Sales & marketing to 50+ consumers.
Boomers shift spending patterns, seek value at every price.
- The biggest consumption shift is coming from 60 to 75 year olds.
- Baby Boomers are separating into haves and have-nots, with income inequality rising among boomers.
- At every income level, the perception of value drives buying decisions. Today, information is freely available online and through social channels, so marketers need to provide clear value distinctions.
- Baby boomers have broken tradition and spend money on themselves, not primarily on supporting their children and grandchildren.
- As boomers shift out of careers, companies are looking to fill boomer’s free time with consumer products.
- Read the McKinsey report and listen to the podcast.
Take a long-term view of your sales team
Actions that boost this quarter’s results can have negative consequences in the long-term. 3 ways to avoid that mistake are to:
- Structure the sales team around markets, not individual talent.
- Don’t rush to fill positions. Fast hires can be wrong hires, and recovery can take years.
- Adjust compensation to market realities, even if the market spirals downward, or upward.
- Read more at HBR.
Learning from other industries: website messaging
Let’s get outside our “senior services” head and think more objectivity by looking at a completely different business: PayPal.
- In a website prototype, a designer for a new and hypothetical PayPal website gets crystal clear on messaging.
- One screen = one message — no “piling on” of supposedly useful information.
- The pitfall of any website is trying to address many people at once.
- Instead, specifically address each customer segment with different selling points and competitive advantages.
- Clear and direct language helps build trust and security. Obfuscation and complexity diminishes trust.
- See the concept at Behance.
Senior living communities & housing
Non-profits adding residential units
The top 150 senior living (housing) communities provide 1/4 million housing units in the U.S.
They are growing by…
- Building more units on their existing campuses
- Forming partnerships with other residential communities, healthcare systems or care agencies
On the whole, they are not building out new developments (called “campuses”). Detailed 198 page report from LeadingAge/Ziegler
Too many senior residences, more coming
Financial results for Brookdale — the nation’s largest senior living operator — shed light on oversupply in senior residences.
- 2/3 of the senior population lies within 10 miles of a Brookdale community. In its top 20 markets, there is so much new construction that supply will increase +6% in 2017.
- Today, this industry has a 15% vacancy rate. Next year, lovely new residences will compete with older units. Oversupply is hurting the industry.
- Brookdale’s sweet spot is someone 75+ with retirement income of at least $50,000/year.
- Brookdale is also the 6th largest Home Health provider, is hiring a national sales director.
- Links: investor presentation, job board, Senior Housing News.
Staff turnover is ugly, don’t look
How bad is turnover at senior living facilities? So bad, the real data is hidden.
In a survey of 35 companies, most picked “at least 45%” annual turnover. (SHN)
How many responded 50% or higher?
Middle-class baby boomers & elders rent out rooms, earn cash
% income spent on housing
Airbnb formed a paid media partnership with AARP to promote its services to seniors. Statistics about older adults using Airbnb:
- typical host earns an extra $8,350 each year
- 58% report that income from Airbnb hosting has helped them stay
in their homes
- hosting has helped 13% avoid foreclosure
- hosting has helped 35% avoid eviction
- 64% report that hosting has positively changed the way they think
- 45% say that hosting has positively affected the way they interact with their community
- All types of “home sharing” solve problems without government funding
- see the publication
2 other companies helping middle-class seniors
Here are 2 additional places where seniors can earn income, or get free care, in their home:
SilverNest — Find another senior to be your roommate in your home (website)[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
Financial services for 50+
Can a “catastrophic backup” save LTC insurance?
- Years ago, 100+ insurance companies offered long-term care insurance.
- Today, only 12 firms offer stand-alone long-term care insurance.
- The private market can’t continue Long Term Care insurance at affordable premiums.
- Severe dementia and Alzheimer claims are off-the-charts expensive.
- 90% of the policyholders need to pay for the 10% who will get dementia.
- Catastrophic insurance by the US government would enable a more robust private market (Forbes interview)
Elder fraud by “guardians” including family, nursing-homes, lawyers
- Fraud by family members, and fraud by court appointed guardians are substantial problems documented in the new report.
- Read how to protect yourself and your family at Forbes, Next Ave.
- Read how corrupt judges and lawyers conspire to defraud elders with financial assets (book)
Healthcare expenditures keep rising
- 17.8% of US Gross Domestic Product is now spent on healthcare. GDP is the measure of economic activity.
- $9,990 for every man, woman and child in the country.
- For the entire US, healthcare expenditures rose 5% in 2015 to $3.2 Trillion. As the Affordable Care Act (Obamacare) went into effect, healthcare spending rose.
- Medicaid expenditures are rising as Baby Boomers go on Medicare rolls. These boomers are the healthiest. As they age, their costs will rise.
- Rising pharmaceutical prices keep were also a big contributor.
- Hepatitis C drugs are very expensive, and more people will need them as the opioid epidemic grows.
- Read the detailed report.