The Biggest Market the tech industry is ignoring.
Ever notice all those tech company ads for companies like Slack, Monday, Facebook etc? Notice the people they feature? All young, vibrant, full of life and lovely anthem-style music in the background full of “Yo! Hey”” choruses? It would appear that if you’re over 40 you’re far too ancient to be using things like a smartphone, tablet or cool software. This is ironic and huge missed opportunity for tech companies.
According to Statistics Canada (the national statistical agency of the federal government), people over 60 are the fastest growing segment of internet users nationwide. And they love tablets and smartphones, where they are also the fastest and largest growing segment. In the U.S. Pew, a research body, found in 2017 that seniors are in the high adoption rate for technology as well, especially smartphones.
Then there’s the whole ageing population elephant in the digital room. There will soon be more people over 55 than below 20 in the world. Massive retirements are starting and will be a wave that will last nearly 20 years. And not enough younger people to fill the jobs they are leaving behind.
With all these retirements comes people who are spending money, not saving it. They saved and saved, now they spend. Oddly enough, many are also choosing to start micro businesses or work part-time. They have smarts, they have money and they have a good 25+ years to live. Many will also be looking for assistive technologies as they age to enhance their daily lives.
From software to hardware technology companies, serving the senior markets is a ripe opportunity yet few seem to be taking up this market. For IoT companies there are hundreds of millions of dollars to be made with high-margin hardware and subscription services. SaaS software companies are missing out on opportunities to build subscription model businesses that serve the senior market as well. So why are they ignoring this market?
It’s not seen as exciting. Targeting a younger group is cool. You get to make ads with bands that sing “Yo! Hey” Ho!” And people dancing on a beach. Nobody it seems, wants to see grandma and grandad dance on a beach to the Beatles. I’m not attempting to be overly cynical here, but pointing out an immense opportunity that few are looking at. Lest I be seen heaping scorn on the tech industry, CPG brands and major retailers have behaved this way for decades. It’s also a part of human nature; we seek youth, not ageing.
Some smart entrepreneurs will see the opportunity though. And they will be held as business heroes, especially the first tech startup to become a unicorn to the Silver Surfer market. If you’re a startup, focus on those 50+, there’s gold in those digital hills. I’ve already worked on several projects for technologies targeted at seniors. Adoption rates are far better than serving a crowded younger market where retail brands are aiming…a market with little to no disposable income who are in the mode of paying off debts and looking to save money. Smart entrepreneurs go where the market has money to spend and wants to spend it. That is not the under 35 market.
Design products and services for seniors and you’re sitting on gold. While that is simple advice, designing such products for an ageing market is not simple. It has it’s own set of complexities where UX and UI design face different needs and seniors use certain technologies in very different ways from younger generations. But that’s for another time.
