The Role of Market Research in Retiree Attraction

While many communities realize the potential benefits of attracting retirees, most have only a vague idea how to do it. Instead they tend to rely on what can be called “accidental retirees” — retirees who discover a community only because they drive through it while traveling to another destination, stumble on it while surfing the web, or hear about it from friends. Needless to say, these are not effective ways of attracting new retirees. However, given the number of people who will relocate upon retirement over the next 25 years, it’s possible that almost every community will attract some retirees. On the other hand, those communities which make a concerted, sustained effort to market themselves to retirees will reap immense benefits from their efforts.

Ultimately, marketing a community to retirees means building a relationship with potential retirees while making them feel they would be comfortable living in the destination community. Developing this relationship is a multi-step process that begins with opening a line of communication. Although this can be done through the mail, today it is most likely done via email. Minimum requirements to begin this communication include name(s), and physical address and/or email address. This is where advertising enters the picture.

The purpose of advertising a community as a retirement destination is to identify potential retirees, i.e., those who respond to an advertisement with a request for information about the community. Once potential retirees have been identified, establishing and maintaining communications with them build the relationship that is essential to attracting retirees to relocate. This communication with potential retirees should include periodically sending them information about happenings and events in the community as well as inducements to visit such as discount coupons for local motels and restaurants. Organizing and updating information about those expressing an interest in relocating to a community upon retirement is the purpose of a customer relations management (CRM) system.

While establishing and maintaining a line of communication with potential relocating retirees can be done for a relatively small cost using a CRM system, getting the attention of potential retirees by advertising the community as a retirement destination can be a major expense. For example, the cost of a four color, 1/6th page ad in rethink 50+, AARP’s magazine, is almost $112,000 per issue. This cost can be reduced to $3,000 or less in more targeted magazines which cater to a specific reader interest. Although a targeted advertisement will have a smaller readership, if strategically placed, it can result in a much higher response rate. The higher response rate in turn makes the advertising more cost effective by having a smaller cost per inquiry.

Identifying the most cost effective, targeted advertising placement is the function of market research. This is where TW+A’s SeniorStat™ analysis pays for itself. SeniorStat identifies the amenities that make a community a desirable place for retirees and set it apart from its competitors. These amenity strengths can then be used to determine the focus of the advertisements and the media(s) and regions where advertisements promoting a community as a retirement destination should be placed. Although at first glance the market research may seem like an unnecessary expense, it can actually save a community large amounts of money. Using a targeted marketing approach will allow a lower advertising cost per inquiry. Since the purpose of advertising is to generate information on prospective retirees, it is the advertising cost per inquiry that is the relevant cost, not the total advertising budget. By lowering the advertising cost per inquiry, targeted marketing will save the community money and make the entire retiree attraction process more cost effective. – Gene Warren

The Four Point Approach to Main Street Programs and Retiree Attraction

For over 25 years cities all across America have been organizing, promoting and revitalizing their downtowns.  The progress is a credit to thousands of small civic groups organized with the help of The National Trust for Historic Preservation through its National Trust Main Street Center program.  The Main Street program emphasizes four main approaches to a successful revitalization effort; organization, promotion, design, and economic restructuring.  Today’s wealthiest members of society, retirees and baby boomers, are noticing their efforts.  Not only do retirees love revitalized downtowns, but they also help to further reinvigorate downtowns through their spending.

A retiree attraction program is designed to entice resourceful retirees to move into a community thereby bolstering businesses, governments, and volunteer and charitable organizations.  A strong synergy can be realized from the combined efforts of the Main Street program and a retiree attraction program because of shared goals in each of the four Main Street approach touch-points.

Organization – Successful retiree attraction programs must have the consensus of the community at large to be successful, not unlike the Main Street programs.  Key players in the organization of such programs within the private sector include banks, retail shops, service businesses, and health care.  While important players in the public sector include utilities, school boards, local governments, chambers of commerce and, convention and visitor’s bureaus.  An education process is necessary to explain the benefits of retire attraction and spell out exactly who the beneficiaries are when working together as a community.  Fortunately, retiree relocation programs have no significant drawbacks and virtually everybody reaps the benefits.  Many of the perceived drawbacks are due to misinformation and erroneous stereotypes. 

Promotion – Both retiree attraction and downtown revitalization do not occur without diligent promotional work.  To attract retirees it is imperative to determine where the community shines.  Success of the program relies on identifying and promoting the unique strengths (amenities) of that community.  Attracting relocating retirees requires marketing to people outside the community, but it is equally as important to market to the community internally as well.  The marketing programs need to reinforce why their town is a great place to live.  Retiree attraction programs rely on a dialogue with citizens and relocating retirees; once interested it is critical to keep them informed.  To organize and facilitate the conversation with potential new residents a CRM** (Customer Relations Management) system should be employed.

Design – Relocating retirees can also help to reshape the main street look and feel.  Although retired from their ‘career’ jobs, baby boomers still want to be involved and active within their new communities; some cities have been successful in their revitalization efforts by offering economic incentives to retirees that open a new business in commercial districts.  Motivated retirees on a main street will not only enhance their own properties, but will also help motivate existing businesses in the area to do the same.

Economic restructuring – Relocating retirees bring wealth to a community and provide economic development that most brick and mortar businesses cannot.  Every sector in the community benefits economically from a retiree attraction program.  Retiree households spend $36,000 per year on average.  Spending stimulates new business growth, a portion of which is certain to land in downtown. Additionally retirees pay local taxes equaling $3,000 per year on average.  They create between 2 to 2.5 (entry and professional level) jobs.  Retirees support public schools through property taxes, yet do not enroll pupils.  Retirees are also the greenest form of economic development, and once established in your community, are likely to stay for up to 15 years.

Due to a common set of goals, collaboration between a main street program and a retiree attraction program create a win-win situation.  Any main street program without a program promoting retiree relocation is not as strong as it could be.  Likewise any community promoting retiree attraction should fully investigate implementing their own main street approach.  Thomas, Warren + Associates can help you start your retiree relocation campaign with their SeniorStatTM suite of products designed to identify your community’s strengths and opportunities while helping you establish the dialogue with your future, as well as, your current citizens. - Alan Church

The Parting Shot

The Lighter Side of Life

Three retirees, each with a hearing loss, were playing golf one fine March day.  One remarked to the other, “Windy, isn’t it?”
“No,” the second man replied, “it’s Thursday.”
And the third man chimed in, “So am I.  Let’s have a beer.”