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.

Through Their Fingertips— Incorporating Social Media Into Your Marketing Mix for Selling To Seniors

While some may regard social media as a “young person’s arena,” its popularity and reach extend and fit well into the marketing of senior living communities. The question is, “How do you navigate the maze of social media sites, applications and tools to find the right mix for your marketing message?”

Past Love Reports have examined how seniors respond to various media, including direct mail, print advertising and Internet Website marketing, with the consistent goal of closing the gap between what marketers think seniors may respond to, and what actually moves them to take action. This report is no exception.

Our Research Process

To complete Phase One of this study, we created a comprehensive survey to help determine senior respondents’ knowledge and use of various social media venues, including e-mail, social networking sites, blogs and podcasts, online chats and webinars. Two versions of the survey were produced to target two different groups—those who already reside in a senior living community, and those who do not. The second group included individuals on lead base lists, wait list members and age- and income-qualified prospects. A total of 38 senior living communities participated in the survey process.

Phase Two of the study involved Love & Company personnel training a group of residents of a senior community to blog, forming a resident blogging group to share insights about living in their community. In addition, we surveyed communities with Facebook pages to discover how they are using Facebook in their marketing efforts and what success and benefits have been derived from using the social media site.

What We Did

Participating communities were provided with a PDF of the cover letter and survey, which they printed and distributed to the various audiences. Respondents were given the option of responding electronically through a direct link, or completing and mailing the paper survey. We received a total of 2,603 responses to the surveys.

What We Learned— Optimize and Conquer

First and foremost, we discovered that over 86% of both survey audiences use Internet search engines, with over 28% taking notice of the sponsored results near the top of the page and on the right-hand side. Over 75% of respondents report starting at the top and viewing each result until they find a match. This includes viewing the sponsored links that appear at the top of the page before the organic results. These responses underscore the importance of optimizing sites to appear at or near the top of the most important search lists, as well as considering the use of search engine marketing (SEM) to have your sponsored link appear at the top of the page.

Embrace Email

Over 98% of senior respondents reported that they use e-mail, with between 78% and 86% reporting daily use. Because the vast majority of those who received the non-resident survey are using e-mail to family—also known as your target audience! Over 50% of these respondents indicated they would forward to their friends an invitation from their community to attend an upcoming event, and they felt that at least half of those friends would welcome the invitation. This can be a great—and low cost—way to increase attendance at marketing events.

Among both survey audiences, nearly 50% indicated they forward unsolicited jokes or humorous e-mail messages to friends and family, thus offering another avenue of communication. Creative use of viral marketing campaigns can move your message to reach an audience you may have considered outside your marketing scope.

Network Carefully

Our survey results indicate that Facebook and YouTube are the most popular social networking sites, and that many also use Skype to communicate with friends and family via the Internet. This offers a great opportunity to promote a community through posting of community event videos or testimonials on YouTube or Facebook. Other ideas could include “video demonstrations,” such as sharing recipes, community tours, profiles of unusual resident hobbies and more. Brainstorm ideas and topics and have a ready library of videos and posts from which to draw.

Most communities are using Facebook to share news and images with prospects, or to target adult children. Content is often very lifestyle-oriented, with more factual information still reserved for the community’s Website. Consider a Facebook page when advertising an upcoming social event, or to recap resident activity or offer an overview of a community.

In our surveys, 74% of participating communities report spending only up to two hours each week updating their pages. They currently report promoting their Facebook page in printed marketing pieces and print advertising, or including the logo in an e-mail signature. In addition, don’t forget to add the Facebook link to the home page of your community’s Website.

Blogging is a Personal Process

While over 72% of non-resident survey respondents are familiar with blogs, just 19% report following one or more online blogs. Currently their three top blog subjects are current events, financial information and academics. As mentioned earlier, Phase Two of this report involved training a group of senior community residents in Ohio to establish a community blog. As of November 2010, the group had been blogging for nine weeks, the team members were enjoying the experience and the group was about to expand.

We learned several things during the formation of the blogging group. When encouraging community residents to initiate a blog, take care in selecting the team. Choose members who enjoy the Internet and like sharing social news and expressing their views. Give them the foundational information they need, teach them the process and have them try it out for themselves. Then leave them alone. Blogging is a personal thing, akin to keeping a diary, and you just can’t force it. The benefit of the hands-off approach is that candid, unsolicited insights are shared about the community in which the residents live.

What We Concluded

• Search engine optimization (SEO) and search engine marketing (SEM) are critical to being “found” on the Internet. Make sure you’re noticed on key searches.

• E-mail is a powerful tool when senior living residents are included and drawn into the “marketing circle.” Remember their willingness to forward messages to friends.

• Viral videos can be fun and effective ways to communicate the news and personality of a community. Create a library of them and release them during key marketing periods.

• Prioritize your involvement in social networking sites, and then commit to using them for a variety of marketing purposes. Always include a strong call to action and an easy way to respond.

• Blogging is something that seniors enjoy and will use to communicate their own life experiences to others. If you take care in selecting the blogging team, they can be your best ambassadors!

Remember To Track Your Results!

All marketing professionals want to increase ROI (return on investment). The goal is to increase results while spending the same amount or less. This is where tracking the performance of marketing efforts becomes so important. The better your organization is at tracking the sources of leads, the more effective your advertising becomes. And effectiveness equals success. Allow time and budget dollars to track the number of new customers visiting your blog, or the ones who are linking to your Website because of search engine marketing. You may find that the cost of other budgeted initiatives can be reduced while maintaining or growing your ROI. Here are some simple steps to take:

• Specify landing pages on your Website for prospects to respond to marketing pieces and advertisements, such as direct mail, print advertising, web advertising and e-mail blasts

• Add Google Analytics to your Website – it’s free!

• Track visitors to your blog by using a built-in visitor counter

• Use an electronic response form on your Website to help track how respondents learned about you

• Constantly fine-tune search engine keywords to get the best mix

The social media research project was lead by Jessica Kraft, senior marketing account manager, and Emily Harman, media manager.

We continue to discuss the Principles of Influence and how they relate to selling to seniors. Thus far, we have covered five of the six – Consistency, Likability, Authority , Social Proof, and Scarcity. Today, we wrap up the conversation with the principle of Reciprocity.

Dr. Cialdini uses a great example, in his book The Principles of Influence,  of one of his Arizona grad students trying out an experiment. The student got a California phone book and at random selected two-hundred names, which she then sent Holiday Greeting cards. Now remember, these were people she did not know . . . living in another state! Amazingly, holiday cards from the receivers flooded back in! These are people sending cards to a person they did not know! Why? Because they owed her … and because they didn’t want to admit they couldn’t remember her. Even more amazing, is that she built real relationships with these people over the years. In fact, when it was time for her son to attend orientation at Stanford, who do you think he stayed with? That’s right, one of the “holiday card” people.

So how can you use this principle to your favor? My favorite example of this is a sales person who, during an appointment buys with a dollar out of his pocket, a soda for himself and his guest. Why does this work? Because the power of reciprocity is sooo strong!

At Love & Company, we tell our retirement community clients, that instead of just having a coffee machine in the corner of the sales office, the salesperson should make their guest a cup of coffee, preferably in fine china. The whole experience should be a ritual in service. “Would you like some cream? Sugar?” Although out of these two examples, I would say the soda example is much stronger because the sales person is paying for it out of his pocket. And therefore, the person owes HIM something.

I have always said that the best way to engage reciprocity is through unmatched customer service. The most loyal member base for health clubs, fitness centers, wellness centers, and retirement communities is one created through relationship marketing and an approach to post-sale customer service and relationship management that builds strong ties with your members – not one strictly based on price. If you do it right, you’ll actually have members who stay in touch – for example, sending you referrals even after they move away. You can’t beat that kind of goodwill.

PS   I hope to see you at the upcoming Leading Age conference in Washington, D.C.

We continue to discuss the Principles of Influence and how they relate to selling to seniors. Thus far, we have covered four of the six – Consistency, Likability, Authority and Social Proof. Today, we’ll be covering the principle of Scarcity.

When supplies of something are short, we humans are more likely to want it! … “It’s the last one in the shop!” For those of you without kids, the image above is a Nintendo Wii, which is a beautiful example of planned scarcity. Amazing, isn’t it, how this huge corporation somehow is always caught off-guard by the overwhelming demand for their product. Hmmm?

Do people know when your retirement community is about to become complete or sold out? Even better, how about the first phase? Even better, how about the first floor of the first building with the limited number of views towards the lake? Regardless of what you are selling, you need to tell your audience how scarce your supply is– creating scarcity is a key to success. And being able to offer an exact number increases the power of scarcity.

Don’t think this is powerful for selling to boomers and seniors? Let me give you an example:

I happen to know of a retirement community where seniors who called in to schedule visits were given very tight appointment times (this community only scheduled appointments on Tuesday, Wednesday, and Thursday … and would only move on to the next day if the first one was filled).

When the people showed up for their appointments, they were often “in line” waiting for the retirement counselor to see them. The busier the sales office was, and the longer people had to wait (to a point), the more successful the sales person became. Why? Because social proof and scarcity are two very powerful principals. Grouping the appointments in a tight schedule was a strategic decision. You need to be very conscious in your efforts of “displaying” social proof and scarcity. If you are not, you’re cheating your business.

Sources:

Love & Company

Dr. Robert Cialdini

We continue to discuss the Principles of Influence and how they relate to selling to seniors. Thus far, we have covered three of the six – Consistency, Likability, and Authority. Today, we’ll be covering the principle of Social Proof.

When a number of people agree on something, we are likely to be persuaded too. Apple knew what it was doing when it gave the first IPODs the glaring white wires and base. Soon you were seeing these glaring white music makers everywhere. When I drive by your gym, fitness center, or retirement community, do I get a sense of social proof? Have others gone before me?

How strong is this principle? Dr. Cialdini tells of a group of researchers who went door-to-door in Columbia, South Carolina, soliciting donations for a charity campaign and displaying a list of neighborhood residents who had already donated to the cause. The researchers found that the longer the donor list was, the more likely those solicited would be to donate as well. To the people being solicited, the friends’ and neighbors’ names on the list were a form of social evidence about how they should respond. But the evidence would not have been nearly as compelling had the names been those of random strangers.

The fact is that persuasion can be extremely effective when it comes from peers which is why Love & Company loves to utilize resident testimonials when selling to the mature market. The science supports what most senior sales professionals already know: Testimonials from satisfied customers work best when the satisfied customer and the prospective customer share similar circumstances.

Do you have pin maps showing where your retirement community’s residents came from? Do you have Polaroid pictures of your residents and new deposits pinned up on a sales wall (the sales person should be in every photo)? Both of these become visual clues of social proof to new and old signups!

Do you have testimonials and letters posted around your office and in your marketing materials? Do you provide opportunities for your members to bring in friends for special occasions? Maybe a special appearance by a chef on how to prepare heart-healthy meals?

Social proof makes perfect sense in a busy, overwhelming world. It’s proof that others have done the thinking for us and it turned out alright.

Photo Credit: http://blogs.cornell.edu/newmedia11cew88/

Studies show that people are more likely to comply when a request comes from an expert. As you would imagine, doctors rate very high on the scale of influence. How powerful is the principle of Authority? In the early 60’s, Dr. Milgram, a Yale University psychologist, tested the ability of authority figures to instruct otherwise normal, non-violent people to do unthinkable things. In fact, contrary to expectations, a majority of civilian volunteers would obey orders to apply electric shocks to another person until they were unconscious or dead. In Milgram’s experiments, obedience tended to increase with the prestige of the authority figure. Oh, and I should note, that those being shocked were in reality actors and the shocks simulated.

Did you know that at one point Camel cigarettes utilized this principle to hawk their product? They had ads with doctors recommending their brand.

So, remember people, you must only use these principles for the power of good! Of course, willingness to comply can be used for positive change. For example, the surgeon general telling you to quit smoking is a good thing! Your doctor telling you to exercise is a good thing!

At Love & Company, we’re always looking to apply this principle to our clients’ businesses. So, who is your exclusive expert? Your Sales person? A Doctor? An Engineer? Architect? Accountant? Another resident or member? How can you apply this principle? Uniforms, badges, clipboards – become the expert. Also, add to your credentials by using press releases, videos, association memberships, public speaking, framed licenses, honors . . . Etc., etc . . . You get the point. I’m always very impressed when I go into my doctor’s office, she has something like 600 framed advanced education degrees, so she must be smart. Right?

Good listeners parrot back what the customer has said. For example, a sales person selling apartments in an active 55+ retirement community or continuing care retirement community (CCRC) might say, “So when you say you are looking for a two-bedroom apartment home, if I heard you correctly, you’re looking to use the second bedroom as a den. Is that correct?” And research has shown that the closer and more exactly you parrot back what the prospect has said, the higher the level of liking. Why does this work? Because it requires true listening. Plus, as a forced discipline it will actually improve your listening skills! After all, who’s the most interesting and important person in the world to most people? That’s right, themselves!

Next up, the principle of “Authority.”

Author’s Note: I wanted to thank you all for the kind notes and phone calls wishing me well on my recent decision to join up with Love and Company. The Mature Market Experts site will continue offering you news and ideas you can use on boomers, seniors, and the mature market.

Source: Influence at Work

Last week, I talked about the power of listening. Selling to boomers or seniors? Here’s what a good friend of mine, Dick Ambrosius advises, “The three steps to moving the prospect quickly through the sales cycle: 1) Listen 2) Listen and 3) Listen. If you are listening to understand rather than to overcome objections, the prospect will guide you to the secret to closing.”

I couldn‘t agree more.

I also believe that in addition to having refined listening skills, understanding human behavior is a key tool for any mature market sales person. As promised, today we are going to talk about the six principle of influence (Consistency, Likability, Authority, Social Proof, Scarcity, and Reciprocity) as taught by Dr. Robert Cialdini, a research professor out of Arizona State University. Specifically, we are going to talk about the first principle, Consistency.

Consistency. Once people publicly agree or say something out loud, they are much more likely to hold to that agreement. Example? I happened to be attending a New Year’s Eve party several years ago when one of my slightly inebriated sisters decided to run a marathon as her New Years’ resolution (she was turning 50 that year). She then made all of her siblings in attendance, including me, swear to join her. And she did this in front of the rest of the party attendees. She then followed up with frequent reminders of how we had all committed to run. Now, keep in mind, that at the time we were all out of shape, didn’t believe in exercise, and thought a good jog was from the couch to the refrigerator, so 26.7 miles was crazy talk!

And guess what it worked, four of us finished the marathon with her. Since then, I used this same technique on myself and have publicly committed to all sorts of crazy things. It usually works. I’ve run in 10 marathons in 10 different states!

According to Dr. Cialdini, if you want to ensure that a customer’s decision is long lasting, and unshakable, make sure this decision is:

1. VOLUNTARY
2. PUBLIC
3. ACTIVE

In other words, make sure that the customer is not strong armed. Nothing will kill the possibility of a long-term relationship faster than a starving salesperson on commission. But assuming all goes well, make sure that the customer does not keep this decision a secret. Even if your customer just writes their commitment down or signs his name, the decision will be stronger than before. And, if we arrange for our customer to tell others, even other staff members, the decision becomes even more permanent.

So what’s this mean to you?

Well, let’s use the contract process as an example.

Do you want to cut down your number of cancellations dramatically? Just have your customer, rather than your salesperson, fill out the sales agreement. Why? The mere act of filling out the contract creates a condition of consistency that most people don’t want to break.

Then, tell the person you’re dealing with that you can tell by looking at them, and the way they act, that you know they will follow through with their contract because you can tell that they are an honorable person. You might think that’s flattery, but our clients’ sales teams mean it when they say it, and it makes the prospective resident feel honorable. Everyone wants to feel important, and they want to measure up to other people’s expectations. In short, they want our vision of them to be consistent. Think that level of commitment is important in this real estate market?

Also, when a new member or resident signs up, I like to turn it into a celebration … I introduce all the staff to the newest member … I take a Polaroid of us together and hang it on the “family” wall. They’ve now committed in front of other people. These photos become visual evidence or reminders that we have made a commitment to each other. One that I consider sacred and will go out of my way to honor — ABOVE AND BEYOND! And the best part is that people want to measure up to what they have said they would do. The hard part, but also the part that is most fun, is that it is then in your court. You now have to over-deliver because you want to be consistent with what YOU said!

Next week … Likability.

Columbo was the master of discovery.

Sales and marketing techniques for selling to boomers, seniors, and the mature market. Being a good husband, wife, friend, or marketer is all about the process of discovery. And TRUE discovery comes from conversation NOT from demographic profiles. I can tell you personally; this is a problem most husbands and marketers have. They are just not very good listeners (at least that’s what my wife tells me). Women, do you ever have a conversation with your husband, and then 5 minutes later he asks you a question that proves he really wasn’t listening?

Why is listening so important? Because only through real listening . . . no even deeper than that, only through probing, can we really discover what the needs, goals and aspirations of the person we are speaking to really are. What stage of life are they at? Trust me; you won’t get this off a mailing list.

And I use the word probe because most boomers and seniors are so use to not really being listened to, so much so that they don’t really usually offer up their real thoughts. Which means as a sales person, you really need to understand how to get past conversation stoppers. You also need to understand how to ask follow-up questions. Both of these techniques will coax your customer to reveal more of themselves. Columbo was the expert at this, “Excuse me, sir, but do you have time for just one more quick question?”

But listening is just the first step to building a deeper relationship. Once you listen, you need to know how to respond to your new information so that you can help the person.

I’m a big believe in the principles of influence as taught by Dr. Robert Cialdini, a research professor out of Arizona State University, although if it were me, I’d rename the principles, the principles of true love. Dr. Cialdini, who I actually hired for a speaking engagement, and his team are brilliant.

Here’s how I remember the principles . . . CLASS R.

C – L – A – S – S- R.

Consistency. Likability. Authority. Social Proof. Scarcity. Reciprocity.

Over the next several weeks, I’ll be talking about each of these six principles and how they apply to selling to the boomer, senior, and mature market.

We have many mature market clients who have hesitated when our team at Love and Company recommend that they “give” something of value away for free. “Tom,” they say, “we’re in the business of making money.” However, cost sensitivity is now the new norm. Regardless of age, upper-class consumers have joined the middle-class and lower-income in being price sensitive and value minded. And as we know, the mature market (boomers and beyond) is even more cynical and cautious, because they have seen it all. And, they have the patience and intelligence to gather information in a thoughtful manner.

We had one retirement community client tell us that their prospects were too refined for the word “FREE.” In this case, we were recommending that they give away a FREE retirement information kit. They had a hard time understanding that socioeconomic distinctions are rapidly becoming blurred. Cost sensitivity and cautious buying are now typical of all income brackets. Fortunately, their results dramatically improved when we were finally able to sway them.

In short, today’s market place is all about creating relationships. All of which brings us back to incentives. Incentives are a great way to start a relationship AND engage the power of reciprocity. That being said, there is a distinct difference between giving something of value away to potential customers and giving the farm away. My analogy is that we should make the first hurdle for entering a relationship as low as possible, this motivates them to reach out to you and to become acquainted.

Free offers can be as simple as a customized monthly newspaper, an e-newsletter, a white paper, a contest, a promotional item, or a seminar. The goal here is to have the incentive create a legitimate lead. This is particularly important in today’s world of permission marketing. Incentives should require your prospects to give something in return, namely their name and contact information. You won’t capture every visitor but those that do submit their information are serious prospects if your incentive offer correlates to your product or service in a meaningful way. For example, we use this offer for a FREE marketing audit on the Mature Market Experts site.

In this example, when I wrote the copy for Inter-Continental Hotels I used a double incentive - free information and a chance to win a free vacation.

By doing a lot of testing on your incentive offers and forms, you can typically increase your conversion rate significantly, capturing more leads from the same overall amount of traffic. Some of the things you might want to test are your incentive offer, the length of the form, putting a link to your privacy policy on your information submission form, adding a customer testimonial with a picture or video, and the form’s design.

Also, remember, there is a direct correlation to the number of landing pages (which improves your natural search engine optimization) plus, the number of incentive offers you have … to web traffic and leads.

Sadly, most websites do a poor job of capturing the traffic that comes to their door. Make sure that your organization is not one of them!

Important Note About Responding To Sales Leads:

How you respond to these leads is VERY, very important:

According to an MIT Study with InsideSales.com, 78% of sales that start with a web inquiry go to the company that responds first.

Of those surveyed by sales lead expert Mac Macintosh, 23% had bought the product or service they were inquiring about within 6 months. The other 67% still intended to purchase, but were not yet ready.

According to DemandGen Report, nurtured leads produce – on average – a 20% increase in Sales Opportunities vs. non-nurtured leads.

Source: HubSpot

Building, marketing, selling, and operating a successful senior housing project (active 55+ retirement community, continuing care retirement community, senior rental, assisted living, or skilled nursing care facility) today is a lot more complicated than it was just a decade ago.  Today getting zoned, financed, built and occupied within budget is much more difficult.  Not having the proper skill sets and experience on any of these steps can derail your mature market project. These 13 steps, if managed and handled properly, will lead to your project’s success.

1. Due Diligence

2. Demographics/Best Use

It’s also important to analyze potential partnerships with local service providers that can complement your property/product … providing additional insight into the best use for your property while offering additional cost savings.

3. Product Development

Henry Ford Village, Dearborn, Michigan

4. Master plan and Pro forma

An attractive master plan that maximizes your unit count, parking, and open space is the first step in developing a successful pro forma.  Having a realistic master plan that represents reality rather than a designer’s fantasy prevents zoning officials from becoming fixated on the front end of the process with amenities that could ultimately crush your pro forma.  If not avoided, these subsequent changes can be viewed as bad faith on the part of the developer (you) and ultimately derail your project.  In short, once you present town or city officials with any amenities it becomes almost impossible to take them away.  More importantly, developing a pro forma grounded in experience and realistic estimates is the backbone to a logical decision making process of whether to proceed or not.  A working pro forma that accurately includes development, construction, marketing, and operations — along with projected absorption and revenue is key to creating a successful package for attracting financial partners.

5. Pre-Marketing Test

6. Obtaining Entitlements and Approvals

In addition, having prior experience with multiple jurisdictions is often very helpful in getting officials through the unique requirements of senior facilities.  Not having this unique collection of skills and experience can be very costly.

7. Secure Financing/Letter of Commitment

There are still several banks and lending firms providing new construction financing, but the majority of new senior housing construction activity is coming through Housing and Urban Developments’ 221 and 232 programs.  Understanding HUD’s process for loans and time schedules is a very specialized skill set.

It takes more than good connections and a solid pro forma to secure your letter of commitment … understanding how to present your project is vital to achieving success.  A good financial request should include a portfolio of experienced industry players and their track records, a thorough explanation of both macro and micro conditions, projected project returns and an exit strategy.

8. Select and Manage the Design/Pre-Construction Team

9. Create Pre-Construction Advertising and Marketing Program

10. Close Financing

11. Oversee the Construction/Architect’s Administration Process

12. Furniture and Fixture Selection and Installation

Charlestown Retirement Community, Catonsville, MD

13. On-going marketing

Finally, getting in to senior housing or expanding an existing community requires a passion for the people and the industry. Make sure that … you’re working with people that share that passion, what we do is more than bricks and mortar!

Editor’s Note: Tom Mann of Love and Company co-wrote this article with Kevin Glover of KGRW & Associates. The senior management team of these two companies have worked as a team on some of the nation’s most successful senior housing projects over the last decade.

Is a game the way to consumers' hearts?

Mature Market Experts: more boomer, senior, and mature market news and stats you can use – Beyond Banner Ads. The yet fully unrealized potential of internet advertising hangs just out of reach as a tantalizing fruit for advertisers, as television advertising once did at its inception. The challenge is for advertisers to crack the code – how to get online users to pay attention to their marketing message. Especially, how to get the lucrative, savvy, mature baby boomer market to heed commercials as they browse the web, with real increases of sales in consumer goods and services. Some think the key to unlocking this elusive riddle will be to integrate enhanced interactive systems such as Microsoft’s new Kinect with the internet experience. To see a demo review of Kinect in game form click here. To read more on its advertising potential click here.

Don’t laugh, boomers and seniors have been big fans of augmented reality games from the beginning. An now, brain fitness programs like Super Noggin are incorporating games like these into their programming. It won’t be long before we see advertising as part of the environment.

Minor rant: I recently pulled out the instructions for my Jawbone headset … ugggg! Are you kidding me! The smallest, most impossible font I have EVER seen made the directions impossible to read! AliphCom, who do you think is buying these expensive bluetooth headsets? Let me give you a hint, they’re older and they have money. Please, please, please have your designer call us before you create your next packaging.

From coffee shops to clothing, the mature market is willing to use their disposable income.

How do you attract seniors to your town, city, or state? And what’s their value to the local economy? Late last year, I was asked to speak at the National Active Retirement Association (NARA) Conference on this topic. State representatives from across the country where in attendance, as was NARA’s founder Dan Owens, who has been harping on this overlooked fact for some time now. The beauty of attracting retirees to your town, is that essentially, the drivers are similar to what drives tourism. And, once you start that trickle of retiree money, it builds momentum like a fly-wheel, i.e., one restaurant attracts another … then an art gallery … then a museum …

Plus, attracting retirees costs less than it does to try to attract major manufacturers. And the return to the local tax base is a whole lot more! Think about how major companies hold small economies hostage (unless you do this, this, and that, we’re leaving). In addition, companies can and do go out of business. Seniors with their social security checks stabilize economies and diversify risk.

Shortly after this presentation, our team was invited to talk to several of the representatives of Opelika, Alabama (Opelika and Auburn are adjacent to each other and have grown to form one fantastic destination). Amazingly, the bulk of their marketing has been done with the young professional in mind. When I showed them the stats favoring boomers and beyond and their spending patterns, they were floored. Next, we reviewed some of their marketing materials, the type faces and fonts where so small and so dense, I couldn’t read it (at least not without getting a headache). Truthfully, they just hadn’t thought about how their marketing materials appealed to retirees. Fortunately, they quickly understood what I was saying. These folks get it! And, they are blessed with fantastic southern weather; a world-class university; charming, walkable towns; some of the kindest people on the planet; and an incredible value proposition from a real estate perspective — not a bad starting point!

Towns and cities all across America are aspiring to be on U.S. News & World Reports’ Best Places to Retire list. The reason -  many urban planners believe that the mature market will bring economic stimulus with them in various forms, such as job creation, a boom in real estate, retirement communities and senior housing sales, an import of savings and reliable incomes. Other advantages of attracting boomers/seniors/retirees include economic and social stability, an increase in the tax base and volunteerism. Compared to wooing industry, retirees are a bargain. But as the massive generation of baby boomers grow older, communities must also be prepared for a growing strain on local health care systems and infrastructure. To read more on the pros and cons of enticing the 65+ demographic to a local economy Master_Retiree_Attraction_FINAL_Report.

Also, here’s a great article about how one Florida town discovered that retirees, not NASA are the economic drivers for their economy.

Mature Market Experts: more boomer, senior, and mature market news and stats you can use – Does the Medium Effect the Message? Like all advertisers, you need to reach your audience in the most cost effective way possible. But are numbers the only consideration when determining where to place an ad? In other words, are all ad spaces created equally? Is reaching 1 million internet viewers the same as a television audience of 1 million? A recent AdweekMedia/Harris Poll, indicates that different consumer groups self report connecting more or less effectively with various media forms. While it may go against intuition, the baby boomers (55+ group) found search-engine ads more helpful than younger groups (20% compared to 16% of 18-34 year olds, 18% of the 35-44 and 19% of the 45-54 age groups). Conversely, the youngest group was most likely to respond to television advertising (34% of the 18-34 age group), with effectiveness of television ads declining with each age group. Of course, there are ways to increase a medium’s marketing prowess. For example, while 15% of respondents said they found newspaper advertising helpful when purchasing consumer goods, having a dedicated tabloid with no competitive advertising in it, will increase your ad’s power tremendously.

For more information on the study click here.

To read more on creating a customized 8 page newspaper  click here.

Attention Wellness Directors: You owe it to your residents to introduce them to Super Noggin and Conductorcise in 2011!

Mature Market Experts: more boomer, senior, and mature market news and stats you can use – Defining the Senior Market. Baby boomers, seniors, 55+, 65+, the mature market … all of these terms are rather nebulous when it comes to marketing. What exactly is the senior market? Undoubtedly there are differences between a 65 year old and a 112 year old. The NAHB Research Center (a subsidiary of the National Association of Home Builders) breaks the senior category into 4 groups: the Baby Boomer Generation, born 1946 to 1964; the Post War Generation, born 1928 to 1945; the World War II Generation, born 1922 to 1927 and the Depression Generation, born 1912 to 1921. Among the more senior seniors internet advertising may be ineffective, while for baby boomers it may be highly productive. Read here for a different perspective on defining your target audience. Also consider cultivating new lead sources in the senior provider community. The Older Americans Act mandates that every community has an Area Agency on Aging (AAA). This is a great network to be a part of. To be included, your business must earn the trust of the AAA.

Editor’s Note: Wow! Hard to believe another year has blown by! Happy holidays to all. The team at Love and Company wishes you an awesome 2011!

In fact, our team at TR Mann Consulting feels so strongly about this principal that we won’t accept a client for our customized newspapers unless they accept this one condition … WE WON’T WRITE ABOUT THE PAST. Remember, your residents and prospects are forward looking people who want to live in a forward looking community!

Editor’s Note: Speaking of forward looking, just returned from San Diego and the International Council on Active Aging’s Conference (ICAA) which was simply an awesome event. Great to see our clients, Super Noggin and Conductorcise, as well as the countless other friends pushing the industry forward.

Mature Market Experts: more boomer, senior, and mature market news and stats you can use – Images: A Picture is Worth A Thousand Words. Have you ever gone to a website only to be tempted to abandon it because the downloading of images seemed to take forever? And when it finally appeared on your computer screen, realized that the image was not worth waiting for? Not a scenario you should be putting current or potential clients through. As the proverb goes, a picture is worth a thousand words. But, in advertising it has to be the right picture. If the image is free, great; but has it been overused? The viewer will recognize it and not give much credence to your website or printed material. Images need to speak about the product – and assuming market leader and uniqueness are desirable attributes – they should not seem generic. If you are advertising to baby boomers, you need to consider if a photo of vibrant, natural looking, mature grandparents is more appealing and realistic than one of a campy forty year old couple? And remember, even the best image will be a turn off if it slows down the loading of a web page, so be sure images are optimized for the web. In any media, image excellence is essential to convey the message of quality.

For more tips on selecting and using the right photo click here.

Resources:

TR Mann Consulting - Senior Housing and Mature Market Sales (Active 55 retirement communities, continuing care retirement communities, assisted living, skilled care)

Free Marketing Audit (excluding travel) – call today to ask about our free marketing and sales audit for your community, 410-292-4333.

Note: San Diego is a great place to be in December. Our team, TR Mann Consulting, will be attending the upcoming International Council on Active Aging Conference (ICAA)  in San Diego, December 1st through the 4th. We’ll be exhibiting (Booth #1748) and we will also have an office suite for meetings. Feel free to email (Tom@TRMann.com) or call us if you want to catch up, 410-292-4333. I’m happy to say that at least two of our clients, Super Noggin and Conductorcise will also be attending. Hope to see you there!

Sources:

Love and Company

Free Marketing Audit (excluding travel) – call today to ask about our free marketing and sales audit for your community, 410-292-4333.

Note: If you’re new to this blog and would like to start Sales Success Selling To Seniors from Step 1, click here.

Now, my mature market friends, we are on the last two steps of  our call, ”the recap” and “reciprocity.”

Step 9: The Recap

This is where you repeat what they have committed to.

“So, John, let me recap. You’ll be here on Thursday at 10:30. Is that correct? (Pause, wait for “yes”)

“Yes.”

Bingo. Once a prospect publicly agrees or says something out loud, they are much more likely to hold to that agreement. This is called the principal of consistency. That is why, your close to the call is so important. You want them to acknowledge their commitment.

“John, it was great speaking with you today. I’m really looking forward to meeting you!”

Be polite and energetic when completing the close above BUT do not “thank” them for their time. They did not do you a favor. We want the principal of reciprocity to remain in our favor.

Step 10: Reciprocity

After you hang up, you will send a customized note or gift to the prospect. By doing this, you are showing the customer that you were truly listening to them … so much so, that you know an appropriate note or gift to send them. This will again reinforce the principal of reciprocity, building the relationship between you and your customer even stronger (reciprocity is merely when someone does us a favor first, we feel obligated to return that favor with another favor … and it does not matter how small that favor was, we feel indebted until we have returned a favor). What’s empowering about reciprocity, is that we are rewarded for sharing … for caring.

In closing, remember the essence of these steps is to PRACTICE listening and caring. If you do so, we will see your sales climb!

PS      I hope to see you at the LifeSpan Conference this week in Ocean City, Maryland. My team and I will be at booth number 63.

Additional Resources:

www.Mature-Market-Experts.com

Love and Company

Free Marketing Audit (excluding travel) – call today to ask about our free marketing and sales audit for your community, 410-292-4333.

LifeSpan Senior Housing Conference – Tuesday, September 28 – Friday, October 1 – Ocean City Convention Center * Ocean City, Maryland

National Active Retirement Association Conference – Wednesday, October 20 – Friday, October 22 – Columbia Metropolitan Convention Center * Columbia, South Carolina

International Council on Active Aging Conference – Thursday, December 2 – Saturday, December 4 – San Diego Convention Center * San Diego, California

Seniors are ready to be persuaded by people they like … aside from the staples of life, people don’t buy products, they buy relationships! Levels of liking go up as people become more certain that we are listening. That’s why people find the beginning of new relationships SO intoxicating. Because the other person is still so engrossed with you. Listening is particularly important when dealing with seniors because much of society has STOPPED listening to them. Why? Because our work-obsessed society devalues people once they retire. What’s the first question someone asks you at a party? Who do you work for? What do you do? Truly listen. Give them an opportunity to show you who they are and they will forever be grateful.

Good senior housing sales professionals parrot back what the customer has said. “So when you say you are interested in moving to a two-bedroom, are you interested in a patio level or a balcony?” And research has show that the closer and more exactly you parrot back what they have said, the higher the level of liking. Why does this work? Because it requires true listening. Plus, as a forced discipline it will actually improve your listening skills! After all, who’s the most interesting and important person in the world to most people? That’s right, themselves!

After listening to the prospects answers to open ended questions repeat what you heard the customer say … this is called parroting. Research tells us that the more closely we repeat back what a customer is saying when we respond to them; the more they will like us. Why? Because when we do this, we demonstrate that we are listening. Half the time people don’t even know what they need, so when you are taking notes and the parroting back what they just said, a lot of times they are thinking… “wow, I really do have a lot of issues. Yes, that is important.”

The most basic of skills, listening is very important and very difficult to master. But you my friend can do it.

To show you how powerful parroting is, researchers recently proved that waiters can increase their tip size nearly 70% simply by exactly matching their customers’ verbalizations after receiving the order! So, after parroting what our prospective customer has said, we then go to the Box & Close.

Step 8: The Box & Close

… “so which works better for you? Tuesday or Thursday?” We call this technique a Box & Close because we are giving the prospect a box of choices to choose from (preferably only two). By giving them choices to choose from, we are not allowing them to delay the decision by procrastinating.

So here’s what a parroting followed by a Box & Close might look like:

“So based on what you told me, the most important thing to you about a community you might choose it that it has….Yet in saying that, finances is a concern as well. Is that correct? (yes) So what I would like to do is set finances aside, because the bottom line is you are not even sure that this community is the right fit for you. What I would like to do is invite you to try out some of the amenities of our community. I know that you go to the YMCA, so instead of going to the Y this week, what I would love is for you to come this and utilize our all-season swimming pool this week, plus, attend our Super Noggin and Conductorcise classes. I know you are participating in those activities now … and this way you will get to experiment firsthand of what it would be like living in our community … before you even commit to anything. Many of our residents that went to the Y found that our classes were actually better and they were able to terminate their memberships and actually save money. This would be an excellent chance to see the quality of our fitness programs, meet some residents, talk to them about the consistency of our programs and see what they’ve gotten out of them. And again, whether you choose us or not, you’ll feel better knowing you’ve done your research and experienced our community’s lifestyle for yourself. So what will work better? We have Conductorcise class going on tomorrow at 7:30, that’s for our early risers, and then at 10 we have Super Noggin, which of those will work better for you?”

For in-person sales, taking a picture of the prospect with you once they’ve given you a deposit is an excellent commemorative reminder of their commitment. Be sure to hang their photo in a public place in the “family circle.”

Practice these techniques until they feel second nature and you will find yourself that much closer to the sale. Happy selling!

Next week, step 9 to Sales Success Selling to Seniors – The Recap.

Additional resources:

Love and Company

Boomer Selling by Steve Howard

Secrets of Question Based Selling by Thomas Freese

7 Steps to Successful Selling by Traci Bild

The Power of Nice by Mark Jankowski

Spin Selling by Neil Rackham

Principals of Influence by Dr. Robert Cialdini

Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher and William L. Ury

Free Marketing Audit (excluding travel) – call today to ask about our free marketing and sales audit for your community, 410-292-4333.

Step 6: The Reason I Am Calling

Now, we are at the heart of the call, the reason for your call.

After opening the door (see our last blog, 10 Steps to Sales Success For Selling to Seniors – Steps 4 and 5), you are going to say, “The reason I’m calling is because… (Depends on which of the scenarios fit, ie. “as you may recall you requested a retirement information kit” or “as you may recall, you attended our luncheon on Tuesday”)

You are going to end this thought process with one of two things:

Either permission to ask questions or a Box & Close (where the caller is given two choices. “ i.e., so which works better for you, Tuesday or Thursday?”).

Scenario: Follow up to an event. “John, the reason I am calling is that I wanted to follow-up after your visit to the community last week. Attending that luncheon should have given you a small taste of what life is like here. Well, there are a couple of great opportunities next week for you to get become even more familiar with the community, talk with residents, and get a feel for what it’s really like to live here.  Both of these are excellent opportunities to talk with residents because they are relaxed, friendly settings. And they’re FREE! We’re having a resident golf outing on Saturday, it’s a charity fund-raiser for The Believe In Tomorrow Children’s Foundation … and I know you love to golf. And the other thing I thought you might enjoy is movie night on Friday night, which works best for you? Friday night or Saturday morning?”

Note: “And they’re FREE!” is a very powerful term. That’s because research shows us that people will work hard to protect something they already have. The term “FREE” gives them instant possession of that item.

Their response: “Wow, that sounds exciting but I really can’t make it” or “thanks, but I have already gathered all the info I need for right now.” These are objections/conversation stoppers.

So, you will go “I understand, well, since I already have you on the phone do you have a quick minute for me to ask just one more question …” Then go into another open ended question.

Scenario: To book an appointment:

“The reason I’m calling is because …” either permission to ask questions or Box & Close

“Hi, is John in? (Pause)

“Yes, this is he.”

“Hi, John! This is Tom Mann. The reason I am calling is because I know it has been some time since you have talked with anyone here at the Heritage of Green Hills and wondered if you have a quick second for a question?”  (Pause)

And they will say “yes?”

Once, they have said “yes,” the door has been opened for you to ask your questions. Now ask them an open ended question. You can also use open ended questions to help you get by Conversation Stoppers.

An Important Note: Conversation Stoppers/Dead Ends

Inevitably, you will run into someone who absolutely does NOT want to engage in a conversation. Over the years, seniors have learned to  have a natural fear/dislike of sales people. Here’s an example of how they might try to kill the conversation:

“Can you just give me the prices? I really have to run!”

OR

“I really need to talk to my son first … or my wife’s just not ready.”

OR

“It’s just not going to work at this time.”

OR

“I can’t even speak to you right now, my mom thinks I’m trying t put her in an old folk’s home.”

That’s O.K. Remember; they initially ASKED US for information, so we owe it to them to help them get past their natural distrust of sales people. As before, we are going to defuse the situation with a phrase you will come to love, love, love, “I understand completely …”

“I understand completely” disarms the prospect and puts them at ease. It lets them know you understand and have empathy. You will then continue.

“I understand completely. Since I have you on the phone, can I ask can I ask you just one quick question?

“Yes” They will always say “yes.” Why because they just shot you down and now they feel like they owe you (this is the power of reciprocity in play).

Once they say “yes,” ask them another open ended question. Note: Your goal here is to get THEM talking. This is NOT your opportunity to overcome their objections. Do NOT try to do so here. This IS your opportunity to LISTEN and to gather information.

Here are some examples of open ended questions you might ask:

“So that I can better customize your information kit for you, can I ask you are you looking for a one or two-bedroom home?”

“Have you visited any other retirement communities?”

“Aside from price, what other information can I provide you with?”

What made you pick up the phone and call us today?

“Can I ask, what really is the most important deciding factor for you, about the community you will ultimately choose?”

“I sense some hesitation, may I ask what is it that is really bothering you about our community?”

“What is your greatest concern with staying in your house right now?”

What are you looking for in an full-service Retirement Community?

What do you do with all your free time now that you have retired?

“What is your current situation?”

“What’s most important to you in a retirement community?”

“What interests you about our community?

“How do you like to spend your free time?”

“What is it you like about these activities?”

“What are your hobbies and interests?”

“What do you mean by that?”

“Why is that important to you?”

Additional resources:

Love and Company

Boomer Selling by Steve Howard

Secrets of Question Based Selling by Thomas Freese

7 Steps to Successful Selling by Traci Bild

The Power of Nice by Mark Jankowski

Spin Selling by Neil Rackham

Principals of Influence by Dr. Robert Cialdini

Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher and William L. Ury

Free Marketing and Sales Audit (excluding travel) – call today to ask about our free marketing and sales audit for your community, 410-292-4333.