The Business of Aging

Aging Population Faces Caregiver Shortage.

Lisa Gibbs from MONEY Magazine wrote a great blog post titled Aging boomers face caregiver shortage.

She begins her blog post with a mention of the Community Living Assistance Services and Supports (CLASS) Act, a provision in the health care debates to create a national long-term care insurance program that would allow people to pay an average $65 a month and, after five years, be eligible for between $50 to $100 a day in benefits.

In Lisa's words:

"While $100 is better than nothing, I can tell you from experience that it doesn’t cover very much. It would pay for about six hours of daily care from the home aides I hired recently to help my mother recover from surgery. It certainly wouldn't cover assisted living or nursing homes, which run into the tens of thousands of dollars per year.

Whether through private long-term care insurance or a public plan, it’s clear this country needs to do a better job thinking about how we’re going to care for ourselves (and our parents) as we get older and frailer. Few of us have saved enough money or bought insurance to cover whatever care we need in our later years. But there's another aspect of the long-term care problem that people have overlooked: A looming "caregiver crunch," in the words of Ken Dychtwald, a gerontologist and president of the consultancy Age Wave.".

Lisa nails it. She is absolutely right.

Census Bureau Provides First Profile of Baby Boomers in 13 Years

The U.S. Census Bureau has releases an outstanding PowerPoint presentation that provides a look at a variety of demographic and socioeconomic characteristics of the baby boom generation (the population born between 1946 and 1964 ), such as geographic distribution, marital status, educational attainment and income, and compares them with adults in younger and older age groups.

To access the PowerPoint presentation visit this page (http://www.census.gov/population/www/socdemo/age/general-age.html#bb) and near the top of the page under the Baby Boomer header you'll see a line "Selected Characteristics of Baby Boomers 42 to 60 Years Old in 2006 [PPT] | [PDF 2.3M]". Just select PPT.

The USA Today does a nice job summarizing the findings but I highly recommend you download the PPT. 

Enjoy.

7th Annual What’s Next Boomer Business Summit Announced

Mary Furlong & Associates, the nation’s premier consultancy for marketing and business development strategies for the 50+ market, announced today the dates for the 7th Annual What’s Next Boomer Business Summit. What’s Next, taking place on Friday, March 19, 2010 at the Hyatt Regency Chicago, will focus on the most effective strategies for selling products and services to the post-recession baby boomer market.

Visit the event web site and REGISTER here.  We attended this event last year and I verify it is OUTSTANDING. If you sell a product or service relating to the aging population, go to this show.

Every year, What’s Next brings together the country’s leading baby boomer strategists and marketers at an event designed to introduce new research, products and services that truly represent what is next in the boomer market, and this year is no different. The 2010 event will emphasize integrated, social and mobile marketing; innovative distribution channels and will provide a profile of business segments that have moved into the rapidly growing sector of care giving, an $800 billion market 1.

The 2010 Summit boasts premier participants such as AARP, Abeo Partners, Caring.com, firstSTREET, Forum One Networks, HeartMath, iVillage, Microsoft Corporation, SeniorCareMarketer.com, Southwest Airlines and Zillow.com discussing their latest baby boomer marketing strategies. 

Confirmed speakers to date include:
    

•     Kevin Donnellan, Executive Vice President and Chief Communications Officer, AARP
•     Mark Graham, Senior Vice President, iVillage.com
•     Dr. Stan Humphries, Chief Economist, Zillow.com
•     Catherine Calarco, Senior Vice President, Sales and Marketing, HeartMath
•     Andy Cohen, Founder and CEO, Caring.com
•     Steve Cook, Chief Marketing Officer, Abeo Partners LLC
•     Brandon Daniell, Chief Innovator, Abeo Partners LLC
•     Dr. Mary Furlong, CEO, Mary Furlong & Associates
•     Jody Holtzman, Senior Vice President, Research and Strategic Analysis, AARP
•     Bill Johnston, Chief Community Officer, Forum One Networks
•     Mark Miller, journalist and consultant
•     Gary Moulton, Aging Coordinator/Product Manager, Microsoft’s Trustworthy Computing Group
•     Bud Myers, Senior Director of Merchandising, firstSTREET
•     Mark Willaman, Founder of SeniorCareMarketer.com and HRmarketer.com

The What’s Next Boomer Business Summit is an official post-conference of the NCOA-ASA National Aging in America Conference taking place March 15-19 in Chicago.

Related Posts:

Aging in America and NCOA 2009 Conference. Comments and Observations. Part 1.

Aging in America and NCOA 2009 Conference. Comments and Observations. Part 2.

Aging in America and NCOA 2009 Conference. Comments and Observations. Part 3

Business of Aging Newsletter

We updated the look and design of our weekly Business of Aging newsletter. This is a free e-newsletter from SeniorCareMarketer.com that covers the latest news in what we call the "senior" marketplace.  it is best suited for companies who market products and services relating to the aging population.  You may subscribe to it here
or access archive stories here.

Enjoy.

Companies that Ignore the Over-50 Set Do So at their Peril!

A great cover story article in Baron's titled Boomer Consumer discusses how companies that continue to ignore the over-50 set do so at their peril, as "boomer consumers" eat up a larger slice of the nation's spending pie.

I've blogged about this topic extensively the last twelve months (including related topics):

- Event Review: 2009 Silicon Valley Boomer Venture Summit
 
- Staying Relevant With An Aging Population. An Elderhostel Case Study.

- Recession Turns a Graying Office Grayer

Key points from the Baron's article:

• Increasingly, the 77 million [aging boomers] are being ignored by advertisers and marketers.
• By 2015, when all the boomers will be 50-plus, folks aged 50 to 75 will account for 40% of adult consumers, up from 36.8% now. And they will boast the most spendable cash. Yet advertisers and marketers still seem to devote about 90% of their energy to wooing the 18-49 group, and 10% to those 50-plus.
• Does it make sense, after all, for NBC's suits to judge a new TV show like Jay Leno's mainly on its appeal to 18-to-49-year-olds, as some published reports say is the case? Leno's advertisers include companies such as BMW, many of whose buyers are 50 or older.
• But while the aging boomers certainly will be a bonanza to health-care outfits -- they already account for two-thirds of the spending on pharmaceuticals -- they will be anteing up a lot more for other things.
• The 50-plus set already accounts for 45% of all U.S. consumer spending and, Francese predicts, the figure could ultimately approach 50% by 2015.
• One myth is that older Americans are much more interested in shedding furniture and housewares than in buying them because most are empty-nesters. The reality: Older consumers account for more than 40% of the money spent on new household furnishings and equipment in the U.S.
• Bottom line: Older consumers will keep trudging off to Bed Bath & Beyond,  Target,  Wal-Mart Stores and Ikea for years.
• Boomerologist Martin partly blames ad agencies for what he views as 
  " He says a disproportionately large number of advertising copywriters, account managers and art directors are young. "Ask them to do an ad targeting the 50-plus demographic, and they default to a gray-haired senior limping down a beach trailed by an aging golden retriever," he adds.
• Take 1965 (see chart on this blog post) when the oldest boomers were turning 18, then jump to 1995, when the very oldest were turning 49. Over these three decades, the number of U.S. residents aged 18 to 49 soared from 78.6 million to 125.9 million. In the same period, the 50-to-75-year-old cohort, many of them a product of the birth dearth of the 1930s, rose far more slowly.

Great article Baron's.

Caring.com Buys Gilbert Guide. Smart Move (by both parties).

Caring.com announced today it has acquired Gilbert Guide, an online senior housing directory where caregivers can search for local providers. According to Venture beat, Caring.com currently has 700,000 monthly unique visitors. Now Caring.com will give its members access to Gilbert Guide’s housing guide.

Read the details here.

According to the news story, "the consolidation helps Caring.com compete against other elder care sites and companies such as A Place for Mom… and other ['searchable' senior care directories]….." 

The deal value wasn’t disclosed, but Caring.com exchanged equity to acquire Gilbert Guide -  an unbelievably  fabulous deal for Caring.com which has raised $6 million of VC money the last few years from DCM and Split Rock Partners. And the fact that the Gilbert Guide founders took equity for the sale of their business (if true) would indicate the desire for a liquidity event by Caring.com within the next 3-5 years (assuming this economy improves).

Andy Cohen, CEO of Caring.com is a very likable individual who seems to be in this business for all the right reasons. And based on my several meetings with him, I find Andy to be a very capable CEO. Reading about this acquisition reaffirms this belief.

This was a very, very good acquisition. Really.  

In June I wrote a blog titled "Searchable" Senior Care Directories. A Rapidly Growing Product Category       that discussed this growing space of Internet sites that allow caregivers to search for senior care services - from in-home care to assisted living/nursing homes to handyman services.

Quite a few of these companies have recently signed up for our SeniorCareMarketer.com service so we're getting to know the space quite well. And each week I think I'm introduced to a new one.  Many of them are listed in the SeniorCare Directory.

This space is HOT at the moment although many will not be around in a few years unless they can figure out how to make money with something other than "paid listings".

And this is why I believe Caring.com's acquisition of Gilbert Guide is so strategic.

Aside from (gosh I hate to use this phrase) the obvious synergies, this deal gives Caring.com a new revenue source (Gilbert Guide made money from paid listings, advertising, and licensing their database to a number of other directory sites - although a few deals could possibly be in jeopardy now that Caring.com is involved), additional advertising opportunities, greater access to the caregiving community (consumers and providers/vendors), the ability to better target ads (which command higher premiums), and the ability to deliver an overall better user experience. This deal also brings a whole host of growth and new product opportunities to Caring.com that they would otherwise not have had.

Kudos to Andy Cohen and Caring.com for a super buy. I wish them success.

Staying Relevent With An Aging Population. An Elderhostel Case Study.

The blog 50-Plus Marketing (from consulting firm 20plus30) had a great post this week titled Elderhostel makes a fascinating marketing case study.

It is about how Elderhostel, a travel and educational organization for older adults, is trying to reverse a decreasing enrollment trend that has led to the organization losing millions of dollars this past year.

One problem is the age of their average customer has risen to 73 from 68 over the last ten years. In other words, through attrition alone they are on a downward spiral as they are losing relevance to the market they desperately need to sell product to - older Americans. And ironically, this is the fastest growing, largest and wealthiest demographic in the US. 

Not good.

So what are they doing?

A lot but the three biggest changes are:

1. A name change. They are now Exploritas.
2. Their top line messaging is now "Educational Travel in the U.S.A." with a tagline of "Adventures in Lifelong Learning".
3. They removed their age restrictions. No longer do you have to be at least 60, now anyone 21 or older will be able to participate.

I hope it works but removing the age restriction is a huge gamble.

I am in my forties but I am quite familiar with Elderhostel because my mom was a loyal customer up until her death last year. She loved Elderhostel! It was basically an educational vacation where you went to nice destinations and learned something by taking courses. She had a blast and enjoyed meeting new people.

But I'm not sure she would have enjoyed hanging out with 20 somethings - or even forty somethings. And vice versa. So this is a risky marketing strategy. In fact, I was surprised to see on Exploritas web site that in the section "Browse by' my choices were:

• Location
• Interest
• Date
• Activity Level
• Catalog
• Map

But not "age".

Interesting.

Anyway, I do hope their marketing strategy works because they have a great product.

Just about every business in the US needs to pay attention to this "case study" because:

1. If you don't currently include older American's in your target market you need to. The aging population is the largest, wealthiest and fastest market segment in the US. You can't grow your business by ignoring this demographic.
2. If your target market is limited to "older American's (like  Elderhostel's was) you need to realize that today's older consumers make buying decisions far different than yesterdays older consumers. Continuing to market today like you did yesterday will lead you down the same path as what Elderhostel has experienced. I'm not saying you need to do a 180 degree turn like Elderhostel did and include all age groups in your target market but you do need to repackage your products, branding and marketing to remain relevant to the Boomer market.

And that is the marketing case study all businesses will face the next several decades.

Interesting stuff - and a challenge all marketer's should love and embrace.

Intel's Impressive Aging In Place Technology

A Business Week article titled Intel Wants You to Age Gracefully, at Home discusses a new category of technologies designed to help seniors stay longer in their homes - and in the process save the health care system billion of dollars. 

One such product is Intel's Health Guide,  a device that let doctors monitor a patient's health remotely.

An excerpt from the BW article describing the technology:

"Each day after he woke up, he'd step on a scale and strap on a blood-pressure cuff that were attached to the Health Guide. The device collected his vitals and zapped them to his doctor's office. From there, nurse Marie DiCola scoured the data, and if she noticed anything amiss, she dialed up Lang and chatted with him over Health Guide's videophone."

Very cool.

Besides Intel (INTC), the aging-in-place market has attracted the likes of General Electric (GE), Philips Electronics, Honeywell (HON), Bosch, and dozens of technology startups.  I think Johnson and Johnson (JNJ) is also in the space.

Also mentioned in the article was an advocacy group that Intel and 400 other technology and health-care organizations formed called the Center for Aging Services Technologies (CAST). The group's mission is to fight to improve the reimbursement outlook for aging-in-place technologies.

A good newsletter to read to follow the aging in place technology market is aging in place technology watch.   - or this blog :-)

"Retrofitting" Suburbia for the Aging Population

At the 2009 Silicon Valley Boomer Venture Summit & Business Plan Competition there were a few start-ups competing in the business plan competition that intended to market products/services that would help seniors age independently in their own homes. Some of the companies proposed "retrofitting" homes to make them more senior friendly while others were focused on senior friendly technologies.

The idea of making our homes more senior friendly through both architectural design improvements and aging in place technologies is nothing new and lots of companies are investing in these areas.

But what about making our cities and towns more senior friendly?

A recent AARP survey showed 85% of individuals age 50-plus that they wish to remain in their communities for as long as possible.

A special section in the Wall Street Journal's Weekend Report (September 19th, 2009) was dedicated to "Making Suburbia More Livable" for the aging population. Or, as the intro to the story stated:

The nation's sprawling suburbs may have been a good place to grow up, but they're a tough place to grow old. 

(By the way, have you noticed the dramatic increase in stories dedicated to "aging" topics in the national media?) 

Ken Steele is the mayor of Fayetteville, Georgia and he is working to transform his community  into a "lifelong community" and suggests neighborhoods across the country need to do the same.

"Every small community has the same problem," says Mr. Steele, age 69. "We want residents to be able to age in place, to meet their needs…here, without having to move away."

The idea is to "retrofit" suburbia which involve taking a neighborhood or site within an existing town or suburb and creating a compact, walkable community—one with alternatives to single-family homes, such as condominiums or row houses. Older residents in large homes will have the option of downsizing and remaining in a community where they can access restaurants, shopping and other amenities and services on foot.

This is already underway in Lakewood, Colo. "The change is pretty dramatic," says Mike Rock, retired city manager of Lakewood who helped direct Belmar's development. "Buildings are pulled right up to the sidewalk; residential living is above the retail outlets. You don't expect to see this in a suburban setting.

"Many weekends, my wife and I don't use the car," he says. Movies, an athletic club, a coffee house and restaurants are all within walking distance. "I regularly see people who are 10 years older than me—and 30 years younger," he adds. "I like that. I like the vibrancy."

The entire Wall Street Journal article can be read here. It's a very interesting story.

Boomers Putting Off Retirement: More Research.

We've blogged quite a bit about stories and research showing a significant number of aging Boomers are expected to delay retirement.

Today I read another report confirming this fact.

Researchers at the University of Michigan collected data from 4,412 older Americans in April and May of 2009. Those over the age of 51 were quizzed about career plans.

"We asked the same older workers what the chances were that they would still be working full time after age 65, and they went up from 47 percent to 57 percent between 2008 and 2009---a very rapid change after a long period of stability," said Michigan economist David Weir, director of the Health and Retirement Study. The chances of working past 62 went up from 60 percent to 65 percent.”

The focus of the research was on how older American's are weathering the financial crisis of the last year but regardless of their reasons, we are seeing more evidence of Boomers planning to remain in the workforce.

Go here to read about the research report, "Older Americans: How they are faring in the recession".