Monday, November 27, 2023

A Missed Market Opportunity: The Senior Segement

Today, there is a staggering 6.6million elderly people in the UK without the use of a mobile phone– this equates to approximately 10% of the country’s population. In addition to this, recent statistics from research carried out by the Good Things Foundation show that 10million UK residents lack even the most basic digital skills. Many older people are unfamiliar with smartphones and digital technology as a whole. This means they often hesitate to become connected, believing they won’t be able to use a device as a result of simply being too old or the fear of needing help from a loved one and feeling like they are a burden. On top of this 10%, there is also a significant group within the older demographic who have been handed up previously used smartphones from their relatives. This act, however well-intended, almost always ends in confusion and stress for everyone involved. The recipient struggles to learn to use what is in essence now an outdated and therefore unsuitable device. More often than not the senior will just give up on using the device, or will keep it and occasionally attempt to use a few limited functions. Either way, the act of handing up brings little benefit to either party and causes high levels of frustration for both.

This means that in the next couple of years there will be nearly seven million potential elderly customers sitting unnoticed by network operators. This is surely the single greatest missed market opportunity for the UK mobile industry and begs the question “Why aren’t more network operators stepping forward to cater for this audience?” By putting more of a strategic focus on this important age group and helping them to tackle any barriers to adoption, operators can unlock a huge revenue opportunity and boost their NPS and CSR measures by engaging with a group that will be loyal and happy customers if greeted with great service and support. In short a revenue, and RPU that sticks, long term.

The three main hurdles stopping older users from adopting smartphones are: the device itself, education and awareness. We know that for most seniors, conventional mainstream smartphones simply do not work. Excessive features all presented with the same level of importance, small text, unfamiliar icons, alien terminology and complicated operating systems reliant on some degree of digital competence compound the problem. These factors make the majority of smartphones difficult for the mature user to understand and do not result in satisfaction or engagement.

This is where easy-to-use smartphones come in, these are devices that are specifically tailored to the elderly and optimised to meet their specific needs. There are a number of adaptive features that can drastically improve an older user’s experience with their device. For example, our latest smartphone includes a simplified operating system with large icons located on 3 easy-to-asses screens,  intuitive menus, amplified sounds and built-in training. Other key design elements that make devices beneficial for the senior user include an emergency button, hearing aid compatibility, ergonomically designed form factors and charging cradles. These are all features that are imperative to many seniors and address common ailments and issues relating to age such as; hearing loss, sight impairment, dexterity and mobility but do not dumb down the phone – they are still full of the same technology, like triple lens camera for great pictures, NFC for contactless payment, face ID to easily unlock and secure the phone.

Not all seniors are the same and they require varying levels of support – some very subtle and some much more overt. For example, we created a mobile that has complete voice control making it ideal for the blind or visually impaired. Regardless of the level of support needed the most important thing is that devices are not stigmatising or patronising in their fruition to market.

In order to capture this market opportunity, the first step is for retailers and operators to look at the data and consider stocking devices that are targeted specifically to the retiree age group. The next step is to market to them, which may not be a natural stomping ground for many of the UK operators. Marketing products for seniors must be based on understanding, reaching them through the right channels with the right language, the lifestyle benefit, the value-add for their life and most importantly trust. Seniors will seek advice from the people and retailers they know when making such important purchases – they view items like this as an ‘investment’. This advice and recommendation may come from a member of staff in a retail store, or most likely from a family member.

Another barrier to entry for the 65+ group is the lack of education around digital technology and communication. Smartphones are relatively new to this audience, who may have little knowledge or experience with such technologies. Many within this target group will not have owned a smartphone previously and the digital concepts that the younger generations take for granted are often completely foreign to them. This does not mean older people do not want to try. It is important to ensure that users are fully trained to confidently use and enjoy their devices and this is essential to fully engage senior users. However, training needs to be done properly and trying to do so without the customer physically using a specialised device fails to help users to be become digitally enabled.

We have found that older generations learn better using a printed book, a format they are familiar with, rather than online training which might confuse those who are just starting off on their journey of digital discovery. This audience can, and does want to, use smart devices. The industry just needs to make the experience simplified, supported and accessible for them. As the user becomes more confident, additional training could then be delivered through the device in a training application.

Prior to Covid, in-store training was one of the most effective ways to showcase the value of a device to an older person and instil enough confidence in them, that they can use and benefit from smartphone ownership. As society slowly returns to its ‘new normal’ retailers ought to be maximising in-store opportunities to engage with this target group, in a Covid compliant manner. Other training and onboarding options to consider are initiatives aimed specifically at older users such as device support hotlines and in-store setup assistance. Offering solid education will negate many of the confidence issues and doubts that seniors might have before choosing to purchase a smartphone. The greater the focus on quality training materials and support services the larger customer acquisition will be from this untapped audience segment.

Retirees need to know that there are new smartphones available that are tailored and adapted specifically to the needs and preferences of an older user and demonstrate that we understand the daily benefit a device can and will bring to them. With this in mind, greater awareness is critical and this can be achieved through strategically targeted press exposure and proposition-based marketing, something we uniquely understand.

Many potential customers may look at mass-market smartphones and decide that they are too complex and not for them, closing the door on the prospect of using one entirely or making them fear that they will be a burden on their family. The way to recapture these customers is to change their opinions and show them that there are smartphones designed with simplicity front of mind and that usage is in fact easy.

There is a cohort of the elderly customer group who do not understand the true extent of what a smartphone can do, and why they might want one. For example, they may wish to be better connected with their family and to keep up-to-date, but might not appreciate how a smartphone can allow them to do so. If network providers raise awareness among older generations and shed light on the issue of hand-me-up devices, they can get more smartphone trade-ins and more subsequence purchases of easy-to-use devices. This creates more connections with a new range of long term customers. The key for network providers is to target the more tech-savvy friends and family of the elderly consumer, such as their children or grandchildren. By doing so, they can learn how handing up one of their previously owned devices can cause a world of pain for both them and the recipient. They will then be able to influence the purchase of a suitable, easy-to-use device and will be inclined to trade in their old device.

The big issue in the industry is not that seniors do not wish to purchase a phone, it is that the group are simply not valued and they are treated the same as younger consumers who want ever more tech, performance and the latest design. Providers need to understand everyone’s unique needs and identify what is of value to each individual customer group.

I strongly feel that any company involved in consumer technology has a responsibility to protect older generations from being on the wrong side of the digital divide. This growing void has further been accelerated by the pandemic. We have witnessed many everyday amenities, and utilities, replaced with digital versions such as apps for ordering food at restaurants, checking into venues and making contactless payments the norm. This ‘digitalfirst’ way of life has already alienated large chunks of the older generation, who lack access to, and understanding of, smartphone technology. This shift will continue and the impact on seniors will only get worse as society and commerce continues to evolve. It will leave many people feeling lonely, left behind and disconnected from their communities and loved ones. I believe that all people, regardless of age are capable of learning to use and enjoy the many improvements to daily life that smartphones and digital connectivity provide. Recently, and likely due to lockdown restrictions, there has been a real increase in older people trying to become digitally connected. However, this group of determined seniors have had huge struggles as they have not had the support they need from network providers. Just imagine what could have happened, and can still happen with the right support in place.

Many non-technology industries do recognise the unique differences and needs of the elderly and do so well. From beauty and travel, to homes and groceries, thousands of retailers and service providers offer products and propositions adapted specifically to the older consumer. So in an industry like ours, that has become so significant to our society, why does mobile still fall short and fail to cater for such a large segment of the population? It’s wrong and it needs to change. Inclusion is not just about race or sexual identity, it is also about age.

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