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ThirdAge CEO Addresses Businesses' Shortcomings in Approaching Age 40-to-60 Market -- and the Potential Rewards for Doing It Correctly
Sharon Whiteley Calls for New Language, New Attitudes and Heightened Sensitivity to Connect With the Unmet Needs of 'ThirdAgers'
Oct. 7, 2002 (New York City)
ThirdAge Inc. CEO Sharon Whiteley today delineated the serious challenges and still-untapped rewards involved in serving, understanding and communicating effectively with one of the largest, most affluent and neglected segments of the consumer population -- midlifers experiencing transitions, most often between the ages of 40 and 60.
She made her remarks here during a case study presentation at the J. Walter Thompson-sponsored event "Beyond the Numbers: The Mature Market Summit 2002." ThirdAge collaborated with J. Walter Thompson and researchers, Market Strategies Inc., to conduct a values-based segmentation study with the ThirdAge audience.
ThirdAge is a 6-year-old company dedicated to redefining the concept of aging. It is committed to serving a continuum of changing needs and interests specific to people in transition and through their midlife years. These include well-being in the areas of relationships, romance, leisure, health, financial security, beauty and style, as well as spirituality and personal growth. ThirdAge reaches millions through its dynamic Web site (www.thirdage.com), through custom newsletters and soon through offline activities. In addition, ThirdAge offers a new level of targeted, contextual marketing opportunities and market research capabilities to global companies, including business partners such as Procter & Gamble, Merck, Merrill Lynch and Johnson & Johnson.
Address Aspirations, Not Birth Dates
"While we do not, of course, have the final answer, we do know the problem: Virtually all marketers do a poor job of communicating with people who are over 40," said Ms. Whiteley, who has led ThirdAge since a 2001 management buyback.
"People in this demographic segment -- we call them ThirdAgers, inspired by the French phrase 'Troisième Âge,' the concept of lifelong learning -- do not like to be thought of as 'old' or 'senior'. That's how many companies and organizations portray and speak to this population -- if they speak to them at all. They're really missing it on many levels. The conventional wisdom that aging boomers are set in their purchasing habits and resistant to marketing messages is just plain wrong. Marketers speak to these peoples' birth dates, rather than to what's relevant in their lives, what's in their 'hearts and minds' -- and in a style that respects their point of reference," she said.
ThirdAgers: Active, Inquisitive, Acquisitive and Demanding
Added Ms. Whiteley, "Because our business is to interact with the over-40 market on an emotional, intimate level, we have picked up on many important nuances. For one thing, we know that most of these people are, in a way, ageless. While they're in a period in which their priorities are shifting -- and they are growing more sophisticated and settled -- these individuals' core personality traits remain the same. We also know that these people have experienced a lot, gotten wiser and find themselves in a position to focus on learning and improving, without some of the 'infrastructure-building' distractions of younger adulthood. While many may be experiencing transitions, they are active, inquisitive, demanding and individualistic. In some ways, they are interested in 'being more' than they were, not in 'accumulating' more."
Ms. Whiteley said ThirdAge believes that if companies and organizations can crack the code of communicating in a relevant, resonant way with the 40-plus segment of the population, they'll find great opportunity. That is because, as ThirdAge's dialogue with customers suggests, people in this lifestage have unique, yet-to-be-addressed concerns and interests including: relationships, wellness, giving back to their communities, legacy, financial security, passion, fun, vitality, lifelong learning, romance and human connection.
A Market Worth Focusing On
"In our view, reassessing, connecting with and developing a new language for the ThirdAger population should be an imperative for many businesses and organizations. ThirdAgers represent a huge, affluent, powerful and growing demographic slice. Our sense is that approaching it with greater sensitivity will uncover a whole new level of opportunity, and many, many new ways to make a difference," said Ms. Whiteley.
She points out that 108 million Americans will be over 40 by 2005 and comprise 40 percent of the population. In addition, over the next 15 years, the 50-64 population will grow by 50 percent and the 65-plus population will grow 32 percent, while the highly coveted 18-40 Gen-X and Gen-Y populations will grow only by 3 percent combined.
Today's population over the age of 50 accounts for $2 trillion in income and for more than half the discretionary spending in the United States. ThirdAgers own over 70 percent of the financial assets in the United States and control 70 percent of U.S. households' net worth. The group controls 62 percent of all large Wall Street accounts, has 50 percent of the credit cards in the United States, owns 41 percent of all new cars and 48 percent of luxury cars, and accounts for 80 percent of all leisure travel. In addition, baby boomers, who comprise a large part of the ThirdAge population, will inherit over $12 trillion, the largest wealth transfer in history.
"ThirdAgers are also a formidable presence on the Internet," said Ms. Whiteley. Boomers account for nearly 65 percent of all online spending, and the number of 50- to 64-year-old online users has increased by almost 90 percent since 2000, from 17.1 million to 32.3 million. According to surveys, half of American consumers aged 40 and over are always looking for products that meet their needs better.
ThirdAge: Committed to Deciphering and Providing Access to the 40-to-60 Population
"A key part of our business at ThirdAge is discerning what is of interest to and motivates ThirdAgers and adopting the language they respond to best. In the process, we provide relevant content -- for instance, advice on intimacy and relationships, and resources around nutrition and healthy living -- that enables our audience to navigate and maximize the life stage they are in," said Ms. Whiteley. ThirdAge's Web site has an average of 1.5 million unique visitors and 22 million page views per month, and there are 1.6 million ThirdAge online newsletter subscribers. The Company gains knowledge and insight via ongoing dialogue with these users.
ThirdAge Business Partners Benefit
She points out that ThirdAge's "quest" to connect deeply with people between 40 and 60 makes the company a valuable resource and laboratory for business partners and sponsors who also want access to and a meaningful and profitable dialogue with ThirdAgers. "We transfer our knowledge to our partners and sponsors. They have included such key brands and global companies as Merck, Clairol, American Century, Quaker Oats, Procter & Gamble and Johnson & Johnson," said Ms. Whiteley.
ThirdAge offers its business partners proprietary research, customized sponsorships, advertising opportunities, innovative direct-marketing programs, interactive-marketing campaigns, customer insights, real-time focus groups, product development opportunities, lead-generation opportunities, data capture and custom newsletter development.
A Dynamic Business Plan
ThirdAge's business plan going forward involves building on its current revenue streams, growing the already substantial user, sponsor and partner base, and continuing to improve offerings to deepen user and community loyalty. More specifically, ThirdAge plans to convert certain free offerings to more enhanced fee-based ones; introduce a range of new subscription services; expand e-commerce opportunities to capitalize on ThirdAgers' substantial online spending; increase proprietary research that can be shared with the marketplace-at-large and business partners; and enhance topical content to attract in new consumers and, in turn, additional sponsors and partners.
ThirdAge Inc., based in Boston, is a leading media, research and direct-marketing company focusing on midlifers in transition and the 40-plus population. The Company's equity investors include 8 Wings Ventures, LLC.
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