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 news and stats you can use on boomers, seniors and the mature market – Baby Boomers Boom into Volunteerism - Volunteerism is on the rise in the US. Some site the realization of increased need in this difficult economy as their motivator. Others are unemployed and willing and able to contribute their time, perhaps instead of the money they might have given in the past. The president’s emphasis on community service is also credited with the drastic increase in volunteers. Numerous people have signed up through the website www.serve.gov. Many of these volunteers are boomers, and nonprofits are benefiting from their business and professional skills, as well as more traditional physical labor. They in turn, site satisfaction as a major reward for their altruistic efforts. To read more click here.

Baby Boomers and Volunteering

• Nearly a third of all boomers – comprising some 25.8 million people – volunteered for a formal organization in 2005. (U.S. Bureau of Labor Statistics)
• At 33.2%, the volunteer rate for baby boomers is the highest of any generational age group, and more than four percentage points above the national average of 28.8%. (U.S. Bureau of Labor Statistics)
• A typical boomer volunteer serves 51 hours a year, or approximately one hour a week. (U.S. Bureau of Labor Statistics)
• The percentage of retired baby boomers who volunteered increased steadily, from approximately 25% in 2002 to approximately 30% in 2004. (U.S. Bureau of Labor Statistics)
• Volunteering tends to peak at mid-life, around the current age of baby boomers, and then decline slightly; declining further among the oldest old (typically 75+).
• The biggest single inducement for baby boomers to volunteer is being asked by someone with whom one has an established relationship.
• Baby boomers are less likely than older age groups to volunteer out of a sense of duty or obligation and more likely to volunteer as part of a social interaction.
• Baby boomers are more likely to volunteer as a result of social, self development, self-esteem, or leisure-focused motivations. Episodic, familiar, community-based opportunities are also preferred.
• Four out of five boomers see work as playing a role in their retirement years, with only 20% anticipating retiring and not working at all (AARP):
• Of U.S. workers over 45, 69% plan to work in some capacity during retirement, with only 28% expecting not to work at all.
• More than 75% of workers 45+ feel that work is important to their self-esteem.

(Research taken from the 2004 “Reinventing Aging – Baby Boomers and Civic Engagement” report, Harvard School of Public Health & MetLife Foundation Initiative on Retirement and Civic Engagement, unless otherwise cited.) Source: Get Involved

If you own or operate a retirement community or health club, you owe it to your residents/patrons and yourself to serve as a spark for their spirit of volunteerism. By enabling them, you not only engage their body, mind and spirit … you also open an incredibly valuable public relations source for the community. Many retirees are searching for new meaning in their lives. After all, society tends to devalue you once you retire. What’s the first question someone asks you at a party? “So, who do you work for?” Well, these stories don’t appear in the paper by accident, they are often guided by talented PR people. And the effect? Seniors look at a story like this and go, “I want to be involved!” Very often their next thought is, “Man, I want to live at a place where people are doing cool stuff!”

Think about it this way, have you ever placed an inspirational story about one of your residents/health club members? PR is even more powerful than advertising. It comes across as an unsolicited recommendation. I guarantee you, the stories that you don’t yet know about your residents/members will amaze you. And even more importantly, getting to know your residents/members this deeply, so that you can discover these stories, will be even more important than the PR itself. Your members will feel a real connection with you. They know that they belong and are cared for. Plus, most people love being stars!

Hint: These stories are EASY to create, if you know how to create real relationships with the people you work with and the surrounding community. If you’d like some more “relational marketing” ideas, check out this PowerPoint presentation.

Also, speaking of active aging, here’s two of the ICAA’s preferred providers worth checking out: Super Noggin (brain fitness) and Conductorcise (music and exercise).

Here’s a video introduction to Super Noggin:

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – Incline Elevators Lift Retirement Real Estate. Many seniors dream of a lakeside home to retire to. Their search may lead them to the perfect house – except it is located on a steep hill. Incline elevators (which look like a small private tram) can overcome these barriers for the elderly, scaling 45 degree angles, and delivering them, and the grandkids to the lake below. While they can be costly (averaging $50,000.),  home buyers may be able to find homes at reduced prices because of the difficult retain. To read more click here.

Mature Market Experts: more mature market news and stats more often – The collapse of the RV industry - According to the Warranty Week, no segment seems to have been harder hit by the recent recession than recreational vehicles with the virtual collapse of the RV (recreational vehicles) industry. The report states the accruals made by manufacturers in the RV industry over the past six years increased in the second quarter of 2005 to $79 million, whereas in the final quarter of 2008 they were barely over $41 million.

The industry’s current problems stem from consumer loss of income, fluctuating interest rates, increase in fuel prices and diminished home equity financings over the last two years.

Despite being among one of the cheapest ways for Americans to vacation, Mark Schone, attributes the industry’s sudden breakdown to recession. In addition the industry has also experienced a unique and painful credit crunch, which makes it difficult to arrange loans for those who still have hopes. The two major RV manufacturers, Country Coach and Monaco Coach are on the verge of bankruptcy (by the way, if your company faces bankruptcy – regardless of industry – my brother’s firm, Equity Partners, might be able to help).

A study conducted by the University of Michigan’s Survey Research Center outlines the main reason for the growth in the numbers of RVs owned by Americans. RVs had reached record levels in the past couple of years. By the end of the decade, the number of consumers aged 50 to 64 will total 57 million or 38 percent which is higher than in 2000, as noted by Dr. Richard Curtin, director of surveys at the University of Michigan. Today there are around 8.5 million functioning RVs, which has led to a drastic growth of 58% since 1980 and one-in-12 vehicle-owning households in the above age group own at least one RV.

Even though there was a sudden decrease in the value of manufacturers’ sales of RVs in 2001, the RV market has shown immense growth in the following years. In 2004, the sales had increased by 6.7% to reach $11.4 billion, which was higher than the $7.4 billion in 2001.

Since 70% of RV production is located in Indiana and 15% in Oregon and California, these states are currently experiencing wild unemployment. Indiana currently has the highest unemployment rate in the United States.

My partners and I, at TR Mann Consulting, believe that the industry association needs to make an aggressive advertising move. This recession is actually an opportunity for them to gain market position by positioning themselves as a vacation value. But they need to do so, by making a move to mainstream media . . . something they have been historically reluctant to do.
References

http://www.rvindustrynews.com
http://www.msnbc.msn.com/id/30066873
http://www.rvnews.com/acover.cfm
http://www.nmma.org/lib/docs/nmma/gr/policy/Obama_letter_final.pdf
http://www.manufacturing.net/News-RV-Industry-Struggles-As-Pension-Funds-Dry-Up-030509.aspx?menuid=248
http://www.rvtradedigest.com/web/online/Industry-Business-News/CNBC-reports-that-RV-industry-is-ready-to-signal-a-turn/1$5189
http://www.rv-n-motorhomes.com/RV-Facts-Statistics.html

Mature Market Experts: more mature market news and stats more often – Mature Market Advisory Board Members – To move Mature Market Experts to the next level, we are calling for nominations in the following areas:

1. Technology
2. Government
3. Health Care
4. Fitness
5. Travel
6. Lifestyle
7. Finances

One-year term responsibilities will include:

1. At least two blog entries per month on your topic of expertise
2. Conference call attendance at the bi-annual meetings
3. Provide candid and relevant feedback to issues that are brought up at Board meetings

You may nominate yourself or a trusted colleague. Nominations are due by April 3rd.

We will be adding an additional page to the website that will be titled “Advisory Board” with links to each of the members.

View This Poll

Mature Market Experts: more mature market news and stats more often – mature market skiers and the economy – I recently went skiing close to home (Deep Creek, Maryland) with my wife and children and couldn’t help but notice the slopes were packed. Long lines everywhere you went. Didn’t seem like the economy was slowing business down at all. Upon closer review, I’d be willing to bet that many families are and will be vacationing closer to home to save money. The other thing I couldn’t help but notice is that the slopes were filled with boomers. In fact, in many instances I saw three generations of skiers from families. This broadening of the market has to be helping ski resorts. I know my parents weren’t skiing at 60. My observation of more mature market skiers definitely echoes what the industry is reporting:

The National Ski Areas Association (NSAA) 2008 National Demographic Study states that there are continued gains in visitation among skiers and riders aged 45 and over. Since the winter of 1997-98, the proportion of skiers aged 45 to 54 has increased from 14% to 19.9% in the U.S., says the association. Skiers aged 55 to 64 has doubled from 4.6 percent to 9.2 percent; and the proportion of visitors aged 65 and over has also increased substantially, from 2.4 percent to 3.8 percent. The NSAA press release states, “According to the study, the loyalty and staying power of older participants has been a plus for ski resorts and has been a key driver of the success enjoyed by the industry in recent seasons.” Last season, the industry tallied a record 60.5 million skier visits nationally.

Just imagine how much more business they would be doing if they catered some more to baby boomer needs. I can tell you that ski lifts, as they are designed today, continue to be a major barrier for young and old. I saw more falls in these areas than any other part of the resort. I also think ski boots need a redesign, as they are far heavier than they need to be. And finally, I’d encourage the resorts to consider shorter ski rental periods and rates. Many grandparents would love to go down the bunny hill with their grandkids once or twice but don’t want to spend the day out there . . . and would happily retire to the bar or spa (with their wallets) after a couple of trips down.

By the way, TR Mann Consulting’s client GRAND Magazine, had a wonderful article on the top four ski resorts for grandparents and their grandkids.