May 2000   

In reality, though, seniors are less likely than younger, less affluent groups to purchase online. So savvy Internet entrepreneurs would do well to take time to learn about this demographic before beginning a market campaign. Sure they have time and disposable income, but can they be easily enticed to buy on the Internet? "Remember, for this group, buying is what you do when you're finished shopping. Shopping is gathering information and doing comparisons," says Barbara McLean, the 60-year-old cofounder and president of Livineasy.com, a Web site designed to teach older Americans how to use computers and the Internet. She points out that as a group, these consumers, herself included, tend to want to educate themselves before buying, and they use the Internet to research and learn before purchasing. "If a Web site has 10,000 products and no information, they won't get a sale," she says.

The AARP, with a membership of over 30 million, backs up McLean's assertion. Their 1999 study, "AARP National Survey on Consumer Preparedness and E-Commerce: A Survey of Computer Users Age 45 and Older," found that 51% of survey respondents used the Internet for comparison shopping, both to learn about features and to compare prices, but only 39% went ahead and bought online. The higher the respondent's age, the less likely it would be for that respondent to make an online purchase.

What keeps more seniors from using the convenience of Internet shopping? McLean cites this group's concern for privacy and security. "This is a group that is so afraid of putting a credit card number in an online form," she says. "There's nothing you can say to them. I've done seminars where I've shown them the documentation from their credit card company showing they'd only lose $50, and they still resist those forms."

Robert Vorek, senior research adviser for the AARP, agrees. "Keep in mind that $50 is sizable for some of these people," he says. "Regardless, if someone has never used a credit card online, they won't change their opinion about its safety until they finally do try."

Both Vorek and McLean say the solution to this concern is to provide a call center for people to phone in their transactions. "In the early days of Amazon.com, their order form had you filling in part of the credit card number, then calling in the rest," recalls Vorek. "That's something that would override these concerns."

The second major concern is harder to address. "I did a seminar with a woman aged 90," says McLean. "She had a credit card, had even used it to buy online. But she hated filling out online forms. 'I put that information in, and God knows where it goes,' she said, and everyone in the room was nodding and agreeing with her." That sense of private information unleashed to the world stops many older people from completing a transaction online. "E-tailers shouldn't ask for any more than they need to complete the sale," says McLean. "I see sites that ask for birth dates, even Social Security numbers. They don't need any of that. And that's what loses the sale."

The AARP survey supports McLean's information. Of those surveyed, 93% felt that personal information typed in during a business transaction should never be shared with any other business without the permission of the consumer. What's more, 45% would never allow that information to be shared at any time, while only 30% would allow it if they were asked first. "If the Internet industry can demonstrate that privacy is not jeopardized, seniors won't continue holding on to that idea," says Vorek.

Once credit-card security and privacy issues have been dealt with, McLean says there are other practical concerns that e-tailers must address if they want to succeed in this market. Most of these concerns boil down to one thing: knowledge. Unlike younger consumers, for whom speed is a priority, older shoppers are more likely to take their time and learn about the products and options available to them. In order to do that, they have to be able to read the text on the screen. A Web site that is crammed full of miniscule text and bright, flashing graphics is going to be hard on older eyes, and will likely be rejected by an older American with just one click of a mouse. Web pages should be clean and lean, with at least 12-point font, minimal graphics distractions, and plenty of space between items, which will allow for easier selecting and clicking.

Once the screen is made easy to read, then it's important to provide as much information as possible. "Another deterrent is lack of information about shipping and shipping costs," says McLean. "They want to know the full price. They know that the product price isn't the end price, and they aren't going to buy if they don't know up front what it will cost in total. And then they need to have their order acknowledged, a way to track that order, and a way to send it back."

The final component in the quest for knowledge is access to a live person for help. "It's a mistake to think they don't want to deal with people. That's dead wrong," says McLean. "Service has to be just as good and accessible, even better, than brick-and-mortar stores. If they're having a problem with their order or if they don't want to type in their credit-card number, they need to be able to call a real live person and get the help they want. If there's no phone number, they'll leave the site and go searching for another one." That level of customer service should be available while they're online. "If they're having a problem with the site, they know they're not computer literate, but they want to know what they're doing wrong. They want to call someone who can walk them through what happens on that site," says McLean. "They don't want to send an email somewhere or start from scratch."

Both McLean and Vorek feel these needs will gradually change as today's computer literate generations become tomorrow's older Americans on the Internet. Meanwhile, all of you e-tailers who are tempted by graying demographics, remember that as with any retail venture, it is essential to know your market and customize your product accordingly. Perhaps more than any other group, older Americans take the time to learn about the technology and products they're considering for purchase, and they also take the time to share that knowledge with others via word of mouth and email. Web sites that cater to this group's needs will survive and even thrive; those that don't, well . . .there's always Generation Y.