A New Perspective on Selling Seniors

By Jack Evans

Do you want to know who your competitor’s customers are? Just take a look at their parking lot. If you see Lincolns, Cadillacs and Buicks, then you know they are seniors over 60 years of age. If you see Lexus’, Jaguars, Volvos and Mercedes’, then you know they are Baby Boomers and caregivers buying for their aging loved ones.

Why is this information important? Successful retail businesses such as the Gap and Crate and Barrel merchandise to meet as close to 100 percent of their customer’s needs in their respective categories. If home healthcare dealers want to close a sale and create a loyal customer who will return, they need to offer product depth and breadth. This means meeting two consumer needs:

1. Providing a complete product selection of good/better/best quality and pricing options for any given product; and
2.  Providing, displaying and demonstrating all of the related, add-on products that a customer might also need or want to buy in addition to the core product.

Re-defining Seniors

Marketing today has become a very sophisticated – and sometimes high-tech – operation. Even the concept of “seniors” has changed. Last year, the American Association of Retired People (AARP) concluded that the term senior applies to several different demographic groups and not just one. Instead of publishing one magazine, Modern Maturity, for all of their members, they decided to publish three with distinct editorial and advertising targeted to each respective demographic group.

My Generation is their new publication for their 3.1 million aging Baby Boomers who have turned 50 and have become AARP members. Modern Maturity is now published in two versions, one for their 7 million members aged 56 to 65 and a second for their 10.1 million members 66 years old and older.

Other marketers have defined seniors as “Thrivers” aged 50 to 59, “Seniors” aged 60 to 69 and “Elders” aged 70 and above. The elders are the conservative Depression-era and World War II generation that, in relation to home medical equipment, have always accepted their Medicare “basic entitlement” as good enough for themselves.

Another approach to defining seniors is in utilization of home medical equipment. “Seniors” is used to describe those people in their 60’s who are still active and mobile. They travel, visit family and are active on a daily basis. They buy comfort items, diagnostics, compression, orthopedic supports and diabetes supplies.

“Active Elders” are those people in their 70’s who have started to slow down and usually the female is caring for the male spouse or companion. The aging male begins needing the full complement of HME: cane, walker (and possibly wheelchair), bathroom safety, lift chair, scooter, hospital bed, incontinence supplies, etc.

Finally, the “Sunset Elders” are the surviving females in their 80’s who today tend to live in assisted living facilities. They must buy their own HME and usually need mobility products, bathroom safety, incontinence supplies and respiratory support.

Identifying Homecare Consumers

RoperASW has developed a new matrix to identify consumer groups based upon their value systems, lifestyles and life stages. Of the six consumer groups identified, three are considered “home care” oriented, which generally means that they are “homebodies” and centered on the family and home.

Roper’s “Intimates” are identified as the “ideal” drug store customer: older women with high dual-income families who value family and home, buy home care products, value brand names and are willing to pay more for premium brands. According to Roper’s ValueScope report, these woman want retail stores to help them relax and enjoy life with the people they love.

These Intimate consumers focus on the traditional roles of being a good parent and spouse that nurture love and protection of their family. They want to know and trust the persons they are relying upon for healthcare information and products. As a result, they usually have a personal relationship with their pharmacist and are loyal, repeat customers. Because they are working and caring for their family, they do not have the time to try new products or brands. However, they are willing to try products that are recommended by these professionals to them.

The “Devouts” are primarily older women who are the family caregivers, decision-makers and shoppers. They value loyalty and family and are traditional homemakers. They are also stereotypic seniors in that they are thrifty, price-sensitive shoppers. They buy basic, no-frills products and do not buy name brands.

By representing the lowest income group, they are also the typical “dollar store” customers. They clip coupons and want dependable, reliable products at the lowest prices. Retail store sales attract Devouts to buy but do not necessarily develop any store loyalty. And as their name implies, the Devouts are very religious and heavily involved in religious activities.

Roper defines “Altruists” as sharing similar values of the Devouts but being more idealistic in their values for themselves and the environment. These Altruists are mostly women just under 50 who are price-conscious shoppers. Personal care is a top priority along with home care and “green” products. They are also very brand loyal and do not switch easily.

The other younger three consumer groups identified by Roper are the “Creatives,” “Strivers” and “Funseekers.” The Creatives are the most educated and high-tech of their groupings. Over half are female and they are the predominant catalog – and now online – shoppers. They are the “Consumer Reports” consumers who research a product before they buy it.

The Strivers are younger and more materialistic. They buy brands strictly for status and recognition. They represent the largest number of employed individuals and are focused on wealth and image. The Funseekers are the youngest consumer group that buy for themselves trendy and luxury products.

Brand to Sell

Most consumers prefer to buy from businesses that closely match their needs and values. Once a retail business identifies their primary customer demographics, then they need to develop a marketing and advertising program geared to these specific customers.

Branding your business is more than creating a logo and ad. This process involves developing a mission statement (objectives), strategic business plan (game plan), marketing plan (implementation) and advertising campaign (sales). When you position your business, you are defining how it relates to a particular market as well as your primary customer base.

How are continuing to meet the current and future needs of your top customers? This is the directing force that guides all of this planning. By knowing your customers and their needs, you can build your business by better meeting these needs. Customer-driven businesses succeed by always incorporating their customer’s needs into their growth strategies.

Chart: Roper’s ValueScope Consumer Profiles

Source: RoperASW, 2002

Chart: Where Roper’s ValueScope Consumers Live

Source: Roper ASW, 2002
Note: Numbers over 100 represent higher penetration and number below 100  represent lower penetration.

Jack Evans, president
Global Media Marketing
Malibu, CA
www.retailhomecare.com
310 457-7333
 

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