Understanding the Senior Economy

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Understanding the Senior Economy
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Senior Resource Alliance of Cape Cod and the
Islands
508-778-5761 www.sracci.com
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An Aging America

• In 1900, 1 in 25 Americans was a senior
• 2005, 1 in 8
• 2020, 1 in 6
• 2030, 1 in 5 and will remain there through 2050.
• The Oldest Old (85)
• The fastest growing segment of the American
  senior population
• Today 4.2 million 85
• By 2050 19.3 million 85
• Result Need for healthcare and related services
  is exploding

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Why are we here today?

• Do you know who the fastest growing demographic
  is?
• Who spends the most money on luxury travel and
  new cars?
• Who accounts for more than 70 of all
  pharmaceutical sales and 25 of all toy sales?

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If you can

• Address the expectations of seniors
• Satisfy the needs of seniors, and
• Meet their expectations
• Then your business will grow and prosper

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Whats in this workshop for you?

• If were successful today, then you should be
  able to
• Describe/explain at least 3 significant factors
  about seniors that affects your businesses
• Explain how you can refocus your businesses to
  meet the needs of seniors
• Explain how whom to contact in the SRA
• Use and apply the materials in your business

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Key Demographic Trends

• Improve your planning with analysis of key
  consumer economics and demographic trends
  affecting consumer activity.
• Consumer activity is the key driver of your
  business and understanding the changing trends
  that are affecting consumer behavior is critical
  to your success.
• Understanding consumer activity means better
  planning, with fewer surprises, and increased
  top-line growth.

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Some surprising trends
Of all money market accounts and certificates of
deposit Of all health care spending Of all
prescription drug purchases Of all new car
purchases Of all toy purchases Of all luxury
travel-top leisure activity for men women Of
all museum visitors are 55 or older Higher per
capita income than national average

• 70
• 60
• 74
• 41
• 24
• 80
• 42
• 26

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Trends in Aging Summary

• Knowing the key trends that will shape the next
  decades is a first step to helping your clients
  create optimal futures.
• As a navigational consultant, you can provide
  tools
• Facts
• Resource
• Experience
• Tools that help your clients and their loved ones
  chart paths in life.
• How we work with one another and how we can work
  with you .

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How to Sell Connect with Seniors

• Every 7 seconds, someone turns 50 years old
• With 76 million U.S. baby boomers making buying
  decisions now the potential growth from this
  group is enormous.
• Simply based on population growth trends if
  product is marketed to
• 50 audience maintains market share sales
  should increase by 35
• to 50 in next 20 years. Conversely, a brand
  targeted at zero to 50
• age group will be flat sales.
  Rick Adler, Founder of The Senior Network

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Boomer factoids you need to know

• They view themselves as younger than they really
  are (by 20 years)
• They live active lifestyles and travel is high
  among their favorites
• They love discounts and arent afraid to ask for
  them
• They grew up with TV and a very knowledgeable
  about advertising
• They are connected and comfortable with
  technology
• They are healthier, more active and expected to
  live longer than their parents
• Researchers asked boomers what they like to be
  called.
• There was NO CONSENSUS.
• Terms such as active adults, mature, older
  adult, 50 plus, and even middle-aged and
  baby boomer were deemed inappropriate.

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Things to remember about doing business with
seniors

• Dont view them as an aggregate cluster
• Dont assume they are brand loyal
• Give them the facts on how your product or
  service makes their lives better
• Never hype or overly exaggerate claims
• Use images they relate to they tend to be
  nostalgic, evoke positive memories, while
  connecting to current lifestyles

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More things to remember about doing business with
seniors

• Watch how you refer to them they dont like
  being called old in any form
• Sell experience and benefits that come with your
  product or service
• Reach out to them in places where there is a high
  level of comfort
• Use language they can connect with
• They dont relate well to scare tactics
• Stress the values that they relate to

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Remember when connecting with seniors

• It is important to visualize them as vital
  active people.
• Eliminate old stereotypes of age
• Use images of people who show best years of lives
  ahead of them.
• JoAnn Hines, May 24, 2005

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What are boomers saying about turning 60?

• Personal goals for the next 10 years
• 80 mentioned spending more time with loved ones
• 87 taking better care of my physical health
• 72 wanted to spend more time on interests
  hobbies
• 71 doing the things I have always wanted to do
• If someone gave them the perfect gift for their
  60th birthday, what would it be?
• 23 could be called lifestyle gifts
  (first)
• 19 involved family ties and relationships
  (second)10 spending time with their spouses,
  children grandchildren
• 16 personal well-being.
  (third)
• 60 year-olds were most likely to wish for better
  health or to be able-bodied (11)

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Before we proceed, think about your service or
product

• Make Action Notes
• What you know about your target market
• then consider how to adjust your marketing
  to -meet the preferences attitudes of
  this powerful demographic.

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Overall significance of the study

• Boomers turning 60 in 2006 remain substantially
  satisfied with their lives
• Nearly all have some substantial life change they
  want
• -87 take better care of their physical
  health
• -72 spend time with hobbies interests
• -47 do more volunteering
• Work will continue to play a major role in their
  lives -54 of
  60 year olds (compared to all boomers) plan to go
  back to work in the next few years.
• Over half of those working now (54) plan to quit
  working ASAP.
• -37 plan to work until I drop.

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60 year-olds asked about changes in next few years

• 57 do more traveling
• 45 save more aggressively for retirement
• 47 do more volunteer work
• 30 planned to move
• 18 planned to move to a smaller home

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After considering the findings of the AARP Study
released in June 2006

• What can you do to step up your
  marketing?
• These studies are valuable to ever business
  owner who wishes to capture the boomer consumer,
  because understanding the attitude preferences
  of this target market demographic enables you to
  structure your marketing , advertising
  promotions to speak to the beliefs and desires
  that will attract boomers to your business.
• Jennifer Kalita,
• Why Consumers Turning 60 Matter to Your
  Business What Recent Research Suggests, 2006

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Boomers want

• Action packed retirement
• Some want to continue to work
• Boomers want -more activity -more
  amenities -more friends
• This generation wants to continue to rock and
  roll, not sit in rocking
• chairs. Dave Schreiner,VP Pulte
  Homes
• 55-75 year-olds estimated to reach 80
  million-plus by 2020, the active
• adult market represents one of fastest-growing
  segments in the
• housing industry. Dell Webb Baby Boomer
  Survey,2005

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A viable strategy for seniors..

• Home design trend benefits seniors
• Accessibility is the key
• Aging in place is the goal
• Concept universal design is the path to
  achieving the goal.
• Universal design involves creating products,
  environments communications that all people can
  use, not just those with current disabilities.

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Practical application-universal design

• Industry professionals recommend minimum
  standards to improve access, prevent falls and
  increase comfort of your home
• Nonslip surfaces on entryways, stairs, kitchen
  bathtubs
• Handrails at all steps
• Grab bars in showers beside toilets
• Benches or built-in seats in showers stools in
  kitchens
• Open floor plan, especially kitchen dining
  area, 36 inch wide doors
• Single-level main floor that includes master
  bedroom bath
• Eliminating, or limited use of, steps to enter
  the home
• Bright, efficient lighting in all areas
• Lever-style door handles

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Active Forever

• Todays mature consumer is
• more empowered than ever before to research and
  demand the products they need to maintain an
  active, independent lifestyle, despite any health
  challenge.
• The products and approach serve an existing,
  untapped need.
• Illness is no longer a roadblock to independent,
  active living its simply a challenge that can
  be overcome by empowered individuals who have the
  information and products they need.

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How to communicate with seniors with print
materialsTreat them with respect

• Every business needs printed materials that sell
  your product or service, and sell it well.
• Key work is See - By 2010, 20 million baby
  boomers will face age-related vision loss and
  functional vision problems.
• Make it easy to read font size, clear, crisp
  concise
• Type size must be larger than normal. Use 12 pt
  type and larger
• Use an appropriate type-face such as Times New
  Roman.
• Never use only upper case letters.
• Make generous use of bullets or numbered lists
• Include images of single women since many of your
  audience will be widowed or divorced women.
• Choose colors carefully-use dark type on a light
  background. This provides contrast that older
  eyes need in order to see well.

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Electronic Marketing

• If you want to reach affluent, well-educated
  seniors, add online and email marketing.
• The percentage of seniors who go online has
  jumped by 47 percent between 2000 and 2004,
  making them the fastest growing demographic group
  on the WEB. (the Pew Internet American Life
  Project, 2004)
• Demographics of Internet Users Who Goes Online?
• Age
• 50-64
  58
• 65 23
• Household income
• 50,000-75,000 86
• More than 75,000 89
• Source Fox, 2004. N2204. Margin of error is /-
  3, at 95 confidence level.

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Senior-Friendly Web Sites

• A problem with some Web designers is that they
  emphasize good looks rather making it work
  effectively for a variety of users.
• People with physical-visual, hearing, or
  cognitive and neurological disabilities may
  encounter a number of common accessibility
  problems of Web sites.
• Basic tips to make your site senior-friendly
• High contrast
• Minimal graphics
• Captions on tables
• Large text
• Easy and consistent navigation
• Use search-engine-friendly text

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Why are Senior website visitors special?

• Once a person enters the retiree demographic,
  he/she will be a member for life (rather than
  teens moving to 20s to 30s, etc. )
• There are currently more than 76 million seniors
  and over the next 20 years
• More than 70 million baby boomers will join the
  senior rank.
• This represents unlimited opportunity to expand
  your companys brand.
• This consumer group has the most disposable
  income with the greatest buying power
• interested in new services to enhance their
  lifestyle and is currently the largest consumer
  in more product categories than any other market
  group.

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Fast Fact-Adults 50 and older Switching from
Traditional Media to Internet

• 67.5 say online information is more accurate
• 60.7 use internet more than a year ago
• 34.5 go to more websites
• 35 seek out travel information
• 33 education
• 32 online purchases
• 22 personal finance entertaining
• 77 search for healthcare information
• Less time reading magazines 36.6 listening
  to radio 44 watching TV 43.6
• Survey by Burst Media MarketingVOX, Jan. 2006

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Fast Facts, Boomers, Internet, Eldercare.

• Who is the nations leading provider of internet
  referrals to eldercare providers?
• Eldercarelink
• Eldercarelink says almost one million people who
  visited their site last year found them through
  which search engine?
• Google Yahoo.

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Trends from ElderCarelinks data

• Baby boomers who are faced with important
  decisions regarding their parents care are more
  comfortable using the internet to research and
  explore their options. Robert Brooks,
  ElderCarelinks CEO
• Majority of assisted living service requests are
  by women for their mother father.
• Increasing demand for in-home care providers
  seniors often want to say in their own homes as
  long as they can.

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Towns with oldest residents in MA
Source 2000 US Census
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Eleven of Cape Cods 15 towns are among the
states top 20 communities when it comes to the
age of their residents.

• This statistic underscores the need for Cape Cod
  businesses to hire 55-plus employees not only to
  meet labor needs, but to serve an older and
  wealthier customer base.
• Even more striking than the age of Cape Cods
  population is how fast this trend has developed.
• In 1990 Falmouth had the 48th oldest population
  by 2000 it had the 20th oldest.
• Brewster had the 32nd oldest in 1990 and the 14th
  oldest 10 years later.
• Demographics anticipate that the population will
  be older still when the 2010 Census is completed.

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Ten Tips to a Senior-friendly Office

• 1. Control office noise.
• 2. Comfortable seating is critical
• 3. Have adequate lighting.
• 4. Control the room temperature.
• 5. Deal with privacy concerns.
• 6. Time for a break.
• 7. Control the use of time when possible.
• 8. Use senior-friendly office decorations.
• 9. Provide clear directions to your office.
• 10. Beware of potential causes of accidents.

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Ethics in doing business with seniors

• Ethical concerns in serving the senior market
• Seniors are the most frequent targets of
  financial abuse.
• Benefits of ethical behavior when dealing with
  seniors
• 80 of people say they decide to buy a firms
  goods or services partly on their perception of
  its ethics.
• 2003 Survey, Withlin Worldwide.
• What can do you?
• Build a strong, solid business on the foundation
  of your ethical, responsible, caring professional
• Focus on making ethical decisions in your
  business
• You will build a reputation as the kind of person
  seniors want to do business with.

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How to become a resource to seniors?

• Get information on senior issues.
• You are successful if you can find solutions
• Work with complementary professionals who have
  expertise working with seniors.

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Working with Complementary Professionals
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Conclusions

• Seniors represent a large and growing segment of
  anyones market.
• Knowing how to do business with seniors will
  differentiate you from the competition.
• The most important tool in your marketing and
  sales arsenal is you reputation as an honest,
  ethical and helpful professional.
• Knowing how to serve seniors will grow your
  business.

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SoWhy are we here today?

• SRA is not here to tell you how to sell your
  product or service.
• We are here to assist you with information
• - to better Understand the SENIOR ECONOMY
  
• be a resource to Seniors
• so you can make better business decisions.
• The end result-
• your business will grow and prosper.

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Senior Resource Alliance of Cape Cod
and the Islands

• Its all about
• Finding Answers
• Creating Solutions
• Thank you for joining us today

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Longevity Its a celebration of life

• This is the first time in human history that
  the prospect of living a long, healthy, and
  productive life has become a reality for the
  majority of people in most parts of the world.
  What was once a special advantage of the few has
  become the destiny of many. And it is likely that
  this increase in longevity will continue. As
  important as is liberation by health, as powerful
  as is liberation by law, older people must be
  liberated, too, from stereotypes that limit their
  horizons. We are in the midst of the wonderful
  world of longevity. It is in our power to make
  it a celebration. Robert Butler,
  2001

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Keith McManus, Esq.

• INTRODUCTION OF SRA MEMBERS
• And
• QUESTIONS ANSWERS