The Silent Migration

The Silent Migration 6 insights into engaging seniors in the online space

Rob Reger,SVP, Data Solutions

Epsilon

Kevin SacherPresident

American Mint

Trish MatheVP, Database

MarketingLife Line Screening

Steve SchlumpfSVP, Marketing

Haband

Denis McSweeneyDirector 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

Abacus Cooper-ative Average

50-65 Year Olds 66+ Year Olds 0%

10%

20%

30%

40%

50%

60%

70%

80%

47% 43% 70%53% 57% 30%

2010 trends OfflineOnline



10%

20%

30%

40%

50%

60%

70%

80%

42% 40% 68%58% 60% 32%




10%

20%

30%

40%

50%

60%

70%

80%

40% 38% 67%60% 62% 33%




10%

20%

30%

40%

50%

60%

70%

37% 35% 66%63% 65% 34%


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 differentlyInsight 2: Seniors do not all behave equally

overall purchase behavior

2011 2012 20130%

2%

4%

6%

8%

10%

12%

14%

16%

18% Abacus Cooperative Overall

$ Trans HHsAOV $/HH Trans/HH

2011 2012 20130%2%4%6%8%

10%12%14%16%18%20% 50-65 Year Olds


2011 2012 20130%

2%

4%

6%

8%

10%

12%

14% 66+ Year Olds


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

50-65 Year Olds 66+ Year Olds0%

10%

20%

30%

40%

50%

60%

2010201120122013

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

Insight 5: Capitalize on data trends for 66+ year olds when targeting online offers

Insight 6: Let data drive your senior targeted segmentation strategy

SENIORS 50+OFFER | LIST | CREATIVE

BEFORE

Prospecting segmentation!

AFTER

Case in pointKevin Sacher

PresidentAmerican Mint

Trish MatheVP, Database

MarketingLife Line Screening

Steve SchlumpfSVP, Marketing

Haband

Denis McSweeneyDirector 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 age1

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 CustAge % 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

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 marketing4

Checklist for increasing online demand penetration

GET THE RECIPIES

shown here atwilliams-

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.

Screening process: The patient experience

• 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

Campaign analysis: tactics

Caregiving Resource

Email

Web

letter

Health News

Membe

r Benefits Aler

t

AARP

Tips

Billboard

Ads

Paid Search

Caregiving Resource Center X X X X X X

8 Rules for New Caregivers XTools to Help Caregivers Communicate with Health Care Professionals Webinar X X

Balancing Work and Caregiving XCaregivers Can Get Paid XLong-Term Care Cost Calculator XCaregiving Community XDrug Interaction Checker XHome 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


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


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

VisitsPage 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?


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?


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


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&ADownload the infopaper:

www.retailcmo.com/premium/silent-migration

For more information: [email protected]

www.epsilon.com@epsilonmktg

The Silent Migration

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