Hartford Business Journal

20 Hartford Business Journal • July 10, 2017 www.HartfordBusiness.com TALKING POINTS Why spending all your marketing dollars on Millennials is bad business By Andrea Obston C hasing Millennial dollars is trendy. Catch- ing Baby Boomer dollars is good busi- ness. Millennials may be the shiny thing, but Boomers are still the ones who spend. Those of us over age 50 are respon- sible for 50 percent of all consumer expen- ditures, but clueless marketers are only spending 5 percent of their ad dollars on us, according to Forbes. And their article, "Marketers Throw Out The Baby Boom- ers With The Bath- water," goes on to point to a recent study by the University of Michigan that says "marketing campaigns targeting Boomers are twice as likely to be successful as those targeting Millennials." Yet, the Boston Consulting Group (BCG) calcu- lates that less than 15 percent of companies have developed a business strategy focusing on them. Many marketers are not getting the message, though. They see my genera- tion as the sole provi- dence of ads about adult diapers and emergency medical alert devices. Those who get it will benefit. Consider the case of Stitch, an online dating, activ- ity and travel commu- nity for those over 50. Their founder, Marcie Rogo says: "[Boomers are] brand loyal. This is what I love about them. If they trust you as a brand, they will stay with you. They're not going to hop around like Millennials." Stitch was started two years ago and now has 50,000 members in 50 cities worldwide. The 77 million Baby Boomers still pack an economic punch. Smart marketers should be looking for ways to tap into the spending of the generation. Here are a few tips to make that happen: Take advantage of brand loyalty — Boomers are loyal to the brands that have proven themselves over time. They are at the stage in their lives when they value products that have always come through for them. I'm on my fourth Camry; my third LG smart- phone and I buy Dannon yogurt by the case because, frankly, I don't want to spend my time considering the alternatives. I stick with those products because they work, and I prefer to fire up my brain cells for more important decisions. Go for the up-sell — My generation looks for ways to make our lives easier. Once you prove that your product can do that, we're prob- ably open to some upselling. If Dropbox makes my life easier, you can convince me to pay a lit- tle more for extra storage. And, remember that upselling me on something I already like is a whole lot easier than bringing in a new customer. Reward the loyal spender — Whether it's frequent-flyer miles, cash back on my credit card spends, or points for my Victoria's Secret card (yes, old people like nice undies, too) I like the idea of a reward for that spending. Since you already know we Boomers are brand loyal, how about sending us a little love to reward us for all that spending? It will keep us coming back. Take advantage of traditional marketing and sales tactics — Older Boomers still watch and give credibility to what they see on TV and in the newspapers. They may be reading those papers online, but their content still conveys a sense of credibility. Use those vehicles for both advertising and public relations campaigns. Understand that "I'm worth it" reso- nates — Baby Boomers feel they have earned their position in life. And, whether we are retired or still working (like yours truly), we believe we've reached an age where we have worked hard enough to splurge. And we do. According to AARP, U.S. adults over 50 spend $3.2 trillion annually and have accumulated $15 trillion in financial assets, which is greater than the total GDP of countries such as Italy, Russia, the UK and France. Realize that Boomers are used to redefining what it means to be their age. The sheer size of my generation has always meant we could redefine how things were done, what rules were okay to break and what was okay to wear (heck, who do you think made jeans okay? Before us, they were the province of cowboys and farm- ers). We have, in fact, reinvented every stage of life we've entered and changed everything from entertain- ment, to fashion, to parenting. And, no mat- ter if we're working or retired, we expect to redefine what it means to be our age. Use social media Boomer style — It's a misconception that we don't use social media. Most of us (82.3 percent, in fact) belong to at least one social networking site, according to the marketing agency DMN3. But you won't find us on the same channels as our kids or their kids. While a 23-year-old may use Snapchat or Instagram to post photos or videos of their wild night out, we stick to Facebook and YouTube to post images and videos of where we go, what we do, and how superior our kids are. Embrace the fact that Baby Boomers read — We grew up reading text and we're comfortable with reading full ad copy. Read- ing is a hobby that many of us actually enjoy. So we're okay with a more text-heavy mes- sage in your ad. n Andrea Obston is president of Bloomfield-based Andrea Obston Marketing Communications. Andrea Obston OTHER VOICES Short-term cuts to disability services prevent long-term savings By Pamela Fields T hose of us who serve individuals with intellectual and developmental dis- abilities know that our current system of funding these services isn't sustainable. A billion dollars in state and federal funds are allocated to serve about 16,000 individuals with disabilities in Con- necticut. The cost per person is way too high, and there is a waiting list for services. However, this is changing due to a shift in the role that state-funded nonprofits play in the lives of those we serve. Until recently, we operated under a care model of giving what was needed — anything from a place to live and activities to partici- pate in, to assistance going to the bank or getting a haircut. We were coordinating each aspect of their lives on their behalf. A few years ago, it was mandated by the Centers for Medicare and Medicaid Services, the primary funder of services for people with disabilities, that agencies like the one I work for shift to a support model. The difference is subtle, but powerful. Our focus is to enable each person we serve to live as independently as possible. Where before we were in front directing, we are behind them now, supporting them as they navigate the world for themselves. This approach not only allows individu- als with disabilities to lead more fulfilling lives, it also saves taxpayers money. Since this shift began in 2014, MidState Arc (for- merly Arc of Meriden-Wallingford) has returned more than $400,000 to the state, and the greatest savings are yet to come. In fact, we are at a crucial moment of transition. We have successfully executed pilot programs, such as using technology to enable people to live in their own apartment and hold a job for the first time. These are peo- ple who previously required 24-hour care, and now merely need periodic contact with a staff person. Though there is an up-front cost to transition an individual to independent living, the ongoing cost per person is significantly lower. Until our budget came under fire on the state and federal level, we were on the verge of implementing cost-saving programs like these on a much wider scale. As a result of cuts ordered by the governor as legislators work to form consensus, we have been thrown into crisis mode, strug- gling to meet the day-to-day needs of those we serve. This disruption is short-circuiting the progress organizations like ours are mak- ing toward long-term savings. If the Afford- able Care Act is repealed and Medicaid cut, it will put us even further from a solution that meets the needs of people with disabilities in our society at a reasonable cost. We find ourselves at the culmination of decades of civil rights progress for people with disabilities. When state-run institu- tions that kept people with disabilities separate from the public began to close in the 1980s, they moved into better situations: children were absorbed into the school sys- tem, and most adults entered group homes owned by nonprofits. Through employment, volunteer and social programs, a greater level of integration for individuals with dis- abilities into the community was achieved. While well-intentioned, and by many mea- sures successful, the group home model has been limiting to the potential of some indi- viduals who are capable of living more inde- pendently. We are, for the first time, working with individuals to provide the specific sup- port they need to run their own lives. When implemented at scale, we can achieve results once thought impossible while reducing costs. A future in which people with disabilities have the opportunity to be full members of society is just a few years away and costs far less than our present system. We must have the foresight to see this transition through. By restoring uninterrupt- ed, full funding of services for people with disabilities, we make a long-term investment in the self-reliance of people who can contrib- ute to our culture and our economy — while permanently easing the burden on the state budget. It is an absolute win-win. n Pamela Fields is CEO of MidState Arc Inc., formerly Arc of Meriden-Wallingford Inc., a nonprofit serving people with intellectual and developmental disabilities in a 27-town area spanning from Milford to New Britain. HARTFORDBUSINESS.COM POLL How long will it take for driverless technology to become mainstream in CT? ● 0-5 years ● 6-10 years ● 11 years or more ● Never going to happen To vote, go online to HartfordBusiness.com. Last week's poll results: Have you seen a ballgame yet at Hartford's Dunkin' Donuts Park? 50.4% Yes 1.4% Yes, but unimpressed 24.1% No not yet 24.1% No plans to OPINION & COMMENTARY ▶ ▶ Those of us over age 50 are responsible for 50 percent of all consumer expenditures, but clueless marketers are only spending 5 percent of their ad dollars on us, according to Forbes. Pamela Fields

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