the silent migration
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TRANSCRIPT
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
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?
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?
Trends in online & offline senior shopping behavior
47% 43% 70% 53% 57% 30% 0%
10%
20%
30%
40%
50%
60%
70%
80%
Abacus CooperativeAverage
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 CooperativeAverage
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 CooperativeAverage
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 CooperativeAverage
50-65 Year Olds 66+ Year Olds
2013 trends Offline
Online
The shift in channel preference
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
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
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
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!
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
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
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
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
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.
4 steps to understanding your senior buyers
Break out your senior group by age 1
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
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
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
Analyze data to learn what is being bought by customers in the age group segments
3
Lifestyle differences
Order incentives
Sweepstakes
Continuity
Cater your marketing 4
Copy is important
Use relevant headlines
Remember, members of this group are readers!
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
GET THE RECIPIES
shown here at williams-
sonomoa.com
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.
• 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.
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
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
Focus on longevity & healthy living
Community advocates
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.
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.
Content that engages users
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.
Personal pages
Engagement & usage
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.
Caregiving-themed month campaign results
Overview
1. Caregiving facts
2. Campaign analysis
3. Questions on engaging the 50+ audience
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
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
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
Campaign analysis: Caregiving themed month
• Increase engagements: as defined by page views to the caregiving content of aarp.org 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
• aarp.org AUDIENCE
Campaign analysis: tactics
Caregiving Resource
Emai
l
Web
lett
er
Hea
lth
N
ews
Mem
ber
B
enef
its
Ale
rt
AA
RP
Tip
s
Bill
bo
ard
A
ds
Paid
Sea
rch
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
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
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
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)
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
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
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
Caregiving resource center traffic
Visits
Page Views
Email #1
Email #2
MBA
Themed Month
Change in visits:
+340% Change in page views:
+33%
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
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?
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?
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
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?
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.
American Mint: A tale of non-migration and why
Q&A Download the infopaper:
www.epsilon.com/ silentmigration
For more information:
www.epsilon.com @epsilonmktg