communicating with the new 50+ housing consumer
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Communicating with the new 50+ Housing ConsumerTRANSCRIPT
Communicating with the new 50+ Housing Consumer
Lori Bitter, President/CEOContinuumCrew
Why Boomers?Boomers control 83% of all consumer spending
54% have household incomes exceeding $100K
assets
Estimated $2.5 trillion in annual spending power
Boomers represent the 11th largest world economy
population larger than England, Italy or France
And beyond?In the next five years the adult population aged 40-50 will shrink by 2.3 million while the number aged 60-70 will increase by 1.7 million
Over the next 10 years households 65+ will have the largest percentage increase in spending
Source: Consumer Expenditure Survey, Bureau of Labor Statistics; US Census Bureau
The new consumer
Easy-‐peasy, right?
What changed?
Using values based consumer segmentation
Shifting the message
Engage consumers
Hunt in the right places
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What changed?
The collapse of institutions
DISTRUST
The collapse of institutions
DISTRUST
The collapse of institutions
DISTRUST
The collapse of institutions
DISTRUST
And disbelief . . .
DISTRUST
Doubt in reform
DISTRUST
No honeymoon for the administration
DISTRUST
The collapse of institutions
DISTRUST
DISTRUST
And here is the result for the senior consumer . . .
DISTRUST
Older consumers remember or were influenced . . .
DISTRUST
DISTRUST
Older consumers remember or were influenced . . .
DISTRUST
ANXIETY!
OUR RESEARCH
Current stressors
Source of Stress SeniorsLeading Boomers
Trailing Boomers
Gen X
Losing my job 7.9% 27.6% 32.9% 31.6%Stress at work 5.1% 13.9% 27.8% 53.2%My health 45.5% 27.6% 17.2% 9.7%The health of a family member 35.8% 25.7% 21.4% 17.1%Not having enough time to get everything done 25.5% 22.3% 18.5% 33.8%My personal or family finances 32.6% 23.8% 22.3% 21.3%Relationship issues with a member of my family -‐ such as my spouse, children, or parents 32.1% 25.5% 20.6% 21.8%
Relationship issues with a non family member such as a romantic relationship, or relationships with friends 24.6% 24.6% 17.5% 33.3%
increases with age
decreases with age
Question: What are the things in your life you are most stressed about?
Seniors & Boomers: Multiple sources of stressSources of life stresses
OUR RESEARCH
OUR RESEARCH
Anxiety over the economy
Seniors2008 44%2009 34%2010 51%
Boomers2008 46%2009 34%2010 62%
OUR RESEARCH
Nervous about the costs of health care
Seniors2008 34%2009 44%2010 56%
Boomers2008 41%2009 49%2010 66%
THE SENIOR RESPONSE
Verbatim responses
President cares about young people -
sell my house and go to Florida you know one of those communities where I can stay. I have a friend there. The way
I managed to save a nest egg to leave my son and
THE VALUE CHAIN
Can values change?
Lifestage
Age/Cohort Values Market
BehaviorAffluence
Health
Demographics
Mature Consumer Model
THE VALUE CHAIN
Can values change?
Values Market Behavior
Values:
Values are:‣ system to manage chaos of messages‣ relatively stable over time‣ set boundaries for behavior‣ control day-to-day behavior/choices‣
differently‣ Greater expanse of experience
THE VALUE CHAIN
Can values change? They can shift. And they have!
SHIFTING THE MESSAGE
Extinction or excitement?
SHIFTING THE MESSAGE
Value Portraits Segmentation of Seniors
[ ]SENIORS
SHIFTING THE MESSAGE
Value Portraits Segmentation of Seniors
[ ]SENIORS
Individualists. The focus of this group is to establish and maintain their independence. Their planning and spendingpatterns are focused on living life the way they want. They are not concerned about conventional wisdom or traditional ways of doing things.
They view the world as tough and unforgiving and intend to do what they can in order to live the way they want.
Compared to other mature Americans, Intense Individualists consider...
Material possessions
Thrills and excitement
Power and recognition
Kindness and compassion
Family ties
Warm relationships
} More Important
} Less Important
14%
VP Housing ReportIntense Individualists -‐Establish & maintain
independenceCharacteristics
Male 66% Married 56%Income -‐ $30,000 -‐ $40,00017% live in some type of senior housing/retirement community
Concerns:Home maintenance 71%Security 63%Lack of companionship 41%Social interaction 39%Worry more about their current location 50%
Next home: 49% Condo or townhouse
In 2005
VP Housing Report
Intense Individualists -‐Establish & maintain independence
Concerns:Home maintenance 80%Security 71%Lack of companionship 62%Social interaction 51%Worry more about their current location -‐ 55%
And: How I will maintain my health given the state of health care in our country.
Where I live can affect how well I age.
NOW
20%
Compared to other mature Americans, Hearth & Homemakers consider...
Family Ties
Warm Relationships
Conservatism
Intellectual Curiosity
Financial Security
Excitement
} More Important
} Less Important
Family and friends are the center of their lives. Regardless of health status, they strive to stay involved in their churches, social and community groups. Their memories of life are rich and full and they see their lives as happy and rewarding.They stay the course. They do whatever is necessary to maintain the faith and relationships that are so important to them.
VP Housing ReportHearth and Homemakers Freedom, family,
stabilityCharacteristics
Female 62% Married 62%Income -‐ $35,000 -‐ $45,00013% live in senior housing/7% live in a retirement communityLikely to stay in their current city; least mobile
Concerns:Big worries about home maintenance, current location, access to services and transportation. Most likely to rely on adult children for housing.Not worried about companionship or social interaction. Where they live is a status symbol.
Next home: Anything but a mobile home.
In 2005
VP Housing ReportHearth and Homemakers Freedom, family,
stability
Concerns:Home maintenance, access to services and transportation -‐ 66% Can no longer rely on adult children for housing 45%Now worried about social interaction, turning to social media 39% Long term health care is a growing concern 46%
And:
further burden to my family.
Financial stability is my number one goal.
NOW
SHIFTING THE MESSAGE
Value Portraits Segmentation of Boomers
[ ]BOOMERS
9%
}More Important
} Less Important
Compared to other mature Americans, Aloof Affluents consider...
Psychological Well-being Conservatism Leadership
Civility Regret Warm Relationships
VP Housing ReportAloof Affluents Conservative, proud, hardworking
CharacteristicsMale 69% Married 54%Income -‐ $60,000-‐$74,000Likely to correlate accomplishment with neighborhoodNatural leaders; accomplished
Concerns:Maintaining their current lifestyle/standard of livingAcquiring what they want when they want itNot worried about companionship or social interaction. Where they live is a status symbol.
Next home: a vacation/second home
In 2005
VP Housing ReportAloof Affluents Conservative, proud, hardworking
Concerns:Ability to keep my job -‐ 72% Maintaining my current standard of living 55%Worried about their lack of connection, lurking on social media 49% Long term health care is a growing concern 46%
And: All of my hard work and honesty may not pay off at the end of the day
My political views are much more liberal than five years ago.
NOW
SHIFTING THE MESSAGE
The changing role of mediaQuestion: Which of the following do you subscribe to?
Media SeniorsLeading Boomers
Trailing Boomers Gen X
TV service (cable, satellite dish, or other) 89% 91% 81% 77%Home telephone -‐ ("land line") 85% 79% 68% 68%Cable telephone 23% 23% 21% 25%DVD movie rental 14% 14% 20% 23%Internet 92% 91% 90% 86%Local newspaper 61% 50% 38% 32%National newspaper 7% 5% 9% 8%Online news service or newsletter 11% 10% 13% 12%Magazines 60% 58% 46% 46%Cell phone 80% 80% 80% 77%
Satellite radio 5% 15% 7% 13%
higher for older generationshigher for younger generations
Seniors and Leading Boomers still use traditional media more than Trailing Boomers or Gen X
Percentage subscribing to various media services
SHIFTING THE MESSAGE
The changing role of media
Question: On which social networking sites do you maintain a profile? (select all that apply)
Seniors are catching up with Boomers in social networksPercentage maintaining a page on various social networking sites
Social networking site Seniors LeadingBoomers
Trailing Boomers Gen X
Facebook.com 39% 39% 43% 50%
Twitter.com 5% 8% 15% 14%
Linkedin.com 6% 8% 11% 10%
Classmates.com 19% 20% 21% 12%
Myspace.com 11% 10% 22% 29%
None of these 50% 47% 45% 32%
SHIFTING THE MESSAGE
The growth of social media
Question: In thinking about all of the people in your own personal or social network, how frequently do you have contact with individuals you know from the following areas or groups?
Social Mavens have more frequent contact with individuals across all types of groups within their social network
Percentage of respondents having very or somewhat frequent contact with the following groups
Type of social connection Isolated Everyday Mavens
Family members, apart from my immediate family 55.4% 65.7% 75.5%
Issue-‐oriented organizations 13.7% 17.2% 32.2%
Hobby or interest groups 18.4% 26.5% 36.6%
Religious affiliation or church 32.0% 35.6% 46.6%
Social groups 20.8% 30.1% 40.0%
Neighbors 44.6% 53.9% 61.1%
Co-‐workers 17.7% 38.6% 64.4%
Former co-‐workers 15.9% 24.1% 37.8%
Professional or business-‐related contacts 14.0% 28.6% 52.3%
SHIFTING THE MESSAGE
The changing role of media
Mavens have more face-to-face contact and use smart phones more than other respondents
Percent age of typical weekly communications by various methods)
Question: In thinking about all of your personal communications in a typical week, what percentage would you estimate are from each of the following types. Do not include communications specifically for work. Please be sure that the total adds up to 100%.
Type of communication Isolated Everyday Mavens
Email from a computer (PC or MAC) 39.3% 30.1% 29.5%
Email from a smart phone or cell phone 1.3% 3.4% 6.4%
Text messaging 6.3% 6.4% 6.8%
Instant messaging 5.3% 2.4% 2.7%
By phone (cell or "land line") 20.8% 24.9% 19.1%
Postings to a social networking site 2.5% 3.7% 3.6%
In person, "face-‐to-‐face" 24.8% 29.1% 31.8%
SHIFTING THE MESSAGE
Defining social connectedness
Compared with others in their cohort, Social Mavens are more likely to try new products, technologies, and seek new experiences
Values and attitudes based on social connectedness
Value/Personality Trait (percent agree) Isolated Everyday Mavens
People often come to me for advice 35% 55% 73%New technology plays an important role in my life 51% 71% 78%I prefer to be the leader in a group 34% 46% 62%I often try new products before other people I know 21% 32% 44%I would like to spend a year or more in a foreign country 32% 37% 56%As soon as I see an opportunity to try something new, I do it 26% 33% 47%I am not afraid to provide criticism 33% 44% 51%I am not bothered by things that upset my daily routine 51% 58% 71%I take pride in being self-‐sufficient 41% 50% 60%I am determined to get what I want from life 14% 19% 29%I can motivate myself by setting my own goals and timelines 71% 78% 87%I think that young people should be taught to question authority 19% 28% 33%My successes in life are largely the result of my own talents and hard work 55% 62% 69%I am very optimistic about the future 49% 57% 62%
To conclude:
Easy-‐peasy, right?
Mature consumers have changed.
You can get more from your existing segments, and find gold in new segments.
Shift your messages to meet your
media in your plan.
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continuumcrew.com: Boomers In The Wild Bloglinkedin: Continuum Crew Engaging Consumers > 40linkedin group: Continuum Crew Boomer Summit Groupfacebook: Continuum Crew-Engaging Consumers > 40 twitter: @ContinuumCrew
twitter: @40plusconsumerstwitter: @LoriBitter
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