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What Retirees Want & How to Target Them
By Dave Robertson
November 13 – 15, Hilton Head, SC
Retirees Moving Again
2012 Housing bottom declared in Q3 2011.
Home Prices up in 154 of 156 US metro markets Case Schiller Index, September 30, 2012
Home values increase gives retirees more
money to spend & live on
Retirees who plan to sell (76%) & move are able
RPI Media, Inc. Jan-September, 2013 expo attendee surveys
55+ Builder Confidence Jumps Again in Q3
NAHB, Nov. 7 2013
Home values highest, up 10.9%, since July 2007 Associated Press, May 28, 2013
Post Recession Retirees are savvy & More Resourceful
“Worth” begins to replace deal (price) purchase mentality Dr. Jim Taylor, Am. Express 2013 Wealth Study
Retirees Moving Again
US New Home Sales Rise;
Retirees Impact Housing
April US New Home Sales Rise Most(2.3%) Since July 2008 Assoc. Press, May 23, 2013
32 million retire through 2025
Americas 12% Wealthiest have $7.2 trillion cash
Q3 2013-2015 they will buy 850k retirement & second homes;
Creating 3.5 million new jobs
#1 desired in new community - Clean
5 things Retirees Want
College, Hospital, Gathering spots, Affordable Homes (61% >$500k), To be Welcomed, Worth; quality, craftsmanship
Memorable experiences for happiness & Convenience Dr. Jim Taylor, Harrison Group, 2012 AARC Conference, Kingsport, TN
Retirement Just Over the Horizon
Source: AARC Second Life Trends Retirement Study
Avg. Year Plan to Retire:
2018
Finding & Attracting Retirees
10,000 (and will be 12,000 by 2015!) Baby Boomers turning 60 daily
Target those who plan to move (40%)
affluent prospects
key - 5.35M who plan to buy another home
Upgrades are desired, granite, marble etc.
Pay cash or 25% deposit, no appraisal or approval problems
Renting becomes less attractive alternative as home values appreciate
Relocators Follow the Sun
7
85%
62%
57%
24%
25%
53%
25% 7%
15%
20% Buy outside US: Central/S. America & Mexico (40%) Caribbean (30%) Other (30%)
Source: ideal-LIVING Resort & Retirement Expo attendee surveys
Characteristics of movers
83% Married Couples
Both within 2 years of planned job exodus
Previous Vacation or 2nd Home Ownership
More Transient, job transfers – executive lifestyle
Top 12% of affluence
$200k home equity +
Net worth above $1.5m
$138,000 median income
What are they looking for?
Retiree Purchase Process Forever Changed
RESOURCEFUL: Because of the economy, I have become more resourceful
SELF-RELIANT: I can get better quality on the Internet than dealing with a company rep
RESPONSIBLE: I have become better at managing my money
79%
63%
84%
Source: AARC Second Life Trends Retirement Study
What’s Changed?
Happy, successful prospects want fun memorable experiences.
False: Romance their dissatisfaction
because satisfied people don’t act.
True: post 6 year recession & negative bitter presidential election pp want creative, positive solutions – Smart New Home Trends, Mix & Mingle Winetasting
What’s Changed?
Recession survival ruled and “deal” (price) incentives drove the few often distressed sales that closed.
Today post recession, development, labor & material costs are driving expenses up.
Business reacts; 1.“Raise prices” negative for prospects, 2. Cut
expenses (?) and/or 3. Increase sales
Paradigm shift must happen with buyers,
Redefine Value from price worth, what u get Quality, timeless value (SS appliances), craftsmanship
Change the conversation
Retiree Home Buyers today
Largest growing home buyer segment
Buy for use, not investment
45% pay cash
76% put 25%+ deposit
67% have $200-800k home equity
90% want; 1,500 – 3,000 square ft.
10% Jump in demand for larger, over 3,000, Sept. 2013
ideal-LIVING Resort & Retirement Expo attendee surveys
Retiree Home Buyers today
ideal-LIVING Resort & Retirement Expo attendee surveys Jan – Sept. 2013
Homes’ Changing Role for Retirees
ideal-LIVING Retirement Expo attendee surveys Jan – March 2013
Retiree Home Needs
Universal design (levers, showers, 1st floor master, elevator if not 1 level)
90% of market: 1,200 – 3,500 sq ft.*
Older retiree “soft” needs
* Healthcare
* Assisted Living (often for elderly parent)
* Club amenity types
* Shopping, services nearby
Big impact on Supply and Demand
ideal-LIVING Resort & Retirement Expo attendee surveys
Retiree Purchase$ - When & how much
2+ year…....................................................……. 36% vs. 46
1-2 years……………………...……………….……… 41% vs. 36
6-12 months………...………………………………… 24% vs. 21
Within 6 months……………...…………………… 7% vs. 6
76% plan to buy with home equity, $ amount of equity:
10%......................................................... <$100,000.
23%....................................................... 100-200,000.
43%........................................................ 201-400,000.
24%.............................................401-800k
ideal-LIVING Resort & Retiree Expo attendee surveys 1/2013 – 9/2013.
What Retirees Want
ideal-LIVING Retiree Expo attendee surveys, Jan – Sept. ‘13 Golf 38% 83% married vs. 86 %
Beach 58% down from 62% Boating 26% down from 29% Gardening 39% down from 55% Swimming 58% up from 51% Bicycling 58% up from 56% Walking 82% down from 84% Waterfront 51% up from 43%
Gated Comm. 54% up from 36% AGE
Private Golf Club 7% down from 9% <45 = <1%
Shopping close by 70% up from 66% 45-55 = 14% vs. 20
Condo/TownHome 46% up from 38% 56-65 = 60% vs. 56
New Custom Home 50% >65 = 18% vs. 22 Home Site/Lot 24%
Find your best customers and get more people like them…
Referrals & Targeted Marketing
“Castthenet”:Geography,Demographics,Interest&Timing
Targeting - Philosophy
Prospectsseedozensofalternatives,“consider”6-10
communities, and visit an average of 3 prior to purchase
Marketinggetsyourcommunityintotheprospect’s
“Consideration Set”
Reach prospects when they start home“shopping”,beforethey
get to your (Destination Marketing)
1. area and 2. Sales/welcome center
Interactive media is the most effective
* Digital/Internet & Face-to-Face
Timing – the Consideration Set
Decision Funnel
Source: AARC Second Life Trends Retirement Study
1
o
1
Decision Funnel
Source: AARC Second Life Trends Retirement Study
Ideas & Inspiration: First Step: Magazines, Third: Home Showst
Urgency :
Help buyers get what they want while
they are young enough to enjoy it!
Theyarenotgettingyounger…
Top Reasons Prospects Buy:
Better Weather
Lower taxes/cost of living
Nowisthebesttimetovisit/buy…
Prices at lowest levels in years
Interest rates at rock bottom
Create Urgency &
Sell Community Worth
When did they buy their primary home? 1988
How much did they pay for it? $385,000
How much is it worth today? $800,000 If you sold it today for $750,000
would that change your life?
If, heaven forbid, you or your spouse
had a stroke would that change your life?
How much are the best years worth? If you are able and willing, why wait?
Make process convenient & enjoyable - They want happy,
memorable experiences.
Give them helpful information that demonstrates how your
community/home will add to their happy lives.
They want timeless, long lasting, quality
not trendy products.
Ie…StainlessSteelnotavocadoappliances
Create Urgency & Sell Worth
Search Engine Optimization – content driven
Match referring URLs
Key Word / Ad word buys – test and track constantly –
*Google Analytics (8%), Alexa.com ++
3rd party portal links/listings: ideal-LIVING.com,
ideal-LIVING.com, PrivateCommunities.com, CVBs, Chambers
Measure & track - unique visits, referring URLs cost vs. quantity,
and time-on-site (QUALITY), results - NCOA
Social Media; Facebook, Pinterest, Twitter,
YouTube (purchased by Google++)
Brokers – consumers & influencers
Pricing, comparisons & facts, not fluff.
*Sept. 26 Google stopped sharing keyword info
Interactive
Pricing, comparisons & facts, not fluff.
*Sept. 26 Google stopped sharing keyword info
Interactive
http://youtu.be/tAk0BesYOwQ
Interactive SEO Changes
http://www.google.com/webhp?nord=1#nord=1&q=southport+a+charming+town
Interactive Content
http://www.google.com/webhp?nord=1#nord=1&q=southport+a+charming+town
Interactive Content
Interactive Content
Interactive Patterns
“What Technologies do you use?”
Lap top 78% vs. 76
Desk top 70%
Smart phone 54% vs. 28
Tablet 41% vs. 26
“What Social Networking Sites Do You Belong to?”*
Facebook 52% None 39%
Linkedin 31%
Twitter 6%
ideal-LIVING Retirement Expo attendee surveys Jan – March 2013
Interactive Patterns
ideal-LIVING Resort & Retirement Expo attendee surveys Jan – Sept. 2013
Interactive Patterns
ideal-LIVING Resort & Retirement Expo attendee surveys Jan – Sept. 2013
Interactive Integration
ideal-LIVING Resort & Retirement Expo attendee surveys Jan – Sept. 2013
Simplicity
Theydon’twanta“relationship”with
you. They want information.
Help them make good choices
Be a Trusted Resource – Credibility
Ranked/rated by third party
Clear Path to Purchase – Transparency
Over engagement created confusion
Make Comparisons Simple
Provide information on competition,
pricing, carrying costs etc.
Source: Harvard Business Revue, May 2012
• Until prospects buy they are tourists
• Tourism businesses benefit first
• Create unique, memorable experiences. Food & drink, social interaction, events, fun!
• Enroll all stakeholders: B & B’s, Builders, Chambers, CVBs, colleges & universities, financial (asset
management, banks, insurance & mortgage), hotels, realtors & restaurants to make their stay memorable
• Compelling benefits to visit should lead offer
• Know your offer and plan to make appointments.
• Retiree households create 4 jobs, medical &
financial, not just service & retail.
Sell the Visit First
