The Silent Migration


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The Silent Migration

  1. 1. The Silent Migration 6 insights into engaging seniors in the online space Rob Reger, SVP, Data Solutions Epsilon Kevin Sacher President American Mint Trish Mathe VP, Database Marketing Life Line Screening Steve Schlumpf SVP, Marketing Haband Denis McSweeney Director BS&A AARP
  2. 2. How well do you know your seniors? 1. What makes them different? 2. What are the challenges marketers face when encouraging seniors to transact online? 3. What opportunities are available to migrate seniors online and have them embrace the change?
  3. 3. Insight 1: Engaging seniors online is a real challenge • Studies show that consumers over 65 continue to prefer offline communications and transactions. • Epsilon’s Channel Preference Study has consistently found that direct mail is the more trustworthy marketing channel and is preferred by older audiences. • Most organizations struggle to persuade seniors to convert their offline behaviors to online. How do you migrate the seniors audience to the online space?
  4. 4. Trends in online & offline senior shopping behavior
  5. 5. 47% 43% 70%53% 57% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% Abacus Cooperative Average 50-65 Year Olds 66+ Year Olds 2010 trends Offline Online 42% 40% 68%58% 60% 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% Abacus Cooperative Average 50-65 Year Olds 66+ Year Olds 2011 trends Offline Online 40% 38% 67%60% 62% 33% 0% 10% 20% 30% 40% 50% 60% 70% 80% Abacus Cooperative Average 50-65 Year Olds 66+ Year Olds 2012 trends Offline Online 37% 35% 66%63% 65% 34% 0% 10% 20% 30% 40% 50% 60% 70% Abacus Cooperative Average 50-65 Year Olds 66+ Year Olds 2013 trends Offline Online The shift in channel preference
  6. 6.  The online channel is experiencing growth each year across the board  Overall, more than 60% of purchases are made online  In the last 4 years, seniors ages 55–65 have increased online shopping by 8%  In the last 4 years, seniors ages 66+ have increased online shopping by 4%  While these are small YOY increases, the younger senior group’s increase doubled the older senior group 55 to 65 and 66+ engage differently Insight 2: Seniors do not all behave equally
  7. 7. overall purchase behavior 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2011 2012 2013 Abacus Cooperative Overall $ Trans HHs AOV $/HH Trans/HH 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 2011 2012 2013 50-65 Year Olds $ Trans HHs AOV $/HH Trans/HH 0% 2% 4% 6% 8% 10% 12% 14% 2011 2012 2013 66+ Year Olds $ Trans HHs AOV $/HH Trans/HH Key findings:  All KPIs are up over the previous year co-op wide  The 50-65 year old market is outpacing the national average in sales growth and active households  The 66+ year old market is still growing, but at a slower-than-average rate
  8. 8. 55–65 66+  Boomers entering this category  More online savvy  More credit affinity  Universe is still increasing  Boomer migration  Higher life expectancy  Still pay through the mail  Use checks or money orders  Some as high as 80% (50% plus the norm in most) • DTC offers • Sweepstakes • Collectibles • Fundraising • Publishing Insight 3: Segmenting your seniors is a good idea
  9. 9. 0% 10% 20% 30% 40% 50% 60% 50-65 Year Olds 66+ Year Olds 2010 2011 2012 2013  Both age groups are comfortable online, showing growth each year  The % of households converting online is accelerating in the most recent 12 months Insight 4: Senior online purchase behavior is increasing!
  10. 10. Insight 5: Capitalize on data trends for 50–65 year olds when targeting online offers 2% growth Arts & crafts Collectibles Backyard gardening Positive growth Children’s apparel Fundraising Health & wellness Home décor Media Sports Active wear & outdoor Gifts 0% growth Tools & electronics –4% decline Senior health goods
  11. 11. Insight 5: Capitalize on data trends for 66+ year olds when targeting online offers 2% growth Children’s apparel Gifts Health & wellness Home décor Senior products Sports Active wear Outdoor Negative fluctuations Arts & crafts Collectibles Fundraising Garden & backyard
  12. 12. Insight 6: Let data drive your senior targeted segmentation strategy SENIORS 50+ OFFER | LIST | CREATIVE BEFORE Prospecting segmentation! 50–65 Active purch in A Lifestyle A High $ 50–65 Active purch in B Lifestyle B Low $ 66+ Active purch in C 66+ Active purch in D 70+ Active purch in E AFTER
  13. 13. Case in point Kevin Sacher President American Mint Trish Mathe VP, Database Marketing Life Line Screening Steve Schlumpf SVP, Marketing Haband Denis McSweeney Director BS&A AARP
  14. 14. About Haband “You’ll never get a better deal!” That’s been the motto of the Haband Company ever since it’s beginning back in 1925. Originally, the company sold handmade ties at a few local banks. But once the founder got the great idea to take photographs of the ties and mail those “advertisements” to banks, the business was off and running. Today, Haband is the headquarters for savings to over 5 million customers, and it’s still growing.
  15. 15. 4 steps to understanding your senior buyers Break out your senior group by age1 2 3 4 Show what items are selling best to the different groups Generate data regarding what is being bought by your customers Cater your marketing
  16. 16. Break out your seniors by age 0 to 12 month 2X+ # of Cust Response % AOV $ Per Cust Age % Index Index Index 0 to 54 6.1% 99% 106% 91% 55 to 64 10.7% 99% 107% 92% 65 to 74 20.4% 97% 107% 101% 75 to 84 33.5% 102% 98% 104% 85+ 16.8% 102% 93% 100% Unknown 12.4% 99% 98% 98% Total 100% 100% 100% Given the population growth in the 65+ age group and different performance at various age groups, you need to break out your customers by age groups—don’t stop at age 75! 1
  17. 17. Research which items are selling the best to different age groups Break out product purchases by age group Find the % of the demand Compare the differences of each individual age group and their purchases For example: • Age 75+ is 50% of the demand • Age 75+ group comprised 55% of the demand for dress shirts • Therefore, dress shirts are being bought proportionally better by the age 75+ group Consider doing this age analysis by style and merchandise categories Show the differences to the marketing, merchandise, and creative departments 2
  18. 18. Analyze data to learn what is being bought by customers in the age group segments 3 Lifestyle differences Order incentives Sweepstakes Continuity
  19. 19. Cater your marketing4 Copy is important Use relevant headlines Remember, members of this group are readers!
  20. 20. Checklist for increasing online demand penetration 1 •Increased order incentives 2 •Make a benefit slogan the feature of your advertising 3 •Be specific about benefits (e.g., more SKUs, faster shipping, more clearance, etc.) 4 •Utilize targeted alternation if seniors are responding better to a specific item or copy 5 •Seek out partners and drop ship programs that offer other items that your seniors want 6 •Seniors are especially active in the fundraising area, so use your company’s activities to generate content for blog posts or in print 7 •Gather email addresses! Incentivize phone operators and include in print advertising. 8 •Use some catalog space to promote online as a special information source
  21. 21. GET THE RECIPIES shown here at williams-
  22. 22. About Life Line Screening Since our inception in 1993, we have screened nearly 8 million people, and currently screen 1 million people each year at over 16,000 screening events nationwide. Through this experience, we often identify serious health issues and have helped save thousands of lives. We are dedicated to providing the highest quality preventative screenings at affordable rates.
  23. 23. •Life Line Screening, Inc. is the leading provider of community-based preventative health screenings in the U.S. •Our mission is to make people aware of unrecognized health problems and encourage them to seek follow-up care with their personal physician. Who we are •Disease can be present before symptoms occur •Doctors do not prescribe testing for asymptomatic individuals without other relevant risk factors •Resulting problem: Individuals remain at risk for a catastrophic event. Why screen? •Preventative screenings •Life Line Screening, Inc. screens over 1 million people annually on 3 continents and holds over 20,000 screening events each year. Solution Life Line Screening, Inc.
  24. 24. Screening process: The patient experience Screening scheduled Participant screened Results letter mailed • By phone or online • At a local venue (church, community center, etc.) • Results reviewed by a board-certified physician • Within 3 weeks • Advised to share with physician for appropriate follow up • If anything critical is found, patient is provided a “Doctor’s Review Kit” immediately and advised to go to physician or ER within 24 hours
  25. 25. Social strategy Last year, Life Line Screening evolved toward social-based community to support our future retention goals. • While email marketing has proven effective at driving repeat customers, social provides a level of engagement that cannot be matched. • This also helps us create an army of defenders where we can point media inquiries. • Better engagement will lead to: – Higher rescreening rates – One-to-one customer interaction – A platform for word of mouth marketing to allow our members to share their experience with prospective customers
  26. 26. Focus on longevity & healthy living
  27. 27. Community advocates
  28. 28. Connecting our members with others Crowdsourcing discussions allow our members to get support and learn from others Members can ask questions that may be answered by our Community Advocates or by other members of the site. All questions are answered within 24 hours. Marketing reviews the discussions and other user-generated content for ideas on products & services.
  29. 29. Educating our members Keeping health top of mind throughout the year We want to keep our customers engaged in managing their health throughout the year. Our editors pick articles that are easily digestible by our audience. Of our 1 million email subscribers, over 95,000 read this news story featured in our Life Long Health newsletter.
  30. 30. Content that engages users
  31. 31. Creating “superfans” Earning status in the community All members are allowed to post articles, create discussions, and respond to posts. However, it’s the “superfans” that drive the content and friendships within the community. We continue to reward the superfans by allowing them to earn badges through actions taken in the community.
  32. 32. Personal pages
  33. 33. Engagement & usage
  34. 34. About AARP Founded in 1958, AARP is a nonprofit, nonpartisan membership organization that helps people 50 and over improve the quality of their lives. AARP’s mission is to enhance the quality of life for all as we age, leading positive social change and delivering value to members through information, advocacy, and service. Membership dues are $16 for a one-year term.
  35. 35. Caregiving-themed month campaign results Overview 1. Caregiving facts 2. Campaign analysis 3. Questions on engaging the 50+ audience
  36. 36. Caregiving facts  32.6 million aged 40+ individuals are caring for someone aged 50+ • Parent or relative: 82% • Spouse or partner: 8% • Friend or neighbor: 12%  Over two-thirds of caregiving situations are long term
  37. 37. Caregiving facts  On average, caregivers spend 20.4 hours a week providing care  For caregivers… • 15% care for someone more than an hour’s distance away from their home • 35% have a heavy caregiving burden
  38. 38. Caregiving facts Information is a key need of caregivers: • Managing time: caregiving v. other responsibilities • Dealing with emotional stress • Arranging backup resources • Financial burden from providing caregiving services • Keeping their caregiving recipient safe
  39. 39. Campaign analysis: Caregiving themed month •Increase engagements: as defined by page views to the caregiving content of during a one-month period OBJECTIVE •Execute a consistent, integrated member experience, demonstrating AARP has the resources and tools to make it easier to manage caregiving STRATEGY •50+ caregivers •AARP email newsletter subscribers • AUDIENCE
  40. 40. Campaign analysis: tactics Caregiving Resource Email Webletter Health News Member Benefits Alert AARPTips Billboard Ads PaidSearch Caregiving Resource Center X X X X X X 8 Rules for New Caregivers X Tools to Help Caregivers Communicate with Health Care Professionals Webinar X X Balancing Work and Caregiving X Caregivers Can Get Paid X Long-Term Care Cost Calculator X Caregiving Community X Drug Interaction Checker X Home Modifications Every Caregiver Should Know Webinar X
  41. 41. Caregiving email results 3% of clicks 10% of clicks 80% of clicks Email 1 Audience: Caregiving model Subject line: Get help caring for those you love Share of clicks: • 80% resource center • 10% living will • 3% webinar
  42. 42. Caregiving email results 4% of clicks 84% of clicks Email 2 Audience: Female boomers (ages 50–64) Subject line: Make taking care of a loved one easier Share of clicks: • 84% resource center • 6% financial help • 4% webinar 6% of clicks
  43. 43. Caregiving email results  Similar open rates  The female boomer audience had a higher CTO What we learned  Resource Center “how-to” guidance generated the most interest  Audience selection impacts the level of engagement (as measured by CTO)
  44. 44. Member Benefit Alert (MBA) monthly newsletter email 34% of clicks 11% of clicks 6% of clicks 2% of clicks 5% of clicks 2% of clicks 5% of clicks Caregiving
  45. 45. MBA newsletter results  While the MBA newsletter had a broader audience, discounts and savings messaging complete with social benefits messaging (including caregiving)  Caregiving accounted for 2% of the total clicks, similar to the Medicare open enrollment webinar
  46. 46. Top 10 caregiving content pages Get paid as a family caregiver (2) Long-term care center Housing options Providing care Legal & financial matters Getting started New caregivers rules Get paid as a family caregiver Balancing work & caregiving Caregiving Resource Center Health News Email #1 2 emails & MBA
  47. 47. Caregiving resource center traffic Visits Page Views Email #1 Email #2 MBA Themed Month Change in visits: +340% Change in page views: +33%
  48. 48. Conclusions from caregiving month  Overall, the caregiving-themed month was judged to be a success: 66% increase in overall traffic  Follow-up testing has focused on targeting and audience selection—relative to the payback from added data costs  AARP views caregiving as an important part of its social mission
  49. 49. Questions on engaging the 50+ audience What types of online and offline engagement with AARP are most meaningful to each 50+ individual?  How does this vary by segment?  How does this vary by generation (e.g., Baby Boomers v. Gen X)?  How does this vary by financial health? How can AARP link online and offline engagement to provide meaningful benefits to each 50+ individual and, over time, build and deepen their relationship with AARP?
  50. 50. Questions on engaging the 50+ audience In engaging the 50+ segment, how does AARP best balance different expectations of the AARP brand?  Social mission/advocacy  Discounts  Information  Insurance & health services What is the best tradeoff in paying for information to increase the accuracy of targeting v. allowing individuals to self-select based on needs and interests?
  51. 51. Questions on engaging the 50+ audience How can AARP best improve member experience and level of engagement?  Personalization  Targeting  Communication frequency  Online/offline mix  Member control of the level and type of communications received  Digital infrastructure for meeting tomorrow’s needs of the 50+ age group
  52. 52. Questions on engaging the 50+ audience How can AARP increase the percentage of members who give AARP permission to engage with them digitally and want AARP to engage with them digitally? What is the role of social media and mobile devices in engaging the 50+ segment?
  53. 53. About American Mint Located near historic Harrisburg, Pennsylvania, American Mint is a leading provider of high- quality collectible coins, knives, die-cast replicas, and other memorabilia. As an international direct mail marketer, American Mint serves millions of serious collectors around the word. American Mint guarantees commitment to quality, product authenticity, and product exclusivity.
  54. 54. American Mint: A tale of non-migration and why
  55. 55. Q&A Download the infopaper: silentmigration For more information: @epsilonmktg