Q&A with John Stapleton about over-55s on online shopping
While drafting Grey Expectations, the first report in our Covid-19 Emerging Trends Series, we asked several experts for their take on over-55s, whose behaviour has been changed - perhaps for good - by the pandemic.
We spoke to John Stapleton, entrepreneur, angel investor and co-founder of New Covent Garden Soup and Little Dish, who shared his insights into this group’s apparent shift to online shopping and his advice on how brands should respond.
Q: DO YOU THINK BRANDS SERVE OVER-55S WELL?
A: Some do, some don’t. There has, generally, always been a focus on younger generations: trend setters, and those who are more impressionable and open to brand appeal and values.
Smart brands recognise “over-55s” is not a homogenous group. For a start, many don’t feel 55; in fact, they say 55 is the new 40! The younger section think, surprisingly, “Wow. Am I part of that group”?
BMW is a good example of a brand that targets over-55s in an appropriate way that’s actually cool and stylish, treating them as young at heart and confident.
Q: ARE YOU SURPRISED BY THE PERMANENT SHIFT TO ONLINE SHOPPING FOR THIS AGE GROUP?
A: Definitely not. But I am surprised how many people in this consumer group apparently didn’t engage as much online before Covid.
I’m convinced there’ll be a certain degree of “stickiness” in consumer behaviour generally, and purchase behaviour specifically, once the dust has settled. Lockdown has been an interesting human experiment. It has happened to everyone all at the same time, there’s no precedent and it’s a dramatic shift.
Online has been the greatest beneficiary in the short term and this will definitely be carried forward.
Q: SO LOCKDOWN WILL HAVE A LASTING EFFECT ON THE WAY THIS GROUP SHOPS?
A: People are keen to get back to their routines and their favourites but there are bound to be long-term changes due to their experiences of lockdown. The challenge for businesses right now is to encourage and reassure consumers that it’s okay to go out and mix with strangers, albeit socially distanced.
Online circumvents that apprehension factor. It’s a glorious opportunity for brands. But I believe any permanent change won’t be sufficiently apparent until the end of 2020 or even into 2021 – many consumers (particularly those over 55) are still quite anxious and the second wave still needs to be absorbed.
Q: HOW SHOULD BRANDS AND ECOMMERCE PROVIDERS RESPOND TO THIS ‘NEW' ONLINE AUDIENCE?
A: The key is to anticipate stickability and adjust your business model to meet this new need. Figure out what the group likes about the channel. What weren’t they aware of before and which negative perceptions have been dispelled due to their lockdown experience?
From an emotional standpoint, identify the predominant values of the over-55 group you are targeting and convey this is an authentic, transparent way through storytelling, evoking as much genuine, targeted emotion as possible.
Hassle-free and transparent, reliable and above-all consistent experience is important to ensure positive customer engagement and repeat purchase. Over-55s will also expect ease of returning items - something many vendors, Amazon included, do well already.
Other aspects to consider that are important to this age group include emphasising the provenance of products.
Q: THE DATA SHOWS A GENERAL LACK OF LOYALTY TOWARDS BRANDS AMONG CONSUMERS IN THIS AGE GROUP. WHAT DO YOU MAKE OF THIS?
A: If they don’t find what they want, they’ll shop elsewhere – in an effort to find it. They therefore know what they want and will search it out. The lack of loyalty appears to be towards specific retailers or channels. Loyalty to brands they associate with seems to be strong.
Q: WHERE SHOULD BRANDS THAT HAVEN’T PREVIOUSLY BACKED A DEDICATED ECOMMERCE FUNCTION BE LOOKING FOR INSPIRATION?
A: Subscription box businesses are really good at this. With my experience in FMCG, I know that a traditional problem with mainstream retail is that it doesn’t get you in direct contact with the consumer; the retail shelf is an intermediary.
But direct to consumer, particularly with the subscription model, is fantastic because you get right up close and personal with the consumer and they are more willing to volunteer personal data that you’d normally have to pay good money to source.
Q: DOES WILLINGNESS TO SHARE DATA BECOME MORE OF A PROBLEM AMONG OVER-55S?
A: Older folk are more hesitant to share information online. But, by comparison, lots of friends of mine aged over 50 leave Alexa switched on and aren’t worried about the information it may be capturing. I don’t think this issue is quite as bad as some “observers” think.
It’s a challenge for UK businesses, but older consumers are getting used to the benefits of online shopping. If you can entice over-55s out of their reluctance there is a relatively untapped seam of consumer data and insight on offer. This can be used to develop your product range and hone your marketing strategy.
I think this door is now ajar and the dynamic has changed a lot since pre-pandemic.
