Seniors and Social Networking (Part 2)

October 25, 2010 Leave a Comment

As a follow-up to our post discussing the statistics behind seniors and social networking, we wanted to explore the logical next step, which is what these statistics mean and how companies should explore utilizing this medium.

The numbers are clear. The percentage of swing generation, big boomer and little boomer members that are on social networks have been trending upwards for years. But, not only are they on social networks, they are participating as well. Therefore, companies that are looking for new methods to increase brand awareness amongst seniors should be utilizing social media as a component of their communications plan.

Companies that are starting to use social media should consider partnering with experts in order to do it properly. In general, the basics are simple. Create profile pages on different sites, do opposition research, create a message calendar, etc. However, the difficulty lies in the procedure, appropriate messaging and the level of investment, all of which needs to be customized based on company goals and industry focus.

For example, one suggestion we have for those just getting into social media is targeting  demographically-specific sites. There are an array of social networks that have been developed specifically for seniors. About55.com and Eons.com (founded by Jeff Taylor, creator of Monster.com) are examples of online communities aimed at connecting seniors in the same way the mainstream social media channels do. Additionally, there are sites like seniorpeoplemeet.com that exist to connect seniors romantically, as well as blogs like AARP’s ShAARP. These sites are unique ways to reach this demographic and can help perfect a methodology for how your organization should use social media. They also have the added benefit of being cost-feasible.

However, the downside to senior-specific sites is that there is a shelf life. While all of social media will be consistently evolving, sites like these – which piggy-backed on mainstream social networking sites to target seniors to help with their initial foray into the medium – may not have a long-term future because targeting age in social media is different that targeting other traits. Unlike traits like industry expertise or heritage, there is less of a chance of migration of users. For example, if a person changes careers, there is a great chance they will change their social media bookmarks to suit their new career. However, when non-seniors eventually become seniors, the chance of them switching to age-specific social media channels is unlikely. They will likely stick with the sites they know and have gotten used to.

Studies have indicated that the current generation of baby boomers is worth over $2 trillion. But, despite this number, there has been a limited number of new, viable methods to market to this demographic. Social media is now one and companies need to partner with industry experts to determine the proper strategy for tapping this market.

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Direct Choice Inc. is a full-service direct marketing agency that has worked with national and regional brands in a wide variety of vertical markets. In addition to this blog, you can also find us on Facebook, Twitter, and LinkedIn.

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Turning Marketing Investments into Revenue

July 11, 2010 Leave a Comment

What would you think if you were building a house and were handed a piece with the following instructions:

“You need to incorporate this piece of wood into your house. I know it doesn’t look like you need it, but you do. I can’t tell you exactly how much better it will make your house and I know it is a hassle to find a place for it, but you do have a choice of where and how you want to use it based on what your house needs, so put it where it will get the most use.”

For most of us, I think we would try to find a way around using this unessential item. In fact, based on that presentation, instead of using it to improve the house, we would probably try to figure out a way to just burn it in order to keep the house warm.

For an organization in the business world, that piece of wood is your mass marketing budget.

Mass marketing is the tool that despite its history in both the B2B and B2C worlds, there is almost no consistently accurate way of measuring the return on investment. In a recession, this lack of knowledge can be a killer because businesses feel that every dollar spent needs to result in additional dollars as quickly as possible, which typically means that marketing budgets will be reappropriated to places like the sales division.

During a recession, direct marketing, like the kind we specialize in, is the key to being able to ensure that money spent in marketing is returned in sales. Times like the present cause the level of overall competition in the marketplace to drop. That means that direct marketing dollars are able to be more concentrated and potent than they could ever be during an economic boom. During the economic expansion in 2002, the Strategic Planning Institute showed that while 80% of companies increased advertising spending, there was no increase in market share. In contrast, statistics from the 1981-1982 recession showed that B2B firms which maintained or increased advertising during the recession grew their revenue an average 256% faster than those who had cut back on marketing.

History is the best teacher, and in hindsight, it makes sense that if everyone accelerates advertising when times are good, no one will gain from it. That is why spending those precious dollars during a recession will give you visibility above the dismal fray, so that when times get better you will be in a prime position to capitalize on the investments you have already made.

The moral of the story is this that while you may not see an immediate return on using that piece of wood on your house, if you used it to improve your front door (marketing and public relations), or your address sign (brand awareness), or your deck (event planning & management), there are benefits to be had that are hard to obtain in any other way.

In other words, don’t cut back on marketing during tough times, simply focus and concentrate your marketing to derive the most value from it. By harnessing the power of direct marketing, and the expertise, services, and strategy of experts in the field, your company will be able to ensure that every dollar of your aggressive recession marketing budget gets you a positive and increasing return on investment, both during the recession and during the economic upswing following it.

There is a line from the movie Million Dollar Baby. “…everything in boxing is backwards: sometimes the best way to deliver a punch is to step back… But step back too far and you ain’t fighting at all.”  This line rings true when thinking about spending money in a recession. It seems so unnatural to do it, but sometimes going against the grain can garner the best results.

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Direct Choice Inc. is a full-service direct marketing agency that has worked with national and regional brands in a wide variety of vertical markets. In addition to this blog, you can also find us on Facebook, Twitter, and LinkedIn.

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