How Retailers Can Find the Gold in Golden Age

Let me begin — as you’ve often heard — with a focus group of one.

But I believe my grandmother, at least as a marketing data point — not as a unique individual — is extendable.

Nanny as she is known in our family, turns 100 this fall. Like many in the centenarian club, she uses a walker and other assistive devices to get around and has survived a series of falls, a few of which landed her in the hospital..

Don’t be misled, though.

Most things have remained constant. Her mind remains sharp — she can tell you who won last week’s golf tournament as well as who looked best on the Oscars red carpet. And her favorite rituals are more important than ever: Sunday brunch at the Cheesecake Factory, regular doses of retail therapy (much more fun than the physical kind) at Bloomingdale’s and Uniqlo and, of course, regular trips to her beloved Wegmans.

Nanny’s retail excursions are vital necessities. They're opportunities for her to be connected to her community, to learn new things, to get out of the house, to imagine a better, more stylish, more comfortable, more exciting future. And while she’s an enthusiastic consumer, there are many ways in which her needs, wants and capabilities remain under-addressed and untapped by the very retailers she frequents with such loyalty. Or worse, the ways in which she IS addressed are ageist or, to say the least, uninspiring (she still feels like she’s half her age).

It’s this very blind spot that must be addressed. Eleven thousand Americans turn 65 every day, and they control 50 percent of consumer spending in the U.S. Yet for most brands, a senior citizen’s discount is the extent of their targeted marketing innovation.

So, how can brands looking to create authentic relationships with the growing segment of older consumers do a better job? Here are a few observations on the potential pitfalls to avoid and things to consider:

Overcome Skepticism

Older consumers, perhaps more jaded than any other segment (they’ve seen it all) often have an aversion to marketing (that’s all bun and no burger?). Or some way to define what kind of marketing they dislike the most.

They're alert to the mantra of “There is always a catch.” And it doesn’t help that they're often right — the proverbial ‘bait and switch’ is everywhere. Even worse, older consumers are the target of scams more than any other segment (78 percent according to one AARP study). They have good reasons to be skeptical.

Social proof (e.g., sharing stories of success) can help overcome this barrier. But testimonials need to be authentic and feel legit. iPhone footage and more candid photos can create a stronger bond with consumers than stock imagery or a slick, expensive production.

Remember that someone who is 65 has seen exponentially more ads than someone 35. That accumulated experience — like wisdom itself — matters.

Don’t Be Cute

This is related to the need for authenticity.

For too long, brands have failed to allocate sufficient resources to understand, connect and provide value to older consumers — i.e., create meaningful and immersive experiences. Instead, they rely on stereotypical portrayals of this demographic sometimes overtly, but more often with subtle ageism.

These nuances may not be on the radar of a younger creative team, but they're inadvertently reinforcing characterizations of older adults as frail or confused. Take the use of seemingly benign language like "anti-aging," which makes the flawed assertion that aging is an enemy, like cancer or heart disease.

Be very clear and transparent about what's being offered — and what is not. Financial services companies like Fidelity have invested heavily in providing retirement information to consumers by providing free calculators, tools, and consultations with the desire to share as much information as possible so consumers can make informed decisions.

Ask yourself what you can do in your business to eliminate opacity and communicate directly and respectfully.

Go Beyond the Transaction 

There’s a reason Nanny worships at the altar of two very different retailers. Uniqlo combines value, design and on-trend fashion. (Note to retailers: you don’t lose your fashion sense when you hit Medicare age. Ask the late Iris Apfel.) On the other hand, Bloomingdale’s ain’t cheap, but it provides an immersive retail experience that makes consumers feel respected. And the range of options is a form of education as well.

Older consumers have long been known to be more brand loyal than younger generations. However, while they continue to remain loyal to the brands they’ve trusted for years, older shoppers are now just as likely to embrace new brands, opening the door for retailers to welcome new customers and increase lifetime value.

Overcome the Fear of Change

Most older Americans are well-aware of the issues that accompany aging. If handled sensitively and with innovation, selling an optimistic vision of successful aging can be a real opportunity for marketers. Lowe’s Livable Home, for example, is a model with an entire platform dedicated to helping consumers age in place, including experienced advisors, smart home devices, and bathroom re-engineering ideas. Squire’s aggregate platform is another example, coordinating services like Uber and Rosetta Stone into a single app, curating and simplifying the experience for the millions of seniors who own a mobile phone but aren’t yet participating in the mobile economy.

Given the economic opportunity that exists in creating long-term relationships with older consumers, it is shocking how little attention retailers — in fact, all brands — pay to them. There are vast marketing efforts focused on Gen Z, millennials, and other demographics and cohorts. Yet I’ve never met one person with the title of senior vice president, nana marketing.

The sooner you start to organize around this, the better. The aging market is rich. People are living longer. And growth is harder to achieve. For my grandmother, and the millions of consumers like her, they're just waiting for brands to step up.

Andy Freedman is vice president, marketing and experience at Assured Allies, a company combining data science, personalized technology and human touch to unlock the benefits of healthy aging for individuals, families, and insurers.