Senior Moments: Marketing to Older Shoppers
By Al McClain
The challenges and opportunities of the senior market are many. Virtually everyone knows that the senior market is growing, but how will future seniors – read Baby Boomers – behave?
In a presentation at the ACNielsen Consumer 360 Conference, ACNielsen Senior VP Todd Hale (and RetailWire BrainTrust panelist) said there are opportunities for retailers and suppliers to better market to an aging population and that they should do so with a well thought out plan, because seniors remember those who treat them well or poorly.
Some information is well known; some surprising:
- In 1900, 13 percent of the population was over 50 — by 2020 that will be 35 percent.
- Eighty percent of financial assets are owned by those 50+.
- In ages 60-64, there are 89 men per 100 women — by age 80+ there are only 53 men per 100 women.
- While many ailments are more common to seniors, some tend to go away as people age, such as headaches, depression, and allergies.
- Grocery trips, even among seniors, are down as they take advantage of super center, clubs, and dollar stores.
- Sunday is the most important shopping day of the week for the population as a whole — it is the least important for seniors, as they tend to stay away from the crowds on weekends and shop mid-week.
Senior attitudes are unsurprising in that they have more time to shop, care less about larger sizes and meal solutions, and aren’t in as big a hurry to get out of the store.
In the “surprising to me” category, seniors are less likely to budget because they have to and likely to shop large stores. In areas of opportunity, they are more likely to buy meat from a service counter, shop from a list and use ads for planning than the general population.
Mr. Hale argued that seniors in the future won’t behave like past seniors due to:
- Advances in medical technology
- Better education
- Higher concern with health and wellness
- Expanded shopping and buying choices
- Internet acceptance
- New product focus from manufacturers
Areas to think about include:
- Seniors may be more accepting of large formats than previously thought
- Personal interaction with staff is important, so that should be considered in hiring
- May need to adjust store hours to accommodate seniors
- Offer banded packs to provide value without having to buy club size
- Think about doing senior-specific marketing and advertising
Moderator’s Comment: What opportunities exist to do more business with seniors?
The fact of the matter is the 50+ crowd has a ton of money, in aggregate. Getting them to part with it is another matter. As people accumulate wisdom with
regard to the value of things, it becomes more difficult to get them to make impulse purchases. By marketing to seniors (versus targeting them), treating them with courtesy and
respect, and offering them special opportunities, retailers and suppliers can improve their business with a consumer group that can spend a lot, if they are motivated to do so.
–
Al McClain – Moderator
The Food Co-op in Hanover, NH offers store tours with their in-house dietitian. All you have to do is call up. Quite some time ago, I went, notepad in hand. Got about a 40 minute tour, which was excellent. Some of the items I made note of were unique to the store. Although I loved the “tour-for-one,” I don’t see why this couldn’t be done on a scheduled basis for small groups. So many people are diabetic, or have food allergies, or high cholesterol, or buy for people with these problems. It made me a loyal shopper (okay, I visit Price Chopper, too, which is also terrific), and I perceive the store as a health advocate. Barring actual tours, what’s wrong with having more fliers available describing foods for diabetics, and which aisles they are displayed in? Health is an increasingly big issue, and we’re increasingly willing to part with perhaps substantial dollars to maintain it. How about cross-promotions with health clubs and gyms? None of this is rocket science, and it can build loyalty among shoppers willing to pay for higher-end (and no doubt higher margin) items.
The fact is that few, if any, retailers in the U.S. have done anything to attract this potentially lucrative customer. Increased customer service and interaction between older shoppers and your employees is a terrific idea. But if you think the current workforce is going to go out of its way to cater to older shoppers when they don’t pay attention to any others, you’re living in a dream world.
Consider the following:
– Larger signs with bold type that older shoppers can read more easily.
– Lighting that will enable shoppers to read signage.
– Placement of key items at eye level to avoid having them reach or bend down for items.
– Smaller sizes that cater to a growing cadre of empty nesters and to older people who simply do not eat as much as they did when they were younger.
– Lighter, more maneuverable shopping carts.
– Bagging and carryout service for seniors.
– Strategically placed benches in larger stores, giving older consumers a respite before finishing the shopping trip.
It’s time to start analyzing this customer and asking them not only what they need, but what you’re doing wrong.
The resurgence of the Internet as a marketing channel clearly offers new vistas for tapping into the wallets and the mindshare of Senior Americans. According to a Pew Report, in September 2001, Wired Seniors were “Few and Far Between.” In February 2004, 22% of seniors 65 plus had access to the Internet, reflecting a 47% increase from 2000. 58% of the 50-64 age group are online, catching up slowly but surely with the younger groups. The women senior online segment has also grown to a near 50%.
But if the “medium is the message” and the power of the Internet is to be fully leveraged, marketers should loosen up when it comes to talking to this group and try to develop seniors into active advocates for various types of campaigns. Consumer-driven health is a big opportunity area where seniors can spread the word online and offline.
At a time when “Consumer Generated Media” is vital to brand-building, this group of new users of the Internet can become powerful allies of home shopping direct response brands as well as car dealerships.
Ethnic Senior online marketing channels also have great potential. The Asian Indian community clearly leads the pack in terms of internet usage. The prolific growth of ethnic media and related websites offer access to several sweet-spots within the hearts and minds of this consumer segment. Tsunami coverage by Asian/Ethnic media is testimony to the power and potency of ethnic news sites and access to this community. The Hispanic online boom has also unleashed a spate of new online marketing campaigns for premium and mass categories. E-Hispanic Marketing has suddenly become a hot category to pursue.
With so much of identity theft and fraud taking place, financial services companies can go that extra mile to reach out to help seniors understand the implications of various online transactions and share with them useful tips to protect their identity and build their goodwill with senior customers.
Surely, as seniors discover new ways to travel, research their investments, get savvier about health and their medications, or even date online, the Internet is going to play an important role.
One item that may fit in the ‘surprising’ category is a strong percentage of use of self-checkout by seniors. Why? It’s thought that regular lanes move too quickly and that they like the speed of self-checkout as they like to watch prices. Also, those now coming of age are far less technology adverse and are ATM friendly, which makes for a nice offering and advantage for this market. Seniors also tend to have smaller orders, which also makes for a fit. Using the right system and complimenting it with bagging and carry out makes a nice offering.
The boomer/senior market represents a potential – mostly untapped – bonanza for retailers. Big? It’s going to be a whole gigantic niche. But for the most part, the products aren’t there. Gap gets it, with their 40+ female store idea. But other retail formats, such as consumer electronics marketers are way behind the curve, creating ever-more-complicated gizmos with buttons that seem to get smaller and more confusing with each new generation of product. Other than a few telephones with big buttons and alarm clocks with giant, easy-to-read numerals, there aren’t many gadgets designed for this lucrative demographic group. I believe they are missing a huge growth opportunity. Retail analysts say finding the right way to market to these seniors and boomers isn’t easy. The products can’t evoke the notion of lost youth. The secret will be marketing the gadgets that the middle-aged need “without making them look like they need them.” But we all want those gadgets that offer us ease of use, easier to read screens, personal digital assistants that aide, rather than confuse, as well as a whole host of security related products that can wirelessly monitor our vital information. Everywhere you look, the magic word these days is “ageless.”
This is a tough one, not least because it is particularly annoying. The
definition of seniors in today’s discussion is far too broad and general.
50+ is hardly senior; for that matter, neither is 60+. Lumping together all
individuals from 50-150 is ridiculous. As for them having a ton of money,
well, perhaps as you say, in aggregate. But there are lots now and will be
lots more in the next decade or two who become seniors and do not have a ton
of money at all. Pensions on both sides of the Atlantic will see to that.
However, there are a few things which I believe people over 50 have in
common and that could be addressed beyond the obvious health concerns. Most
of us (and I admit I am in the younger range of the definition which is why
I am perhaps overly sensitive about being cast in it at all) have most of
the things we want or need. Which means that selling to us is going to be
harder. We are also probably aware of our mortality and a little bit
reluctant to accumulate even more possessions that our children will be left
to sort and discard. We may also be moving into smaller premises and have
less space for things that don’t mean a lot to us. In my own case, I place
more priority on doing things, going places, enjoying myself than actually
acquiring more THINGS.
If marketers want to do more business with me, my friends and similarly aged
family, they will have to inspire us and entice us. No smarmy salesmanship,
no glitzy dressing it all up, no smooth talking fast paced chatter. Cut to
the chase, tell us what you are selling (and admit you are selling it) then
let us make our own decisions. Show us a bit of respect and don’t bother
trying to impress us with how clever you are. My husband and I have our own
private Room 101 (is that a concept/game you Americans recognise?) into
which we put all the things we never want to see or hear again. One of them
is commercials. Marketers should display their wares and leave customers to
make their own decisions. They should be open and accountable and NOT NOT
NOT try to schmooze us. So endeth the lesson of the day.
Those retailers who don’t research their shoppers or engage with them on a regular basis, are missing advantages to separate themselves from their competitors.
Yes, the elders and older baby boomers are prime targets.
But, you must know what they need, and what their lifestyle entails. As the Generation X looks to restaurants and carry-outs for their meals, this may be the seniors’ needs too.
My niche is the “Senior’s” grandchildren. I have a faithful following of the grandparents who we make a hero in their grandchildrens’ eyes, by guiding them to the fun, trendy gift items. But the challenge is how to market to this age group. I welcome any suggestions.