MARKETING TO

BABY BOOMERS HOW TO REACH THE GAME-CHANGING GENERATION OF AGING INFLUENCERS

Woloshin Communications, Inc. NO HYPE - JUST HELP Mara Woloshin, M.A., APR, Fellow Public Relations Society of America

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BABY BOOMERS

Outcomes  Learn the demographic characteristics of the American Boomer  Learn the economic realities of the American Boomer  Learn why different campaigns must be niched for different targeted audiences  Boomer beliefs versus realities this population faces

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Part II, Marketing to Baby Boomers  Understand the “Aging-In” Boomer  Before you get started, infrastructure review  Understand the best tools and tactics for your marketing and outreach campaigns  Identify and leverage the best marketing tools based on your budget

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Why and how to use data for your campaign  Captures comprehensive and historical information  How to use existing information (fast and free, primary + secondary sources)

 Tools you can use it RIGHT NOW  Please try this at home (okay, your desk)

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Methodology used for this report  Analysis of national data – primary from four health plans (115,000 MA participants) 2012  Boots-on-the ground annual qualitative research primary studies (12,000+ MA+ Aging ins) 2012 – 2015 CareOregon Advantage  Lifestyle and trend analysis  SRI values, attitudes & lifestyles survey  Health and Human Services data 2012- 2015 (San Diego sample)  Secondary sources

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

The Generations The Silent Generation

Baby Boomers

Gen X-ers

Millennials

1920 - 1944

1945 – 1964

1965 – 1980

1981 – 1991

65 – 89 years

45 – 64 years

29 – 44 years

18 – 28 years

Source: CMS

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Marketing to Baby Boomers  Historical considerations  Geographic considerations  Ethic consideration  Economic realities  Aging into Medicare  Communication tactics  Marketing take-aways

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Understand these Boomer milestones  Born 1946 – 1964  The Kennedy years  The Vietnam War  Immigration  The Summer of Love & grassroots organization  The power of the group AND the individual

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Legislative milestones  Medicare signed into law 1965  Cost of Living Adjustment (COLA) payments begin 1975  National Retirement Age (NRA) increased to 67 in 1983  First year of no COLA 2009 (is currently paid, but very small)

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Boomer challenges  The leopard can’t really change spots  Largest consumer force in the US  Lifestyle, economics + ethic origins  Geographic considerations  Recession of 2008 & 2009  1968 perceptions vs. reality

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Boomer trends  76 million boomer births, 11 million died as of 2012, 65.2 remain  13% of Americans are ages 65 and older  10,000 baby boomers will reach age 65 everyday till 2030  The aging of this huge cohort of Americans (26% of the total U.S. population are Baby Boomers) will change the composition of the country  By 2030, 18% of the nation will be at least that age, according to Pew Research Center population projections

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Population Shift: Pyramid Model Change U.S. population by age group, 1950-2060

Source: Pew Research Center

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

The next America Changing Face of America Percent of total U.S. population by race and ethnicity, 1690-2060

Source: Pew Research Center

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

The next America Interracial Marriage Grows Percent of new marriages with spouses of different races

Source: Pew Research Center

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Boomer aging - in millions 65+ U.S. Population over 65 years old

Source: U.S. Census data

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Boomer cultural values  Use of technology  Want things “their way”  Buy now… save money?  Active and knowledgeable consumers  Diversity  12/2030  Dylan (Thomas)

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Boomers + Technology Internet and broadband adoption rates among seniors are steadily increasing.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Use of technology

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Boomers + Technology Certain portions of the senior population have internet and broadband adoption rates that are equal to—or in some cases greater than—rates among the general public. Three particular types of seniors tend to stand out in this regard:  Mid-to late-60s—74% of seniors in the 65-69 age group go online, and 65% have broadband at home.  Higher-income seniors—Among seniors with an annual household income of $75,000 or more, fully 90% go online and 82% have broadband at home.  College graduates—87% of seniors with a college degree go online, and 76% are broadband adopters.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Boomers “Usage and Adoption”

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Want things “their” way

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Want things “their” way  The 76 million babies born post-WWII played an important role in the social change during the 1960s.  This population spent more years in school and were more affluent than previous generations.  Nearly 3 out of 4 students finished high school, and about half of those students went on to college.  For the first time in history, the US had a population that organized and the freedom to question the moral and spiritual health of the nation.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Active consumers

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Active consumers  Baby Boomers and Seniors are still a Powerful Market Force  78 million Americans aged 50+ in 2001 controlled 67% of the country’s wealth, or $28 trillion

 Households headed by adults 55-64 had a median net worth of $112,048 in 2000 – 15 times the $7,240 reported for the adults under 35  Adults 50+ have about $2.3 trillion in disposable income  By 2010, adults 45+ will out-spend younger adults by $1 trillion annually  Boomers spend about $2 trillion annually

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Buy now… save money?

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Buy now… save money?  In the decades to come, we will witness millions of elderly Americans, the Baby Boomers slipping into poverty.  Our national demographics

 Insufficient retirement savings and Boomer human physiology,  Catastrophic economic outcome for a significant percentage of our elderly population.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Many Boomers don’t pay federal taxes  Mostly, they are the working poor  Two-thirds of households who don’t pay federal income tax, pay other taxes, such as payroll taken out of their paycheck for Social Security and Medicare.  Americans also pay taxes on alcohol, gas and cigarettes.  Overall, just 10% of households pay no net federal taxes.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Who Doesn't Have to File?  14 million income-earning households that earn less than $20,000 and the 99.4 percent who earn less than $30,000  Zero-tax tax filers tend to be young, yet two-thirds (or 8.8 million) of the non-filers are older than age 55.  Zero-tax filers and non-filers are combined, more than half of all households that will pay no income taxes are either younger than age 25 or older than age 55.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Working poor in US  Low-income households pay relatively low federal taxes, primarily because tax credits reduce or eliminate their income tax liability, and some (called refundable credits) result in net payments to them.  The working poor hold the lowest-paying, most unstable jobs  The working poor lack full-year employment  The working poor lack higher education  The working poor are less likely to be in two parent families

 The working poor face many hurdles in lifting themselves out of poverty

Source: U.S. Department of Labor

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Working poor in US

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Working elderly poor in US  Insufficient retirement savings  Boomer psychographics  The average 401(k) balance for 65 year olds is estimated at $25,000 by independent experts - the decades ahead many elders will spend in forced or elected “retirement” will be grim.

Source: Forbes

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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Working poor in US

Source: U.S. Department of Labor

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Working poor in US

Source: U.S. Department of Labor

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

San Diego Dan… “1968 turn on, tune in, drop out… 2010 went to work at Walmart”

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Never call a Boomer “old” Do not go gentle into that good night, Old age should burn and rage at close of day; Rage, rage against the dying of the light. – Dylan Thomas

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

12/2030

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Reality check for Boomers  Economic times  Legislation  Socio-economic considerations  Medicare + OHP is growing  Delivery of care is changing  Boomerang culture  Medicaid spending (ACA) $130 billion in 2013  Ethnic mix in America

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Why do so many Millennials live at home?  Marriage and divorce  Indebtedness – as measured by average loan balances, declining credit scores and delinquency on accounts

 After moving in, delinquency and low credit scores increase time spent in co-residence  A Record 21.6 Million In 2012 Living in their parent’s home  Cultural impact for Boomers and health providers

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

64+ in California  Many Californians new to Medicare lack a basic understanding of this federal health insurance program.  Research by the California HealthCare Foundation (CHCF) shows consumers making decisions at enrollment time without really knowing how Medicare works.  Medicare is complex. Consumers don’t fully understand its “Parts” and that Medicare involves significant cost sharing.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

64+ in California  64-year-olds are receptive to learning about Medicare  Are current resources meeting their needs (ethnic, economic and cultural needs)?

 Based on ethnicity and geography, and what are the most effective ways to convey and distribute and enroll this target audience?

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Boomer economic considerations for marketing  Cuts in standard of living  Working longer  European debt issues  Election year (information clutter media $$$)

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Unforeseen issues that will influence the market  Adult children at home  Lower wages for all  Lack of job opportunities

Source: Huffington Post (2010), U.S. Census

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Segmentation in San Diego County

Source: SANDAG

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

San Diego County

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Marketing to dual eligibles in San Diego County? Percent of households earning under $30,000 per year. Darker areas have a higher concentration of low income households.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Urban Boomer highlights  Aging in place  Educated, married, homeowners  Working professionals  Upscale hobbies esp. fitness, gourmet foods, gardening, decorating and travel  On-line shoppers, use services and credit cards  Vote, volunteer, engage in chartable giving  Adult children in home

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Suburban Boomer Highlights  Aging in place, but downsized to a smaller, (less expensive) home.  Married, homeowners, technical professions who may have seen downturns from 2008.

 More likely to have adult children at home.  More at-home than urban esp. cooking, gardening, decorating, domestic vs. international travel.  Traditional lifestyle, values, charitable giving is church based, or because of family illness.  On-line shopper, uses computer for recreation as well.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Rural segment highlights  Aging in place in existing home if possible, married with less college educated.  Higher percentage retired because of lifestyle illness or work injury and adult children in home are caretakers

 Work longer at lower wages  Adult children (caretakers?) living in their homes  Volunteering and giving are church dependent (typically part of social network)

 At-home hobbies esp. cooking, crafts, gardening, decorating  Traditional lifestyle (based on culture and geography)  Domestic travel if any at all (visiting relatives) Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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Marketing tools  Are plan dependent  Should be based on some kind of research  Branded and consistent based on niched audiences  CMS compliant  Understandable  Supported by adequate infrastructure

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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BABY BOOMERS

Marketing research tactics Predictive modeling & forecasts in very popular — let’s call it data analysis, Eric Siegel, Ph.D.  Data mining for competitive advantage  What can you do with the lists you have

 Buying behavior, retention, forecasting  Do if internally? Do you have the resources to:  Compare, contrast, zip code zoning  Make friends with the tax assessor and other government sources

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Lifecycle marketing regardless of tactic  Lifecycle marketing aka Nurture marketing  9x more value from their marketing efforts (email). Email marketing alone cannot power your lifecycle marketing.  Attention  Interest  Desire

 Action  Infrastructure to support sales pipeline, matrix, compliance and enrollment

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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MARKETING TO

BABY BOOMERS

Only use what works for your niche  Direct mail with incentives

 YouTube

 Press releases

 Social media (Facebook fun)

 Cross promotion

 Websites

 Digital and print

 Email marketing

 Events

 Contact lists

 Grassroots outreach

 Customer service/involvement

 Calendar listings

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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Recap  Baby Boomers and the internet  Customer service is king (or queen)  Realistic goals  Multiple tools and tactics  Keep marketing, don’t do “stop and start” with Boomers.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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Special thanks to…  Diane M. Childs of the Oregon Department of Consumer & Business Services who inspired and helped shape this report.

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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Q&A Thank you!

Mara Woloshin, WOLOSHIN COMMUNICATIONS, INC.

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