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| Marketing to adults 50 and older is rewarding but challenging. To do it right, you need to target households where mature adults exercise their buying power. You should also understand the nature of the market and use a message that appeals to it. It’s not as simple as it sounds. The 50-plus market is made up of several diverse age groups and, within them, subgroups with different lifestyles and interests. Those still active in the working world, for example, are very different from those who have already retired. The main thing to remember is that mature Americans have plenty of disposable income. According to the Direct Marketing Association, average annual spending for consumers aged 55 to 64 is $37,329; $24,721 for those 65 and older. And in many respects, direct marketing is an ideal medium for reaching this segment. Mature Americans tend to open direct-mail pieces right away – particularly “lumpy mail” that contains promotional products. What’s more, they’re becoming increasingly enthusiastic online buyers. What’s using direct marketing to reach the 50-plus crowd? Not just pharmaceutical and healthcare firms, but all kinds of companies. Something a healthcare promotion does can easily be adapted to fit something else. A Few Stats In 2001, the U.S had 78 million adults aged 50 and older – 28% of the total population, according to a Roper Report prepared for the American Association of Retired Persons (AARP). This number is predicted to grow to 97 million by 2010 as Baby Boomers continue to enter this segment. Although people born before 1946 dominate today’s senior market, this will diminish as Boomers fill the mature population. But pre-Boomers remain a vital group. The 66-plus market, currently 33 million strong, will continue to grow because Boomers’ parents are living longer and healthier lives. By 2010, this segment will number 37 million. The mature market is certainly a nationwide phenomenon, but some states have a higher percentage of seniors. Florida has the highest ratio of adults aged 65 and over (18.3%), followed by Pennsylvania (16%), with West Virginia, Iowa, North Dakota, and Rhode Island each having 15%. Starting Out “The first thing to do is start with a large compiled file that meets some of your basic demographic needs, such as basic age demographics that are appropriate to your product or service,” says marketer Dennis Barnes. “Once you have the groups defined, you can overlay it with lifestyle or psychographic information. With this information in hand, you can figure out the best way to communicate with them.” One of the best ways to do so is purchase or rent a database of responsive households. Or consider the associations, clubs or other organizations seniors are likely to belong to. What publications do they read and what types of products do they buy? Contact organizations that best match your profile to see if you can rent their lists. This may sound like a lot of work, but with some help from your counselor you can use the information as the basis for campaigns. “A lot of companies are trying to identify which of their products fit the senior audience,” says Barnes. “They’re recognizing that not only is the mature market growing, but it’s also the wealthiest subgroup, responds readily to interpersonal communication and prefers to be regarded as individuals. So by its nature, direct marketing has an advantage over other media.” Senior-Friendly Marketing When targeting seniors, what elements should a direct-mail piece include? First, size does matter (i.e., the size of the type in any printed piece). Twelve-point or higher seems to be best for this audience. Barnes also recommends using soft colors, four-color photography and showing mature people looking active. “Seniors like to think of themselves as about 15 to 20 years younger than they are,” he says. “It’s also important to not be condescending and to demonstrate your offer has value.” Regarding online seniors, the demographic profile is attractive: While only 8% of seniors have incomes over $75,000, 25% of them are wired – and that figure is growing every day. Most mature Americans (52%) visit travel sites on the Web. In general, seniors also gravitate toward informational and leisure-oriented sites – news, medical, financial, games, books, sports. These are areas where they’re a powerful buying force. What To Use? Seniors are like anyone else when it comes to lumpy mail – they tend to open it first. As far as what imprinted gift to include, this is best decided in concert with your counselor, but in general seniors tend to appreciate basic utilitarian items, as long as they’re of good quality. Therefore, perceived-value is critical. Pens, small flashlights, letter openers, pill boxes and other such items can work well. If the budget is a little bigger, small electronics or ergonomic products are also popular. Just be sure what you select fits the promotion; you don’t want to include a relatively costly item or one with high-perceived value in a mailing that discusses saving money, for example. Last, consider this real-life example: Secure Horizons, Tufts Health Plan for Seniors, offers health insurance to over 102,000 members with Medicare. It recently sent a direct-mail piece to 10,000 prospects encouraging them to enroll in the health insurance program. The mailing was sent to a list of people over 65 who were Medicare-eligible, retired and covered by their former employer. The mailing was prepared with the help of a promotional products consultant who provided database management, list services and helped design the piece – a self-mailer with a photograph of an active elderly person. The mailing was sent in early December so it would arrive by the middle of the month, about two weeks before the period for open enrollment that ended January 1. The timing, along with the overall look and use of a targeted mailing list, helped make the program a success. “Because [prospects] received the pieces during the open enrollment period, we were top-of-mind when they were making their health insurance decisions,” says Martha Byrd, marketing manager of Secure Horizons, adding, “We exceeded our goal by 300%.” An amazing outcome, to be sure. But you have to wonder how much higher it would have been if a promotional product had been included. Just some food for thought…. Melissa Campanelli is a freelance writer based in New York. |
