Insights On Seniors

by Gail Fudemberg

December 2000

The Importance of the Senior Market

By Gail Fudemberg

The senior market is becoming an increasingly important segment of today's multi-faceted landscape. This unique market is characterized by clusters within the segment. People aged 55-65 are the "young seniors", those aged 65-75 are considered to be "middle seniors" and the 75+ group are the "older seniors". From one baby boomer to another, let me assure you that we will have an impact on this exploding market.

Some important facts about the senior market

• Growth from 1980 - 1990 for those 65+ was 88% as compared to a 34% growth rate for those under 65 years old.
• 1 in 5 will be elderly by 2030!
• Currently (year 2000) there are 34.7 Million elderly in the United States.
• By the year 2050 -- 78.9 Million will be elderly.
• The "older senior" market, those aged 85+ is also growing rapidly. This year, there are 4.3 Million in this category, with 18.2 Million expected by the year 2050.

Senior Segments

How do these growing numbers affect the marketing world?

As baby boomers grow older, the advertising industry will need to continue to reflect their needs. The above statistics show the importance of this market and that the sub markets, based on age, need to be addressed as well.

However, according to Craig Spiezle of AgeLight, a senior marketing consulting firm, many marketers are resistant to marketing to the senior market. They are failing to define their customer and consequently are not being successful. Spiezle believes that marketers will alienate one segment of the senior market by ignoring others. Additionally marketers need to "wake up and be courageous in segmenting the marketplace." They will have to "redefine the senior market" by recognizing the different habits and purchasing habits of the 50 year old consumer and the typical 80 year old consumer.

Bret Heinrich, of the Oasis Institute, a firm that provides service programs to seniors, adds that marketing efforts for older seniors need to be made to all adults on the continuum; children of seniors and the "younger" and "older" seniors. He points out some everyday items that will need to be tailored to meet the needs of the senior market which include:

• Cars - they will be redesigned to meet the needs of people who use canes and walkers.
• Airplane seats - the comfort level will need to be improved for those with arthritis or osteoporosis.
• Clothing - clothes will be tailored more towards an older body (Gap is an example of a company who is marketing "reverse fit" jeans to the baby boomer market).

Workplace of the Future

Professionals in the senior market agree that the landscape of the working environment will also be different with baby boomers entering the senior market. Speizle warns, "Don't let the data fool you." Some seniors may retire at 55, but they will begin to develop new careers. This is a generation that is used to being active and will be unwilling to give anything up. Heindrick concurs that the seniors, "notion of retirement will be entirely different". He claims this group will lean towards a less traditional stereotype of retirement and many will become semi-retired. They will use their time to travel, but be looking for exchangeable leisure activities and alternative sources of moneymaking activities. There will be a continual quest for learning that will benefit the marketplace. This is a heads up to employers who need to begin thinking of ways of effectively using this segment of older people in the workplace.

Speizle adds, that the new workplace needs to be developed so the seniors are not dependent on social services. He also predicts an impact on the healthcare insurance industry in the area of supplemental insurance programs for those 55+ employee's. This is an area where the health insurance companies will have to create new products to bring to the market.

Hot Buttons to Acknowledge

The Oasis Institute has conducted research to learn what is most important to people as they become part of the senior market. The most important issues gathered from the research of The Oasis Institute and SeniorSessions are listed below:

• Health and wellness is a priority.
• Seniors have a strong sense of financial accountability.
• Seniors don't want to be stereotyped
• Seniors dislike being lumped together in one group and appreciate their differences.

I believe marketers need to seriously consider these issues-- seniors have been proven to make decisions based on their emotions, rather than logical, linear thinking.

"Senior Power" will definitely be a trademark of our future as Baby Boomers glide into this next stage of life. They will be flexing their muscles as consumers and this will impact the workplace, the advertising world and the development of new products to meet their needs.