The Future of Online Retail Growth …
Grim or Not?
Dear Business Builder,
Every day I open the morning paper with anticipation. I think I’ve mentioned in the past I’m a voracious newspaper reader … one of a dying breed.
But, it seems I’ve also turned into a bit of a bad economic news junkie. Perhaps it has to do with my many years working for a perma-bear financial newsletter publisher.
In a sad twist of fate, when you work for someone advising people in a bear market … every bit of bad economic news is in fact good news for business.
I can’t get enough of this information … even though it depresses the crap out of me. It’s like a car wreck and I can’t look away. It’s not as if I’m actually happy about this news or how it’s affecting the lives of many Americans … including many people I know.
It’s just I find it fascinating … how much further can the dollar actually fall? How much further will housing values decline (mine included)? Will we ever return to a time of easy credit … and which banks will actually make it out of the crisis? And don’t get me started on the price of oil … does what goes up, ever really come back down … not bloody likely!
So, you can imagine my (sick) delight when an e-mail hit my inbox with the subject line: Online retail Growth is Slowing. Oh my gosh, more bad news to feed my crazy obsession.
So bracing myself for the worst, I opened the e-mail expecting a tragic harbinger for the future of Internet marketing.
It actually turned out to be good news for my beloved industry.
In fact, according to eMarketer™, although consumers are actually spending less, this will create more of a hardship for retail stores than for online retail outlets.
This is simply because the core of online buyers are more affluent and tend to ride out economic downturns better than lower- and middle-income consumers. eMarketer™ estimates that US retail e-commerce sales (excluding travel) will reach $146 billion in 2008, up a whopping 14.3% over 2007.
But they do warn that we should expect to see the overall growth of online sales decline over the next few years. It’s just an inevitable sign of the maturation of the online retail channel … but certainly not cause for panic.
In fact eMarketer™ cites several reasons to be optimistic about the future of Internet retailing. Let me tell you about one of them …
The Fastest Growing Market on The Internet and
How Best To Serve Them!
So with that … here’s a riddle for you …
Their numbers amass more than 40 percent of the U.S. population …
They account for over 70 percent of the U.S. net worth …
In the next 15 years their numbers will grow by a staggering 82% …
By 2011 there will be more than 25.4 million of them online …
And they’re largely forgotten on the ‘Net!
Who are they?
If you guessed Baby Boomers and seniors … you’re right!
Here are a few more surprising facts about this largely untapped goldmine!
According to a study by ThirdAge Inc. and JWT BOOM over 72% of older Internet users have a Broadband connection (significantly higher than the national average) …
A full 82% of them are researching or reading health and wellness information online for themselves and their families …
They’re currently spending over $7 billion online each year …
Seniors aged 62 and older are one of the fastest growing segments of the online population … 25.4 million will access the Internet regularly by 2011 … accounting for an average annual growth rate of 7.6%!
And that most coveted web demographic 18-40 year old Gen-X and Gen-Y … their populations combined will grow a measly 3 percent … less than half of the seniors!
So What are Boomers and Seniors Doing on the Web?
>> They’re seeking out information … if you’re an information publisher in the health and wellness or financial arenas take note – you can no longer afford to put off sustained web marketing efforts …
>> They’re staying in touch with family and friends and responding to offers by e-mail … It’s more important than ever for all businesses to start collecting e-mail addresses whenever possible and start a consistent e-mail dialog with your customers … and don’t forget to invite offline customers to subscribe to your newsletters or opt-in to receive your special offers … that is hands-down the fastest way to grow your list.
>> They’re shopping and researching products before they purchase offline … An easy-to-navigate website is no longer a marketing luxury – it’s a necessity for businesses of all types and sizes down to the local pizza shop or auto-repair … the website has replaced the brochure when it comes to small business marketing.
What Aren’t Boomers and Seniors Doing on the Web?
>> They’re not perusing the latest hot video on YouTube …
>> They’re not pouring their guts out on their personal blog …
>> They’re not playing the latest online video game …
>> They’re not downloading music.
5 Important Rules When Marketing to Seniors Online
1) Keep it Simple – Older web users aren’t as adept at navigating the web as the under 40 crowd. Excess navigation, lengthy downloads and multi-media such as audio and video become extremely confusing for a group that isn’t even hip to web lingo such as URL, minimize or toolbar. And the older the user the more likely they are to have usability issues.
2) Credibility is Key – Older web users are extremely skeptical or “trust challenged.” Although this group is increasingly web-savvy and routinely goes online, they doubt the credibility of the information they find on the Internet. This is extremely true of the most popular web category – health and wellness information.
It is extremely important to establish a relationship with your prospects and highlight your credibility right up front by detailing your expertise, years of experience, degrees and professional certifications, years in business, etc.
Testimonials, photos of your location and employees (if possible), all product guarantees, security logos and full contact information and phone numbers need to be prominently displayed to win their trust.
3) Oh No, I Broke It! – As ridiculous as it may sound, taking action such as clicking from page to page and clicking through to your shopping cart may scare the average senior web user. Many fear breaking something. It becomes more important than ever to walk your older prospects (or any prospect for that matter) step-by-step through the buying process.
Simple 1-2-3 or A-B-C instructions work great in this regard. Letting them know what happens next after they click a button or what comes next in the process before they take an action or order your product and how long a process may take will go a long way in guiding them to where you want them to end up – your order page.
4) Honey, Get Me My Glasses – Not all older people have problems with their vision, but many do. It is important to keep this in mind when designing your web site. Go for larger font sizes and avoid large blocks of reverse type (white on a black or dark colored background). Design your pages with a heavy contrast between the type and the background color … black type on a white background provides the most contrast.
Use a scalable font that enables users to increase/decrease text size using the browser functions (View>Text Size>Larger). Or better yet, provide an obvious way for older users to increase text size, like a visible button.
And lastly, be consistent with action buttons or links keeping them the same size and color … such as a hyperlink always being blue with a blue underline.
5) I Don’t Look Like That! – Visual imagery is extremely important to any website. As they say, a picture is worth a thousand words … so show me a picture (or 10) of what I might look like after using your product – happier, healthier, slimmer, wealthier or more active and mobile.
While it would be inappropriate (and just plain dumb) to show photos of slim 20-somethings on a site geared toward older prospects, it is equally as deadly to depict images of folks with one foot in the grave … actually older than your core demographic. A safe bet is to aim to show a variety of images of active people approximately 10 years younger than your core demographic.
A Quick Note About Offline Marketing Before We Go!
Your older prospects grew up in the age of traditional media. The oldest boomers and all of the seniors were kids when the television was invented. They rely on traditional offline media for much of their information and therefore it heavily sways their buying decisions.
Look to use offline media to bring older prospects to the web.
Here are a few more important statistics on offline media from the ThirdAge study I mentioned earlier:
- 92% have read about a Web site in a print article and then visited it online …
- 89% have seen a print ad and later visited an online store …
- 83% have seen a Web site advertised on television and later visited in online …
- And 65% will visit a Web site address after hearing it on a radio.
These are surprisingly high numbers and make it that much more crucial for you to include your Web address and information about your free e-zine in everything you do.
It may be sexy to build and market websites to young, hip users on the cusp of all the latest technology and dream of being the next big, young Internet mogul after your big Google buyout … but that’s just not realistic.
Me? I prefer a sure thing and to follow the growth … you’ll find me hanging with the old folks! And my guess is we’ll be partying together for years to come!
What do you think?
Are you feeling the effects of the economic decline in your online marketing efforts?
What are some ways you’re tapping into the Boomer and senior market online?
If so, tell us about it!
Until next week,
Julie McManus
Editor, In the ‘Net Trenches
THE TOTAL PACKAGE™
And Web Media Goddess
P.S. Are you in the ‘net trenches? Do you need help? Send me an e-mail to AskJulie@MakepeaceTotalPackage.com and I just might answer your question in an upcoming issue.
P.P.S. Have you checked out The Total Package affiliate program lately? We’ve added tons of new creative to help you earn cash on any new subscriber you refer and we’ve opened our archives up for the pilfering … Click Here to check it out NOW!
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5 Comments »
Join the Discussion!
Let us know what you think. Or ask us anything. Or offer your own sage advice.
The only rule: RESPECT THIS HOUSE! Postings that contain abusive language and/or personal attacks will be cheerfully VAPORIZED. One cross word and – POOF! – your well-thought-out post will be gone in a puff of smoke.
– Clayton
Comment by Chuck — May 30, 2008 @ 2:54 pm
Julie, this is right on target. Thanks for reinforcing my thinking. I especially appreciate your comments on linking through off-line marketing to this market.
Be on the look-out for my seminar addressing this market coming soon.
Comment by Sarah Clachar — May 30, 2008 @ 3:38 pm
I liked this article the first time you posted it, Julie, and it’s still valuable information.
One other note: One internet supplement marketer I worked with noted that gas prices make for good internet sales as people are more and more reluctant to get in their car to go shopping. When you can add shipping incentives, it’s better; but plenty of people consider the shipping costs to be offset by gas prices and just the inconvenience.
Sarah Clachar
health copywriter
Comment by Susan Connors — May 30, 2008 @ 6:39 pm
Julie
Every day I open the morning paper with anticipation. I think I’ve mentioned in the past I’m a voracious newspaper reader … one of a dying breed.
Fantastic news! I don’t get close enough to the stores here in Australia to buy the papers. I am a news person and internet junkie.
Reading your article is invaluable..thank you.
Me? I prefer a sure thing and to follow the growth … you’ll find me hanging with the old folks! And my guess is we’ll be partying together for years to come! What do you think?
Presently I am determining which way to market our network of sites, what to promote, working with designers etc you know what is involved. So when I come across something as invaluable to me as your article and the Total Package, I am very inspired.
Practical, no nonsense, this is info that I crave. I am sick to death of being bombarded with u beaut promises of a lifetime of wealth from inferior products and would be scammers.
I want to know what clients need, how they think, get into their mind … see how we can benefit them and improve life for them. I figure a well thought out "sure thing" is better than going for a market I know nothing about.
People want to be able to trust the company they are dealing with..
They want results that are realistic and do-able..
Something specially for them and easy to use..
You have summed it up nicely in your article.
A full-time mom of 4 children under 6, and developing businesses, I don’t have time for silly information.
Are you feeling the effects of the economic decline in your online marketing efforts?
Economic effects no as I am in research and development stage. I am excited because amongst all the gloom and doom in todays media, opportunity exists.
I do freelance copywriting, mentoring and consulting work. Our businesses are breaking even and sustainable. Now we need to get the products for the internet sites.
I have been freelancing for ten years and a family emergency made me face life head on. Either develope this dream and do it properly, or lose hope entirely. So here we are a registered business in Aus looking forward to today and the future.
What are some ways you’re tapping into the Boomer and senior market online?
Listening and talking to as many boomers/elderly as possible online and offline. Finding out how they surf, what they are interested in, what they need and want. Helping them by making their lives simpler through practical no-nonsense knowledge on how to use the internet. Somehow the business has developed into a network of ideas, people, talent and services.
Topics from health, wealth through to more personal issues have been discussed.
I never thought I would be where I am as a entrepreneur/consultant and thats what I do everyday. I love it!
People are people, nothing to be scared of ..keep writing and sharing your thoughts.
Thank you so much for sharing and reading what I have to say.
Bless you Clayton and team! From a nearly 38 mom, every read in your Total Package is an inspiration. Dreams can and do come true. Success is for everyone. To survive in life, to thrive and learn lifes lessons, every one no matter what culture or status in life..is a success.
"The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and contraversy". - Martin Luther King
"You have powers you never dreamed of. You can do things you never thought do. There are no limitations in what you can do except the limitations of your own mind". - Darwin P. Kingsley
Comment by Georjina — May 31, 2008 @ 10:49 am
Psst! Don’t tell anyone but they are also the fastest growing small business and solo entrepreneur market! How do I know?
Because I read (a lot!) and operate a solo business myself. I’ve been gently ‘tapping’ this market since 1989 (yeah, dog years) and quietly watching what they do, listening to what they say and just generally laughing at the media’s ‘mistaken identity’ crisis about the Baby Boomers. They have it back-ok,…you get where I’m going.
Not all Baby Boomers are upper middle class, wealthy nor college degree holders. The ‘Pig in the Python’ segment is right smack dab in the middle eg Middle managers, government employees with some college but ….here’s the kicker for those checking the numbers: They have an average income of $100,000 a year, not including their personal residence.
Oh, they also make up over 68% of the Baby Boomer market.
Thanks for the update, keeps me sharp. But for my money - I’ll just stay with the unwanted ‘middle’ section of the market.
Good article by the way.
Comment by Sylvia — June 4, 2008 @ 4:58 pm
I look forward every week to your online marketing advice. I fall right into this demographic group, but also own an online business. I am going bonkers trying to figure out all the "ins and outs" of all the social marketing that’s out there.
You brought me back a bit, because my demographic market is right in the baby boomer/senior market for the most part. Thanks for your (always) sage advice.