Marketing to Seniors

EMERGENCE OF THE EXTENDED SENIOR CUSTOMER
©Michael C. Walker, 2004

Third party involvement in senior purchasing decision-making is by no means a recent phenomenon. But its occurrence continues to grow as the senior customer base both expands in numbers and grows in longevity. What is noteworthy today, however, is the emerging realization of the importance of this activity in marketing and business development.

Extended senior customer is a term used to describe the relationship between the senior customer and anyone else who may be involved in the decision-making, purchase and access to products and services. This may be as subtle as a suggestion or as extensive as acting unilaterally on behalf of the senior. There may be a blending of decision-maker, purchaser and user, and the marketing implications are concomitantly amplified.

Before we explore the marketing opportunities the extended senior customer represents, let's take a look at some or the principal third parties that may make up the essential relationship.

• Family members. Sons and daughters, and even grandchildren, may be involved in assisting with or making purchasing decisions on behalf of a senior. This is more likely to be true for older seniors and for larger purchasing decisions, such as furnishings, appliances and living accommodations. The family members may tour apartments or senior residences, for example, not only to help their senior family member, but also to satisfy themselves that this is the "right place" for their mother, father or grandparents. Family members also may be involved in senior purchases due to the age or infirmity of the senior relative. Depending on physical and mental condition, large and small purchases may come under scrutiny and assistance of the family. Unfortunately, there is sometimes a negative side to family involvement in some senior purchasing decisions. There may be a concern that mom or dad is spending the children's potential inheritance. Whatever the motivation, the involvement of family in a senior's purchasing practices cannot be overlooked when marketing programs are being designed.

• Neighbors and friends. While not having family ties, others may be concerned with the welfare of a senior friend or neighbor. This can lead to their involvement in the selection of particular products and services. Very often these concerned parties know more about seniors and their needs than do family, by virtue of their proximity to and involvement with a senior. Family may live some distance away and have only occasional contact with parents, or grandparents, aunts and uncles. As in the case with family, the efforts of friends and neighbors to support seniors are typically well intended, but sometimes may represent ulterior motives under the guise of a concerned party.

• Other caregivers. When there is not family available, or if a senior needs more support, hired companions or even home health aides may be involved. They provide the support a senior may need to extend their independence. Caregivers may be making purchasing decisions on behalf of the senior, and even the family.

• Professionals. Also providing various forms of support to seniors are professionals such as doctors, lawyers, financial advisors, trust officers and sometimes clergy. Less personally involved than family, perhaps, but none the less interested in the senior's welfare, these professionals often get to know and participate in purchasing decisions for their clients, patients and parishioners. In addition to whatever personal interest they may have in the senior's welfare, there is often financial interest, as well. They may, in fact, have more to gain from taking good care of their client or patient than some family members. Particular decisions and purchases by the senior can sometimes benefit the professional more than others. Whether their interest is benevolent, as well as self serving, is an interesting question.

This list of third parties to the extended senior customer unit is by no means exhaustive, but rather provides a representative selection of potential players.

Once again, it is important to understand that not all seniors are part of an extended senior customer relationship. To the contrary many, if not most, are not. The phenomenon tends to surface most often as senior enter their 70's, and typically experience has shown that occurrence accelerates to over 80% by their late 70's. This is a natural progression as the likelihood of mental and physical health issues increases significantly after the mid 70's, but this only can be considered in a general sense. Significant declines can be seen in some people in their 60's, while in others not until their 80's.

Given the existence the extended senior customer phenomenon, how can it best be put to use in the marketing of goods and services? Let's look at this in segments: first, for advertising, promotion and publicity, and second for sales.

Generally speaking, promoting products, services or programs directly to third party extended senior customer participants can be difficult and possibly less than cost effective. In certain situations where a select message can be targeted to a specific audience, such as providing a resource for clients of professional providers, marketing opportunities do exist. However, the more beneficial approach to a larger audience might be in the form of a message to third parties within a more general theme to a targeted senior audience. For example, consider an advertisement, a brochure, press release or direct mail piece promoting home improvement suggestions for seniors, allowing them to remain in their homes longer rather than having to face a move. While the principal message is directed to the senior homeowner, there are subtle ways to bring family and advisors into that message. A casual suggestion that the contractor would welcome input from family members, if desired, in design plan and selection. Or a suggestion that the prospective customer may want to talk to their banker or financial planner on how home improvement may fit within the grand scheme of things.

By inviting other parties into the picture, the vendor is helping create an extended senior customer, meaning others may be involved in decision-making about design, suppliers, materials, financing and a host of other choices. The vendor must be aware of the risks and opportunities this situation may create. On the risk side, the vendor is taking a chance that these invited parties may complicate, or worse, kill the deal. Whether they are not in agreement with an investment in home improvement or the timing or anything else is not so much of an issue as is that of complicating the vendor's relationship with the senior. However, the vendor who can think beyond the immediate sale will realize there are opportunities to be made out of a seemingly bad situation. Handled discreetly and professionally, a wise vendor will realize that with new contacts among family and professional advisors he may have an opportunity to reap future business contracts in addition to a later or revised plan for his original senior customer. In fact, a strong case can be made that the risk/opportunity equation is more favorable over the long term than a single relationship with the senior customer.

Now let's look at the same vendor example in terms of direct sales. The experienced salesperson will understand the risk vs. opportunity relationship where there is more than one prospective customer involved in a sales presentation. An understanding of group dynamics will provide ample opportunity for the salesperson to make the most of it by using the involved players to his or her advantage. Well handled, the number of players is not as important as moving the group to a consensus. Not that this is easy, but from the customer's point of view there is safety and confidence in numbers. No one has to make an unilateral decision, as they succeed or fail together. If the salesperson can convince one member of the group, it may be possible to use that person to help convince any others who may have doubts.

Regardless of the outcome, the salesperson broadens the contact or prospecting base many fold, as well as possibly preserving an opportunity for a later presentation to the same extended senior customer.

Understanding the extended senior customer concept is essential when dealing with significant decision-making for older seniors. Recognize that it is a fact of life, but rather than reluctantly dealing with it consider proactively using it to your advantage. Skillful planning and execution will reap considerable rewards.

NOTE: Portions of this article have been taken from MARKETING TO SENIORS,
Second Edition, (c) Michael C. Walker, 2004

Marketing to Seniors, 2^nd Edition by Michael C.Walker, © 2004, published by 1^st Books Library / Authorhouse ( http://www.authorhouse.com/ ), 800-839-8640

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