Due to improved medical care and other factors that contribute to the life expectancy of people, it is estimated that the global population of people over 60 years of age will grow with 65 percent to two billion people from 2021 to 2040.
Due to the Covid-19 pandemic many of these older consumers realised the benefits of the digital world when they were forced online to stay in contact with family and friends, as well as to do their shopping. This relatively wealthy age group thus became more familiar and comfortable with technology and the use of online services. As they gained more experience and confidence they became empowered to make online purchases and to use online services. Currently the elderly are increasingly choosing to adopt more technology-driven solutions to assist with their daily lives.
In addition to the usual browsing, searching for information, and online shopping, digital seniors are embracing virtual solutions for communication, socialising, health screenings, medical consultations, finances, and learning.
According to the Euromonitor International’s 2022 report, the most popular weekly online activities embraced by people above 60 are: online browsing (81 percent), visiting of online news sites (72 percent), visiting and updating social networking sites (60 percent), and using a banking service on a mobile phone (45 percent). Other weekly online activities such as making in-store mobile payments (24 percent), visiting health related or medical sites (23%), taking part in online video gaming (21 percent), online streaming of music (19 percent), and buying groceries online (13 percent), are less popular among the elderly.
Strangely enough, TikTok is quite widely used among elderly people, probably as a result of their digitally native children and grandchildren influencing them to be on social media. However, the comfort levels with some of the newer technologies are relatively low among the 60-plus age group. Seniors are, for instance, only 35 percent comfortable with ordering food from a delivery-only restaurant without a physical outlet. Although many restaurants did away with printed menus during Covid-19 and replaced it with QR codes on the table, they should remember that some seniors above 60 still prefer a printed menu and thus should make provision for these people.
The elderly are also not very comfortable with robots guiding them to specific products within a store (33 percent) or voice assistants providing personalised product information and suggesting products (30 percent). They are the least comfortable with companies using facial recognition software to personalise in-person interactions (23 percent), probably due to privacy considerations.
Euromonitor found that 82 percent of consumers above 60 owned a smartphone in 2021, which makes them very reachable. However, the adoption of some new technologies among the elderly above 60 years are not very high. But since the digital migration of the elderly are increasing, producers, marketers and advertisers will have to take cognisance of this trend of the growing number of digital seniors. People who are over 60 years old make up about 25 percent of the top income band, thus making the older consumer group an important target for businesses providing products or services online or selling technology solutions and devices.
Businesses will, therefore, have to tailor their digital experience to meet the needs of this expanded digital audience by optimising their mobile apps, social networks and websites for digital seniors to capture their spending power.
According to Euromonitor International, more than 65 percent of consumers over 60 years are seeking simpler lives, a role that could easily be fulfilled by some of the new technologies. Businesses that want to successfully cater to this cohort should therefore focus on the ease-of-use of their devices, websites and mobile apps. Existing technologies should be simplified to attract this particular segment of the market. To assist the elderly in the adoption of new technologies, companies can offer free training and support elderly people with regard to the specific technology.
Some companies were very successful in catering to this important market segment. The company JD from China worked with several mobile phone brands to launch smartphones specifically for the elderly, assisting them to live more conveniently in a society filled with digital technologies. JD identified the difficulties with mobile payments, online shopping, transportation, entertainment, and communication experienced by elderly people. They worked with the mobile phone brands to improve the functions on traditional smartphones and eventually came up with a focused solution for the elderly.
The 5G smartphone that JD eventually launched is equipped with services such as remote assistance, detailed instructions, fast medical consultancy and more. For example, children can download the app called “family time” developed by JD, and connect to their parents’ smart phones to remind them remotely to take their medicine or share family photos with them. Parents can easily make emergency calls and share their locations with their children.
With the assistance of JD Mobile Devices, JD Health implemented health consultation related services into the smartphone, allowing the elderly to set up video sessions with doctors and request prescriptions to be delivered to their door.
The US startup company Rendever brought virtual reality (VR) and shared experiences into numerous assisted living communities and hospitals to help people over 60 years overcome social isolation. Their groundbreaking virtual reality (VR) platform and live programming deliver engaging group experiences that build the assisted living community and allow residents to make meaningful social connections. All residents need to do is to put a headset on or use a tablet and they are immediately transported into an immersive experience that include themed experiences, curated activity guides, interactive games and exercises, fitness exercises, guided meditation, a book club, and music.
Rendever also provides customised reminiscence therapy tools that allow residents to wander down memory lane by revisiting their childhood home, wedding location or any other place from their past. They also provide opportunities to residents that are immobile to travel virtually to check off bucket-list items and engage with the world in ways they could only dream of. The added benefit is that through these activities new friendships are formed due to the power of shared positive experiences.
In Japan a wearable payment ring from zirconia ceramic, named Evering, was developed to simplify the payment for products in the store and to lock and unlock doors. Once users has linked their credit cards to the ring or digital wallet via an mobile app, the seamless solution with built-in security uses Near Field Communication (NFC) to enable cashless and contactless payment – an important requirement during a pandemic. The ring is waterproof, batteryless and chargeless and could simplify payment by credit card for seniors. If the ring is lost, it can be disabled through the mobile app.
In order for the elderly to adopt new digital solutions, the technologies must be frictionless, straightforward and easy to use. When products or services are complex or confusing to use, digital seniors will look elsewhere for a solution.
As older consumers increasingly embrace technology in the digital era, their human interactions will remain an important part of the way they engage with brands. To attract the lucrative 60-plus segment, businesses will have to be agile and adapt to new user requirements such as ease-of-use technology and seamless solutions integrated with face-to-face communication. A focus on digital seniors and the elderly will certainly bring significant return on investment to companies.
Professor Louis CH Fourie, Extraordinary Professor, University of the Western Cape.
BUSINESS REPORT