Marketing Alexis Abramson takes aim€¦ · a PhD level, so I am able to get a true sense—from...

The Journal on Active Aging November/December 2014 www.icaa.cc56

Continued on page 58

Alexis Abramson takes aim at marketing to age 50+ consumers

Marketing

This leading industry expert shares information and advice for marketers setting out to target the older-adult market or improve the success of their efforts

by Colin Milner

When 2014 comes to a close, the Baby Boomers—that society-shaping genera-tion born between 1946 and 19641—will all belong to the 50-and-older age group. Leading-edge Boomers will start turn-ing 70 just a year later. This generation of consumers has joined with today’s longer-living older generations to create a demographic representing a wealth of business opportunities for all kinds of companies.

For marketers, a traditionally youth-oriented profession, the 50+ demo-graphic presents challenges as well. Too few marketers fully understand the new landscape. Research by Euromonitor, for example, projects the spending power of adults ages 60 and older to hit US$15 trillion by 2020, an increase of US$7 trillion over 2010 estimates.2 Yet many marketers do not respond to older con-

sumers or pay them little attention. Ac-cording to a 2012 Nielsen report,3 fully 95% of marketing dollars still target the 35-and-under consumer.

Unfortunately, those marketers who do attempt to reach and influence older consumers all too often fail. The 2014 Nielsen Global Survey About Aging re-vealed that more than half of the 30,000 individuals who responded to this poll “[did] not see advertising that reflects older consumers.”4 These findings rein-force the fact that a great many market-ing professionals need to learn more about the 50+ demographic and how to craft authentic portrayals of and effec-tive messages for these consumers.

To help meet this need for education, the International Council on Active Aging® held a one-day symposium called “Marketing: moving beyond the status quo” in conjunction with its 2014 na-tional conference in November. Among those anchoring the symposium was keynote speaker and panel moderator Dr. Alexis Abramson.

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Gerontologist and consultant Dr. Alexis Abramson teaches companies how to attract and retain age 50+ consumers as well as position products and services to be accessible and user-friendly



Alexis Abramson takes aim at marketing to age 50+ consumers Continued from page 56

In her keynote, Abramson discussed how to capture the older-adult, or mature, market through Gerontographics. This segmentation approach, she explained, is based on the premise that the factors that make these consumers more (or less) receptive to marketing offerings are directly related to their needs and life-styles, which are in turn influenced by changing life conditions.

A leading industry expert on those over age 50, Abramson has a PhD in gerontology from the University of Southern California’s Davis School of Gerontology. She is a speaker, blogger, corporate consultant, successful author, and award-winning entrepreneur and journalist. Her commitment to Boom-ers and older adults has been featured in many publications, including TIME, Forbes, Entrepreneur and the Wall Street Journal. The Emmy and Gracie award-winning journalist appears frequently as an on-air expert gerontologist for NBC’s Today show, CNN, CBS, MSNBC and

other media outlets. Abramson is also a featured blogger on websites such as YAHOO!, Huffington Post, Sharecare and Caregiving.com. Her next book, The Ultimate Longevity Guide, will delve into the secrets for a happy, healthy (long) life.

“I am focused on the cutting-edge busi-ness and lifestyle trends that influence the 109 million Americans over the age of 50,”4 Abramson says. “Older people are more active and vibrant than ever before, they’re projected to hold 70% of US disposable income in the next five years,3 and they currently spend upwards of US$3 trillion every year on consumer-related services.2 My job is to teach companies how to attract, and retain, those consumers.” Clients have included such major organizations as AARP, Ar-thritis Foundation, Philips Electronics, AIG, Comcast, Humana, Delta Airlines, American Automobile Association (AAA), Century 21, Kimberly Clark, Walmart and Hyatt.

In our recent interview for the Journal on Active Aging®, Dr. Abramson shared her thoughts with me about how the field of aging has changed, how businesses and marketing professionals are responding to the mature market, what advice she would offer new marketing professionals about older consumers, and what trends and traits are important to organizations that aim to target this market. Check out the discussion below for highlights.

CM: Why did you choose the field of ag-ing? And how has it changed since you first started?

AA: I chose the field of aging early on because I have always felt a kindred spirit towards the older generation. I spent a great deal of time with my grandparents when I was growing up and found my experiences with them to be life-changing. While others were putting the older generation out to


September 21–27, 2014

Active Aging Week 2014 was the campaign’s most successful year ever. Thank you!

Congratulations!

During the last week of September, more than 3,000 events took place across North America, encouraging men and women in the second half of life to “Let the Adventure Begin.” Active Aging Week® hosts showcased a dazzling array of activities to promote full, healthier, and more vibrant living for participants. This year’s campaign also generated the most media coverage to date, helping to spread the message of active aging.

The International Council on Active Aging® congratulates host organizations and sponsors of Active Aging Week® 2014. Thanks to each and every one who supported this year’s campaign. You are making a difference!

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Let the adventure

International Council on Active Aging®

3307 Trutch StreetVancouver, BC, V6L 2T3Toll-free: 866-335-9777Tel: 604-734-4466www.icaa.cc

Partners

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An award-winning journalist, Dr. Alexis Abramson appears as an on-air expert gerontologist for media outlets such as NBC’s Today show, CNN, CBS and MSNBC, among others. Abramson writes, blogs and speaks about cutting-edge business and lifestyle trends affecting age 50+ consumers




pasture and marginalizing their role in our society, I was doing everything I could to learn from their experience and wisdom. I find my work extremely rewarding because, quite frankly, this is still an absolutely untapped market—the opportunities within the field are infi-nite. With the growing demographics and the true “global graying” on the way, those who have chosen to be in the field of aging are ripe for success, both from a personal and professional aspect.

The field of aging has changed dramati-cally since I first started out in the in-dustry many moons ago. As our society continues to age, more and more people are entering the field on all levels—be it healthcare, technology, sales, etc. This in-flux of new blood into the field is positive. But there are also some real challenges associated with the overall growth.

Due to the fact that there are so many noble (and lucrative) opportunities, both from a business-to-business and business-to-consumer standpoint, we are attracting a ton of candidates that lack the experience and education needed to succeed. I’m of the opinion that we need to put some tighter parameters around the field, so that we have high standards and can effectively regulate the sector in an effort to deter unqualified individuals who simply want to make a quick buck.

CM: Are companies responding to the needs, dreams, desires and wants of this market?

AA: It has taken a long time to get or-ganizations to realize that the “silver tsunami” is truly upon us and that the 50+ generation must be paid attention to by governments, private companies, nonprofit organizations, and others. I’ve screamed from the rooftops about the impact of this tremendous demographic paradigm shift and tried to get people to let go of the myths associated with aging and fully embrace their own futures. So many companies just want to put this

whole segment of society on the back burner. I’ve worked for decades to get businesses and individuals to under-stand—if for no other reason than the financial impact—that this is a viable segment that folks need to stop sidelin-ing and start empowering.

Businesses, foundations and agencies in a wide variety of industries (including fashion, fitness, travel, healthcare, trans-portation, retail, automobile, relation-ship and real estate) need to be prepared to offer the services demanded by this growing population, which is already outspending other generations by an estimated US$400 billion each year on consumer goods and services.6 So even while the escalating number of retired adults may begin to strain government resources, they will provide enormous money-making opportunities for those who are offering products and services that are geared toward 50+ individuals.

CM: If I were just starting in the field of marketing, what advice would you offer me about the older consumer?

AA: My number one piece of advice is to never put the entire 50+ market into one bucket from a marketing stand-point—you must fully understand the various cohorts within this large sector. The 50+ are absolutely not a homoge-nous group, and they prefer not to be treated as one.

Whole generations of people who are re-tiring find themselves enjoying all kinds of adventurous activities that would have seemed atypical in the past. Older people are often active; they want to explore, learn new things, start new busi-nesses, support new organizations. And even though they may not actually do all the things they dream about doing, they want to know the possibility is there and the products and services are available.

Members of the mature market are expe-riencing what I like to refer to as the 30

Bonus Years™. These are the additional “bonus” or “gifted” years that we now have the luxury to enjoy as we grow older. Due mainly to technology and medical breakthroughs, the average life expectancy went from 47 in the 1900s to 77 and beyond today.7 Now that we will be living much longer, the 50+ popula-tion is not willing to just step aside and be forgotten.

The key to working as a marketer in the field of aging is most definitely pas-sion. But the nice thing is that due to the growing demand, you can turn your passion into profit—if you just know how! In order to be successful, you need to take the time to really study the 50+ market. So many organizations and individuals have jumped on the “geron-tology bandwagon” in the last few years without truly taking the time to get to know the 50+ market. That’s why there are so many “fits and starts” in the industry.

I studied the field of gerontology on a PhD level, so I am able to get a true sense—from both quantitative and qual-itative standpoints—about how to trans-late current industry-related research into action and therefore disrupt dated perceptions about the mature market.


Resources

Alexis Abramson’s website: www.alexisabramson.com

Facebook: facebook.com/dralexisabramson

LinkedIn: linkedin.com/in/alexisabramson

Twitter: @alexisabramson

DESIGN CHALLENGE GOALS• Create well-designed solutions that address key issues associated with aging• Encourage a new generation of students to become knowledgeable on aging issues• Provide promising designers with a path to drive change in the world

WHY MOBILITY?• Fitness and movement are integral to independence and wellness.• Physical activity is an important factor in maintaining health, especially for those over 50. Despite this:

• Only 48% of adults meet aerobic activity guidelines• Only 24% of adults meet resistance exercise guidelines

• A well-established link exists between exercise and chronic disease reduction • Nearly 50% of people starting on a new exercise program give up within the first month and 25% stop within 3 months.• 79% of Americans believe they should walk more, but 40% say they do not do so because their neighborhoods do not have nearby services, shops, schools, and workplaces.

DESIGN SOLUTIONS SHOULD• Reduce sedentary lifestyles• Encourage and enable physical movement and exercise• Reduce barriers to mobility in the home and in the community

SPONSOR THE CHALLENGEPlease contact Ken Smith at [email protected] or Lauren Grieco at [email protected].

PLATINUM SPONSOR ($50k +) • All benefits as per Gold Sponsor (below) • Online and offline branding and Platinum Sponsor recognition • Strategic partner in creating the structure of the challenge

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ABOUT THE STANFORD CENTER ON LONGEVITY The mission of the Stanford Center on Longevity is to redesign long life. The Center studies the nature and development of the human life span, looking for innovative ways to use science and technology to solve the problems of people over 50 by improving the well-being of people of all ages.

AGING 2.0Aging 2.0 is a global network of innovators in the aging space, with the mission to accelerate innovation for the 50+market and improve the lives of older adults around the world.

D E S I G N C H A L L E N G E

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CM: What successes were achieved by fol-lowing your advice? Did these transform your marketing efforts, or the efforts of your clients?

AA: Over the years my consulting work has influenced the media, corporate and nonprofit industries to create positive change for businesses and consumers alike. Some of my wins include:

• servingastheconsumerexpert/spokesperson for the Humana Walmart-PreferredRxPlaninitia-

tive and helping to raise awareness about all of the benefits it offers

• strategizingwiththeDeltaAirlinesmarketing and branding teams on the developmentoftheDeltafrequentflyer program for mature adults and consequentlyhelpingthemproduce

abusinessplanandmarketing/ad-vertising collateral related to the

program• assistinginthedevelopment,launch,

implementation and promotion of the Bank of Montreal enCircle® care-giving initiative

• workingcloselywiththeSubway®restaurant chains marketing team to create original concepts in an effort to help them appeal to and capture the Baby Boomer demographic

• helpingtheArthritisFoundationstaffcreatean“Arthritis-Friendly”productselection for their website

I’ve been fortunate throughout my ca-reertoalignwithorganizationsthatarenotonlyexcitedabouttheopportunitieswithin this vast 50+ segment, but that also truly understand the need to fully capitalizeinitiativesthatwillleadtoasubstantial return on their investment.

CM: What traits lead to an organization succeeding with the older consumer?

AA:ThesizeandbuyingpoweroftheBoomer and older-adult demograph-ics are staggering, but for some reason many companies mistakenly under-

estimate today’s mature market. With 77% of the current wealth in the United States being controlled by older adults, this market is clearly a viable target.8 If companies want to reach this demo-graphic, they need to understand how andwhytheseconsumersbuyand/or use specific services. Marketing to Boomers, and older adults, involves es-tablishing a relationship, building trust, and providing opportunities for growth, learning and interaction.

Techniquesin50+sales,marketingand advertising continue to evolve and changerapidly.Organizationsmustputtheir business intelligence to work here andask:AreBoomersandolderadultsincluded as prospective customers in our vertical markets? Companies that ignore these generations do so at their own peril.ThesebusinessesmustrecognizethatasAmericansareaging,theyareac-cumulating wealth, and their spending is growing at a pace that’s leaving younger generations far behind. Companies need to be prepared for a rough ride over the next20yearsiftheyhaveaserviceorproduct that might appeal to the 50+ consumer but don’t have a strategy for making their offering relevant to this group.

CM: What three aging trends do those in the field of marketing need to know about?

AA: Longevity: Older people comprise approximately13%oftheAmericanpopulation today.9 But by the middle of thenewcentury,morethan20%ofthepopulation will be over 65, and 5% will be over 85.9Beyondtheextensionofthehuman life span, and the likelihood of relatively good health during the later decades of life, there is another impor-tant demographic phenomenon: the so-called“bonusyears.”Notonlyarewegaining years at the end of our lives, but we are also gaining healthy, productive yearsinoursixth,seventhoreighthde-cades. Unfortunately, we do not yet have blueprintsorexpectationsforhowthese

years might be spent. The new “bonus years”challengeusall—aspolicy-makers,professionalsandindividuals—toreconsiderlearning,work,self-ex-pression and service, and to try out new paths for growth in the later years.

Aging in place: Tomorrow’s mature popu-lation will differ from those of past de-cades. They will enjoy longer lives, better health and more active lifestyles than pre-vious generations. Still, the overwhelm-ing majority will also face that growing and continuous challenge: maintaining their precious independence.

AccordingtoAARP,9outof10olderadults stay where they currently live upon retirement, preferring to grow old in their own homes.10 But success-ful“aginginplace”demandsthatone’shome and household products provide continued enjoyment and stimulation, as well as support declining function andenhancequalityoflife.Refusingtobestigmatizedbylivingina“homefortheaged”orusing“elderlyproducts,”aging Boomers will seek out designs that accommodate rather than discriminate, sympathizeratherthanstigmatize,andappeal to users of all ages and abilities.

Financial: The fact that people are now living longer is desirable and has im-proved individual welfare. However, there are financial costs of longer life expectancy—forgovernmentsthroughemployee retirement plans and social security schemes, for corporate employ-ers with defined-benefit pension plans, for insurers that sell annuities, and for individuals without guaranteed retire-ment benefits. The financial implications ofpeoplelivinglongerthanexpected(theso-called“longevityrisk”)arelarge.Thingswillgetmoreexpensive.Evenifinflationaveragesabout3%peryear,the cost of living will double in just 23years.11

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CM: What’s next for Alexis Abramson?

AA: At the moment, I’m immersed in delivering keynote speeches, serv-ing as a spokesperson for products and services geared to the 50+ consumer, and consulting with corporate clients as they create plans to properly position themselves to embrace the 50+ market segment.

I’m helping my clients understand the significant impact that longevity will have on their businesses (and their bot-tom line). Consumers now have this whole new “segment” of their lives to figure out what to do with and how to plan for going forward. Most of us will be experiencing many different transi-tions, good and bad, during this time period—widowhood, second careers, going back to school, new relationships, following our passions, reinventing ourselves, grandparenting, divorce, new hobbies, spirituality, chronic conditions, recovery, second families, and more. Basically we will recognize a “new life stage.” Instead of the traditional bell curve (young, middle age, old age), we will have childhood, adulthood, new life stage (a.k.a. “30 Bonus Years”), retire-ment, and old age.

I’m determined to help organizations reach and capture these “longevity” customers. To explore and answer ques-tions such as: What kinds of products and services need to be developed to facilitate these additional years? What does research tell us will allow us to live as healthy, happy, wealthy and wise as possible during this new life stage? What are the cutting-edge 50+ business and lifestyle trends? And how do we effec-tively market and position products and services with the bonus years in mind?

Responding to the marketFor marketers that aim to enter the ma-ture market or to improve on current efforts, questions abound about how to reach and appeal effectively to age 50+

consumers. How do these professionals create messages that resonate with this market? Success comes with becoming more knowledgeable about older adults; understanding the incredible diversity of this market and the needs, dreams, desires, hopes, abilities and expectations of consumers; crafting messages that speak to these realities; and reflecting authentic portrayals of this life stage.

Questions about marketing go hand-in-hand with larger questions about how companies respond to the age 50+ demographic, as Dr. Abramson suggests. Immense opportunities await those that recognize the mature market constitutes not just a viable, but also a desirable, tar-get—one with more disposable income,3 net worth12 and spending power3 than younger generations. This market also reflects every facet of the wide-ranging and changing experiences of aging today. Companies that make these con-sumers a priority will reap the benefits for decades to come.

Colin Milner is chief executive officer of the International Council on Active Aging®.

References

1. The Intergenerational Center at Temple Uni-versity. Capturing Experience: How People 50+ Can Help Your Organization. Module 1: People 50+: One Size Doesn’t Fit All. Re-trieved on November 7, 2014, from http://cil.templecil.org/node/3.

2. Boyle, M. (2013, September 17). Why Com-panies Are Failing to Cash In on Flood of Aging Baby Boomers Worth US$15 Trillion. Retrieved on November 8, 2014, from http://business.financialpost.com/2013/09/17/

why-marketers-are-still-struggling-to-cash- in-on-flood-of-aging-baby-boomers-worth-

us15-trillion.

3. Nielsen. (2012). Introducing Boomers: Mar-keting’s Most Valuable Generation. Available at http://www.nielsen.com/us/en/insights/reports/2012/introducing-boomers--

marketing-s-most-valuable-generation.html.

4. Nielsen. (2014, February 25). Press release: Nielsen: Global Consumers Highlight Op-portunities for Retailers, Brand Marketers

and Service Providers to Better Meet Needs of Aging Consumers. Retrieved on November 8, 2014, from http://www.nielsen.com/us/en/press-room/2014/nielsen-global-consumers-highlight-opportunities-for-retailers-brand-marketers-and-service-providers-to-better-meet-needs-of-aging-consumers.html.

5. Annual Estimates of the Resident Population by Single Year of Age and Sex for the United States: April 1, 2010 to July 1, 2012. United States Census Bureau, Population Division, June 2013. Available at http://factfinder2.census.gov/faces/tableservices/jsf/pages/

productview.xhtml?src=bkmk.

6. US Government Consumer Expenditure Sur-vey, 2013. United States Department of Labor, Bureau of Labor Statistics. Available at http://www.bls.gov/cex.

7. Manton, K. G. (2007). Life expectancy. In J. E. Birren (Ed.), Encylopedia of Gerontology, 2nd ed., vol. 2, pp. 61–67. Oxford, UK: Elsevier.

8. Moody, H. R., & Sasser, J. R. (2014). Aging: Concepts and Controversies, 8th ed. Thousand Oaks, CA: SAGE Publications.

9. Jacobsen, L. A., Kent, M., Lee, M., & Mather, M. (2011). “America’s Aging Population.” Population Bulletin, 66(1). For permission to reproduce portions from the Population Bul-letin, write to Population Reference Bureau, Attn: Permissions; or email: [email protected].

10. Farber, S., Shinkle, D., et al. (2011). Aging in Place: A State Survey of Livability Policies and Practices. Published jointly by the AARP Pub-lic Policy Institute and the National Confer-ence of State Legislatures (NCSL). Available

at http://www.aarp.org/home-garden/livable-communities/info-11-2011/Aging-

In-Place.html.

11. Pfau, W. (2014, March 18). Retirement Risks: It All Starts With Longevity. Available at http://www.forbes.com.

12. Fry, R., Cohn, D., Livingston, G., & Taylor, P. (2011). The Rising Age Gap in Economic Well-Being. Pew Research Center Social and Demographic Trends. Retrieved on November 8, 2014, from http://www.pewsocialtrends.org/2011/11/07/the-rising-age-gap-in-

economic-well-being.

Images courtesy of Dr. Alexis Abramson

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Marketing Alexis Abramson takes aim€¦ · a PhD level, so I am able to get a true sense—from...

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