KEDM Broadcast - Marketing to Seniors

Americans are getting older. Since 2001, the number of people age 65 and older has increased by over 20%. Today over 43 million Americans are in that age group which is projected to grow to over 70 million people by the year 2030 accounting for about 20% of the population. For a business owner, this represents an enormous opportunity to carve out new markets to meet the unique needs and demands of a senior population.





With the growth in the older population segment, it is tempting to lump seniors into a single category. Because the common physiological effects of aging on sight, dexterity, sensory responses, and cognitive skills impact the older population as a whole, terms like “Baby Boomers” and the “Grey Market” use age to collectively categorize this population into a single segment. This simplistic approach fails to recognize the vast array of differences inherent in this group. While some people will opt to formally retire from the day-to-day rigors of the workplace, many others will continue to work into their 80s, some will pursue new business opportunities, others will teach, travel, and volunteer in their communities. From a business perspective, it is essential to understand this is not a single homogenous group, but rather a diverse population consisting of various niche markets. Opportunities for success within this population group are available, but not by doing business as usual.




Marketing your products to this group, which controls 70% of disposable income, demands an approach that embraces the lifestyles of this group and goes beyond the issues associated with aging. Seniors have been increasingly willing to adopt and adapt to new technologies. More than half of this age group is on Facebook where the average user is online over 8 hours each week. On average they watch 174 hours of television a month, 63 percent more than the 18-to-34 year-old generation. In 2011, the peak age of vehicle buyers shifted upward to 55-to-64 from 35-to-44, according to the University of Michigan Transportation Research Institute, and that trend is here to stay. It is also important to retreat from myths associated with aging. Consider this one: Older consumers buy the same brands they’ve always bought, so why bother catering to them? That is simply not true. Seniors today are looking for new experiences, and two-thirds of them plan to spend more time on hobbies and interests than they do today. In marketing-speak, they’re “winnable.” Another myth is they are cheap. A survey of 3,000 consumers over 60 by consulting firm A.T. Kearney found that they’re not particularly price-sensitive, even if their incomes are below average. Nielsen found that more than 40 percent of Apple Inc. products are bought by seniors. P&G learned that seniors are willing to splurge on expensive pet food. Although earlier generations of seniors were frugal, there are signs that this group of seniors is a group steeped in consumer culture.




Small businesses are uniquely poised to meet the growing demands of this new market. Typically free of large organizational bureaucracy, nimble small businesses can quickly modify products and adjust internal processes to meet the needs of smaller and often fragmented markets.




Change, in the guise of an aging population, is coming. We can help you get ready to meet that challenge. For over 30 years, we have worked with entrepreneurs and business owners who are looking to start or grow their small business. For no-cost assistance with your business needs call us to schedule an appointment at 342-1224 or visit us at www.lsbdc.org. Today’s thought from the Small Business Corner has been presented by the Louisiana Small Business Development Center at ULM.