Everyone wants to sell to seniors. Why wouldn’t they? They represent about a third of the population but control more than two-thirds of the net worth of households, and they…

•     spend more in the drugstore than any other age group; 

•     spend more on health and personal care products than any other

       age group; 

•     spend more per person in the grocery store than any other age group; 

•     in the US, purchase 37% of all over-the-counter medicine;  

•     watch more TV and read more newspapers than any other age group;

•     and are living longer than ever before.

But it isn’t all positives. While the prospect of longer-living and wealthier seniors increases their potential value, it also needs to be noted that they are not fanatically loyal to brands. Earning a senior’s business isn’t a matter of a single great idea campaign; it’s a matter of winning the business over and over again. Now the hard part: what wins a senior today may lose them tomorrow.

Not Your Father’s Senior

The first rule of selling to seniors is “don’t sell to seniors.” No, this isn’t the pharmaceutical version of the movie Fight Club. According to the noted demographer David Foote,¹ a baby boomer’s grandfather could have looked forward to 7 more years of life at age 65, and his father to 12 more years on average at that age. But a male boomer at age 65 today can expect another 17 years.

And that changes how they view their “remaining time.” Foote explains, “The 65-year-old can’t believe they’re turning 65. They think they’re more like 50. So the rising life expectancy is stretching out the difference between physical reality and emotional reality.” The implication? Woe to the pharmacist who makes a boomer feel “old” – even if they really do need the arthritis medication offered.

Tom Berry, a professor at SMU in the US, describes this as the difference between how old customers are (“physical age”) and how old they feel (“cognitive or feel age”).² Accordingly, he suggests, “Use models that are cognitively younger; they don’t have to look younger, but have a persona that is psychologically younger. The content of advertising, sales, and marketing messages should be cognitively based. For example, we don’t use medicine to avoid osteoporosis because we are afraid our bones will break, but because we want to go to the museum and play golf.”

If that’s true, then I wonder how many age-qualified seniors will never ask for that “senior’s discount” you offer as a means of getting them in your door? 

Your Vision Does Get Worse with Age

I am not referring to the deterioration of your visual acuity as you get older. I am referring to the marketing mistakes you’ll make if you design programs around a customer’s physical age. The reason is simple: when age becomes the basis of your segmentation, you inevitably invite people to substitute their own stereotype of what a senior is, and what they want.

For example, do you believe (as the Beatles suggest in “When I’m 64”) that retirement starts at 65 and  involves knitting by the fire, gardening and Sunday drives? If so, then it makes sense to run seminars and schedule in-store events and promotions for anytime during the day. It also makes sense to stock knitting magazines and products used in or related to extended bouts of fireplace viewing, gardening and the like.

However, according to a survey done by Investors Group, that is not reality for the nearly 61% they found who see retirement as a time to gear up for a new set of life experiences. These folks have priorities like travel and out-of-doors activities – which opens up an entirely different spectrum of lifestyle and health-related products.

Moreover, according a 2010 Bensimon Byrne report on attitudes toward retirement, most people no longer associate 65 with retirement: 1 in 5 expect to retire before their 60s, 1 in 3 before they turn 65, while 2 in 5 expect to continue working after they turn 65. So much for the daytime seminars.

What We Do Know

There is no denying that people do age and that certain physiological changes do occur. However, the 65-year-old of today may not manifest those physiological changes in the same way as earlier generations. For example, as a result of diet and life stresses, the number of seniors taking acid-reducing drugs to treat gastrointestinal problems grew by 60% over the past five years: more than one in five Canadians over the age of 65 were treated with proton pump inhibitors (PPIs) in 2007–08, up from one in eight in 2001–02.

In addition, regardless of their emotional or “feel” age, there are some common experiences and attitudes that developed over time, as a result of generationally specific sociological and demographic influences. While there is no hard and fast list, most commentators would agree that, for most people born before 1950, these include the following:³

• They are concerned that purchasing products may stigmatize them. Marketing messages that focus on the intrinsic attributes of a product are less effective in senior markets than in younger markets

• Relative to younger customers, they are less inclined toward messages that stress “luxury” or self-indulgent services. In making discretionary expenditures, seniors respond more favourably to products and services that they perceive as facilitating desired experiences. As such, marketers would be advised to focus less on the “feeling being generated” and more on “how the product generates that feeling.”

 • They have an aversion to embellished claims and to what they perceive as misleading imagery. Cognitive patterns become more right-brain-oriented: they develop a sharpened sense of reality, increased capacity for emotion, and enhancement of their sense of connectedness.

And in the End

The popular expression suggests “You are only as old as you think.” If that’s true, then we need a new way of thinking about those who, while not denying their “model year and mileage,” prefer to see themselves as “back in style.” For pharmacists, that means selling products no one wants to be reminded they are buying, and giving advice and services that help them integrate those products into a  more active lifestyle. It may mean providing drug-related advice in private booths instead of out in public. As for décor and layout, the challenge will be to provide physical amenities and aids without making a senior feel “cared for.”  Don’t take that as meaning it’s just a case of leveraging their folly and ego: you don’t need to deceive or aid in self-deception… just don’t insult or embarrass them in the process. 

Written by Ken Wong

[1] See Get ready for the big boom as Canada’s seniors shape society by Shannon Proudfoot, Postmedia News (January 3, 2011)

 [2] See Marketing to Seniors: Age Really is a State of Mind by Jennifer Warren, theMatureMarket.com, (October 23, 2009)

[3] See Rocking the Ages by J. Walker Smith & Ann S. Clurman (Harper Paperbacks, 1998)

 

It is a widely recognized fact that Mothers make or significantly influence over 80% of all purchases made by a household. Given that figure, it should not be surprising that this means the “Mom Factor” is a major concern for all consumer marketers. But as important as this segment of the market may be, it is also a segment that tends to be misunderstood due to the tendency to treat mothers as a homogenous group, implicitly assuming they all buy using the same criteria and processes.

When moms are lumped together, it is tempting to think of the stereotypical “soccer mom” – stressed after running kids to a myriad of activities, driving a van or crossover vehicles and, of course, in her role as Chief Purchasing Officer of the household. It’s an easy trap to fall into. These soccer moms are usually Baby Boomers and therefore the most sizable portion of all mothers. Given their life stage they may also be the most affluent. But the stereotype is a trap.

Three Types of Mothers

Research has found that there are some things that are desired by all mothers: cost savings, time efficiencies, and healthy choices. It is also believed that women tend to be heavier users of the internet for product information and coupons, to be heavier users of social media for product referrals, and to have high use of child-directed media (e.g., kids TV and radio). All of which speaks volumes about how to market to mothers… at least as long as it doesn’t matter what we say in those promotions.

Interestingly, the same research that finds commonalities also finds some significant differences between types of mothers. While the number of types varies from report to report, most would agree on at least three groups: Baby Boomer (soccer) moms, Gen X moms and Millennial (new) moms. Since these distinctions may appear rooted in the age of the mother, one might expect the differences to be largely tied to factors like income level (older mothers tend to be more affluent than younger ones) and family life cycle (older mothers tend to have older children).

However, these distinctions have less to do with physical age per se and more to do with the social attitudes and media habits that were developed during their maturation. For example, at the risk of over-simplifying, Boomers tended to have a high commitment to social values and grew up with the birth of consumer technology. Gen Xers are often said to be more egocentric due to the influence of the diminished economic prospects surrounding their youth. They grew up as early adopters of technologies as they were being applied in more and more settings. Millennials, by contrast, are highly individualistic and accepting of diversity, while growing up immersed in so much technology that they tend to expect it to be there. (There are several comprehensive reviews that you may wish to read for more detail.)

The reason these attitudes are so critical is that research suggests that women, compared to men, tend to be greater gatherers of information, think in a less linear manner and have as many as four times the number of connections between left and right hemispheres of the brain. As a result, women are more likely to be influenced by emotional memory, intuition and experience. Men and women may share generational influences, but the impact on women’s buying behaviour is thought to be greater. What you say will matter. A lot.

Notwithstanding these differences, it is sometimes argued that the age of the mother is less a driver of behaviour than the number and age of children. For example, thriftiness is often essential in larger families, and the older the family, the more likely the children are able to influence a mother’s behaviour by articulating their particular preferences.

Deciding What to Do

The diversity of mothers’ buying behaviours makes it hard to know how to market to mothers. Indeed, the behaviour seems so individualistic as require a highly personalized, one-to-one marketing effort that is outside the scope (not to mention budget) of most community pharmacies.

And it does. But not in the way you may be thinking.

A related research finding about marketing to all women (not just mothers) is that they do not want to be treated as a “segment.” Rather, they want to see products and services that (at least) seem to be tailored to their peculiar circumstances. This means you need to go back to the old-school “slice of life” style of advertising of the ’50s and ’60s: design your campaign around the type of day-to-day issues they face and how they think about those issues.

This will be easier in stores that have already embraced the notion of “customer focus” by virtue of the target segment they attract with their price point and merchandise/service assortment. The persona they embrace will be “on target” all of the time. Others, who chose to cast a broader, less-focused offering, will have a tougher time: while they can highlight the “big three” that all mothers desire – thrift, convenience and health – it will be harder for them to find a way to connect to all mothers simultaneously.

Regardless of which approach one takes, there is one more, great commonality among women shoppers in general and mothers in particular: once “sold” on a brand, they are intensely loyal. Since this means they will not, for the most part, shift stores solely on the basis of a weekly flyer, one has to ask the question, “When are women most likely to seek out a new pharmacy/store?”

The two occasions that stand out are (1) the arrival of a first child and (2) relocation to a new community. Community pharmacies should be pulling out all the stops, even if it means a large one-time loss, on putting together promotions directed at those times in a woman’s life. “New mother” packages directed through child birthing classes or maternity agencies/services and community welcoming agencies are especially effective in this regard. This also suggests that focusing on millennial mothers is most important, since they will make up the greatest number of first-time mothers.

Markets of One

The key to winning mothers as buyers is not as complex as it may seem. First, stop treating all mothers as one homogeneous group. Second, don’t tell them what you do… translate what you do into what matters for them given their age and family situation. Mothers, like everyone else, do not buy products or services except to solve the problems they face. Third, allocate your marketing dollars to those “windows of opportunity” that accompany every life-shaping event.

Written by Ken Wong

     To date, we’ve focused our blogs on factors to consider in choosing a strategy and how to ensure you were doing the right things to execute that strategy. The central theme throughout has been the need to align strategy and tactics with the nature of your specific customer’s buying habits/needs, your competition and your store’s size, assortment, operating philosophy and the like.

     Because we had to cover the landscape of options, there was a limit as to how specific our recommendations could be. This is the first of a series of blogs that elaborate on the specific qualities that characterize various demographic segments. The goal is NOT to suggest that everyone must serve the segment under discussion. Rather, it is to show how to align and fine-tune marketing efforts if you choose to serve them or if your community contains a large number of these types of customers within your store’s radius.

     Millennials are a very important segment for all retailers, drug stores in particular. Representing one trillion dollars in spending power, these consumers (15- to 30-year-olds, born 1980-1995) will grow to be 42% of the population within 5 years. To understand what motivates millennials to choose independent drug stores over larger chain stores, I’ve invited a guest commentator, Jennifer Turliuk, herself a millennial and an Assistant Brand Manager at Procter & Gamble, to provide her insights and data on how millennials think about choosing a store.

Convenience Rules

     According to an Economist Intelligence Unit survey,  when millennials choose a store, they care most about convenience (according to 70% of respondents). However, this focus on convenience goes beyond looking at location and hours of operation. It also tells us that millennials are time-strapped. As such, they are likely to shop without a budget, make quick purchase decisions, and refrain from stocking up on items.

     They want things when they want them, and can’t stand to wait. To provide superior convenience to millennials, independent drug stores should choose high-traffic locations, stay open late, offer fast service, have a convenient layout, and stock a variety of products in smaller sizes so that these consumers won’t need to go anywhere else for their drug, health and beauty needs. In addition, appropriate in-store messaging will allow millennials to make quick, easy value comparisons at the shelf.

Don’t Forget about Value

     Though most millennials prioritize getting things done over getting the best deal, they also consider value important when choosing a store. While there is a stereotype that aging boomers are most likely to make shopping lists, clip coupons and practice the most extreme money-saving strategies, it is actually millennials that represent the most frugal consumer segment. Additionally, research conducted by IRI Shopper Marketing & Innovation suggests that their frugal ways will persist long after the recession ends.

     And they pass their conclusions – using personal contact as well as social networks – on to others: Jennifer has recently witnessed her friends sharing tips on which drug store locations in Toronto have the lowest pharmacy fees. Additionally, millennials have a higher acceptance of private label than Generation X does, with 70% percent of millennials perceiving store brands to be of “excellent quality,” according to a report called “Winning With Millennial Women Shoppers” by Information Resources. To attract millennials, strive for low pharmacy fees and good prices, and offer coupons and deals.

     Finally, 69% of millennials consider a company’s social and environmental commitments when deciding where to shop (2006 Cone Millennial Cause Study). Choose a cause to support that is related to your business and has meaning to your customers. Showing your store to be socially and environmentally responsible will gain trust and loyalty from millennials. This doesn’t require a massive marketing campaign so much as it calls for demonstrations that your commitment is “real”: for example, in-store programs aimed at recycling, sponsorship of local advocacy groups and the like.

One Note of Caution

     This emphasis on deals, promotions and low prices does have some implication for how you organize and run your store. Reducing prices also reduces margins unless those price cuts are being funded by manufacturer promotions or rebates. Consequently, community pharmacies will need to be careful that any cost reductions needed to hit the millennials’ desired price point does not reduce the pharmacy’s capacity to service customers who choose a store based on a set of value-added services. In addition, because millennials may be looking for a different mix of products than other demographic groups, you may find that your millennial-focused marketing may benefit certain product categories more than others. The good news is that this imbalance may “endear” you more to certain manufacturers.

How to Reach Them

     Use non-traditional means to reach millennials with news of your convenience, value and social commitment. Think outside the box, because millennials have different spending and shopping habits from older, more traditional consumers. One clear difference is their usage of social media like Facebook, Twitter and the like. You might benefit from being directly accessible from within these platforms.

     Promote word of mouth by encouraging millennials to tell their friends about your store. For example, provide incentives for referral sales or develop a “group” discount. Consider using web-based or email coupons to reach them, since millennials are more receptive to these mediums than to traditional media (e.g. newspaper, flyers).

     Finally, be certain to focus those communications on featuring why millennials choose stores: easy layout, efficient checkout, great value, and community engagement.

Written by Ken Wong and Jennifer Turliuk