Find Hidden Opportunities in the Senior Market

By Elizabeth Wilson

Learn how to research the market, i.d. trends, and get a resource guide to help you stay cutting-edge or start up your business today.

The senior market is booming, and opportunities are plentiful. To get a better understanding on how businesses can successfully market to seniors, Entrepreneur.com talked to USC Assistant Dean of Gerontology Maria Henke.

What are some specific tips you have for entrepreneurs who want to start a business serving the senior market? The rules of starting any business still apply to serving the senior market. Offer a product or service of value that meets an unmet need, put together a business plan, etc. When targeting older persons it's especially important to consider the functionality and safety of the product and how well that matches up with their needs. Depending on what you're selling you may also have to consider providing support services such as assistance using a new technology or device. Think "universal design"--a rapidly growing concept with the design community [meaning design that's useful to everyone]. Not only will entrepreneurs make and sell better products in the senior market; they will also be more successful to a broader range of consumers.

When it comes to marketing, seniors are a tough crowd. Puffery is wasted on them. They've seen it all when it comes to advertising. Today's octogenarian grew up listening to radio jingles and watching six decades of commercial television. As we mature, we become much more savvy consumers and are more likely to ask ourselves "do I really need this?" than, say, a 14-year-old. It also goes without saying but is especially true for older adults: Avoid stereotyping in your promotional efforts, and make sure your sales force is not condescending or impatient.

Try to segment a particular piece of the senior or baby boomer market. This is not one big homogenous group that ranges in age from 55 to 95. Consider defining your market by education, cultural values, employment and health status. For example, the needs of a healthy, active and employed 65-year-old will differ sharply from a retiree of the same age with poor health. The market segment you choose to target will greatly affect how your product or service will be distributed and how much you can charge.

If you are a small, community-based business, it will be helpful for you to do a little networking with your local aging network or people you suspect are working with or on behalf of the older adults in your community. If you don't know where to start, the U.S. Administration on Aging offers an "Eldercare Locaror", which can put you in touch with local agencies serving your community.

What tips can you give to those already in the business? Businesses already serving the senior market may need to change the products and services they offer to the baby boomers who are now just entering their 60s. While it has been a long-held belief that baby boomers are and will be healthier and more active than any other previous cohort of seniors before them, the recent downturn in the economy indicates that many baby boomers will not be retiring as soon as they thought.

Businesses that rely on retiree travel and leisure, for example, may want to come up with a new strategy to accommodate work schedules for older adults. In addition, due to the collapse of the housing market, many baby boomers owe more on their homes than they are worth, and it will be difficult for them to transition into retirement housing. While this is a gloomy situation, it does present opportunities for businesses that cater to older persons aging in place. Successful business models may include operations that can provide community-based or home-based services, including health care, meals, personnel care or can assist home-based businesses in areas such as technology support.

Are there things you see businesses doing wrong (such as in marketing or other aspects of their business) that you would recommend they do differently? The No. 1 mistake is to ignore this huge market. It's also wrong to assume that older people don't know how to use technology. In fact, older adults are the fastest-growing group of internet users. According to the U.S. Census Bureau, people over the age of 65 spend more than $7 billion dollars per year online. Another mistake people make is to assume that people's consumption habits don't change over time. If older Americans are as brand loyal as they're made out to be, then the American auto industry certainly would not be in such dire straits.

http://www.entrepreneur.com/marketing/article201292.html