AARP Meets the Baby Boomers

The post-World War II generation began turning 50 in 1996. Since then, numerous baby boomers have become eligible for membership in AARP, formerly the American Association of Retired Persons. But just as the new name suggests, the face of 50 is changing, and the leading organization that services them is changing as well.

As Dawn Sweeney pointed out, by 2009 this generation will make up 50% of all U.S. citizens aged 50 to 75. In her role as president of AARP Services Inc., a wholly owned commercial products subsidiary of AARP, Sweeney’s challenge is to make sure her organization’s communications are as relevant to aging baby boomers as to their parents.

It’s a big task, but one the organization is more than ready to meet. For years it has prided itself on its use of focus groups and other tools that allow it to know the community. Its flagship magazine currently publishes three editions — one for members under 60, one for those in their 60s and one for those over 70. And AARP Services has also launched both a Spanish-language magazine and an educator-focused publication. Educators made up its original market, which consisted of underinsured teachers, and AARP Services still feels they constitute a viable market.

Sweeney likens the way marketers have traditionally approached the over-50 market to the way they target multicultural efforts, specifically, without much differentiation. This is a mistake, she said, and it provides the specter of marketing plans being designed according to outdated — or, in some cases flat-out incorrect — information.

For instance, direct mail will continue to be the workhorse channel AARP Services uses when reaching out to over-50 consumers. The organization currently sends out 350 million pieces a year, and the channel makes up 70% of the business AARP Services generates. But the challengers to the throne are beginning to rear their heads. “We are now studiously pursuing direct response TV, newspapers, search engine marketing and Web strategies to make sure we continue to stay relevant and current,” Sweeney said.

In fact, 10% of the organization’s membership contacts it via the Internet — that’s 50% higher than last year’s level. And 60% of its membership is regularly online, up from 46% two years ago.

In addition to the channel mix, the products it offers are changing, said Sweeney, who spoke in February at the Direct Marketing Association Financial Services Council’s 28th annual conference in St. Pete Beach, FL. Through a series of surveys, focus groups and usability tests, AARP Services is looking at ways to expand its financial services offerings, with an eye toward allowing AARP members to build their financial security.