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Creating senior focused direct mail that works
1. Creating Senior Focused Direct Mail That Works - The Love
Report
There’s no doubt that the recession and housing market downturn
impacted the senior living industry. Marketing to the always-cautious
senior has been more challenging than ever, and our audience will
not easily forget the experience. Faced with tighter budgets and
tougher lead generation, retirement communities need to spend every
dollar as strategically as possible to attract qualified retirement
community prospects.
Love & Company created a two-year research plan to gain insight
into seniors’ views and responses to direct mail. Following our
investigation of participants’ first impressions of direct mail pieces, we
took our findings regarding messages, vehicle and design and tested
them further to determine what truly is the more effective lead
generator.
Our Research Process
In this study, we applied our findings from last year to several
campaigns we developed for our clients. We created two versions of
each mailing so that we could test a variable, such as message,
format or design. Each version was then mailed to half of the mailing
list. By examining the results of these and other mailings, we were
able to identify “best practices” for senior living direct mail.
In this report, we briefly highlight some of the main findings of Part 2
of our study and provide a glimpse into our conclusions and
recommendations for the most effective direct mail approaches for
marketing to seniors.
Instant Gratification: RSVP by Phone
We included a reply card with one invitation version to determine if it
would prompt prospects to respond, either by calling or returning the
card, better than simply asking them to RSVP by phone to an
anniversary celebration. The simple, 2-color envelopes and
invitations were identical.
2. Overall, the version without the reply card generated slightly more
responses than the version with the card. However, only seven
prospects actually returned the card, with three times as many
choosing to simply call. The reply card did notgenerate enough
response to provide value for the added cost.
Less Is More
We tested a 4-panel, 2-color invitation against a 6-panel, 4-color
invitation for a series of sneak preview lunch events. Both 8.5”x5.5”
finished size pieces were mailed in identical envelopes with the
prominent teaser: “The Residents of Fleet Landing Cordially Invite
You...” From Part 1 of our study, we learned that an envelope with a
strong invitation teaser effectively persuades recipients to open it,
without needing a colorful image. We were therefore able to test
which internal piece would generate the most RSVPs.
The two invitations generated about the same number of responses:
56 leads from the 4-panel and 54 from the 6-panel. Overall, the
combination of strong creative and refined mailing list strategy
generated more than double the original goal, enabling the
community to fill nine events rather than the original four. The 6-
panel, 4-color piece was more expensive to produce, but did not
generate sufficient response to justify the added cost. The 4-panel
invitation provided enough detail that additional information was not
necessary to create more interest. Finding the fine line between
providing enough detail to pique the recipient’s interest without
overshadowing the retirement community’s event is key to finding
success with this type of piece.
Using the “R” Word
We tested two versions of a traditional, 2-color invitation in an
envelope to promote receptions showcasing a new model cottage.
One version employed a retirement lifestyle-focused approach and
used “retirement” in the community name, while the second version
was more straightforward and referred to the expansion as The
Villages at Edgewood. Our goal was two-fold: to determine which
message approach was more effective, and whether the word
3. “retirement” had an impact on response.
The straightforward version drew a third more responses than did the
retirement lifestyle invitation.
As we have found through our previous research studies, seniors
prefer that marketing messages “tell it to them straight;” focusing on
the model open house resonated better with this audience. Plus, the
response provides insight into seniors’ receptivity to the word
“retirement,” indicating that younger, more active seniors are “not
ready yet”...until they actually experience the community by coming
on campus.
Mailing List Strategy
The larger the mailing list, the more leads to expect, right? Wrong.
Mailing to every age- and income-qualified senior household within
30 miles of your community doesn’t guarantee you will receive the
number of leads you want. For the Fleet Landing mailing on page 2,
we refined their existing list to hone in on senior prospects with the
characteristics most like those of existing residents, thereby
substantially lowering the number of pieces mailed, and thus the cost.
The retirement community had previously sent a mailing to 48,500
prospects on the original list and generated 105 leads.
The sneak preview mailing went to 21,500 prospective seniors and
generated 110 leads. The second campaign produced slightly more
leads than the first, while mailing to less than half the list. In addition,
no two list companies are identical, so you can obtain slightly different
lists and quantities even with the same criteria. Good companies
update their data regularly and guarantee no more than a 10%
undeliverable rate. Budget permitting, purchase lists from more than
one company and test the lists to see which produces the greater
response, then merge the lists to reach more prospects that meet
your refined set of criteria.
Weighty vs. Fun and Informative Topics
In Spring 2009 we mailed an invitation for a retirement presentation
by a financial columnist/author, in response to prospects’ objections
4. caused by the uncertain economy. The campaign produced 27 leads.
In the fall we mailed a series of three invitations promoting four
“deliciously fun and informative” events. This campaign generated 96
leads.
Both campaigns featured four-panel invitations in envelopes, and
neither used the word “retirement” in the community name or on the
envelope. We learned that combining entertaining, social events with
retirement lifestyle discussions drew greater interest and attendance
than the weightier, albeit relevant, subject of finances in an uncertain
economy. While the temptation may be to address objections head
on through your direct mail efforts, it is more effective to bring them
on campus with fun, social activities that demonstrate your
community’s lifestyle.
Email blast-- Not your mother's direct mail
We tested two email blast versions: one enabled the viewer to see
the entire message in a single screen space, while the other was
longer and similar to a traditional color print ad, so the recipient had
to scroll down and spend more time reading the message. Version #1
received a 0.35% higher click through rate: 1.41% of all recipients
clicked through to the website, versus 1.06% of all version #2
recipients. This resulted in about 200 more people visiting the website
and seeing the retirement community’s message.
While seniors are among the fastest growing users of the Internet and
email, they still turn to trusted websites and traditional media when
ready to seriously research and purchase senior living. Email can be
a cost effective means to reach a large number of qualified senior
prospects and share updates with your wait list and lead base, but it
often does not result in immediate responses. It is important to craft
the creative to work specifically with this medium, rather than
“repurposing” a direct mail or print ad.
Case Study: A Tale of Two Campaigns
We analyzed two campaigns we created for Moravian Hall Square
that produced very different results. In Spring 2008, we created an
oversized postcard for a downsizing seminar series that generated far
5. fewer leads than anticipated. Then in Spring 2009 we produced a
multiple piece campaign, including a save- the-date mailer and three
individual invitations, to promote a series of “spring fever” events.
This campaign generated 64 new leads. What made it so successful,
when the previous campaign produced a fraction of these results?
The oversized postcard format did not perform well in Part 1 of our
study, while pieces mailed in envelopes improved recipients’
likelihood of reviewing the piece. In addition, the downsizing series
postcard was a strong sales pitch but provided no information about
the client. By contrast, the spring campaign promoted entertaining,
hobby- and retirement-related events that showcased the retirement
community without being a hard sell, and the additional panels
provided space for brief copy about the lifestyle and amenities. This
campaign provided enough enticing information to bring prospects on
campus for entertaining, non-threatening events, at which point the
sales team was able to introduce the community and schedule tours.
Conclusions and Recommendations
Larger or more complex direct mail does not always generate enough
response to justify the added cost.
Today’s seniors are comfortable calling to RSVP for an event; reply
cards are often an unnecessary expense.
Refine your mailing list to best fit your resident profile, and budget
permitting, purchase two lists and merge them.
Tell it to them straight. Don’t try to be too cute with your approach or
offer details that cloud the core purpose of the mailing.
Today’s younger, active seniors may not associate themselves with
“retirement” yet, so use the term selectively.
Email marketing is generally not an effective lead generator among
older seniors, but is an efficient way to communicate with your wait
list and lead base.
Plan and promote marketing events that are both fun and informative
6. for prospects to experience your community’s lifestyle.
The 2009 direct mail research project was led by Jessica Kraft, senior
marketing account manager, and Tyler Sprecher, vice
president/creative director. Please contact them with questions about
this project. For copies of previous research studies, please con- tact
us or visit our Web site.