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

email: lori.bitter@continuumcrew.com

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