The irony of the aging Baby Boomer

Trend Observation:  Two interesting (and very contrasting) stories caught my attention today, and both of them were focused on Baby Boomers.  First, USA Today published an article about Boomers that can finally afford the car of their dreams.  The observation is that once parents have emptied their nest of children and paid-down much of the consumer debt, they have more discretion over their income… and more money for toys (click to link).

But then I caught a second story, this one from the Minneapolis Star Tribune, talking about an overhaul of the traffic light system that will accommodate Boomers… who presumably don’t cross the street on foot as fast as they used to (click to link). 

Marketing Implications:  America’s biggest generation (and arguably still the most significant consumer base) is changing.  Does your company, product or service target these consumers?  Are you changing in response to their current life stage?  Boomers are changing in both their physical and financial stature, and those changes are sure to impact their purchasing priorities and preferences.

Mike Anderson, for The Marketing Mind consumer trends blog, service of The Center for Sales Strategy.  

Healthcare spending likely to be constrained

Observation:   A story in today’s Wall Street Journal suggests conservative spending on health care in the near term; a hangover behavior from the effects of the recession.  Click here to see the story. 

Implications:  To the extent that health care “purchases” are elective or where the insurance deductible is too high, people continue to defer spending just like any other discretionary category.  (Even things like laser vision correction and dental.)

If you work in health care, specifically, have you returned to explaining the value and quality-of-life issues associated with the care you provide?  Do you realize that you must compete with, say, the purchase of new home furnishings, a boat, or other discretionary purchases? 

Do you offer a form of financing, beyond the patients’ own insurance?

Health care is complicated.  Convincing people to buy it is getting more complicated, too.  Like any other purchase, it is important to explain your value proposition:  How your treatment adds value to the consumers’ (patients’) life. 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Hospitals do a little self-diagnosis

Observation:   A recent article from the New York Times explains that with health care reforms at risk of either passing or being repealed, the industry is not waiting for regulations to mandate more care delivered at less cost.  Many hospitals are proactively working to refine their systems and streamline their services.  Click here to see the full story.

Implications:  Like any business, there’s more to operational change that simply reorganizing a flowchart.  When companies introduce “efficiencies,” it is important to mitigate the frustration likely to be felt by customers (patients).  When new, favorable features are introduced, the company cannot take for granted their customers will notice.

If you are a stakeholder in a health care organization, how are you communicating the changes that are either underway, or likely inevitable, as the category moves toward a more cost- and profit-oriented future?  What kinds of messaging might weave you more deeply into the fabric of the community you serve?  For those changes that might be less well received, how can you placate a consumer that might not be all that enthusiastic about the changes you are making?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Increasing focus on the obesity epidemic

Observation:  A story from Marketing Daily this week explains how the Disney companies plan to limit junk food marketing in media assets that serve youth audiences; the announcement was made in Washington with First Lady Michelle Obama on hand (click here to see that story).  And last week, a firestorm debate started with New York City’s mayor Michael Bloomberg suggested restricting the sale of super-sized softdrinks (click here to see one of the stories published by the New York Times on that issue).

Implications:  There seems to be growing momentum behind the idea of healthy living.  Does your company offer a product or service that fits into this strengthening trend?  Should you consider adding one, or altering your current menu in a way that the consumers you serve are given more healthful options?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Changes to health care spending

Observation:   Over the weekend, a story from the New York Times explained that health care spending is down… and more dramatically that the economic effects of the recession can be blamed for.  The article strives to explore a number of possible reasons for the decline; read the story by clicking here.

Implications:   If you sell any product or service that is related to health care, this issue impacts you.  We can anticipate that if the number of patients who are spending has declined—or the amounts they are spending have declined—the field of providers that are competing for those patients and dollars is going to be more heated.

So how can health care providers—and health care marketing—effectively capture their unfair share of patients?  Absolutely.  Start by looking at the product or service from the consumer’s (patient’s) point of view.  Follow the money trail, from consideration to admissions to pre-op to discharge.  As a story from NBC Nightly News suggested over the weekend, you might even look at the ceilings of a hospital room, to see what the patients see as they’re lying in bed!  (Click here to link to that video, or watch it in the viewer below.) 

The patient, above all, wants a successful outcome.  But on that journey, they’d also appreciate some empathy, responsiveness and authentic concern from the physician and support staff.  If you can deliver that experience, and explain your unique selling proposition in advertising (on-air, in-print, online), you’ll likely fare better than other providers who are competing for those same patient dollars.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

NBC News footage:

Visit msnbc.com for breaking news, world news, and news about the economy

Surgeon and hotel collaborate for a package of nip, tuck, and tuck you in

Observation:  Today’s Springwise newsletter included a story about a plastic surgeon in New York that has partnered with a luxury hotel where patients can stay during recovery from their procedure.  Click here to see the story at Springwise.com.

Implications:   This story is a great example of focusing not on the practice (business), but on the patient (consumer).

Who could you partner with to build a package that is bigger than either of the companies, products or services involved?  Don’t start by thinking of your existing business contacts.  Start by thinking about your patient—er, customer—experience.  Ask what could make that experience (before, during and after) even better.  Think outside your company’s walls.  Then make the contacts to make it happen.

By the way… talk to your media and marketing vendors to see if they might be a source of some very smart partnerships.  After all, they’re talking to all kinds of business people every week!

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Healthcare providers get creative about collections

Observation:  Today’s New York Times includes a story about evolving debt collection practices used by various hospitals and healthcare systems.  Specifically, the article focuses on an investigation by Minnesota attorney general Lori Swanson into the practices of a company called Accretive Health.  Click here to see the story.

Implications:   As consumers read this story, surely they will be outraged at some of the tactics that are alleged.  (I must agree that it would be very disheartening to be greeted in an emergency room by someone who looked like a medical care staffer but who was really a credit services employee.)

At the same time, this article might be emblematic of a health care system that has become dysfunctional.  Private hospitals and clinics must do more than attract patients; they must attract patients who can pay.  Even those healthcare providers who are funded or subsidized in some way by the government or non-profit agencies are having a tough time making ends meet.

It is not my intent to start a conversation about the politics of healthcare, only to suggest that the mechanics of it—the business model—needs attention.  If you are a healthcare provider, could your dialogue with prospective patients (marketing) do a better job of explaining the mechanics of healthcare?  Would there be value in explaining the investment that has been made in staff, facilities, and years of training, in the interest of providing state-of-the-art care?  Should more marketing be done to attract “qualified” patients—patients who can pay—to off-set the number of unemployed or uninsured patients that a hospital might service?

There are too many questions to think that there is only one right answer.  But it appears that healthcare providers are prepared to consider just about anything.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Generational Economics: New Age Seniors

Marketing Observation:  Once upon a time, you might have referred to people age 60-69  as “upper demos.”  But that is an outdated notion, one that has not kept up with the changing face of demography, at least in the industrialized parts of the world. Here’s why I say that:

Fifty or sixty years ago, life expectancies were different than they are now.  People often retired from their careers at 62 to 65 years old… and then enjoyed life for a few years before their health began to deteriorate (or they just plain tipped over).  Now, life expectancies are much, much longer—approaching eighty years old—and of course many people are living into and through their 90s and beyond.  These longer lifespans are having a dramatic effect on how we’re living life, especially after age sixty.

Retirement savings have to last a lot longer.  So we’re finding that “retirement” rarely means, “the end of employment.”  For folks in their 60s, it often means quitting the job they’ve always had to have—for economic reasons—so they can take the job they’ve always wanted to have.  Someone who has worked in a confined space for a lot of years might decide to find a job where they can get out and meet people.  Others take a position that lets them fulfill a passionate interest or hobby.  In fact, the concept of “retirement” is making way for the idea of “re-hirement.”  And to the New Age Senior, that return to the workforce serves two purposes.  First, it can be an important supplement to a retirement savings plan that simply has to last longer than it might have, say, fifty or sixty years ago (retirement will last longer than it did back in the fifties for most people). 

But also, the right job can be a source of stimulation and self-actualization for the New Age Senior.  Just realize that their motives for wanting to work might be different now than they were during an earlier career.  Changing jobs can actually be seen as a way of, “giving back.”

Marketing Implications:  Whether you want to sell financial products and services to people who are re-thinking what retirement means, or goods to help people get established in “Career 2.0,” there is a tremendous amount of opportunity in targeting consumers in their 60s.  They still want to travel, spoil grandkids, and play golf.  But they’re looking for ways of fitting all those activities (and more) into a lifestyle that is busier than generations before them at this age.  They’re very health-conscious, eager to stay active, and more technologically savvy, too.

Is this a group of consumers you’d be smart to reconsider, or consider in new ways?

Mike Anderson, for The Marketing Mind consumer trends blog, service of The Center for Sales Strategy.  

Walgreen’s morphs the niche they are in

Observation:  It is an interesting time to watch the nation’s largest drug store.  First, in a gutsy revolt against the healthcare system, the chain recently announced they would no longer accept prescription orders reimbursed by insurance-giant Express Scripts.  According to a recent video from supermarket expert Phil Lempert (click here to see that footage), that move could represent as many as 80 million prescriptions.  But that was a hit Walgreen’s was apparently willing to take, in defiance of the prescription management company’s effort to shrink the store’s profit margin on medications.

Another story—this one from Forbes—suggests that Walgreen’s is moving toward a business model that is much more consumer-centric, with product offerings that include a widely expanded beauty products, select groceries (including “wellness” organic foods), wine and cheese shops, and even coffee shops.  Click here to see that story.

Implications:   This is just my opinion, but I see this move as Walgreen’s decision to not let Express Scripts define the business they are in… and take control over that decision for themselves. 

What business are you in?  Is the answer to that question decided by a landlord, vendor or supplier?  Or is it defined by you and your customers?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Stressed, but coping

Observation:   An interesting story in today’s USA Today suggests that consumers are stressed, but dealing with it.  In fact, an on-going study indicates that people feel their stress levels have fallen for the first time in five years.  Click here to see the full story.

Implications:   The story does not conclusively explain why people seem more “at ease” with the stress they are under, except to hint that the economy seems to be getting a bit stronger, employment prospects seem to be increasing…

And last but not least, people have been under pressure for long enough that they’re getting used to it.  (Reconciliation strikes again.  Click here to see all of the stories we’ve offered on that topic.) 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Wal-Mart heading deeper into healthcare

Observation:  A story from USA Today indicates that the world’s largest retailer will make an effort to become the country’s largest primary healthcare provider.  Click here to see that story.

Implications:    Wal-Mart has been a disruptive force for many retailers and service providers… and it doesn’t look like the local doctor will be immune from a similar advance.  It will be interesting to see whether—or to what degree—consumers will trust a discounter to be their healthcare provider.  And whether consumers will want to go shopping where there are likely to be more sick people hanging around!

If you’re a health care provider, do you (or does your clinic) provide a demonstrated value that makes you worth more than the coming Wal-Mart alternative?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Self-regulation deal gives cell customers a warning before surprise charges are issued

Today’s New York Times explains how wireless companies will send a message to customers who are about to use more minutes than their plan includes, thus helping them avoid penalties and fees associated with going beyond their plan limits.  Click here to see the story.

Implications:   This doesn’t just help the wireless industry avoid government-imposed regulation… it’s simply a good idea.  Consumers don’t like surprise expenses.

Do your company’s billing practices ever catch consumers off-guard?  Is there anything you could do (or is there a way you could better communicate) to help your customers avoid bill shock?  I’m thinking about what you could learn from the wireless industry’s recent experience… if you render automotive service/repairs, health care or other categories where the invoice can sometimes be an unpleasant surprise. 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Health insurance costs rise sharply

If health insurance is taking a bigger bite out of your paycheck, you’re not alone.  A story in today’s New York Times indicates that policy prices have jumped 9% in the past year according to research from the Kaiser Family Foundation.  Click here to see the story.

Implications:   As I sat in the waiting room before a doctor’s appointment this week, a lady at the front desk was sharply criticizing her bill.  It was a private conversation that I did not want to overhear, but both the volume and the demeanor of the exchange made it impossible to be unaware of.  “All they did was take my blood pressure and do a med check, and I didn’t even see the doctor,” she complained.  (Her only contact on the visit was with a nurse.)  “How can that possibly be worth (more than $175?)”  The woman went on to explain that she did not have insurance, so it would be an out-of-pocket expense. 

I felt sorry for the both the frustrated customer and the office manager trying to explain the charges.  (Even the clinic employee was having a hard time justifying the cost, which amounted to a rate of more than $1,000 per hour.)  With both unemployment rates and health insurance costs at such high levels, we can expect this conversation to be repeated in waiting rooms across the U.S., and often. 

There are two learning points that I took away from this experience and the Time article.  The first one is for the healthcare and insurance industries:  Some of you haven’t done a great job of communicating the value you provide for the dollars you receive, and some of your patients are losing their patience.  Those consumers are likely to start scrutinizing healthcare charges more closely.

Secondly—and this is for folks outside the healthcare field—we can expect consumers to take more health issues into their own hands.  From fitness to nutrition, consumers will be looking for ways to avoid healthcare (and insurance) costs.  Is there any aspect of the business you are in that could constitute “an ounce of prevention?”  Think health-conscious menus at restaurants, any product or service that involves getting some exercise, or packaged goods that involve portion control.  Communicating any healthful attribute your product or service has might be just what the doctor, or… patient, ordered.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Patient, heal thyself

In greater numbers, healthcare consumers are adding additional therapies to whatever the doctor ordered… according to a study from Consumer Reports that I found through today’s STLToday.com in St. Louis.  Click here to see that story.

Implications:    From fitness programs to organic foods to meditation and yoga—and yes, even homeopathic remedies—consumers have been assuming greater control over their healthcare future.  Part of this might have to do with a lack of direction for healthcare in the political arena, and some of it may have to do with the fact that Baby Boomers are moving toward their golden years very quickly.  It could be that insurance (or lack thereof) plays a role... and there may be many other influences.

What kinds of products or services do you offer… that are “good, and good for you?”  You don’t have to sell healthcare, specifically, to profit from this trend.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

In the move from field or factory floor to the modern workstation, workers have gotten bigger

A workplace that is less physically demanding is now cited as another major contributor to obesity, according to this recent story from the New York Times.

Click to see the full story. 

Implications:  This NY Times article presents another angle of attack for anyone who is promoting health-consciousness, fitness, or weight-related products and services.  Remember that working out may not be about physique… but simply: staying healthy.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Consumers delay healthcare, insurers profit (for now)

Among the purchases that were deferred or delayed in response to the recession:  Medical Procedures, according to a recent story from the New York Times (click to link).

Implications:  The idea of pent-up demand seems easy to grasp for things like furniture, automobiles, clothing or appliances.  But healthcare is not immune, either; a fact that has brought profit to insurance companies, at least until such time as patients decide to get caught-up on their overdue procedures.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

UPDATE: Healthcare changing channels

This site has offered a number of stories about the changing face of medicine (see the Healthcare set by clicking here).  Today’s Marketing Daily features a story about the growth of in-store clinical services at chains like Walgreen’s, CVS and Riteaid.  Click here to see the article.

Implications:  This is interesting not only to the (previous) providers of vaccines and other routine treatments.  It should be interesting, too, to those health care providers that rely on traditional physicians for their referrals. 

If you run a specialty orthopedics office, a strip-mall MRI facility or other specialized healthcare office… could your referrals be coming from a different source than they were five years ago?  If revenue is up more than 80% at the chain quick-clinics since 2005—as stated by the Marketing Daily story—one must assume that at least some diagnoses will increasingly occur outside the conventional doctor’s office.

Perhaps some specialty healthcare providers will have to take a more retail approach, with regard to patient marketing; doing so could help make-up for referrals which might not be as likely to travel through traditional channels.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Independent healthcare is not feeling well

Last week, I came across an important article about the diminishing number of private-practice physicians in the U.S.  The story cited the costs involved—in both dollars and effort—when a doctor is trying to decide between opening a private practice or going to work for a large health-management organization.  Click here to see the story, which appeared in the New York Times.

Implications:   In case you hadn’t noticed, personal healthcare is becoming less personal.  If your doctor knows who you are and a little bit about you without looking at your chart, you are likely to be the exception to the rule. 

This story offers a preview of the impact that is likely to follow cuts to Medicare and private-sector health benefits (which seem to be the trend):  Hospitals and clinics will place increasing importance on operational efficiencies.  More health centers will use a team approach to treatments and scheduling… and those “between the lines” issues that cannot be found on a medical chart will increasingly be managed by the patient, herself/himself.

Does your company, product or service empower the consumer to take charge of their own wellness?  I’m thinking about things like a heart healthy menu at the restaurant or wholesome offerings at the grocery store… or any aspect of what you sell that contributes to physical fitness and overall wellness.  In the coming years, these product/service attributes are likely to be more and more valued by the consumer… as they rediscover an ounce of prevention is worth a pound of cure.

NOTE:  Another NY Times story, recently, exposed the nature of the sales process used by some pharmaceutical and health device companies.  Click here to read that story, as this issue, too, may influence consumers to ask questions and take action.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

FDA likely to get new influence over food supply

About an hour ago, the senate passed a bill that could result in new scrutiny of the U.S. food supply by the F.D.A. Read details of the bill as published by the Washington Post by clicking here.

A similar bill was passed by the house weeks ago, and must now be reconciled with the senate version. It remains to be seen if that can happen in this congressional session, according to this version of the story from the New York Times (click to link).

Implications: These days, bi-partisan support for anything is very rare. But after recalls on everything from eggs to peanut butter over the past few years, the topic of safe food is an easy political target.

Politicians often bet their survival on topics they deem popular and important to voters. Your company is a candidate, too, with elections held every day and where consumers vote with their dollars. Are you focused on what’s important to them?

Is food safety a competitive advantage for your grocery store, restaurant or other food business? Or… is it an issue that could haunt you sometime in the future if you don’t take time to inspect operational procedures and staff training?

Mike Anderson

How about some health food with your health care?

For years, grocery store pharmacies have tried to compete with discount stores, dollar stores, corner drug stores and mail-order suppliers. But for years, they’ve overlooked the biggest competitive advantage they have:

The grocery store.

In a recent Supermarket Guru column, Phil Lempert reminds grocers of that very point. (Click here to link.)

Implications: Glad I’m not the only one who things of this as blatantly obvious. When you fill or renew a prescription, why not provide cross-department incentives like these?

- For diabetics: A shopping list of lo-carb snack ideas, along with the aisle-address of where to find each item.

- For cardiac or cholesterol prescriptions: A few recipe cards with heart-healthy meal ideas, or a list of benefits associated with various fruits and vegetables (and a map to the produce department).

- With the purchase of cold and flu remedies: A cents-off coupon on a can of chicken soup (the kind mom fed you to make you feel better when you were a kid).

- For osteoporosis patients: Coupons for calcium-rich dairy products that could enhance bone health.

Even for a category as “prescribed” as grocery store pharmacies, opportunities surface when you stop thinking about the products sold, and start thinking about the target consumer who buys, and why. And you’ll create a grocery/pharmacy value proposition that is difficult to match in other drug store channels.

Mike Anderson