Seniors Adopting Technology in Record Numbers

Author: Bert Kollard

July 2009

Contrary to popular belief, the use of technology and especially the Internet is no longer the exclusive domain of the younger generations.

Today, according to a study from TNS Compete and the Consumer Electronics Association (CEA), older Americans, those in their 50s, 60s and 70s reportedly use various electronic devices at near comparable rates as their counterparts in the younger segments.  And, as reported in the latest report of the Pew Internet and American Life Project, the percentage of older Americans online has surged in recent years and, while they are online, they are involved in more activities than ever before.

Even though technology usage among the various age segments is expected to approach parity as the more tech-savvy Baby Boomers in their 50s and older, considerable differences in technology use, preferences and attitudes remain between and among the younger and older generations.  

For industry and the marketers who are targeting and attempting to engage the highly lucrative senior market, technology use and attitudinal differences have broad implications.  In addition to product design and usage considerations, these generational differences also impact the marketing and communications strategies and tactics to be used to effectively reach and connect with the older Americans.  

This is perhaps most evident in healthcare markets, where seniors are more actively engaged than ever not only in health and medical information retrieval but also in the use of technology in the delivery of care and the management of their health.   

Just like the Millennials are distinguished from Gen Xr’s, older Americans are sufficiently different in their technology use and attitudes to merit classification into distinct segments.  

Although use of the Internet continues to be dominated by the younger generations, the latest Pew Internet & American Life Project survey shows that Internet usage among the 50+ age segments has surged.  In fact, the highest growth in Internet use occurred in the 70-75 year old age group, where use increased from 26% in 2005 to 45% in 2008.  

Another strong indication of growing technology use among older age segments is the adoption of broadband access, which reportedly doubled for those under 64 years of age but more than tripled for seniors 65 and older.  Furthermore, cell phone use and the likelihood of owning or buying HDTVs are at near parity among 60-somethings in comparison to 18-34 year olds.

According to Accenture’s 2009 Consumer Electronics Products and Services Usage Report, Baby Boomers (45 or older) increased their uptake of new technology by 50 percent from 2007 to 2008.  Reading blogs or listening to podcasts jumped by 67%, social networking participation grew 59% and online video viewing jumped 52%.   

While the younger generations are more likely to use web-based technologies for entertainment and socializing, older generations predominantly use the Internet as a tool for gathering information, email, and buying products.  In spite of these differences, older Internet users are equally as enthusiastic as their younger counterparts to go online.  And, while online, the older generation’s usage of email and search engines is essentially at par with the general Internet population.  

Nevertheless, older generations do report higher levels of frustration with the complexity of technology and are more likely to rely on in-person information sources for support, according to a recent Consumer Electronics Association (CEA) survey conducted by TNS Compete.  

Implications for Marketers    

With an estimated buying power of as much as $1.6 trillion, the mature or seniors market is a highly sought after market segment.  And, with the aging of the baby boomers and gains in longevity, seniors will become an even more significant and attractive target during the coming decades.  The seniors market however is highly diverse, covering forty years or more in age and will require careful tailoring of products and services as well as marketing and communications programs to maximize this lucrative opportunity.

With a growing emphasis on health lifestyles and health related concerns and issues among our maturing senior population, technology use and attitudinal generational differences are especially evident in the market for health care and related products and services.   For instance, the Pew report shows that seniors are significantly more likely to look online for health information than younger generations and is the third most popular online activity cited after email and generic online searching.  In addition, and in spite of frustrations with the complexity of technology, seniors are increasingly comfortable with and adopting technologies that help them enhance their quality of care, live independently and live longer, healthier lives, according to the 2008 Healthy @ Home study by the AARP.

Healthcare marketers can benefit from understanding the needs, requirements and attitudes of the different senior age segments to allow them to better address these market segments with specially tailored products and services as well as, technology-driven  marketing and communications programs.  With greater awareness and availability of, as well as access to, health related information, seniors will be increasingly demanding health consumers.  Marketers must respond by effectively utilizing technology, particularly web sites that are easy to use, by emphasizing lifestyle, rather than age, focusing on outcomes and product performance expectations and by providing access to attentive customer service resources.  

Those marketers who engage seniors in ongoing dialogue, while learning from and supporting them through Continuous Customer Conversations as they age, will maximize their opportunities with this lucrative target segment.