The PMA is D.O.A.: Lifestyle Segments and the next big leap in hypertargeting. Michael Starke Fran Palma Managing Director EVP Digital Strategies PMD Advisory Services Martino & Binzer

But it wasn’t. There was a time when the Earth was flat….

They didn’t. There was a time when monsters roamed the planet …

And potential residents only lived in your PMA of 5-10 miles … They don’t.

(it’s not.) And one message resonated with everyone: Move to our community and become part of our family. Our staff really care! Maintenance-free living!

North Carolina California TexasIllinois

Is There a Better Way? Lifestyle Independence Value Security Socialization Luxury Life Care Fee-for-service Inventory

We Know There Is! Connect with people based on their beliefs. The way that they want to be connected. Connect on an emotional level beyond features. That are age and income qualified. Not bound by geography alone. Can speed the sales cycle.

We Know There Is! Double the response rate of abroad-based mail. Convert more prospects to residents. Reduce your overall cost of direct mail. Concentrate your efforts.

Deciphering the Numbers Demographics Lifestyle Segments Beyond the Demographics

Demographics

Market Area Definition

Data

Detail Households by: - Age - Type - Income

Detail Owners by: - Home - Value - Income

Source: PMD Senior Market Report 17

18 Source: PMD Senior Market Profile

19

Thematic Maps

Concept Methodology Application Lifestyle Segmentation

Concept What is a lifestyle segment? What are the differences between segmention systems? Lifestyle Segmentation

A multi-dimensional view of the consumer tied to geography. A Lifestyle Segment Is …

Lifestyle Segments

26 Lifestyle Segments

Segment E06 – Mature America Median age is 63 Median income $34,000 60% collect Social Security 60% own a home – median value $106,000 They belong – fraternal, VFW, religious groups; watch golf, tennis and baseball on TV; and read magazines 27 Lifestyle Segments

Zip Code Geography Geography

Census Tract Geography Geography

Nielsen – Prizm ESRI – Tapestry Experian - Mosaic Providers of Lifestyle Segment Data

Sources – U.S. Census, American Community Survey and local government data – Proprietary data and surveys Models – Complicated multivariate algorithms with vendor customization 31 Differences

Methodology How many segment types (codes) are there? What variables are used in development of segment systems? Lifestyle Segmentation Data

Segment types It varies depending on vendor but most are in the range. Defining the segment types is a marriage of art and science. Purpose is to define groupings that are fairly homogeneous while maintaining groupings large enough to measure and target efficiently. Methodology

Variables used in development of Segment Systems Over 600 different variables are utilized in most segment systems. A partial list includes the following. - Age- Education- Income - Sex- Marital Status- Tenure - Race- Household Type- Labor Force Status - Ethnicity- Household Size- Net Worth Methodology

Appending Your Data Identify your consumer Code records with segment types Analyze to identify your segments code incoming prospects by segment to evaluate and monitor trends Define your message for your target segment Application

Targeting Quantifying and locating target households Application

Areas in green are target block groups with concentrations of specified Senior Lifestyle Segments.

Creating the message: Different segment household types access information from different media They get their information from different sources They respond to different messaging Application

Nielsen – MyBestSegments.com ESRI – ESRI.com//data/esri_data/tapestry Experian – experian.com/marketing- services/consumer-segmentation.html Contact Information

Control Lifestyle Community Quality Choice Trust Stability Services Amenities Affordability Value Criteria

Step by Step

So how does it all work?: Waiting List CRM Prospects Residents (last four years) Match and Append with Segmentation Data Residents Match all Segments

Exporting your CRM data for the last four years Export you current residents for the last four years. Match them to the appropriate lifestyle segments.

Create the message and creative platform that will connect with each of those groups. Create the distribution strategy that each group prefers.

Track, Measure, Report & Modify

Identify segments differences between your residents and your prospects, focusing on the top tier segmentations. In this example, “Old Milltowns” is a segment that has high saturation with residents but not for prospects. Plus, you have other segments that such as “Big Fish, Small Pond”, Hometown Retired” and “God’s Country” that are not represented in the prospect database.

Recommendations: Purchase a mailing list within and outside your PMA of these segments. Since they are highly converting segments, you have a lower risk of waste when marketing outside your PMA. Identify those individuals in the database, do call-outs to those individuals. Develop a specific mailer to those individuals and possibly create an event based on the attributes in the segment description. Create a resident and prospect event for “Old Milltowns” and create opportunities for those individuals to share like experiences.

New Empty Nests With their grown-up children recently out of the house, New Empty Nests is composed of upper-middle-income older Americans who pursue active—and activist—lifestyles. Most residents are over 65 years old, but they show no interest in a rest-home retirement. This is the top-ranked segment for all inclusive travel packages; the favorite destination is Europe. UPPER-MID MATURE W/O KIDS Upper-Midscale Age 65+ Mostly White

New Empty Nests Lock the door and set out on whatever adventure awaits without having to worry about your home. If you plan ahead to get the best table at the best restaurant, then you should see the plan we have in-store for your future. MESSAGING

New Empty Nests TACTICS 1.Search 2. 3.Direct Mail 4.Events

Domestic Duos Domestic Duos represents a middle-class mix of mainly over 65 singles and married couples living in older suburban homes. With their high-school educations and fixed incomes, segment residents maintain an easy-going lifestyle. Residents like to socialize by going bowling, seeing a play, meeting at the local fraternal order or going out to eat. MIDSCALE MATURE W/O KIDS Midscale Age 65+ White, Black, Mix

Domestic Duos If you believe it’s the simple things in life that make life simply wonderful, than please join us for our Simply Sunday brunch. You’ll be amazed at what you will have to give up when you move here: lawnmower, vacuum cleaner, snow shovel, hedge trimmers and washing dishes. MESSAGING

Domestic Duos TACTICS 1.Landing Page 2. 3.Direct Mail 4.Road Blocks

American Classics They may be older and retired, but the residents of American Classics are still living the American Dream of home ownership. Few segments rank higher in their percentage of home owners, and that fact alone reflects a more comfortable lifestyle for these predominantly white singles and couples with deep ties to their neighborhoods. DOWNSCALE MATURE W/O KIDS Downscale Age 65+ Mostly White

American Classics The only difference between life here and the old neighborhood you loved, is that here you don’t have to take care of the yard or the house. You’ll find that the lifestyle here is the perfect combination of honest-to-goodness value and good-old American values. MESSAGING

American Classics TACTICS 1.Landing Page 2. 3.Direct Mail 4.Road Blocks 5.Follow-up Postcard

Online Marketing Pay-per-click ReMarketing

Direct Mail - Primary Market Area

Things To Remember Segmentation allows you connect with people based on their values. Not bound by geography alone. Double the response rate of abroad-based mail. Convert more prospects to residents. Reduce your overall cost of direct mail. Concentrate your efforts.

Questions? Comments?