rhc advantage, the marketing and communications agency, has released an updated version of its research report, Marketing and Older Audiences. This is available at no charge via the agency’s website, www.rhcadvantage.co.uk
The UK population continues to age, with vast economic, social and political consequences. However, most people do not have the time to study the subject in detail, or to evaluate the associated marketing issues. That’s where this report comes in.
‘Marketing and Older Audiences’ reviews an extensive and diverse range of data and research literature, drawing upon academic, commercial and Government sources. The result is an authoritative, comprehensive and highly readable report document. The 100-page report provides an overview of the following areas:
• Demographic analysis
• Economic issues and trends
• Social and political issues and trends
• Market segmentation
• The purchasing behaviour of older people
• Attitudes of older people to age and ageing, employment, business, brands
and communications
• Advertising and Marketing in practice
• Marketing communications planning and creative guidelines
The research was directed by Dr David Gilbert, Professor of Marketing at the University of Surrey, and reviewed by Dr Paul Sweeting, Professor of Actuarial Science at the University of Kent.
The updated version has been revised, improved and updated with additional content. For a free pdf copy of the report, visit www.rhcadvantage.co.uk.
rhc advantage are also available to present the main findings of the report to audiences large and small.
Thursday 25 February 2010
Monday 15 February 2010
Older people and HSBC business customers
The following article is to be published in the next edition of Small Business Update, which goes out to the entire SME customer base of HSBC, going live on the last day of the month. It contains various quotes from me - and while I love publicity, I'm less keen on reducing complex issues to soundbites. However, I think the journalist, Emma Allen, did a good job, given the limited wordcount she had to work within.
The over 50s are a growing socio-economic group – and one with a large disposable income. How can small firms market their business so they appeal to this audience?
With someone in the UK turning 50 every 40 seconds, it’s little wonder that so-called baby boomers are a powerful consumer force. Yet many older people say they feel patronised by marketing campaigns - or worse, invisible - as businesses fail to cater to their needs.
A quick glance at the statistics, however, shows that firms cannot afford to overlook this age group. Not only does the UK have an ageing population - over 40 per cent of us will be 50 years plus by 2035 – but many older people possess serious spending power, holding the purse strings to 80 per cent of the nation’s wealth.
Recognise diversity
So how can businesses make their marketing strategy more appealing to mature shoppers? First, firms need to recognise that the over 50’s are a highly diverse group with different pockets of consumers, and that defining customers by age alone can be misleading, advises Mark Beasley, partner at marketing agency rhc advantage, which specialises in communications for older audiences.
“Unless you’re selling health or financial products with special age related clauses, you shouldn’t lump everybody together in a one size fits all approach – after all, a 50 year old will have very different attitudes and needs to an 80 year old. Equally, Mick Jagger is the same age as John Major but you wouldn’t necessarily group them together,” he points out.
Instead, he says that businesses need to take a more strategic approach, taking into account different factors such as lifestyle, income, education and occupation. This will give you a much more useful insight into your customers, as well as how they want to receive information and ultimately, how you can best reach them.
Don’t stereotype
Stereotyping older people also paints a false picture. “Not every person over 50 is driven by price, or is into gardening, cruising or sensible shoes. The biggest spenders on fashion are actually women aged 50 to 64, while men over 45 are heavy buyers of music,” Beasley explains.
“Most well-known brands simply don’t cater to these markets though, so there are real opportunities for forward-thinking firms. Think about things like product design, retail environment and staffing – hiring mature employees for example – to make sure you’re meeting the needs of older audiences.”
When it comes to marketing techniques, baby-boomers are fairly sophisticated having grown up with advertising since the 1950s, Beasley says, explaining that the over 50s tend to prefer print media to tv advertising or radio, with direct mail usually the least influential method.
Explain the facts
“Older people tend to be motivated by facts, rather than meaningless creativity,” Beasley explains. “Messages should include clear information on why the product would benefit them and how it works not rely solely on glossy images, as research shows this doesn’t tend to motivate buyers.”
Businesses shouldn’t assume that the over 50s are less technologically savvy, either, as studies show that online influence is growing. In a study by Millennium, emails and website advertising came second to word of mouth as the most important factor when making a purchasing decision for older people. Again, thinking about your customers is key – many of the over 50s will have used computers in their career and will be highly IT literate, and while the over 70s are much less likely to use the internet overall, there are many groups of active internet users in this age group as well. The mistake yet again, says Beasley, is to think only in terms of age - there are other, better, ways of segmenting customers.
Lastly, Beasley advises making sure your website is inclusive to older audiences, by making it easy to read and navigate. He advises using a clear font, a reasonable size type and clean and simple designs, as well as avoiding labels such as ‘elderly’ or ‘old’ or offering discounts to ‘seniors' - this will alienate the younger over 50s and patronises all older people.
For further information: www.rhcadvantage.co.uk
The over 50s are a growing socio-economic group – and one with a large disposable income. How can small firms market their business so they appeal to this audience?
With someone in the UK turning 50 every 40 seconds, it’s little wonder that so-called baby boomers are a powerful consumer force. Yet many older people say they feel patronised by marketing campaigns - or worse, invisible - as businesses fail to cater to their needs.
A quick glance at the statistics, however, shows that firms cannot afford to overlook this age group. Not only does the UK have an ageing population - over 40 per cent of us will be 50 years plus by 2035 – but many older people possess serious spending power, holding the purse strings to 80 per cent of the nation’s wealth.
Recognise diversity
So how can businesses make their marketing strategy more appealing to mature shoppers? First, firms need to recognise that the over 50’s are a highly diverse group with different pockets of consumers, and that defining customers by age alone can be misleading, advises Mark Beasley, partner at marketing agency rhc advantage, which specialises in communications for older audiences.
“Unless you’re selling health or financial products with special age related clauses, you shouldn’t lump everybody together in a one size fits all approach – after all, a 50 year old will have very different attitudes and needs to an 80 year old. Equally, Mick Jagger is the same age as John Major but you wouldn’t necessarily group them together,” he points out.
Instead, he says that businesses need to take a more strategic approach, taking into account different factors such as lifestyle, income, education and occupation. This will give you a much more useful insight into your customers, as well as how they want to receive information and ultimately, how you can best reach them.
Don’t stereotype
Stereotyping older people also paints a false picture. “Not every person over 50 is driven by price, or is into gardening, cruising or sensible shoes. The biggest spenders on fashion are actually women aged 50 to 64, while men over 45 are heavy buyers of music,” Beasley explains.
“Most well-known brands simply don’t cater to these markets though, so there are real opportunities for forward-thinking firms. Think about things like product design, retail environment and staffing – hiring mature employees for example – to make sure you’re meeting the needs of older audiences.”
When it comes to marketing techniques, baby-boomers are fairly sophisticated having grown up with advertising since the 1950s, Beasley says, explaining that the over 50s tend to prefer print media to tv advertising or radio, with direct mail usually the least influential method.
Explain the facts
“Older people tend to be motivated by facts, rather than meaningless creativity,” Beasley explains. “Messages should include clear information on why the product would benefit them and how it works not rely solely on glossy images, as research shows this doesn’t tend to motivate buyers.”
Businesses shouldn’t assume that the over 50s are less technologically savvy, either, as studies show that online influence is growing. In a study by Millennium, emails and website advertising came second to word of mouth as the most important factor when making a purchasing decision for older people. Again, thinking about your customers is key – many of the over 50s will have used computers in their career and will be highly IT literate, and while the over 70s are much less likely to use the internet overall, there are many groups of active internet users in this age group as well. The mistake yet again, says Beasley, is to think only in terms of age - there are other, better, ways of segmenting customers.
Lastly, Beasley advises making sure your website is inclusive to older audiences, by making it easy to read and navigate. He advises using a clear font, a reasonable size type and clean and simple designs, as well as avoiding labels such as ‘elderly’ or ‘old’ or offering discounts to ‘seniors' - this will alienate the younger over 50s and patronises all older people.
For further information: www.rhcadvantage.co.uk
Thursday 4 February 2010
Where next for Inclusive Design?
Inclusive design was championed by BT at a seminar this week. So far, the principles have been applied mainly to products. Could the principles be extended to apply to inclusive branding, communications, marketing and services?
On Tuesday, Richard and I attended a BT seminar: ‘Designs on a Bigger Market: The business case for inclusive design’.
This set out to make the business case for ‘inclusive design’ and to provide hands on advice practical workshops. The event was well-paced, well-organised and seemed to engage the audience to an impressively high level. And the setting – the BT Tower – did not exactly detract from the event either.
The event started with filmed interviews with such luminaries as Stephen Timms MP (Minister for Digital Britain) and Tom Wright CBE (Chief Executive of Age UK). Presenters included Andrew Harrop of Age UK, Professor John Clarkson of Cambridge University, and Gillian Gibson-Piggot of BT. All made their points succinctly and well.
So what is ‘inclusive design’? According to the BSI, it is ‘The design of mainstream products and/or services that are accessible to, and usable by, as many people as reasonably possible…without the need for special adaptation or specialised design.” For further information, visit www.bt.com/inclusivedesign or www.inclusivedesigntoolkit.com
The business case for inclusive design is based upon population ageing, the physical impairments associated with age, and the size, growth and economic power of this group. Something close to our own hearts, of course. The type of ‘inclusive design’ discussed was almost entirely product design, providing functional benefits related to impairment.
So far, so good. But what’s next? Here are a few thoughts:
1. Inclusive branding and marketing. The emotional needs of older people must be addressed, as well as their physical and functional needs. This takes us into the realm of branding and communications (again, close to our hearts at rhc advantage). To make a gross generalisation, the current choice for older people seems to be polarised between dull, utilitarian products meeting their physical needs, and products which, although meeting their needs as mainstream consumers, are apparently targeted and positioned for much younger and unnecessarily groovy people. Take the IPad or IPhone, for example. For an older person to own these invites humorous comment, yet it is well established that many older people are likely to purchase technology products – for example, 50% of Kindle purchasers were aged over 50 (and 27% over 60).
And why can’t functional products for older people also be attractive? For an example of how this can be achieved, visit www.thefutureperfectcompany.com
2. Inclusive communications. The principles of inclusive design have been applied mainly to products. These principles must be developed and applied to the route to market of those products, and beyond. This includes the extended service offering around products (information, after-sales, and so on), packaging design, communications to intermediaries, in-store merchandising and point-of-sale materials, and of course, marketing communications.
3. Inclusive Service. The principles of inclusive design must also be applied to all aspects of the customer experience in retail and service organisations. Consider just one example. Many older people we have spoken to dislike banks (OK, who doesn’t?) because they have to stand in queues. However, the much-maligned Post Office has a numbered ticketing system (in larger branches) which allows you to sit in a comfortable chair until your number comes up. There is not space here to consider all the many aspects of the service experience which could be improved, probably to the benefit of everybody.
Thanks to BT for stimulating the discussion, and to the Age UK ‘engage’ team for facilitating our attendance at the event. It’s all very close to our hearts and the very reason we launched rhc advantage in December 2009.
On Tuesday, Richard and I attended a BT seminar: ‘Designs on a Bigger Market: The business case for inclusive design’.
This set out to make the business case for ‘inclusive design’ and to provide hands on advice practical workshops. The event was well-paced, well-organised and seemed to engage the audience to an impressively high level. And the setting – the BT Tower – did not exactly detract from the event either.
The event started with filmed interviews with such luminaries as Stephen Timms MP (Minister for Digital Britain) and Tom Wright CBE (Chief Executive of Age UK). Presenters included Andrew Harrop of Age UK, Professor John Clarkson of Cambridge University, and Gillian Gibson-Piggot of BT. All made their points succinctly and well.
So what is ‘inclusive design’? According to the BSI, it is ‘The design of mainstream products and/or services that are accessible to, and usable by, as many people as reasonably possible…without the need for special adaptation or specialised design.” For further information, visit www.bt.com/inclusivedesign or www.inclusivedesigntoolkit.com
The business case for inclusive design is based upon population ageing, the physical impairments associated with age, and the size, growth and economic power of this group. Something close to our own hearts, of course. The type of ‘inclusive design’ discussed was almost entirely product design, providing functional benefits related to impairment.
So far, so good. But what’s next? Here are a few thoughts:
1. Inclusive branding and marketing. The emotional needs of older people must be addressed, as well as their physical and functional needs. This takes us into the realm of branding and communications (again, close to our hearts at rhc advantage). To make a gross generalisation, the current choice for older people seems to be polarised between dull, utilitarian products meeting their physical needs, and products which, although meeting their needs as mainstream consumers, are apparently targeted and positioned for much younger and unnecessarily groovy people. Take the IPad or IPhone, for example. For an older person to own these invites humorous comment, yet it is well established that many older people are likely to purchase technology products – for example, 50% of Kindle purchasers were aged over 50 (and 27% over 60).
And why can’t functional products for older people also be attractive? For an example of how this can be achieved, visit www.thefutureperfectcompany.com
2. Inclusive communications. The principles of inclusive design have been applied mainly to products. These principles must be developed and applied to the route to market of those products, and beyond. This includes the extended service offering around products (information, after-sales, and so on), packaging design, communications to intermediaries, in-store merchandising and point-of-sale materials, and of course, marketing communications.
3. Inclusive Service. The principles of inclusive design must also be applied to all aspects of the customer experience in retail and service organisations. Consider just one example. Many older people we have spoken to dislike banks (OK, who doesn’t?) because they have to stand in queues. However, the much-maligned Post Office has a numbered ticketing system (in larger branches) which allows you to sit in a comfortable chair until your number comes up. There is not space here to consider all the many aspects of the service experience which could be improved, probably to the benefit of everybody.
Thanks to BT for stimulating the discussion, and to the Age UK ‘engage’ team for facilitating our attendance at the event. It’s all very close to our hearts and the very reason we launched rhc advantage in December 2009.
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