diet to stay healthy:

  • Active Seekers (16%) – They’re the active, nutrition conscious ones who are more than willing to make changes to their diet for health benefits. Think 70 year-old marathon runners.
  • Health Seekers (22%) – Not quite as active, but generally follow healthy trends and are willing to make some dietary changes. Think on-again-off-again dieters.
  • Open-minded Moderates (20%) – They’re the followers and are somewhat health-conscious but don’t have the discipline to keep up with a health program. They also try to eat well, but aren’t always able to. We’re surprised this percentage isn’t higher.

In general, Boomer consumers are looking for products higher in protein, and adding high-quality dairy protein to foods they’re already eating will be the easiest way to drive consumption. The meal most lacking protein and posing the greatest opportunities? Breakfast.

MARKETING INSIGHT: Manufacturers and commercial foodservices marketers, take note: Since this demographic is split on the benefit of taking pills, your industry will no doubt become the solution to some of these issues and trends as many would prefer to ensure their health through their diets. For those of you in the senior living industry, now is probably a good time to introduce healthy snacking options and education into your foodservice or wellness programs.

After years of excess in the realm of food, mature consumers have common concerns, and are taking a stand to control their diets. And as more and more people in this demographic continue their careers and postpone retirement, their reliance on unconventional, mobile-friendly meals and snacks will only increase.

Regards,

The Varsity Team

Last year, automakers were reporting that “older” consumers were making up the lion’s share of new car buyers. Apparently, they didn’t believe their own numbers, as a new study shows that that same cohort is still buying more new cars than the 35- to 44-year-old age group, who were most likely to buy four years ago.

So who’s responsible? You guessed it. The Boomers who refuse to age, and apparently, refuse to give up their car keys. According to a new study by the University of Michigan’s Transportation Research Institute, the 55 to 64-year-old age group, or older Boomers, has now become the demographic most likely to buy a new car.

The study found that those consumers had the highest rate of vehicle purchases in 2011, while the youngest age groups had the lowest rate. Even consumers age 75 and above bought cars at a higher rate than 25 to 34-year-olds and 18 to 24-year-olds.

Industry insiders believe that one of the main reasons behind the numbers is that people are staying in the workforce longer, and thus remaining in the automotive market longer as well. Today, most Boomers live in the suburbs and expect to age in place in their homes, or are stuck in larger homes whose values have fallen. Driving is viewed as the key to independence and even self-worth. Given their propensity to remain independent, the next 20 years will see the number of U.S. drivers over 70 triple.

From a marketing perspective, auto manufacturers have been throwing good money after bad, spending billions to try to reach Generation Y and younger consumers – who are not driving as frequently or in as great numbers as the Boomers.

“You shouldn’t be chasing the younger people, you should be looking at the older people,” Michael Sivak, author of the study, told Bloomberg. “Boomers are trying to extend their youth as long as they can, both in terms of taking care of their bodies and in their expenditures.”

Sivak notes that automakers are having to rethink marketing to older drivers, who are no longer content to buy a large luxury sedan and drive it for 20 years. A good point is, however, that Boomers are not their parents’ generation. They expect to continue working and driving long into their later years. The challenge here is for automakers to develop models that cater to the specific needs of this aging population, without alienating them or younger cohorts.

MARKETING INSIGHT: The aging of one of the country’s largest generations will have a lasting impact on the automotive market.

There’s opportunity here for automakers to roll out more compact and affordable models that specifically meet Boomer needs. As Boomers age they increase the amount of participation in daily sport and leisure activities. With more Boomers working longer and having larger household sizes than previous generations, fuel efficient, compact vehicles, which maximize passenger and cargo capacity, may be an attractive purchase for this still relatively wealthy cohort.

For the senior living sector, it could mean providing more facilities to accommodate automobiles for those who continue to work and remain behind the wheel. In our research, Boomers looking at current CCRCs were turned off by the dearth of resident parking, and the absence of covered parking.

For local and state municipalities, this could mean investing in public transit and new roadways, and promoting the building of compact, walkable and mixed-use communities that minimize the need to drive as their residents age.

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