Pop quiz: what topics were hot at this year’s International Builders Show? A. Green Building, B. Financing (good luck, buddy), C. Social Media, or D. The psychological outlook of Baby Boomers and other active adult homebuyers. If you answered “all of the above,” you’re today’s winner.*
Baby Boomers are wounded, worried and wary. Even those who have survived the recent economic challenges financially are psychologically scarred.
In a white paper with 10 take-aways from this year’s Builders Show, I share the philosophy of Tim McCarthy, Managing Partner of Traditions of America, the renowned developer of active adult communities in Pennsylvania. Traditions sales and marketing team is focused on selling only to Active Adults who have come to terms with the reality of their economic situation. These are Baby Boomers and seniors who are ready to move forward with their lives.
Understanding the psychological outlook of mature homebuyers influences the marketing techniques Traditions of America uses. The most effective one focuses on building the confidence of top prospects. (Get the details in this “top 10 take-aways” white paper.)
As our team noted in the December 17 edition of Selling to Seniors, the key is to get to know who your prospects are now.
“The world could be quite a different place now than it was just a few years ago for someone, and often, shifting circumstances are beyond their control. For example, … You may be marketing to somebody who planned very well and covered all his retirement bases, but then his adult child loses their job. Or a health-care issue pops up and now he has to make adaptations. So your databases may contain the names of people who a year ago seemed like they were right in line with your product or service, but it doesn’t necessarily reflect where they are now.”
There are many ways you can take the pulse of today’s active adult consumers: lost buyer surveys, data mining and social listening are just a few ideas. Post your ideas below.
* Congratulations! Now, what did you win? How about the chance to prove how smart you are by sharing your strategies for understanding and motivating wounded, wary Baby Boomers in 2010. I’ll see you in the comments section.
An interesting assumption. I am not finding folks in my age range extraordinarily wounded, worried or wary for people of our age. We are certainly more careful with our money (possibly interpreted as wary), but I don’t believe we are more careful than the previous generation to attain this age, after all, they were Depression era toddlers and children.
True, we are holding on to our cars longer, wearing less ‘formal’ clothing than wool suits and Armani ties, as well as being careful about our discretionary spending (less hard-cover books, less meals out, less driving around, less expensive travel), but we are still spending. It’s not the ’90′s, but we haven’t given up on our lifestyles.
My “Senior” customers are willing to pay for value. When I provide them with solid evidence that they want to maintain the lifestyle to which they have become accustomed and they can provide me with evidence that they can afford that, they buy. If it just seems like “wasteful” extravagance, we seem to go back to the ’60′s and ’70′s in making our “value” judgments.
We’re still traveling, dining out, buying books, buying homes, etc. But we aren’t booking the Ritz, eating at the “Top of the Mark”, collecting hard-bound editions and are reducing the size of our homes by about 30% (note, not 50 or 75%).
If you can show me value. If you can show me that I will be comfortable with this selection, then I will buy. If you can prove that this “good deal” meets my needs, wants or desires, then I will buy.
I ask you, how is that any different from any other purchase proposition in the past?
We as architects see consumers not wanting to give up the good life. They still want quality products, nice entertainment spaces and spas to pamper themselves. What we are hearing is that consumers are looking for long term value, careful about building too much home and looking at location to be near activities, shopping, work and family.
Sure everyone is beaten up by the recession, even from just reading the news or dealing with less service from government, corporations etc. Those that are less affected are recognizing that the market is right to make a move and get what they want at a good value, be it cars, electronics, furniture or homes.