Why it’s time retailers finally pay attention to older customers

Older consumers may not be traditionally viewed as being enthusiastic online shoppers, but since the pandemic hit, retailers would be wise to engage the growing number who have embraced e-commerce in recent months. In fact, according to a new report from ForgeRock, 31 per cent intend to continue shopping online once restrictions are lifted. “A lot of retailers have overlooked older shoppers in the past for a few reasons. The stereotype of this demographic being frugal and penny pincher r

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c being frugal and penny pincher ranks high, but there is also a misconception that the older demographic is unwilling to embrace technology, despite the fact that over-55’s are one of the fastest growing demographics on social media,” retail consultant Salena Knight told Inside Retail.

“The fact is, these empty nesters can be cashed up, and with mortgages paid off and no longer having children at home, they’re looking to spend their money and enjoy their freedom.”

The report also revealed that this demographic was the largest group globally to sign up for new online grocery accounts to replace entering supermarkets.

“The Covid-19 pandemic forced consumers to change how they engaged in everyday activities traditionally handled in-person, such as grocery shopping, doctor check-ups and going to the movies,” said Ben Goodman, ForgeRock SVP of global business and corporate development.

According to Knight, older shoppers may also now be aware of the convenience of online shopping, especially as limited stock was available in-store during the peak of the pandemic.

“Older shoppers that are avid hobbyists want to access products that may not be available in-store, or even in this country, so they turn to online shopping to find those things,” she said.

During the peak of the pandemic, supermarkets also created initiatives to support older consumers, which may have helped increase their awareness of online shopping. For example, Australian supermarket Woolworths launched Priority Delivery Hubs to deliver online orders to eldery customers, people with disabilities and those in mandatory isolation. Coles also rolled out online priority services for older shoppers.

Work yet to be done

However, ForgeRock’s study also revealed that online retailers need to work on keeping older generations engaged because nearly half of them plan to switch back to only shopping in physical stores after the pandemic. Goodman indicated that this could signal a sign for retailers to step up their e-commerce game, especially as customer expectations continue to increase in the current climate.

“While the survey found consumers plan to keep up many of their new digital habits even after stay-at-home restrictions lift, it’s clear their tolerance for poor digital experiences is thin and many won’t hesitate to switch apps for something that’s easier to use and delivers a better overall user experience,” he said.

“Poor online experiences can impact the bottom line. Consumers abandon their shopping carts when the checkout process is too long or complicated. New apps are at greater risk for these pitfalls and businesses must react quickly with sophisticated digital identity approaches to keep the customer experience friction-free.”

Knight suggested that some of the ways retailers could work to attract older customers include creating attractive loyalty initiatives, offering easy returns and deliveries, as well as a smooth navigation experience online. She added the older generation will probably continue to shop online if they became more familiar with digital tools and apps and trust that they are not being scammed.