Jump to content

Cre8asiteforums Internet Marketing
and Conversion Web Design


Photo

Update on older consumer spending


  • Please log in to reply
9 replies to this topic

#1 cre8pc

cre8pc

    Dream Catcher Forums Founder

  • Admin - Top Level
  • 13551 posts

Posted 14 June 2006 - 08:18 PM

For keeping up with the latest findings for demographic insight, here's one:

Older Consumers Flex Their Muscle (and Money) Online

Ms. Dougherty said that since last June, senior citizens have bought clothing, shoes, flowers and gifts at a faster rate than the population in general.



Travelocity offers exclusive perquisites to AARP members on the site, like discounts on flights and hotels, cruise-ship cocktail receptions and AARP assistants dedicated to helping members during their cruises.



This is something I look for now when I do usability evaluations for my clients. It's pretty obvious to me, when reviewing sites, that this age group isn't being targeted. It's not just older eyes, Internet safety and aching joints working laptop mouses that I'm thinking about (and I am thinking about those things.) It's that "boomers" have tons of energy and are spending money as they squeeze out every ounce of joy in life.

If you have products or services that are attractive to older people, (or could be) look for ways to attract them and persuade them to become customers.

Mr. Byck cited figures from the United States Census Bureau that showed while 40 percent of the United States population was 50 or older, this group held 75 percent of the nation's financial assets and did 55 percent of all consumer spending.



#2 canadianchick

canadianchick

    Gravity Master Member

  • Members
  • 123 posts

Posted 14 June 2006 - 10:40 PM

Interesting points. So, Travelocity is using exclusive offers to attract and persuade those over 50 to buy. I wonder if discounts and exclusive offers would help conversions on the average ecommerce site that *doesn't* sell big-ticket items like cruises and vacation packages.

#3 cre8pc

cre8pc

    Dream Catcher Forums Founder

  • Admin - Top Level
  • 13551 posts

Posted 14 June 2006 - 10:50 PM

Where I live, senior citizens get discounts on all kinds of things...memberships, food, products. I bet this could be translated to the web too :)

#4 A.N.Onym

A.N.Onym

    Honored One Who Served Moderator Alumni

  • Invited Users For Labs
  • 4003 posts

Posted 14 June 2006 - 10:56 PM

You think it can be used to offer discounted web services, too?
How many chronologically-challenged people actually need any web services, anyway?

Before actually offering discounts, websites should make the sites usable and accessible, too, btw.

#5 Eddie

Eddie

    Mach 1 Member

  • Members
  • 404 posts

Posted 15 June 2006 - 03:17 AM

Don't forget this only applies to the USA, which is no longer the largest market.

#6 Guest_joedolson_*

Guest_joedolson_*
  • Guests

Posted 15 June 2006 - 03:42 AM

Don't forget this only applies to the USA, which is no longer the largest market.


The article perhaps only refers to the USA explicitly, but I'm reasonably confident that the research can be applied to some degree to other countries as well. I wouldn't cite this as a statistical basis for pursuing an older audience in Europe; but I do suggest that the same trends are very likely world wide.

When you think about it, audiences over 50 in any country are more likely to be affluent (because they've had more years to work, more years to be promoted, more years to save money) and they're more likely to have free time (because they've retired, because they've received more vacation time at work due to long service, etc.)

It's absolutely worth considering for any market, regardless of what this study has specified.

I'd be hesitant about offering senior discounts online, myself - it would seem like that would be very very easy to scam. At the very least, suddenly Grandma would be doing ALL the family's online shopping!

#7 A.N.Onym

A.N.Onym

    Honored One Who Served Moderator Alumni

  • Invited Users For Labs
  • 4003 posts

Posted 15 June 2006 - 03:59 AM

Can one's age be checked through a credit card? That'd solve the problem.

Probably the most scam-proof method would be to offer offline discounts, indeed.

Maybe a solution would be to offer discounts only for stuff which only elderly people would use?
Then it'd make cheating less exciting and necessary.

Asking your poor seniors to send them copies of their documents with photos for verification would be too time-consuming for both parties, so there indeed is plenty of place for thought how to create a good discount system for the older people internationally.


I suspect that the situation is relatively the same in Canada, Europe, Australia and New Zealand though Europe, Australia and New Zealand may be lagging behind for about 3-5 years. This doesn't mean elderly people in all industrialized countries don't use the Internet. The people are just a bit younger, but they may not be the todays youngsters.

Edited by A.N.Onym, 15 June 2006 - 04:02 AM.


#8 Guest_joedolson_*

Guest_joedolson_*
  • Guests

Posted 15 June 2006 - 04:09 AM

Can one's age be checked through a credit card? That'd solve the problem.


No, I don't think it would. Like I mentioned above, one means of scamming the system is to simply have the senior member of your family do all the purchasing. Certainly, that person may be entitled to a discount, but it is an abuse of the system to then use that person to channel all purchases for a group. ALl this would prove is that the holder of the credit card is a senior citizen - not that the 'actual' purchaser is.

In an offline environment this same scam can be used, but is much more difficult to implement, since the senior citizen must physically go to each store and arrange for the items purchased to be delivered or carry them. This places a much more significant barrier in front of the abuse.

Maybe a solution would be to offer discounts only for stuff which only elderly people would use?
Then it'd make cheating less exciting and necessary.


Certainly an option - but what's the point? Why not just reduce the price, since almost all purchases of these kinds of products would be eligible for discount anyhow. Granted, in any discount situation there's always the economic gamble that many eligible people will fail to take advantage of that eligibility, but I don't see this as a huge advantage. I'm not sure that there's a great deal of logic to only place discounts on products that people eligible for discounts will buy.

#9 A.N.Onym

A.N.Onym

    Honored One Who Served Moderator Alumni

  • Invited Users For Labs
  • 4003 posts

Posted 15 June 2006 - 06:13 AM

Yeah, that's correct. Probably not much I can offer then.
That leaves us with simple discount systems to anyone, I guess :)

The point of having a discount instead of lowering the price is giving a customer a feeling of buying a more expensive item for the amount he wants, sort of a "Gotcha!" feeling. This should also lead a broader reach of word of mouth advertising.

However, I'd rather just make my price reasonable or not lower the price at all, since I am supposed to know the real value of my product or service.

#10 canadianchick

canadianchick

    Gravity Master Member

  • Members
  • 123 posts

Posted 15 June 2006 - 11:59 AM

Where I live, senior citizens get discounts on all kinds of things...memberships, food, products. I bet this could be translated to the web too



Same here. I didn't consider the points that A.N.Onym and joedolson brought up, though, that it would be difficult to verify the actual age of someone purchasing.



RSS Feed

0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users