The biggest demo is waiting to be courted – California seniors!
A Harvard Business Review study notes that CMOs can expect on average 4.1 years on the job. That’s frightening, given the impact of losing a gig that according to Ad Age, pays major brand CMOs $1.5 million a year in salary and benefits.
CMOs could improve their job security:
- Google ‘seniors economic power’ – prepare to find the largest cohort of consumers and why they’ve been underserved by marketers.
- Embrace 55-85 as the new 18-49 demo
- Look at senior spending categories (not just healthcare) and find a sweet spot for your brand
- Get it out of your head that everyone 65 years-old retires
- Act like you’re starting in marketing all over again – be smart, be bold, be original!
Today’s CMO jobs are tough, if not tougher, than it was when I was CMO for McDonald’s and Warner Bros. Somehow, that title is the first to take the hit, regardless of the department leading the initiative. That’s just the way it is.
But, a great CMO is more than a marketer. Their # 1 job, customer acquisition, comes from being a forensic accountant, private investigator, possessing innate curiousity, and a voracious student of trends others may not discover until they’ve become norms.
The demographic phenomenon known as the “silver tsunami”, will expand a brand’s market share dominance and could extend a CMO’s job tenure. The number ofCalifornia seniors will increase 87% over the next two decades. As they’ve hit the magic retirement age, they’re disrupting convention by staying in the workforce.
Joseph Coughlin, founder of the MIT AgeLab and author of The Longevity Economy, describes the problem marketers are having getting their heads around the enormity of this age group
“Oldness as a social construct is at odds with the reality that constrains how we live after middle age and stifles business thinking on how to best serve a group of consumers, workers and innovators that is growing larger and wealthier with every passing day.”
This definition succinctly captures the starting point CMOs can undertake to proactively move their company’s portfolio into consideration for consumers that have another 25+ years of spending ahead of them. And they control 70% of the nation’s disposable income!
California is particularly poised as the best state to develop dedicated senior plans.With a projected 112% increase in senior growth, this segment is increasing at twice the rate of any other state.
- They’re more active and in better shape. A 65-year old can expect another 20 years of life. And it’s even longer for women.
- Shopping online is not just for the young. 70% of seniors are e-commerce users.
- The number of traditional TV viewing seniors approaches 2/3’s of the population, but streaming as an option is gaining quickly with 78% being internet users.
- Over 50% aged 55-64 use streaming services.
Finding what senior consumers want is really a simple exercise. Dig into what they’re doing today to stay in shape, earn a paycheck, make a difference in their community and enjoying the fruits of their labor. Study the brands late 30 and 40-year olds were once loyal to and see if they’re still loyal. Tailoring your message to support seniors who are experiencing service or product innovations will get results. Done right, you may need to ween yourself off marketing to millennials. After all, they don’t have all or even most of the money.
Photo by Monkey Business Images
- Brian Morris and I have been good friends and industry competitors for years. We both have run major advertising agencies and both have held top level client-side positions. I am a former partner at ad agency Davis, Ball and Colombatto, and the former Chief Marketing Officer at McDonalds and President, Theatrical Marketing for Warner Brothers. Brian and I are now in our 60’s and came together in 2017 to form a company that understands the Senior market better than traditional ad agencies, Silver Advertising. We are now poised to be passionate advocates for these consumers as they enter their 60’s, 70’s, 80’s and beyond.
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