Experienced entrepreneur, former MD/surgeon & founder of Mindbox, a MarTech company trusted by hundreds of companies & international brands.
The world’s population is aging, and this is already affecting the global economy and shaping the “silver” segment.
The concept of the “silver economy” refers to the market of goods and services to people who are 50 and older. From my perspective, the developed silver economy can help improve the quality of life of the adult population. In healthcare, for example, the issues of treatment and rehabilitation are complemented by quality prevention of age-related changes and diseases. And in everyday life, I’m seeing new forms of leisure and additional education projects available to older generations.
My marketing technology company has worked with fashion brands that specialize in selecting models who are 65-plus years old and creating marketing campaigns for them. Through this experience, I’ve learned some valuable lessons about launching successful campaigns targeting this demographic.
Silver Age In Global Business
The emergence of the silver economy is the consequence of an important social transformation: The international community is steadily aging. The portion of the global population that is 65 years or older is expected to grow from 10% in 2022 to 16% in 2050, according to a report by the United Nations. In 2019, the old-age dependency ratio, or the number of people over 65 per 100 persons of working age, was growing most rapidly in Japan, followed by Finland, Italy and Portugal.
Compared to younger people, consumers who are 60 and older spend more per person, primarily as a result of high healthcare expenses, according to McKinsey. Beyond healthcare, “this group will contribute more than 40 percent of consumption growth in housing, transport, and entertainment,” McKinsey also said.
Despite all of this, I’ve found that businesses often bypass the interests and needs of these consumers.
Marketing Stereotypes
I believe many businesses’ low interest in the “silver” audience is reflected in marketing communications and advertising. Stereotypes and patterns, rather than objective data, can form the basis for visual images and messages. Here are the most common ones I’ve observed:
1. “Older customers don’t use the internet.” The lack of interest of the adult audience in digital channels today is confirmed neither by statistics nor by my business experience. In fact, Americans 65 and older have increased their social media presence by about four times since 2010, while the percentage of younger adults using tech has stayed about the same, Pew Research Center reported.
2. “Adult customers are not interested in technology and never change.” I’ve found older audiences are often associated with “indifferent” behavior, but as with the younger segments, preferences here can change markedly. Furthermore, according to a report by AARP, 94% of older adults use text messaging, 88% use email, 74% are active on social media and 67% engage in video chat. Among social media platforms, Facebook and YouTube are the most popular for people 50 and older.
3. “Adult customers save money.” This might be true for some, but I’ve found it’s not always due to financial constraints. In my experience, older audiences often appreciate promo codes, are willing to participate in loyalty programs and are less likely to be driven by emotions. Statistics show that about 70% of people who are over 50 are members of at least one loyalty program.
Campaigns For Older Generations: Marketing And Advertising Considerations
There are a few important items for marketers to consider when trying to communicate with older audiences in their campaigns, based on my experience doing so:
1. Use text.
In my experience, text is important in communications with adult customers, and a short explanation will typically generate more appreciation than a piece of original branding or a successful design. Text explanations should be structured and valuable. Avoid slang and abbreviations as well.
2. Avoid complex mechanics on your online channels.
Keep the process to place an order simple. Consider incorporating large buttons, recognizable symbols, simple registration and checkout forms, and minimal steps.
3. Prioritize communication, and use gamification elements.
In my experience, many older adults are eager to contact consultants and respond to automated newsletters and appreciate support and follow-up after a purchase. In general, I’ve found that many respond warmly to gamification elements. The main thing is to keep game mechanics simple and user-friendly.
4. Learn about your customers.
Your customers are different, change over time and might have different expectations for different brands. For these reasons, conduct a simple A/B test. This can tell you more about customers who are 50 and older than any expert, and segmenting this part of your customer base will help eliminate abstract generalizations that might not be that important to a particular business. Find the right channel of communication, and gather up-to-date data on customer habits and interests. This can help you build personalized communication.
5. Ensure your marketing materials are informative.
Like the products themselves, I believe communications from a brand can help improve one’s quality of life, complement ideas about maturity and appeal to the actual needs and interests of older generations. Many brands, for example, develop informational materials for adult audiences and run separate trigger chains with them. This helps orient people who look at advertising as a source of knowledge, need detailed advice on choosing the right product and need additional support after making a purchase.
Despite the power of the “silver economy,” businesses often overlook this demographic, which can lead to misconceptions and marketing stereotypes. It is important for marketers to prioritize communication and learn more about their customers in order to effectively communicate with audiences over 50.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
