I’ve written a few times about the need to rethink our perceptions of older people, not least due to the tremendous size of the so-called “silver economy”. A recent survey from the customer engagement platform Twilio highlights just how far we still have to go.
The survey found that while over 65s hold considerable spending power, they’re generally being overlooked by online retailers, with just 12% of respondents saying they felt understood by the brands they engage with.
“Trust between business and customer is crucial, particularly in challenging economic times, and building that trust with tailored, personalized communication is key,” the researchers explain.
Digitally savvy
Despite stereotypes often portraying older people as lacking in digital skills, the survey reminds us that this usually isn’t the case. Instead, the fault lies with companies failing to provide effective communication.
The respondents revealed that they felt few companies consider them when designing their customer engagement channels, with this especially the case in terms of the general lack of phone options available. Indeed, 85% of respondents said they would prefer to speak to someone directly than use other communication channels, but this option is seldom available.
“Older demographics are clearly more interested in regular brand engagement online compared to younger consumers,” the researchers continue. “As this older age bracket continues to grow in an aging population, brands need to be better prepared to cater to older consumers digitally.
Missing out
Research from the European Commission state that Europe’s silver economy was worth €3.7 trillion in 2015, with this set to reach €5.7 trillion by 2025. Indeed, globally this demographic is estimated to be worth €22 trillion.
If online retailers continue to overlook the needs of this vital demographic then they’re missing out on an enormous opportunity to build lucrative relationships built on trust and mutual appreciation.
“This means reflecting customer preferences in available communication methods, as well as using first-party data – data collected consensually from customers – to deliver accurate, personalized experiences that make customers feel heard and understood,” the researchers continue.
While retailers are often spending a lot of time trying to understand their consumers, this process often doesn’t occur effectively enough for older consumers. As a result, just a third of respondents said that they felt valued, with just 15% feeling that brands cared about them and 10% feeling that they’re a core audience for retailers.
I wrote recently about the lack of older people in many tech roles, and perhaps this underpins the lack of diversity in either the interfaces brands use to communicate with older customers or indeed the communications themselves. Given the huge demographic changes occurring across the developed world, it’s a situation that brands urgently need to address.
