Kids’ e-mail spurs UK oldies online
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By 2005, 3.2 million retirees will be on line: fast-forwarding their learning to keep in touch with their families.

Analyst Caroline Sceats, said: “PC retirement gifts and the impact of children and grandchildren communicating via e-mail will spur uptake of the Internet amongst the over-55s. And hyper-speed learning happens when consumers spend sufficient time online to pack a year’s experience into a few months.

According to a recent report from Forrester Research, “high-income pessimists will begin to use the Web, discovering the experience is much more attractive than they had imagined”.

“The most dedicated users – addicts – will use the Internet six or seven days a week, increasing the opportunity for online businesses to engage with them through advertising,” said Sceats. “Adopters will come online for around four days a week. The least active group – experimenters – will go online less than two days a week, limiting the ability of online businesses to target them.”

Within a year, Forrester asserts, older users will out-perform in areas such as online gaming and shopping. Sites will have only six months to target online retirees before the cost of recruiting them starts to rise. And as they pick up speed, users will come to expect better service. Companies must focus attracting the most profitable of the online seniors – what Forrester calls the net-powered and net-reticent retirees.

The net-powered are technology-driven experience seekers who are frequently online, but they are also low spenders. With their fondness for new technologies and with strong tendencies towards gambling, gaming and downloading, net-powered retirees are a good match for lower-cost digital TV and mobile Internet offerings.

“For net-reticent retirees to turn into profitable customers, media and commerce players must create partnerships to build lifestyle management portals that attract and educate new users,” Sceats added. “Lifestyle management portals – online personal assistants – will give older Web users an experience they value, and help open up access to their high online spending potential. Net-reticent retirees will have the finances and the interest to plug into online financial management in a big way.”

For the report, The UK’s Golden-Age Opportunity, Forrester spoke with executives from 30 UK companies including members of Britain’s leading retailers, portals and hardware vendors. Forrester also spoke to Dr Alistair Edwards, senior lecturer in Computer Science at the University of York, whose areas of expertise include how older people use technology.



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