An innovation agency owned by M & C Saatchi has apparently carried out a study with people aged between 20 and 70 in the UK, China, Netherlands and USA (which is where their offices are located). This study examined people’s attitudes and behaviour regarding the fact that they may live to be 100 years old.
In what has to be seen as a publicity coup worthy of the eponymous M & C themselves, the research study has been shown exclusively to Marketing Week and forms the basis of an extensive piece by Lucy Handley (22nd April 2010). However, this exclusivity makes any sort of review or critique of the research somewhat difficult, not to say impossible!
The starting point for the study seems to have been an article in the Lancet which predicted that 50% of all children born since 2000 in the developed world will live to be 100. It is predicted elsewhere that people currently aged 50 have something like a 1 in 8 chance of reaching their century. From this, according to Marketing Week, it is concluded that businesses need to understand what this means for product, services and communications, and should start planning for this now - but that very few businesses seem to be doing so.
This final conclusion is probably not too surprising. Many businesses are still adapting to the most basic realities of an ageing population. Our own research established that not only are there more adults aged over 45 than under 45, but that this older group accounts for disproportionately higher expenditure. Despite this, it seems that many businesses are still struggling to find a way of segmenting, targeting and positioning against this long-term but inexorable change. Looking into the future, the population continues to age. However, to plan for a future dominated by centurions is probably a step too far, although I’ll bet P&G are working on it…
But well done to the consultancy for thinking about the issue and to Marketing Week for covering it. I only wish our own publicity efforts were as successful! For exclusive access to our own research report – Marketing and Older Audiences – please visit www.rhcadvantage.co.uk
Monday 26 April 2010
Wednesday 14 April 2010
Marketing to older people: fact and fiction
This article was published today in BT re:sourcesretail, which is produced by BT Global Banking and Financial Markets and distributed to BT customers.
Top stories
Marketing to older people: fact and fiction
Are they a generation of go-getters leading a ‘portfolio existence’, or forcibly retired baby boomers eking out their meagre savings? Mark Beasley considers the realities of marketing to the over fifties ...Read More
Marketing to older people: fact and fiction
The population of the UK is now older than ever before. According to the Office for National Statistics, there are now more adults aged over 45 than there are under 45. The UK population will continue to age for the foreseeable future.
For the financial services industry in particular, an ageing population provides many opportunities. However, there are also challenges – not least, cutting though the many false assumptions, stereotypes and myths surrounding this important group. If these are not identified and avoided, customer relationships will inevitably suffer. To demonstrate this, let’s examine three areas of relevance to anyone working in the financial services sector: customer wealth, retirement and imagery.
According to The Economist (26 June 09), this is a “Slow-moving but relentless development that in time will have vast economic, social and political consequences”.
Customer wealth
Just about every time you read an article about marketing and the over-50s, you will inevitably be told that this group accounts for 80% of the UK’s wealth. Coupled with the size of this group, this ‘fact’ suggests a large, relatively untapped and lucrative target market. However, the relationship between wealth, income and expenditure may not be straightforward. And it is important to be aware that wealth in this age group is extremely unevenly distributed: so make sure that where possible, you target individuals and not an entire age group!
Retirement should now be seen as a process, not an event
The reality is that this is an extremely diverse and complex group of more than 20 million people. Some people are extremely wealthy, while it is also the case that – according to Age Concern – more than two million older people live in poverty. The message here is that the basics of marketing – segmentation, targeting and positioning – are crucial. Do not rush into mass marketing on the assumption that most older people are extremely wealthy.
Retirement
In her role as Minister for Women and Equality, Harriet Harman recently pledged to end compulsory retirement, hence giving people the right to work beyond the state pension age (SPA) of 65 for men and 60 for women. The fact that older people are able to enjoy equality in the labour market is of course to be welcomed.
However, this is not just about personal freedom, human rights and social justice.
For many people, continuing to work after the SPA is not a matter of choice but of necessity. As Andrew Harrop of Age Concern/Help the Aged recently commented: “Millions of old workers need to carry on working past state pension age to boost their savings and pension pots”. Many such jobs are likely to be low-paid and part-time – only the minority will be engaging in a ‘portfolio existence’ of consultancy projects, non-executive directorships, and golf.
And of course, continuing to work after the SPA assumes that one has a job in the first place. In fact, 30% of people aged between 50 and the SPA are unemployed, mostly involuntarily. As a result, this age group now exhibits the highest rate of entrepreneurial activity, with many people starting second careers in their fifties.
For these reasons, retirement should now be seen as a process, not an event, says Paul Sweeting, Professor of Actuarial Science at the University of Kent. In fact, just 17% of men and 10% of women retire at the SPA, according to the Older Workers Employment Network.
Imagery
According to press releases and publicity materials issued by many financial services companies (I will name no names), life has never been better for people entering retirement. A vivid picture is painted of a ‘generation’ which ‘according to new research’ is invariably enjoying life more than ever before. This healthy, active generation is busily riding bikes, travelling the world, bungee-jumping and generally enjoying a carefree life of freedom, unencumbered by financial concerns.
The research of one company found that people aged 52-60 are apparently living a dream life that is the envy of the younger generation and have found ‘a form of perfect work/life balance’. Another found a ‘new generation’ of ‘GoAPs – Go-getting Active Pensioners’ which ‘rips up the rule book on retirement’ and can claim that ‘we’ve never had it do good’. And one otherwise highly-respected organisation recently described people over 50 as ‘Gap Year Grannies’ – I’ll leave you to fill in the gaps here.
This group of shiny, happy people is sometimes described as the ‘baby boomer generation’ – that demographic bulge of people born between 1946 and 1965. This age group is said to confound societal expectations in terms of activities, aspirations, attitudes, behaviour and lifestyle. In reality, it is implausible that millions of people will share anything very much simply because they are the same age. Unless a range of other segmentation variables are also applied, targeting by age alone is unlikely to be effective. Above all, it is important to note a number of studies have found that most people approaching retirement are extremely concerned about their future finances. And with good reason – a major research study published in December 2009 by Janus Capital confirmed ‘alarming deficits’ in personal savings and retirement provision that bedevil the pensions industry. What’s more, the increasing number of people having to care for both their adult children and their ageing parents – the so-called ‘sandwich generation’ – are finding their savings being eroded before retirement.
Avoid the stereotypes
The imagery used in advertising and communications materials is also often at variance with reality. There is a solid body of research which demonstrates that images of older people are either excluded altogether from advertising and communications materials, or are demeaning, patronising or stereotypical. According to academic researchers Carrigan and Szmigin: “Despite all the evidence, advertisers continue to pursue youth”. And not surprisingly, older people resent this – all the research tells us that older people wish to be recognised, treated as serious consumers, and depicted in a realistic manner.
This is a large, complex and diverse age group. They are not a ‘generation’, they are not a homogenous group, and they do not wish to be defined by age. Most importantly, they do not conform to a set of pre-defined rules. I wish you well in your efforts to work with your older customers to formulate your own shared rules.
________________________________________
Mark Beasley is a partner in rhc advantage, the creative marketing agency specialising in older audiences. For further information, or for a free copy of their research report Marketing and Older Audiences, visit www.rhcadvantage.co.uk
Top stories
Marketing to older people: fact and fiction
Are they a generation of go-getters leading a ‘portfolio existence’, or forcibly retired baby boomers eking out their meagre savings? Mark Beasley considers the realities of marketing to the over fifties ...Read More
Marketing to older people: fact and fiction
The population of the UK is now older than ever before. According to the Office for National Statistics, there are now more adults aged over 45 than there are under 45. The UK population will continue to age for the foreseeable future.
For the financial services industry in particular, an ageing population provides many opportunities. However, there are also challenges – not least, cutting though the many false assumptions, stereotypes and myths surrounding this important group. If these are not identified and avoided, customer relationships will inevitably suffer. To demonstrate this, let’s examine three areas of relevance to anyone working in the financial services sector: customer wealth, retirement and imagery.
According to The Economist (26 June 09), this is a “Slow-moving but relentless development that in time will have vast economic, social and political consequences”.
Customer wealth
Just about every time you read an article about marketing and the over-50s, you will inevitably be told that this group accounts for 80% of the UK’s wealth. Coupled with the size of this group, this ‘fact’ suggests a large, relatively untapped and lucrative target market. However, the relationship between wealth, income and expenditure may not be straightforward. And it is important to be aware that wealth in this age group is extremely unevenly distributed: so make sure that where possible, you target individuals and not an entire age group!
Retirement should now be seen as a process, not an event
The reality is that this is an extremely diverse and complex group of more than 20 million people. Some people are extremely wealthy, while it is also the case that – according to Age Concern – more than two million older people live in poverty. The message here is that the basics of marketing – segmentation, targeting and positioning – are crucial. Do not rush into mass marketing on the assumption that most older people are extremely wealthy.
Retirement
In her role as Minister for Women and Equality, Harriet Harman recently pledged to end compulsory retirement, hence giving people the right to work beyond the state pension age (SPA) of 65 for men and 60 for women. The fact that older people are able to enjoy equality in the labour market is of course to be welcomed.
However, this is not just about personal freedom, human rights and social justice.
For many people, continuing to work after the SPA is not a matter of choice but of necessity. As Andrew Harrop of Age Concern/Help the Aged recently commented: “Millions of old workers need to carry on working past state pension age to boost their savings and pension pots”. Many such jobs are likely to be low-paid and part-time – only the minority will be engaging in a ‘portfolio existence’ of consultancy projects, non-executive directorships, and golf.
And of course, continuing to work after the SPA assumes that one has a job in the first place. In fact, 30% of people aged between 50 and the SPA are unemployed, mostly involuntarily. As a result, this age group now exhibits the highest rate of entrepreneurial activity, with many people starting second careers in their fifties.
For these reasons, retirement should now be seen as a process, not an event, says Paul Sweeting, Professor of Actuarial Science at the University of Kent. In fact, just 17% of men and 10% of women retire at the SPA, according to the Older Workers Employment Network.
Imagery
According to press releases and publicity materials issued by many financial services companies (I will name no names), life has never been better for people entering retirement. A vivid picture is painted of a ‘generation’ which ‘according to new research’ is invariably enjoying life more than ever before. This healthy, active generation is busily riding bikes, travelling the world, bungee-jumping and generally enjoying a carefree life of freedom, unencumbered by financial concerns.
The research of one company found that people aged 52-60 are apparently living a dream life that is the envy of the younger generation and have found ‘a form of perfect work/life balance’. Another found a ‘new generation’ of ‘GoAPs – Go-getting Active Pensioners’ which ‘rips up the rule book on retirement’ and can claim that ‘we’ve never had it do good’. And one otherwise highly-respected organisation recently described people over 50 as ‘Gap Year Grannies’ – I’ll leave you to fill in the gaps here.
This group of shiny, happy people is sometimes described as the ‘baby boomer generation’ – that demographic bulge of people born between 1946 and 1965. This age group is said to confound societal expectations in terms of activities, aspirations, attitudes, behaviour and lifestyle. In reality, it is implausible that millions of people will share anything very much simply because they are the same age. Unless a range of other segmentation variables are also applied, targeting by age alone is unlikely to be effective. Above all, it is important to note a number of studies have found that most people approaching retirement are extremely concerned about their future finances. And with good reason – a major research study published in December 2009 by Janus Capital confirmed ‘alarming deficits’ in personal savings and retirement provision that bedevil the pensions industry. What’s more, the increasing number of people having to care for both their adult children and their ageing parents – the so-called ‘sandwich generation’ – are finding their savings being eroded before retirement.
Avoid the stereotypes
The imagery used in advertising and communications materials is also often at variance with reality. There is a solid body of research which demonstrates that images of older people are either excluded altogether from advertising and communications materials, or are demeaning, patronising or stereotypical. According to academic researchers Carrigan and Szmigin: “Despite all the evidence, advertisers continue to pursue youth”. And not surprisingly, older people resent this – all the research tells us that older people wish to be recognised, treated as serious consumers, and depicted in a realistic manner.
This is a large, complex and diverse age group. They are not a ‘generation’, they are not a homogenous group, and they do not wish to be defined by age. Most importantly, they do not conform to a set of pre-defined rules. I wish you well in your efforts to work with your older customers to formulate your own shared rules.
________________________________________
Mark Beasley is a partner in rhc advantage, the creative marketing agency specialising in older audiences. For further information, or for a free copy of their research report Marketing and Older Audiences, visit www.rhcadvantage.co.uk
Monday 12 April 2010
Older People are Cool....
In my last piece, I developed the erudite argument that 'older people rock'. Not only are most of the influential figures in rock music in their 50s, 60s and even 70s, but the audiences for their music include people of all ages. In other words, rock music is inclusive: the key variables are the talent of the artist and the interest (and expenditure) of the audience: not age.
This applies to many other consumer markets: automotive, fashion, leisure and travel are obvious examples. The interest and behaviour of consumers is not related to their own age, nor is it related to the age of the actors, models and personalities associated with particular brands and businesses. Richard Branson will be 60 this year, yet Virgin is seen as a ‘youthful’ brand. Twiggy is also 60, yet turns heads in Marks and Spencer advertising. Steve Jobs is 65, yet Apple is one of the coolest brands on the planet.
So why do so many brands and businesses continue either to focus on youth, avoiding older people altogether, or to treat older people as unimaginative and outdated? The assumption that older people – who account for at least 50% of many consumer markets – are motivated only by youth as the cipher for all that is new and interesting is simply not the case. Older people demonstrably exhibit greater creativity, individualism and originality than younger people, and this is acknowledged by people of all ages.
Ari Seth Cohen is a 28year old New York blogger who questions why we look towards younger people as our fashion icons. He believes that older people know a lot more about fashion and style than younger people and his blog (http://advancedstyle.blogspot.com ) celebrates trend-setting older people, from the chic, hip and well-dressed to the eccentric and bizarre. In his own words: “I roam the streets looking for New York's most stylish and creative older folks. Respect your elders and let these ladies and gents teach you a thing or two about living life to the fullest.”
At rhc advantage, we believe that older people deserve a better deal from business, marketing and communications. To find out how our unique blend of expertise, experience and creativity can help your business, visit our website www.rhcadvantage.co.uk. And to find out more about the realities of marketing and older audiences, request our comprehensive research report.
This applies to many other consumer markets: automotive, fashion, leisure and travel are obvious examples. The interest and behaviour of consumers is not related to their own age, nor is it related to the age of the actors, models and personalities associated with particular brands and businesses. Richard Branson will be 60 this year, yet Virgin is seen as a ‘youthful’ brand. Twiggy is also 60, yet turns heads in Marks and Spencer advertising. Steve Jobs is 65, yet Apple is one of the coolest brands on the planet.
So why do so many brands and businesses continue either to focus on youth, avoiding older people altogether, or to treat older people as unimaginative and outdated? The assumption that older people – who account for at least 50% of many consumer markets – are motivated only by youth as the cipher for all that is new and interesting is simply not the case. Older people demonstrably exhibit greater creativity, individualism and originality than younger people, and this is acknowledged by people of all ages.
Ari Seth Cohen is a 28year old New York blogger who questions why we look towards younger people as our fashion icons. He believes that older people know a lot more about fashion and style than younger people and his blog (http://advancedstyle.blogspot.com ) celebrates trend-setting older people, from the chic, hip and well-dressed to the eccentric and bizarre. In his own words: “I roam the streets looking for New York's most stylish and creative older folks. Respect your elders and let these ladies and gents teach you a thing or two about living life to the fullest.”
At rhc advantage, we believe that older people deserve a better deal from business, marketing and communications. To find out how our unique blend of expertise, experience and creativity can help your business, visit our website www.rhcadvantage.co.uk. And to find out more about the realities of marketing and older audiences, request our comprehensive research report.
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