There’s no doubt that the recession and housing market downturn impacted the senior living industry. Marketing to the always-cautious senior has been more challenging than ever, and our audience will not easily forget the experience. Faced with tighter budgets and tougher lead generation, retirement communities need to spend every dollar as strategically as possible to attract qualified retirement community prospects.

Love & Company created a two-year research plan to gain insight into seniors’ views and responses to direct mail. Following our investigation of participants’ first impressions of direct mail pieces, we took our findings regarding messages, vehicle and design and tested them further to determine what truly is the more effective lead generator.

Our Research Process

In this study, we applied our findings from last year to several campaigns we developed for our retirement community clients. We created two versions of each mailing so that we could test a variable, such as message, format or design. Each version was then mailed to half of the mailing list. By examining the results of these and other mailings, we were able to identify “best practices” for senior living direct mail.

In this report, we briefly highlight some of the main findings of Part 2 of our study and provide a glimpse into our conclusions and recommendations for the most effective direct mail approaches for marketing to seniors.

Instant Gratification: RSVP by Phone

We included a reply card with one invitation version to determine if it would prompt prospects to respond, either by calling or returning the card, better than simply asking them to RSVP by phone to an anniversary celebration. The simple, 2-color envelopes and invitations were identical.

Overall, the version without the reply card generated slightly more responses than the version with the card. However, only seven prospects actually returned the card, with three times as many choosing to simply call. The reply card did not generate enough response to provide value for the added cost.

Less Is More

We tested a 4-panel, 2-color invitation against a 6-panel, 4-color invitation for a series of sneak preview lunch events. Both 8.5”x5.5” finished size pieces were mailed in identical envelopes with the prominent teaser: “The Residents of Fleet Landing Cordially Invite You…” From Part 1 of our study, we learned that an envelope with a strong invitation teaser effectively persuades recipients to open it, without needing a colorful image. We were therefore able to test which internal piece would generate the most RSVPs.

The two invitations generated about the same number of responses: 56 leads from the 4-panel and 54 from the 6-panel. Overall, the combination of strong creative and refined mailing list strategy generated more than double the original goal, enabling the community to fill nine events rather than the original four. The 6-panel, 4-color piece was more expensive to produce, but did not generate sufficient response to justify the added cost. The 4-panel invitation provided enough detail that additional information was not necessary to create more interest. Finding the fine line between providing enough detail to pique the recipient’s interest without overshadowing the retirement community’s event is key to finding success with this type of piece.

Using the “R” Word

We tested two versions of a traditional, 2-color invitation in an envelope to promote receptions showcasing a new model cottage. One version employed a retirement lifestyle-focused approach and used “retirement” in the community name, while the second version was more straightforward and referred to the expansion as The Villages at Edgewood. Our goal was two-fold: to determine which message approach was more effective, and whether the word “retirement” had an impact on response.

The straightforward version drew a third more responses than did the retirement lifestyle invitation.

As we have found through our previous research studies, seniors prefer that marketing messages “tell it to them straight;” focusing on the model open house resonated better with this audience. Plus, the response provides insight into seniors’ receptivity to the word “retirement,” indicating that younger, more active seniors are “not ready yet”…until they actually experience the community by coming on campus.

Mailing List Strategy

The larger the mailing list, the more leads to expect, right? Wrong. Mailing to every age- and income-qualified senior household within 30 miles of your community doesn’t guarantee you will receive the number of leads you want. For the Fleet Landing mailing on page 2, we refined their existing list to hone in on senior prospects with the characteristics most like those of existing residents, thereby substantially lowering the number of pieces mailed, and thus the cost. The retirement community had previously sent a mailing to 48,500 prospects on the original list and generated 105 leads.

The sneak preview mailing went to 21,500 prospective seniors and generated 110 leads. The second campaign produced slightly more leads than the first, while mailing to less than half the list. In addition, no two list companies are identical, so you can obtain slightly different lists and quantities even with the same criteria. Good companies update their data regularly and guarantee no more than a 10% undeliverable rate. Budget permitting, purchase lists from more than one company and test the lists to see which produces the greater response, then merge the lists to reach more prospects that meet your refined set of criteria.

Weighty vs. Fun and Informative Topics

In Spring 2009 we mailed an invitation for a retirement presentation by a financial columnist/author, in response to prospects’ objections caused by the uncertain economy. The campaign produced 27 leads. In the fall we mailed a series of three invitations promoting four “deliciously fun and informative” events. This campaign generated 96 leads.

Both campaigns featured four-panel invitations in envelopes, and neither used the word “retirement” in the community name or on the envelope. We learned that combining entertaining, social events with retirement lifestyle discussions drew greater interest and attendance than the weightier, albeit relevant, subject of finances in an uncertain economy. While the temptation may be to address objections head on through your direct mail efforts, it is more effective to bring them on campus with fun, social activities that demonstrate your community’s lifestyle.

Email blast– Not your mother’s direct mail

We tested two email blast versions: one enabled the viewer to see the entire message in a single screen space, while the other was longer and similar to a traditional color print ad, so the recipient had to scroll down and spend more time reading the message. Version #1 received a 0.35% higher click through rate: 1.41% of all recipients clicked through to the website, versus 1.06% of all version #2 recipients. This resulted in about 200 more people visiting the website and seeing the retirement community’s message.

While seniors are among the fastest growing users of the Internet and email, the mature market still turns to trusted websites and traditional media when ready to seriously research and purchase senior living. Email can be a cost effective means to reach a large number of qualified senior prospects and share updates with your wait list and lead base, but it often does not result in immediate responses. It is important to craft the creative to work specifically with this medium, rather than “repurposing” a direct mail or print ad.

Case Study: A Tale of Two Campaigns

We analyzed two campaigns we created for Moravian Hall Square that produced very different results. In Spring 2008, we created an oversized postcard for a downsizing seminar series that generated far fewer leads than anticipated. Then in Spring 2009 we produced a multiple piece campaign, including a save- the-date mailer and three individual invitations, to promote a series of “spring fever” events. This campaign generated 64 new leads. What made it so successful, when the previous campaign produced a fraction of these results?

The oversized postcard format did not perform well in Part 1 of our study, while pieces mailed in envelopes improved recipients’ likelihood of reviewing the piece. In addition, the downsizing series postcard was a strong sales pitch but provided no information about the client. By contrast, the spring campaign promoted entertaining, hobby- and retirement-related events that showcased the retirement community without being a hard sell, and the additional panels provided space for brief copy about the lifestyle and amenities. This campaign provided enough enticing information to bring prospects on campus for entertaining, non-threatening events, at which point the sales team was able to introduce the community and schedule tours.

Conclusions and Recommendations

• Larger or more complex direct mail does not always generate enough response to justify the added cost.
• Today’s seniors are comfortable calling to RSVP for an event; reply cards are often an unnecessary expense.
• Refine your mailing list to best fit your resident profile, and budget permitting, purchase two lists and merge them.
• Tell it to them straight. Don’t try to be too cute with your approach or offer details that cloud the core purpose of the mailing.
• Today’s younger, active seniors may not associate themselves with “retirement” yet, so use the term selectively.
• Email marketing is generally not an effective lead generator among older seniors, but is an efficient way to communicate with your wait list and lead base.
• Plan and promote marketing events that are both fun and informative for prospects to experience your community’s lifestyle.

The direct mail research project was led by Love & Company’s Jessica Kraft, senior marketing account manager, and Tyler Sprecher, vice president/creative director. Please contact them with questions about this project. For copies of previous research studies, please contact us or visit our Web site.