Five common misconceptions about marketing to seniors
With all the potential target markets out there, why would anyone want to market to seniors?
Considered a “lost cause” by some, they are labeled as too old, too disabled, too mindless, or too frugal. While those nicknames may apply in some cases, it’s surprising how wrong those perceptions are when you examine the reality of today’s buying public despite a sour economy, a housing crisis and unemployment at its worst level in decades.
Seniors are suddenly looking very attractive to some, if not all, salespeople because of a few important facts:
Misconception #1: Older people are in the minority
Done: 76 million baby boomers in the United States are now turning 65, a fact that is putting older adults in the majority. According to a February 6, 2011 New York Times article on the business of aging, these new seniors are different from previous generations, anticipating a longer life expectancy than in the past, a period of at least another twenty years. Worldwide, the segment of the population aged 65 and over will more than double, from 523 million to 1.5 billion by 2050, according to United Nations estimates. The US Census Bureau reports that there are more women than men across the country with the Northeast leading the way for that distinction, as well as having the highest percentage of people in the 65+ age group. Although more people will postpone their retirement in the interest of maintaining a sustainable income, those who choose to retire will have a lot of free time for which the only salvation is to stay busy. And extrapolating the truth from reality, staying busy means seniors will understand one of the largest markets in the country, too expansive to ignore and certainly too available to write off.
Misconception #2: Seniors are too old, tech-savvy, and computer-phobic
Done: With “senior citizen” defined as someone who has reached old age (however, to this writer’s amusement, it is still described as “old” in some dictionaries), the bulk of baby boomers will be a relatively young (age 65-74) until the year 2034. That’s a good twenty years in which marketers can benefit. Baby boomers are not wallflowers intimidated by the prospect of going out dancing. In fact, these are our forward thinking, mature and experienced device experts, movers and shakers who have been major participants, if not initiators, of today’s technologically advanced lifestyle for most of its existence. Hardly likely to drop out of society, these are connected individuals aware of the ramifications of social media and Google rankings, alternately engaged and irritated by the entourage of political blunders and world events, and swayed by the fallout from job loss and foreclosure. These are very conscious consumers of the most formidable stature.
Misconception #3: Seniors are too “cheap” to spend money
Done: Older people are the biggest spenders today. According to estimates based on a survey of consumer spending by the Bureau of Labor Statistics, in 2009 baby boomer households spent about $2.6 trillion in the United States. That represents a 45% year-over-year increase as measured by a Gallup poll cited in a June 10, 2010 New York Times article by Catherine Rampell, titled “Who’s Spending Again? The Rich and the Old”.
While it is true that older people tend to be more conservative in their tastes and frugal in their choices, it is also true that their spending habits are greatly affected by the wants and needs of those important to them: their children, grandchildren and great-grandparents. grandchildren If, for example, the son of an elderly person has lost his job and can no longer provide for his family at the level of comfort he once enjoyed, much less will Grandma see them suffer. Many older Americans have welcomed younger generations into their homes and now spend lavishly to keep them fat and happy, so to speak.
But there’s another reason older people have loosened kidneys tight in their often oversized nest eggs. Recent stock market gains have a psychological impact on the mindset of retirees with investments, even if those investments are based on bonds or annuities, leading them to conclude that they are wealthier. Add this sentiment to the logic that older people may feel life is too short and now is the time to splurge before it’s too late. Buoyed by years of moderately successful finances now enhanced by the weak fruits of social security benefits, some of these seniors enjoy significant means and plan to experience life’s luxuries before their time runs out.
What does that mean? It means vacations, cruises, luxury vehicles, and home entertainment shopping. It means buying clothes, jewelry and gifts for the children. It means spending on hair and nails and plastic surgery and a new smile. It means going out to dinner and going out for a night of pleasure. All on a regular basis. Once they start, it’s hard to stop.
Misconception #4: Seniors Lack Brand Loyalty
Done: Seniors demonstrate much more brand loyalty than members of today’s younger generations, who tend to be fickle, moving from one thing to another in the blink of an eye. While fads, trends and social influences lure young people from one product to another, older adults are considered more valuable as customers, according to a September 26, 2007 report. New York Times Matt Richtel’s article on “Sticky People”. An older person will take the time to evaluate a decision carefully and, as a general rule, will keep that commitment longer.
Although older adults have a lifetime of experience to draw on, a wealth of knowledge on a wide range of subjects, and valuable skills representing a variety of careers, such wisdom is viewed with some reservation in today’s rapidly changing world. First of all, old age tends to cause forgetfulness and memory loss. Second, when it comes to the availability of knowledge, Google provides answers for everything and anything in a matter of milliseconds, a hardly equal playing field for an older person (or anyone), regardless of how smart or accomplished they are. Finally, the skills that older people have mastered tend to be for things we no longer need or use, like motors from yesterday or outdated entertainment hardware, for example, now replaced by state-of-the-art wireless computing technology. Even if seniors have kept up with all the technological advances over the years, their motivation to keep up with such changes once they retire diminishes considerably, as does their ability to retain. A younger person has the advantage here.
Misconception #5: Seniors won’t buy anything unless there’s a discount
Done: If there is something that older people completely dominate, it is the health market, with or without discount. No one buys more health-related products than older people, making them easily the most valuable market for companies in that industry, bar none. Old age, by nature, brings with it difficulties in balance, dexterity, autonomy and mobility, as well as sensory maintenance and retention. Some of these conditions encourage social isolation. The industries concerned with protecting the elderly from physical and psychological death can only hope to reap the rewards of their manufacturing and marketing acumen. However, it is clear that the prospect of investing heavily in developing products that can serve such purposes is raising concerns within the companies that stand to benefit. The reason for this is that the senior market is still untested territory, as it has not shown that it will buy new technologies that preserve health and wellness, even if there is a compelling need for it. Rather, companies like Ford Motor, which has a hands-free parallel parking system that alleviates the need to strain the neck (a common pitfall of aging), along with blind-spot detection and a voice-activated audio system, they take comfort in their ability to market to a broad-based market, not just targeting mysterious seniors for product success.
During the writing of this article, a local non-profit organization “Aging in Place” casually contacted me and stated that they needed a marketing plan to facilitate an increase in paid membership. Aging in Place is a concept used by national aging groups to describe efforts to help older adults remain in their own homes as long as possible, while receiving assistance from a variety of outside services, if needed, to find solutions to any inconvenience or problem. problem faced. This could include help with medical, social, financial, or nutritional needs, to name a few.
At the same time, many of the real estate development companies across the country have embraced the idea of building senior-friendly residential or retirement centers that incorporate new technology to monitor the health and safety of their residents, as well as services social, dining rooms, entertainment areas, fitness and physiotherapy, are a safe bet for senior marketing.
Surely either scenario makes sense as long as all marketers address the age-old question: what is the best way to reach seniors? Or, instead, the question is how to reach the adult children of older people? While the options remain the same when it comes to reaching the total market, all of which are costly when an unknown response rate is always possible, there are ways to target older people with intuitive reasoning. Think old fashioned if you want a larger demographic; Think creatively to reach the newly recruited “younger” senior baby boomer or her adult children. Among a whole range of strategies, the old means advertising in the newspaper; on conservative radio shows; or sponsorship marketing and live presentations with brochures at senior fairs and events at community or religious centers. Creative marketing can mean using the Internet to reach the most tech-savvy older adults through an email campaign; or sponsored ads to accompany the right Google searches, just to touch the tip of the iceberg of possibilities. Probably the safest route for anyone of legal age is through their mailing address, lists of which can be purchased through age selection, plus a range of other parameters that may be appropriate.
And as with any marketing, one effort may not be enough. A diversified approach, as well as multiple attempts, are usually what means a more successful result, being vigilant to measure the response at each step of the process. But keep one thing in mind. Seniors have become victims of scams more often than we care to admit. While some may still be helplessly vulnerable, others have become even more wary, wary of every marketing offer they come across!