Although retirement is a priority for 48 percent of adults 65 and older, their financial goals also include planning for the future. According to a 2005 Vertis study, 57 percent of respondents 65 and older consider balancing a monthly budget a priority among their financial goals. General investing is important to 41 percent of seniors, while reducing debt is a goal for 34 percent. As these adults plan for their financial future and security, they want to reduce their debt to avoid a larger financial responsibility in retirement. Agents and advisors looking to tap into this age group should focus on programs or services that help these consumers accomplish their goals.
As the population ages, many insurance agents may assume that consumers are interested in receiving information on life insurance or better health benefits. However, the Vertis study found that men and women are interested in other types of policies. For example, 27 percent of seniors said they would consider purchasing long term care insurance. Of those, 30 percent of senior men would consider purchasing this insurance, while 25 percent of women expressed an interest in LTCI. Additionally, 19 percent of adults 65 and older would consider purchasing hospital/surgical benefits insurance. On the other hand, 20 percent of seniors (skewing more toward men than women) said they would consider purchasing home or renter's insurance. Although both men and women are interested in receiving information about insurance, men tend to be more receptive to this information as they tend to be the decision makers.
Best marketing practices
It is important to identify which media are most effective in reaching these consumers. While many 65-year-olds are tech-savvy, the study found that 73 percent of senior respondents are most receptive to receiving information through direct mail. This medium has found a growing audience among senior men interested in reading insurance direct mail, with a two-thirds increase in readership since 2004. Additionally, 43 percent of seniors read information they receive on long term care insurance, while 33 percent of seniors read about auto and dental insurance.
In order for marketers and agents to ensure their information is received and opened, here are a few recommendations on how to develop successful direct marketing campaigns targeted to seniors:
1. The "packaging" must look appealing. Sixty-four percent of adults said an interesting appearance helps to determine whether or not they open the direct mail piece.
2. Packages that look important are more likely to be opened, according to 57 percent of respondents.
3. Seniors are more likely to open an envelope if the offer or its contents are relevant to the life events of the recipient. Fifty-five percent of seniors said receiving information and offers that correspond with their current needs causes them to open direct mail more frequently.
4. Promotional items from insurance companies and financial institutions attract 51 percent of seniors.
5. Showing a special offer or discount on the outer envelope makes a difference to 46 percent of seniors.
Considering just how important financial and insurance services are to seniors, this population needs to be singled out in your marketing efforts. According to the study, it is crucial to keep seniors' financial and insurance goals and needs in mind when offering your services. And because direct mail is recognized as an effective tool for targeting the senior population, it is essential to entice them with interesting and important-looking mail.
Jim Litwin is vice president of market insights at Vertis, the leading provider of targeted advertising, media, and marketing services. Mr. Litwin leads a team that utilizes consumer research to develop effective marketing campaigns for clients. To learn more, contact Mr. Litwin at jlitwin@vertisinc.com.
