What's Next keynote speech by Kevin Donnellan, AARP

Thank you, Belinda, for the kind introduction. Good morning to all of you, and welcome to the What’s Next Boomer Business Summit. This event is always a highlight of AARP’s annual calendar. It is affirming to be surrounded by members of our community, and energizing to hear from thought leaders who open portholes through which we might gaze into the Boomer future.

On behalf of AARP, I’d like to first thank the organizers for inviting me to speak. I am honored to be here among friends and colleagues for what promises to be an engaging Summit. I hope that I am able to offer perspectives that are helpful to you, to your businesses, and to our collective interest in serving Boomers.

I would also like to thank the sponsors and co-sponsors of the Summit. Your investment in this event speaks volumes about a shared commitment to creating a bright future for the work we do -- a blueprint for success. I suspect a thriving Boomer marketplace, a vital piece of this blueprint, would be difficult to achieve without the intellectual and financial capital you are providing here. So thanks for that.

In mulling over the theme of this year’s Summit, I was reminded of a provocative piece in The New York Times Magazine several Sundays ago about how the children of cyberspace – the kids who grow up in today’s wired society – become “old fogies” by the time they reach their twenties. The writer observed that because these kids inhabit a world of ever-changing technology, the gap between say, what a 6 year-old experiences online and what a 10 year-old experiences is vast. So, the argument goes, the frequency of tech-generation-gaps increases, and by 20, you’re a dinosaur.

Interesting point, I thought…but only as far as it goes. From a consumer perspective, does this really matter? Do such gaps condemn Boomers to be disadvantaged consumers?

Granted, “I-generation” kids – who refer to Kindle as a “book,” have Skype chats with relatives, and play with virtual friends on an iPad – are conditioned to expect instant responses from everything. In their hand-held 24/7 spheres of camaraderie, creativity and commerce, they just may be smarter, more discerning consumers. They check trusted networks of friends, share their lives, and buy the latest stuff, all online – click, click, click. But dinosaurs – or old fogies, if you prefer – are consumers, too.

And this is what the writer glosses over. A key 'design theme' of the digital age is that all of the integrated communications platforms available today – online, mobile, TV, print, radio – can answer a universal consumer question: how relevant is the information delivered by this medium to my world, my communities, my social life, my health, my mobility, my philanthropy, and my interests? In short, personalization is possible across the communications spectrum. That is the digital revolution in a nutshell.

Knowing Boomers

So, it seems to me that the digital age is more of a ‘leveler’ of generation gaps.

Boomers are living proof of this. It is old news that a Boomer “social media maven” lives among us. This is the Boomer who makes time for social media, joins social networking sites like Facebook, and gets that news, magazines, and entertainment options are available online. This is the connected Boomer who uses smart phones and embraces the role of new technology in his or her life.

One analyst noted that “With more time being spent online, and the emergence of the social media mavens among Boomers…for companies targeting the mature consumer…online media should be at the core of an integrated marketing campaign.”

For sure, AARP got that memo. We’re on it, every single minute of every single day. We see online media as the straw that stirs the drink, and understand the gauntlet has been thrown down. Striking the right messages, offering the right channels, finding the right media mix: these are the challenges of reaching 50, 60 and 70+ audiences.

But before I talk about some of the ways AARP is tackling these challenges, allow me to offer an observation on “knowing” Boomers.

Not long ago, I was asked to respond to this question: “What makes marketing to Boomers different compared to other demographic groups?” The answer seemed simple: the difference is that we know so much about them. Boomers are far and away the most studied age cohort in history.

We have the data, and it is rich. Study after study turns up troves of numbers that serve as clues into the Boomer mindset. Other speakers at this Summit will talk about the demographic, geographic and psychographic profiles that are available to us for marketing segmentation purposes. Indeed, so much is known about Boomer consumers that they have, in effect, branded a desired lifestyle.

For example, we know they want health and money, accompanied by mobility – the freedom to do what they want, when they want, and how they want. Boomers want independence, choice, and control – their embrace of new technology for transactional convenience is evidence of this, as is their insistence on simplicity and user-friendliness.

And we know that Boomers think about legacy, purpose, and becoming their “next best selves.” They seek meaning in their work, they are open to new experiences, and they desire self-awareness, a theme consistent with their sense of life as a journey. One 50+ respondent, in an interview for a McKinsey Quarterly article on the Boomer market, noted that “We are the first generation to open up, to taste it, to try it, to do it.”

In short, the Boomer consumer profile is a detailed road map to where they are. And for AARP, mastering this road map is a solid start.

That’s right – it’s a solid start. As AARP sees it, there is more to knowing our members. There are intangibles that refine our capacity to connect with them.

First, there is active cultivation of AARP’s social mission; this colors everything we do. Second, there is how we re-engineer AARP to meet member needs in the digital age. And third, there is our vision of crafting a signature personalized member experience.

These intangibles will guide us to the right media mix. More importantly, they will foster a 360 degree appreciation for the Boomers we serve. I’d like to talk about each of them.

It Begins With Social Mission

For a few years now, AARP has worked hard to integrate our communications properties – our print publications, AARP.org, AARP TV, AARP Radio, and others – in unprecedented ways, so that they comprise a seamless menu of information delivery options for all Boomer segments. Economies of scale are taking shape and efficiencies are being realized.

But make no mistake about it: the desired outcome of doing this is – and has always been – to leverage the AARP brand for good.

I believe AARP’s status as a nonprofit organization confers certain advantages in the digital age, the most important of which is a role as a ‘chronicler’ of the public good. We totally get that all of AARP’s communications assets can help shape a new architecture of philanthropy and civic engagement.

So we see an opportunity to transform the Boomer wave into a powerful force for social change. AARP’s pedigree is, after all, one of service. The notion of giving back is a core part of our identity, hard-wired, if you will, into everything we do. Now, in the digital age, making it simple for Boomers to give back in customized ways is becoming a signature AARP service. We can engage members in meaningful ways and move the needle on our brand.

This is precisely what we are doing via Create the Good, AARP’s initiative for engaging more Americans in volunteer and community service. Create the Good is a pillar of this new architecture -- one that opens the door to a more personal volunteer experience.

Create the Good is way more than a website. It is a lifestyle destination. Yes, it is a portal where you can find hundreds of opportunities to get involved in activities that help neighbors and strengthen communities. And yes, it is a convenient one-stop-cyber-shop where you can connect with a network of like-minded citizens and share 5 minutes or 5 hours making a difference.

But Create the Good is best understood as a digital age space, an exchange for all “shapes and sizes” of good, for all abilities and ages to give and receive.

Create the Good taps the experience, communities and wisdom of AARP’s members. I like to think of this as one part “art” and one part “best practice:” the art is connecting people to our common humanity, as citizens who care about our communities. The best practice is making it possible to, in the words of Robert Putnam, “meet people where they are and fashion sensible ways to engage them more deeply.”

The message sent by Create the Good is that the sky is the limit for making the world a better place. It is an open invitation for Boomers and others to give back and take action wherever they are and wherever there is a need. We think this is an irresistible message, and an excellent way to “know” those we serve.

More generally, AARP seeks to adapt markets in ways that scale up our social mission. We recognize that AARP is one of the few organizations with the reach and resources to move the needle and create social change. A strategy of giving back certainly strengthens our “go-to-market” positioning.

Adapting to the Digital Age

Now, on to the digital age. We are in it, folks. We are living in an age in which:

94% of enterprises plan to maintain or increase their investment in social media – to spur more user conversations that can help shape product and service design;

84% of consumers say they are more likely than they were a year ago to check online for reviews prior to making a purchase. More than ever, people like me are being influenced by what their network friends are saying about your brand;

Boomer women are the fastest-growing segment on Facebook; Merging search technologies and social media moves the brand needle. If search results – for a service targeting Boomers, let’s say – yield positive reviews from a member’s trusted network of AARP fans, AARP gets a contact buzz, a credibility gain.

In this cacophonous environment of information-ricochet at warp speed, organizations like AARP have to concede the unthinkable: that we cannot possibly have all the answers. So more and more, the transactional lives of those we serve hinge on trust. And trust in the digital age flows from transparency, not authority. It is bred by interactive communication that has clear and present relevance to members.

The litmus test for consumers, whether they are Boomers or children of cyberspace, is “how can I trust that this will add value to my life?”

In part, operating in the digital age means that organizations must retool themselves. If the name of the game is ceding influence – over both products and information delivery – to consumers, then we have to make it easy for people to use this influence.

Whether we are setting up a Customer Relationship Management unit – which we are doing, implementing our digital strategy – which we are doing, or resetting content on AARP.org – which we are also doing, we are finding our niche, our organizational style, and our resonance in the digital age. Understanding the integrated marketing space and how we fit into it is imperative if the right media mix for all Boomers is to be struck.

So we see an opportunity to recast AARP’s role – from an all-knowing authority on Boomers and aging to more of a “trusted advisor” to members. In this role, we anticipate member needs and offer interactive tools and resources. We are an “aggregator” of information sources – not so much the “final word” on issues of concern to the 50+ segment, but rather a place to consult for customized assistance.

One way we do this is by integrating content. AARP is blessed with enormous depth in our communications properties. We have a highly visible print presence that gives us excellent advertising visibility. And we have bilingual print, audio and video properties. AARP wants to meet Boomers wherever they are and, possibly, in whatever language they speak. The digital age helps us clarify which channel of distribution is best.

Online -- rather than structure AARP.org as a comprehensive depot of aging information, we tailor it for personalized navigation. We make the web more inviting for the empowered decision-maker and quick-answer seeker alike and shape a more meaningful online experience.

We like what we’ve seen thus far.

Several metrics indicate that integration has been advantageous. First, AARP Magazine readership is up – to nearly 36 million readers per copy – while competitor magazines are down. Second, print advertising sales have held steady. And these are counter-market indicators, suggesting that despite difficult economic times, AARP is “circulating.”

AARP’s online numbers are robust as well. The number of unique visitors to AARP.org has more than doubled from a year ago, to 6 million per month. And online revenues are expected to double in 2010. AARP is keen to grow its online traffic as organically as possible with content that is search-engine friendly.

From an advertising standpoint, we segment our publications so that we can identify which is best suited to run a particular ads.

But it was our “Picking Up the Pieces” campaign that marked the moment when AARP saw the value of integrating its communications properties. It was our “a-ha” moment.

Many of you have probably seen “Picking Up the Pieces,” our Gracie Award-winning documentary produced by AARP-TV and hosted by Jane Pauley. It told the stories of parents and family caregivers suddenly confronted with long-term care responsibility for severely wounded Iraq war veterans.

Or, you may have read the investigative article in AARP The Magazine. Or, you may have viewed the multimedia presentation of this story on the dedicated website and decided to get involved in wounded veteran’s issues. Or, perhaps you heard the AARP Radio interviews with the five families profiled in the Magazine.

You get the idea. This was a story that AARP needed to tell – for many reasons – and we were able to do this on many different platforms. The caregiving angle resonated loudly with our members. The intergenerational angle squared with AARP’s efforts to work toward a society for all ages. The opportunity to “make it better,” to contribute in some meaningful way to the public good was a no brainer.

There was something for everyone in this, for 50+ folks and younger age groups as well. The digital age enabled us to tell this riveting story in multiple ways that were accessible to everyone.

And incidentally, our collaboration with Jane Pauley recently segued into a monthly AARP-sponsored and produced segment on NBC’s Today Show. The segment --- “Your Life Calling” --- will highlight people 50+ from across the country who have reinvented the way they work and live to pursue their life’s calling. Following each show, Jane will host a “live chat” on the topic on aarp.org.

All to say, that realigning ourselves to operate in the digital age has put AARP in a good position to know our members a little bit better.

Personalized Conversations

On that note, let me comment on the importance of “conversation.” These days, corporate culture must be attentive to what people are saying about your brand. Everyone bears some responsibility for nurturing what a Fast Company blogger refers to as “quality conversations” with members – in our case, with the 50+ crowd.

Consumers are everywhere and know everything. So, it is essential that organizations like AARP are set up to make conversations compelling across as many platforms as possible. “If the experiences you create aren’t unique, you’re a commodity. In a conversation-driven world, no amount of advertising can fix that,” writes the blogger.

It is certainly a moment of opportunity. Sure -- an unflattering Trip Advisor review may sully a cleverly-pitched hotel opening; and an I-hate-Wal-Mart group on Facebook may drive people straight to Target. But at the end of the day, it is the quality of the conversation that consumers are having with brands that matters. Quality conversations are the great equalizer – they keep brands honest, interesting, and innovative. These days, they are a vital part of the consumer experience.

So, while research data is necessary for painting broad portraits of 50+ folks, it is insufficient as a basis for animating them, engaging them, or celebrating them. Data is a means to an end, and that end is simple: a 360-degree appreciation of our members, an intimate conversation with each and every one.

AARP is putting a human face on things. We are adapting to a consumer-driven landscape where customized, personal outreach is the blue-ribbon branding strategy. No doubt, this will alter the meaning members assign to AARP – but in a potentially very good way. It could place us in a healthy, interactive relationship with our members.

If there is a characterization that captures the kind of cultural change we have introduced at AARP, it is that the organization is less paternalistic and more user-driven. Increasingly, everything we do addresses the question “how can we be more responsive to the user?” Simply stated, we are moving to 3.0, and the trusted advisor is our zeitgeist.

The norm of AARP as trusted advisor is to be facilitative – to offer guidance and empowerment, to listen, and to present information in ways that say “We’re here to help you; we want to be a part of whatever it is you’re going through.” We believe conversations along these lines resonate in every demographic.

As a three-generation membership organization, AARP can speak to everyone – to the young and digitally minded, and to the old line advocates still in the trenches. In recent years, it is our members who have told us -- in no uncertain terms -- that social change is important to them. In choosing which issues to advocate for, AARP has taken its cues from members. A good example of this is Life Tuner.

When the current economic crisis unfolded, it was our members who expressed concern about financial security, prompting us to look at issues like investor protections. In October 2009, we launched Life Tuner, a web site that provides 25 – 35 year-olds with financial tools and advice as a way to address member concerns about the financial well-being of their children and grandchildren.

The case for Life Tuner incorporated research data from a member survey showing that 69% of AARP members were still supporting adult children – or as our CEO likes to say – “they are still on our payroll.” Life Tuner was a direct response to this finding. It was the result of a conversation. Notably, Business Week called Life Tuner a “surprising offering” given who we are.

In short, organizations like AARP are waking up to the reality that if you want people to talk, you have to give them something to talk about. This means something relevant that: exceeds expectations, leads people to sing your praises, and entices them to become ‘fans.’ And it means that Boomers are involved in marketing and brand-building, full participants in a new two-way consumer communications landscape.

The Road Ahead

So where is all of this taking us? What does the road ahead look like? What does it all mean for reaching the Boomers we want to reach?

The perfect metaphor for the state of business these days is the open-ended conversation with consumers. The more we are able to discern from these conversations, the better we can be at calibrating mutual expectations. We are now in the business of relationships – and as we all know, there are issues of trust, loyalty and relevance in all relationships. I would bet that strong, healthy ones increase the likelihood that our brand is a “top-of-mind” source for all lifestyle matters.

Consumer expectations are now broadcast in a seamless multi-channel conversation matrix, capable of making or breaking viability. The level of interaction between consumers and institutions is so deep that the utterances of a blogger or the dimensions of a Facebook group are ignored at your organization’s peril.

With this two-way communication, enough relevant content is generated to create a “malleable brand” by which members mold, in our case, AARP-branded information, services and products into their lifestyle. This level of engagement builds deep-seated relationships of advocacy, and dare I say, affection. Our ongoing conversations – via social media and other platforms – will only broaden our presence in members’ lives.

Many say we are entrenched in the experience economy but transitioning to the lifestyle economy. At the core of this transition is an uptick in consumer expectations that is recalibrating relationships between consumers// organizations// brands// groups and just about any other configuration of people or ideas. This uptick, though, differs markedly from earlier upticks on one major count: it is propelled by social media.

But if the human desire for something new holds constant, there will be a point at which the experiences consumers are having will no longer satisfy. Expectations will rise yet again and people will want – something. That something is likely to be a malleable brand.

As blogger Paul Miser puts it, consumers will want a brand “to make their life easier, define that aspect of their personality, and communicate to them in ways where they feel like an individual.” In short, customization will reign.

Closing

In closing, I will say that AARP has had some real successes – but we are still learning. We are here at the Summit to share our experience but also to learn from you, the innovators and entrepreneurs. What have you learned about identifying and meeting the needs of the Boomers? What have you learned about the use of different online channels? What works? What doesn’t? The needs of the market are great – beyond even the size and resources of AARP. Our social mission is to address those needs and improve the quality of life for all as they age. You have a key role to play in this. The success of our mission is, in part, dependent on your success. At a minimum, we need to be sharing the insights we all gain to better identify and segment those needs, and provide information, products and services to meet them.

One last observation. Of late, I suspect all of us are having business experiences that are emblematic of the digital age, that underscore the warp-speed at which things happen and marketplace dynamics change. One of ours came on the heels of the devastating earthquake in Haiti.

At around 4:45 one Thursday afternoon, following a leadership decision to match $500,000 in AARP staff and member donations to an emergency appeal for older victims of the earthquake, we dispatched a Special Edition of our daily staff e-newsletter noting the decision and encouraging people to donate. Five minutes later, an AARP staffer posted a message announcing the appeal on Yammer and shortly thereafter, 40,000 people within the AARP orbit knew about it. Later that evening, another AARP staffer posted a message about the appeal on her Facebook and Twitter pages, asking her community to share the ask and make a donation. By early the next morning, the appeal had logged $170,000 in contributions.

Within just a couple of days, the appeal had raised $877,000, plus the $500,000 AARP match, for a total of nearly $1.4 million. In a mere fraction of the time it would have taken AARP to draft, finalize and disseminate an appeal letter, we had already reached our fundraising goal.

Our founder, Dr. Ethel Percy Andrus, believed that aging is an opportunity for new growth and involvement with society. She saw AARP as an army of useful citizens to enhance the public good. This template is alive and well in 2010. We’re just modernizing the toolkit.

And this is why I never let a day go by without scanning my HootSuite page to track my Twitter deck. I gotta know what people are saying about AARP! So, for those of you out there Tweeting about these remarks, please be kind…

Thank you all so much for your attention, and best wishes for a great Summit.