How to market to the over-50s - The Marketer magazine

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How to...

market to the over-50s

The have-it-all, baby boomer generation has more money at its disposal than any other demographic. So how best to get them to spend it? Move over the old image of the penniless pensioner. These days even the most youth-obsessed marketer is likely to be at least dimly aware of the grey pounds power if only because the statistics are staggering. In the UK, over-50s, now accounting for nearly half of all adults, hold around 80 per cent of the nations personal wealth. That represents a 50 per cent increase in wealth for the 50-plus age bracket over the past five years, according to figures from Abbey. Yet the over-50s feel ignored by marketers. A 2002 survey of 2,000 people carried out by Millennium, a consultancy specialising in the mature market, showed that 86 per cent of consumers over 50 dont relate to the marketing they see. An Age Concern study How Ageist is Britain? in 2004 released similar figures. And when oldies are not being ignored they are often being patronised. The Age Concern report found that two-thirds of elderly consumers feel that advertising portrays them negatively. Jane Silk of agency Mature Marketing says she recalls a conference not so long ago where over-50s were wheeled out to be quizzed by young marketers with questions such as have you heard of the internet?. Marketing literature was in the habit of addressing all over-50s as elderly, she says. Emma Reid, formerly of Saga, now running Grey Sells consultancy, talks of Miss Marple stereotypes and an excessive reliance on the actress June Whitfield as the face of the 50-plus. Hitting the wrong buttons The blame for this state of affairs is typically levelled at the relative youth of the average marketing professional and their supposed inability to empathise with the target audience. Last years Institute of Practitioners in Advertising (IPA) census of agencies found the average age of media agency staffers to be 31, with only 3 per cent aged 50 or above. But Dick Stroud, managing director of 20plus30 consultancy and The Institutes tutor on marketing to the over-50s says it is simplistic to assume that young marketers cant successfully relate to an older audience. The greater problem is that agencies are driven by clients, and clients take a head-in-the-sand approach, says Stroud. Ingrained prejudices also create barriers to success. There is a misconception that over-50s are brand loyal and wont shift, says Fiona Hought, managing director at Millennium. But in our research we found them as willing as the next consumer to try new products and services. Millenniums research has indicated, for example, that two-thirds of over-50s would switch motor or home insurance for 50 or less. A 2005 study by OMD Insight found a high uptake of new technology among over-50s, indicating a willingness to try new products. Over-50s usage of broadband increased from 10 to 38 per cent between 2003 an 2005, while 25 per cent changed internet service provider in the past three years rising to 46 per cent for the most adventurous of OMDs seven segments. Use of digital cameras among the over-50s rose from 29 to 57 per cent in the same time period. Andy Snuggs, managing director at Geronimo, agrees with Hought. His clients include car purchase scheme Motability, and Direct Line financial products aimed at the 50-plus age group. He says experience with the insurance market has

"for the silver surfer. affluence is a far better predictor of net useage than age"

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How to market to the over-50s - The Marketer magazine

http://www.themarketer.co.uk/articles/how-to/how-to-market-to-the-ov...

taught him that over-50s are likely to buy insurance from their mortgage provider. Once their mortgage is paid, however, they will shop around, quite happy to switch brands. Winning ways So, if the cash and appetite for new products is there, how should marketers tap in? Unfortunately there is no silver bullet for hunting the grey pound, but there are traps to avoid. Referring to the target audience as old, or pensioners are absolute non-starters. Millenniums research shows mature is the preferred term. Marketers need to take extra care with spelling and grammar in promotional materials. This age group, educated at a time when heavy emphasis was placed on these subjects, is unforgiving of error, says Silk. Likewise, informality can often strike the wrong chord. But perhaps most important of all, the over-50s just do not see themselves as part of an age group, says Jackie Wyatt, head of marketing at Age Concern Enterprises. Andy Snuggs explains why: If somebodys 53 and theyre suddenly labelled as in the same groups as their mother, whos 73, they dont tend to like it. Numerically, baby boomers represent less than a half of the total over-50 age group, but have greater spending power than their older counterparts. Campaigns addressing 50-pluses need to be clear on which segment they are targeting, says Hought. You can easily put a marketing campaign out to the over-50 market and fail miserably because you havent picked the people with the cash. This complicates efforts at a broad appeal: nostalgia, particularly memories of World War II, can be a powerful force for this generation but should be used selectively, says Reid. Take music, which can be a defining factor for many 50-pluses. Whats nostalgia to a fan of 1940s big band is very different to nostalgia for a Rolling Stones fan, she says. Attempts to appeal to the whole demographic group with senior club incentive schemes frequently fall flat for this reason, Reid warns. A special case? Given that the group is so large and disparate, many experts advocate ignoring age altogether. In the distant past you could say that age would mean a consumer would buy X, Y or Z, but now its a poor way to predict consumer behaviour, says Stroud. Look at car advertising: its predominantly aimed at a young market, but nearly 60 per cent of all car purchases are made by over-50s. Age-neutral campaigns are the way forward, Stroud argues. Of course there are certain products that the over-50s are especially likely to buy: financial services, for example, and holidays. Surprisingly, the over-50s also represent the fastest-growing segment for volunteer holidays and the youth hostel sector, as well as the second-fastest growing for round the world trips, says Hought. Over-50s take over a third more holidays than younger age groups. And its easy to forget that over-50s often influence other, less obvious purchases they buy 25 per cent of all toys, for example. When it comes to the much heralded silver surfer the picture is complex. Ultimately, says Stroud, affluence is a far better predictor of net usage than age, and statistics can easily give the wrong impression. While only 16 per cent of over-65s are connected, this 16 per cent spend more time online than any other age group. And the most affluent group of over-50s use the internet more than any less affluent segment in any other age group. Despite the difference within the demographic, certain marketing tools are

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How to market to the over-50s - The Marketer magazine

http://www.themarketer.co.uk/articles/how-to/how-to-market-to-the-ov...

effective across the age range. A willingness to read more copy means that direct marketing tends to hit home with this group, says Hought. Over-50s are also more likely to try products offered as part of an in-store promotion and go on to buy them. Jacqui Wyatt cites the importance of word of mouth recommendation. About 50 per cent of our product sales come from personal recommendation, and another thing we find with our customer base is the importance of face-to-face contact. Yet one notorious quality of this age group is their cynicism towards marketing. Theyre aware that marketing is often trying to sell something. They are a little more streetwise to what were trying to do, says Snuggs. So we need to be more transparent and give them more information. Ladies first The over-50 demographic is a predominantly female group: women outnumber men, particularly over the age of 75. Widowhood is a marketing opportunity that a lot of financial services companies have missed, Emma Reid believes. Many widows find that all their lives, their husbands have looked after the finances. After their husband dies there is nobody to help them except for charities. Those marketers who have seen the silver light and want to chase that grey pound need to seize the opportunity now. The baby boomer generation has been compared to a pig moving through a python. When they are gone, the UKs pensions crisis means a much poorer generation of 50-pluses will be left in their wake. In two decades time there is going to be a large group of 50-pluses who will face significant hardship during their retirement. The image is soon going to move back towards the penniless pensioner, says Stroud. So marketers will need to move fast if theyre to earn enough money from the baby boomers to save for their own retirement.

Case study: Grown-up holidays

A post-war success story, Warner Hotels exemplified the all together spirit of the Blitz, where a sociable generation of families gathered in large groups to enjoy traditional British holidays. But more than a decade ago the company began to lose its appeal with a new generation of holidaymakers who travelled overseas and saw Warner as old fashioned. Repositioning the brand 10 years ago, Warners scored a big hit with 50-pluses. But the chains very success among the retired was a turn-off for younger customers. The company realised that it had made a mistake by treating the over-50 market as one single market, says Warner director of marketing Ken Johnston. The company decided to target more affluent empty nesters within the 50-plus market. Research showed they loved to go to hotels, but preferred an environment without children. It introduced a range of experience breaks where people could do everything from learning languages to quad biking in small groups. At the same time, the group cleverly avoided overtly targeting the mature market by referring to breaks for adults in advertising copy. While much of the campaign focused on the internet, the group continued with a cross-media presence in order to maintain trust in the brand, sponsoring HTV show The Palace. The internet is not the be all and end all, says Johnston. As a result of its more targeted approach the company has just enjoyed its most successful year ever and believes it can boast the highest occupancy rate of any major hotel chain. But Johnston is not complacent: We know that in five or 10 years time the market will have changed and weve geared our

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How to market to the over-50s - The Marketer magazine

http://www.themarketer.co.uk/articles/how-to/how-to-market-to-the-ov...

organisation to continually ask if we are doing the right thing. Andy Allen is a freelance writer for titles including Campaign

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