The Silent Migration


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  • % of households with online purchase activityMay 1 2009 to April 30 2010May 1 2010 to April 30 2011May 1 2011 to April 30 2012May 1 2012 to April 30 2013
  • The Silent Migration

    1. 1. The Silent Migration 6 insights into engaging seniors in the online space Rob Reger, SVP, Data Solutions Epsilon Steve Schlumpf SVP, Marketing Haband Trish Mathe VP, Database Marketing Life Line Screening Denis McSweeney Director BS&A AARP Kevin Sacher President American Mint
    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 channeland 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. The shift in channel preference 80% 2010 trends 80% Online 70% Offline 2011 trends 70% 60% 50% 40% 40% 30% 30% 20% Online 60% 50% Offline 20% 10% 47% 53% 43% 57% 70% 30% 0% 42% 58% 40% 60% 68% 32% 0% Abacus Cooperative 50-65 Year Olds Average 80% 10% 2012 trends 66+ Year Olds Abacus Cooperative 50-65 Year Olds Average 70% Online 70% Offline 2013 trends 60% 60% 66+ Year Olds Offline Online 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 40% 60% 38% 62% 67% 33% 0% 37% 63% 35% 65% 66% 34% 0% Abacus Cooperative 50-65 Year Olds Average 66+ Year Olds Abacus Cooperative 50-65 Year Olds Average 66+ Year Olds
    6. 6. Insight 2: Seniors do not all behave equally 55 to 65 and 66+ engage differently  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
    7. 7. overall purchase behavior 18% Abacus Cooperative Overall 16% 20% 50-65 Year Olds 18% 16% 14% 14% 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% 2011 $ 2012 Trans 14% HHs AOV 2013 $/HH Trans/HH 66+ Year Olds 12% 10% 8% 6% 4% 2% 0% 2011 $ Trans 2012 HHs AOV 2013 $/HH Trans/HH 2011 $ Trans 2012 HHs AOV 2013 $/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. Insight 3: Segmenting your seniors is a good idea 55–65  Boomers entering this category  More online savvy  More credit affinity 66+  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
    9. 9. Insight 4: Senior online purchase behavior is increasing! 60% 50% 40% 2010 30% 2011 20% 2012 2013 10% 0% 50-65 Year Olds 66+ Year Olds  Both age groups are comfortable online, showing growth each year  The % of households converting online is accelerating in the most recent 12 months
    10. 10. Insight 5: Capitalize on data trends for 50–65 year olds when targeting online offers 2% growth 0% growth Arts & crafts Tools & electronics Collectibles Backyard gardening Positive growth Children’s apparel Fundraising Health & wellness Home décor Media Sports Active wear & outdoor Gifts –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 Negative fluctuations Gifts Arts & crafts Health & wellness Collectibles Home décor Fundraising Senior products Garden & backyard Sports Active wear Outdoor
    12. 12. Insight 6: Let data drive your senior targeted segmentation strategy BEFORE SENIORS 50+ AFTER 50–65 50–65 66+ 66+ 70+ Active purch in C Active purch in D Active purch in E OFFER | LIST | CREATIVE Active purch in A Active purch in B Lifestyle A Lifestyle B High $ Low $ Prospecting segmentation!
    13. 13. Case in point Steve Schlumpf SVP, Marketing Haband Trish Mathe VP, Database Marketing Life Line Screening Denis McSweeney Director BS&A AARP Kevin Sacher President American Mint
    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 1 Break out your senior group by age 2 Show what items are selling best to the different groups 3 Generate data regarding what is being bought by your customers 4 Cater your marketing
    16. 16. 1 Break out your seniors by age 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! 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% 100% 100% 100% Total
    17. 17. 2 Research which items are selling the best to different age groups Break out product purchases by age group Find the % of the demand 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 Compare the differences of each individual age group and their purchases Consider doing this age analysis by style and merchandise categories Show the differences to the marketing, merchandise, and creative departments
    18. 18. 3 Analyze data to learn what is being bought by customers in the age group segments Lifestyle differences Order incentives Sweepstakes Continuity
    19. 19. 4 Cater your marketing Copy is important Use relevant headlines Remember, members of this group are readers!
    20. 20. Checklist for increasing online demand penetration 1 2 3 4 5 6 7 8 • Increased order incentives • Make a benefit slogan the feature of your advertising • Be specific about benefits (e.g., more SKUs, faster shipping, more clearance, etc.) • Utilize targeted alternation if seniors are responding better to a specific item or copy • Seek out partners and drop ship programs that offer other items that your seniors want • Seniors are especially active in the fundraising area, so use your company’s activities to generate content for blog posts or in print • Gather email addresses! Incentivize phone operators and include in print advertising. • Use some catalog space to promote online as a special information source
    21. 21. GET THE RECIPIES shown here at
    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. Who we are • 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. Why screen? • 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. Solution • Preventative screenings • Life Line Screening, Inc. screens over 1 million people annually on 3 continents and holds over 20,000 screening events each year.
    24. 24. Screening process: The patient experience Screening scheduled • By phone or online Participant screened • • At a local venue (church, community center, etc.) Results reviewed by a board-certified physician Results letter mailed • • • 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%  Overtwo-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 Informationis 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 OBJECTIVE • Increase engagements: as defined by page views to the caregiving content of during a one-month period STRATEGY • Execute a consistent, integrated member experience, demonstrating AARP has the resources and tools to make it easier to manage caregiving AUDIENCE • 50+ caregivers • AARP email newsletter subscribers •
    40. 40. X X X Balancing Work and Caregiving 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 Paid Search X X 8 Rules for New Caregivers Tools to Help Caregivers Communicate with Health Care Professionals Webinar X Billboard Ads X AARP Tips Caregiving Resource Center Health News Member Benefits Caregiving Resource Web letter Email Campaign analysis: tactics X X X
    41. 41. Caregiving email results Email 1 Audience: Caregiving model Subject line: Get help caring for those you love 80% of clicks Share of clicks: • 80% resource center • 10% living will • 3% webinar 3% of clicks 10% of clicks
    42. 42. Caregiving email results Email 2 Audience: Female boomers (ages 50–64) Subject line: Make taking care of a loved one easier 84% of clicks 4% of clicks 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 2% of clicks 6% of clicks Caregiving 11% of clicks 2% of clicks 34% of clicks 5% of clicks 5% of clicks
    45. 45. MBA newsletter results  While the MBA newsletter had a broader audience, discounts and savings messaging completewith 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 Caregiving Resource Center Balancing work & caregiving 2 emails & MBA Get paid as a family caregiver New caregivers rules Health News Getting started Legal & financial matters Providing care Housing options Long-term care center Get paid as a family caregiver (2) Email #1
    47. 47. Caregiving resource center traffic Visits Page Views Email #2 Change in visits: Email #1 +340% MBA Change in page views: +33% Themed Month
    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 wantAARP 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: silent-migration For more information: @epsilonmktg