Author: Regina Marston

In a recent study by the National Association of Home Builders (NAHB), in conjunction with Dodge Data & Analytics, single-family builders who self-identified as green builders (building at least half of their projects green) were asked why they choose to build green, and what their top practices and strategies are to improve green home performance.

More than two-thirds of those surveyed said they build green projects because they believe it is the right thing to do. This strong position shows how the green building trend has become more about building homes that have a clean energy footprint for the environment than the use of green terminology for marketing, a practice known as “greenwashing.” 

Other top reasons builders cited include creating healthier homes, meeting market demand and differentiating their product in their local market, which are compelling market opportunities for builders considering entering this market segment.

The biggest goal for all green builders is building homes that are highly energy efficient. As noted in the full report, almost all respondents (91%) are using energy-efficient practices to some extent, whether or not they identify as green, and two-thirds of all builders do so on at least 75% of their homes, illustrating how the mainstream home building industry is increasing the use of green building practices.

Almost half of the green builders say that building a healthier indoor living environment, also known as improving the indoor living environment, is a practice heavily utilized in their projects. Almost 50% of the green builders cite it as a top way to improve green home performance, and two-thirds of all builders are employing strategies to achieve this practice. Over 39% are doing it for 75% of their projects. This is a significant market segment but may also provide opportunity in many areas to differentiate a builder in his/her local market.

The 2020 Green Single Family and Multifamily Homes Smart Market Brief is available at the NAHB website – https://www.nahb.org/Advocacy/Industry-Issues/Sustainability-and-Green-Building/Green-Smartmarket-Reports?_ga=2.66968238.1490863034.1585685584-1394325025.1585685584

The shock of staying at home more than normal has begun to wear off and Americans are starting to assimilate themselves into the “new normal.” As COVID-19 has traveled around the world, vast numbers of workers have found themselves working from home for extended periods for the first time. Many of them are learning how to manage their own time and use technology to make the transition as seamless as possible.

As many companies and their employees realize that telecommuting is very feasible and comfortable, what seemed like an unfortunate tragedy could accelerate a trend that was already underway. 

With the advent of technology, applications, and high-speed internet becoming more affordable and reliable, the home has become the personal and job headquarters for busy people looking for ways to better manage their lives. Everyone has become more comfortable with trading commuting time with quality “me” time and are spending a lot more time on pursuits that give them joy, purpose, and pleasure.

Telecommuting has been on the rise. A Global Workplace Analytics analysis of the U.S. Census Bureau’s American Community Survey data between 2005 and 2018 found that working at home has grown by 173% between 2005 and 2018 and that “5 million employees (3.6% of the workforce) now work from home at least half the time.” Those figures exclude the self-employed.

The primary reason is simple: working from home provides a better quality of life. In its Global Workspace Survey, flexible workspace provider IWG found that “80% of workers in the U.S. would choose a job that offered flexible working options, including working from home, over a job that didn’t, and [30%] of people value being able to choose their work location over an increase in vacation time.” It also found that “more than two-fifths of U.S. workers see commuting as the worst part of their day.”

Looking forward

With millions now working from home out of necessity and ordering take-out and grocery delivery or pickup to adhere to health officials’ guidelines, consumer’s attitudes towards telecommuting and online food shopping are likely to change. More people will likely realize that it’s not as hard as they once thought. Everyone is forming new habits and establishing new norms.

In the short term, marketers will need to find ways to be helpful to people trying to meet their most basic needs. And in the long term, we’ll all need to adapt to this “new normal” and work to understand what it means for all aspects of life in America when home becomes more people’s new headquarters.

As everyone knows, no one likes to be ignored. Yet, many companies are doing just that to a huge demographic – the Baby Boomers – that still has a lot of buying power. For the last decade, marketers have been focused on the “it” demos: millennials and Gen Z. Although millennials officially outnumber boomers, we shouldn’t forget the spending power wielded by boomers.

While millennials have dominated headlines in recent years, baby boomers (those born between 1946 and 1964) have continued to dominate consumer spending in the U.S. In fact, consumers over 50 now account for more than half of all U.S. spending. They are also responsible for more spending growth over the past decade than any other generation, including the coveted millennials. 

As a group, this over-50 crowd should continue to be a major force in U.S. consumer spending, especially as those over 60 years old drive growth over the next five to 10 years, according to Visa Business and Economic Insights. 

This is happening for two reasons: demographics—there are simply more consumers over 60 than there were 10 years ago—and behavior. Baby boomers, compared to generations that preceded them, are retiring later, holding on to more debt, and maintaining budgets for travel and other discretionary treats.

Today’s baby boomers are some of the most technologically sophisticated and active groups in the world. They are traveling, spending time outdoors, going back to school, starting second and third careers, caring for grandchildren and parents, all the while staying relevant in politics, social media, and cultural changes. You want some proof of the baby boomers buying power? According to U.S. News & World Report, this demographic controls 70% of the country’s disposable income and spend $3.2 trillion a year.  

Baby Boomers include the likes of George Clooney, Julianne Moore, Tom Cruise, Robert Downey, Jr., Lenny Kravitz, LL Cool J, Nicole Kidman, Brad Pitt, Barack Obama, Oprah, Deepak Chopra and Madonna. I don’t think anyone would suggest that these folks should be ignored, yet many are ignoring their entire generation.

Millennials and the Gen Z may have some money to spend now — but Baby Boomers have it yesterday, today and tomorrow. Their WWI generation parents are leaving them even more wealth, and they are ready to enjoy it by purchasing new homes, cars, boats, and other luxury goods they may have postponed purchasing while they were putting kids through college. Targeting boomers might not be as Instagram able as a millennial demo, but it is instantly gratifying.

Robert Passikoff, president of Brand Keys Inc., told the New York Times that “while the millennials are sharing stuff, boomers are buying stuff. If you are a brand, you are in business to make money, and a tweet or share or laugh online doesn’t translate into actual bottom-line dollars. Boomers are an audience that’s worth pursuing in virtually every category.”

Brands should target boomers by using an integrated media mix that includes radio, TV, email, and social media. According to Nielsen, baby boomers are the second heaviest users of the internet and more than half of boomers are active on Facebook. They also are a growing demographic on Instagram, and they are still one of the last demos that can be reached using direct mail and email marketing. Nielsen also found that “Boomers account for nearly $230 billion in sales for consumer-packaged goods.” The demo also spends close to $7 billion shopping ONLINE.

By 2020, there will be about 11 million¹ more consumers over age 60. While the share of spending among younger consumers is expected to decline over the next 10 years, older boomers should gradually spend more with those aged 60+ reaching a 33 percent share of aggregate spending by 2025.

Industry forecasts show that Gen X and millennials will continue to be important consumer targets—as much for their current spending as for their longer-term loyalty—but the strongest future growth potential in spending lies firmly with baby boomers. 

How and where are you targeting boomers?

Years ago, I worked for an ad agency that had developed a reputation for experiential marketing. Our work for very large brands was recognized in national press and industry publications. But in time, I came to recognize that our work was severely lacking. 

Experiential marketing should be included as part of an integrated plan, this is often considered an offline tool. It is just another element in reaching consumers through a brand’s marketing mix. Experiential marketing is about creating an experience that is new and unusual and leaves a lasting impression. This is different from hearing a spot on the radio or viewing content while streaming music on a portable device because it actively involves the target audience. In many cases, experiential marketing will allow the consumer to use a product or service.

Examples of experiential marketing:

• A branded beer garden at an outdoor event.
• Signing up for a free subscription to a video on demand service at an event.
• Photo booth posting photos on social media.
• Truck with solar panels to generate hot water (we did this for a utility).
• Red Bull events (just pick one).

In two of the events listed, getting the consumer’s information was essential. In the others, how to capture the data can also be included.

In our case of a few years back, I came to recognize that our work, while it garnered the attention of consumers, in reality, was nothing more than a short-lived stunt. It was good so long as we had the attention of our audience and disappeared once the consumers were on their way. What about the ROI? Unfortunately, many expensive are designed similarly.

A key factor in experiential marketing is that it rarely leads to an immediate sale, so it is best practice to establish realistic goals in the planning phase (e.g. online mentions through social media, free PR, product sampling). The experiential engagement should include the opportunity to capture consumer data to create an ongoing relationship. While having a big budget helps, it’s more important to make your experience memorable.

It’s 2019 and way past time for social media to be considered a reliable, and measurable, communications channel. It has been a key marketing channel, and in some cases, the only channel, that businesses, organizations, and the government use to reach their audiences.

It’s time to ensure that the social media budget is returning a strong ROI to the marketing and operations of the organization. And because this key component of your business strategy is going to take more time and resources, you should definitely know all about social media ROI. Here’s a quick primer on how to establish social media ROI for your business.

Setting Your Goals

Defining what you want social media to do for your overall sales and operational goals is your first step. What are you trying to achieve?  More followers, more sales, increased traffic to your website, foot traffic to your brick and mortar operation? You must define these goals and make them SMART: Specific, Measurable, Achievable, Relevant and Time-bound.

Social media ROI boils down to how much you’re currently spending and how much your social media impact matters to your business right now.

Benchmarking

Before you start measuring your social activities, you need to know where you’re currently at – better known as taking a benchmark of where you are starting. Here are some things you will want to know before you start your social media campaign.

• Existing website analytics (i.e., visitors, referral links, SEO rankings, etc.)
• Current customer satisfaction scores you are tracking as well as customer ratings on external directories (i.e., Facebook or Google My Business recommendations)
• KPIs you currently track (i.e., cost of customer acquisition, advertising budget, and allocation, average sale, average sales per month, etc.) to see how these change over time
• Social profiles numbers you already have (i.e., number of connections on LinkedIn, Facebook fans, blog subscribers and Twitter followers)

Understanding The Importance Of ROI

Review your social media channels daily and determine which social media channel is bringing your company the most revenue at present and why. Also, note areas in which you could improve. Monitoring these will enable you to make changes for the better.

Measuring Your Social Media

Armed with your social media goals, you need to measure your social media performance and be ready to A/B test content, imagery, promotions, etc. to find the optimum messaging that resonates with your target audiences.

Tie your results to business goals

The impact of your social media campaign should be measurable and tie back to the operational business goals of the company. The value and specifics of each link you share on social media should be trackable to your website, call center, CRM platform, public relations campaign, etc. This makes it easier for you to see which links are building traffic to the website, phone calls to the call center, increasing participation in events, or making donations. You should use an integrated marketing channel dashboard to ensure that you have a comprehensive look at all your marketing data into one easy-to-use report.

If you need help assessing your social media ROI, we can help. Contact me at rmarston@engagemarketing.biz.