The 65+ Consumer

Silver foxes are important marketing targets -
but don't expect them to always act their age

Age is an especially critical factor when marketers are trying to determine what influences consumer shopping and purchasing behaviors. While manufacturers and retailers spend significant time, effort and dollars catering to teens, Tweens, Boomers, Zoomers and even the so-called “Echo-Boomers,” often left out of the equation are mature consumers ages 65 and older.

NPD’s Industry Experts explored their respective industries to determine what impact the mature 65-and-older consumer is having on the retail environment – and how that role is changing as the leading edge of the Age Wave turns gray.

Post-Retirement Lifestyle Changes

Retirement from the workforce changes not only the financial picture but also the social milieu. Many retire at age 65, and with their children gone to start families of their own, mature Americans often find themselves alone again. This dramatic lifestyle shift has immediate effects on how these consumers interact with the overall retail economy.

“As we age our needs and abilities change, so it’s important for manufacturers and retailers to keep this in mind when developing and marketing products to the older population,” said NPD Houseworld President and General Manager Peter Greene. In the world of household appliances for example, hand-held vacuums tend to not be as cumbersome, nor as heavy, as other types of vacuums, making these machines easier for older consumers to operate than the larger models they may have opted for in the past.

 

 

Other behavioral changes also become apparent as consumers age. NPD Automotive Senior Industry Analyst David Portalatin cites NPD Car Care Trac data that shows 65-plus consumers are far less likely than younger consumers to drive more than 10,000 miles per year – and putting fewer miles on cars means lower repair and maintenance costs. That’s why the mature consumer is likely to spend less annually on automotive products and services than many younger age groups; however, automotive service providers can take heart that these consumers are more likely than their younger counterparts to stay on top of scheduled maintenance.

Opportunities abound for retailers and manufacturers looking to increase their business with mature consumers – even in the industries traditionally thought of as youth-oriented, like technology. “From a content and connections standpoint, there are great opportunities for tech companies to make inroads with older consumers,” said NPD Techworld Senior Industry Analyst Marc Johnson. “XM radio, for instance, markets nostalgic programming of classic radio shows and music – including Jack Benny, Abbott and Costello, The Lone Ranger and 1940s era music – as they attempt to target an older audience. And as far as providing connections to others, Web businesses from Meetup.com to Yahoo offer online and real-world discussion groups for this increasingly solitary segment of consumers.”

Fixed income . . . and behavior?

Among this age bracket, the “Early-Bird Special” has long been a foodservice industry mainstay. That’s true in the U.S. as well as in Europe, where the 65-plus market is extremely receptive to reduced-price promotions. “With disposable incomes fixed – and under inflationary pressure – these types of promotions are critical to attracting older consumers to restaurants,” said NPD Foodservice Information Group Europe Senior Account Manager Ian Scholan.

While price matters to 65-plus consumers, so does habit. "At a certain point in their lives, customers tend not to change their habits very much,” said Christine Tartanson of NPD Foodservice Information Group Europe – France. “Restaurants should always mix traditional menu items with new ones so older customers can still order what they’ve become used to eating.”

Similarly, in the beauty products realm, older consumers are more likely to gravitate to the tried-and-true brands they trust. Leading prestige brands, established mass market and door-to-door brands reach and appeal to an ever broader audience of mature consumers across the country.

“For consumers age 65 and older, simplicity and ease-of-use are key,” said NPD Beauty Senior Industry Analyst Karen Grant. “It’s therefore incumbent upon manufacturers to provide clear and uncomplicated instructions, easily-opened packages, and the like.”

Focus on health

As consumers age, health becomes an increasing concern. While those in their 50s might still focus on dieting, two in three people 65 and older are afflicted with a major health issue such as high blood pressure, high cholesterol, heart disease, osteoporosis or diabetes. Many treatments for these ailments include changes in everyday diet. “ ‘Healthy-eating’ products currently offered by food and beverage marketers appeal more to older consumers than they do to consumers in other age groups,” said NPD Vice President Harry Balzer.

Dealing with physical health changes, from eyesight to hearing to mobility, is also being addressed in the technology arena. Marc Johnson notes IBM’s Accessibility Center Division is one example of a technology company developing solutions for older consumers, such as easier Web browsing and an assistive mouse that compensates for involuntary shaking.

Young again?

Don’t be fooled into thinking that just because consumers have have reached their golden years, they will act the way their parents did at the same age.  Manufacturers and retailers alike may need to re-cast their stereotypical views about mature consumers, in order to reach them in innovative ways.

“In the fashion realm, 65 is the new 45,” said NPD Chief Industry Analyst Marshal Cohen. “Older consumers today are more likely than previous generations to care about looking, acting and feeling younger – and that translates to how they shop for apparel at retail. Both manufacturers and retailers need to find new ways to capture the attention of this devoted market.”

In the beauty industry, Karen Grant noted that while few items specifically target consumers over 65, each year the number of anti-aging products on the market increases substantially. These items address the general anti-aging needs (lines, wrinkles, loss of firmness, radiance) faced by many mature consumers.

 

Music also transcends age groups, according to NPD Movies & Music President Russ Crupnick. “Mick Jagger's still kickin' it at 62, but most consumers in his age group aren't spending much on music anymore. The 65 and older set only accounted for two percent of music sales in the past twelve months, but that's still $200 million worth of CDs.”

“The Grandparent Effect”

In many industries, the retail focus with regard to 65-plus consumers can be stated in one word: Grandparents. In the toys and videogames arena, grandparents play an extremely important role in purchasing. NPD data shows 70 percent of toy and video game purchases made by mature shoppers are intended for a grandchild.

“Grandparents tend to respond to specific requests from grandchildren,” said NPD Funworld Entertainment Industry Analyst Anita Frazier. “As long as manufacturers create demand among children, the children will let their grandparents know what they want. Retailers can, however, implement programs to attract more grandparent purchases, specifically during the holidays.”

When all is said and done, the key to successfully targeting the mature consumer is to understand that the 65-plus market is not just about the 65-plus demographic group. It is also about how those individuals are connected to other individuals and other generations, by both need and desire, and how manufacturers and retailers in all industries can help facilitate those connections in ways that help older consumers remain an integral part of the overall marketing mix.