If you want to know who your competitors’ customers are, look at their parking lots. If you see Lincolns, Cadillacs, and Buicks, then you know the customers are

seniors over 60 years of age. If you see Lexus, Jaguar, Volvo, and Mercedes cars, then you know the customers are Baby Boomers and caregivers buying for their aging loved ones.

Why is this information important? Successful retail businesses such as The Gap and Crate & Barrel merchandise to meet as close to 100% of their customers’ needs in their respective categories as possible. If home health care dealers want to close a sale and create a loyal customer who will return, they need to offer product depth and breadth. This means meeting two consumer needs:

1. Providing a complete product selection of good/better/best quality and pricing options for any given product.

2. Providing, displaying, and demonstrating all of the related add-on products that a customer might also need or want to buy in addition to the core product.

And to do this effectively, home health care dealers must know as much as possible about who their customers are and who their competitors’ customers are.

Redefining Seniors
Marketing today has become a very sophisticated—and sometimes high-tech—operation. Even the concept of “seniors” has changed. Last year, the AARP concluded that the term senior applies to several different demographic groups. For AARP, this realization meant a change in marketing strategy. Instead of publishing just one magazine, Modern Maturity was renamed AARP: The Magazine and is printed in three different editions; one for 50- to 59-year-olds, one for 60- to 69-year-olds, and one for those over 70.

These age groupings are not arbitrary. Marketers often divide the senior category into Thrivers, aged 50 to 59; Seniors, aged 60 to 69; and Elders, aged 70 and above. The Elders are the conservative Depression-era and World War II generation that, in relation to HME, have always accepted their Medicare basic entitlement as good enough for themselves.

Seniors can also be defined by how they use HME. Marketers who use this approach apply the term “Seniors” to describe people in their 60s who are still active and mobile. Seniors travel, visit family, and buy comfort items, diagnostics, compression, orthopedic supports, and diabetes supplies.

The marketers use the term “Active Elders” for those people in their 70s who have started to slow down. Among Active Elders, women are often caring for a male spouse or companion who is starting to need the full complement of HME: cane, walker (and possibly wheelchair), bathroom safety items, lift chair, scooter, hospital bed, incontinence supplies, etc.

Finally, these marketers apply the term “Sunset Elders” to those in their 80s who tend to live in assisted living facilities. Predominantly female, Sunset Elders buy their own HME and usually need mobility products, bathroom safety items, incontinence supplies, and respiratory support.

Identifying Home Health Care Consumers
Market research firm RoperASW has developed a new matrix to identify consumer groups based on their value systems, lifestyles, and life stages. Of the six consumer groups identified, three are considered “home care” oriented, which means that they are homebodies centered on the family and home.

Roper’s Intimates are the ideal pharmacy customers: older women from high dual-income households who value family and home, buy home health care products, value brand names, and are willing to pay more for premium brands. According to Roper’s 2002 ValueScope report, these women want retail stores to help them relax and enjoy life with those they love.

Intimates focus on the traditional roles of being a good parent and spouse who nurtures, loves, and protects his or her family. They want to know and trust the people they rely on for health care information and products. As a result, they usually have a personal relationship with their pharmacists and are loyal repeat customers. Because Intimates balance working and caring for their families, they do not have time to try new products or brands. However, they will try products that trusted health care providers recommend to them.

Roper’s Devouts are primarily older women who are the family caregivers, decision-makers, and shoppers. These traditional homemakers value loyalty and family. They are stereotypic seniors in that they are thrifty, price-sensitive shoppers. They buy basic, no-frills products, not name brands.

Since Devouts represent the lowest income group (see chart), they are also the typical dollar store customers. They clip coupons and want dependable products at the lowest prices. Retail store sales attract Devouts to buy but do not necessarily develop store loyalty. And, as their name implies, the Devouts are religious and involved in church activities.

Finally, Roper’s Altruists share values with the Devouts but are more idealistic in their values for themselves and the environment. Most are women just under 50 who are price-conscious shoppers. Personal care is a top priority for them along with home care and environmentally conscious products. Altruists are also very brand loyal.

The Intimates, Devouts, and Altruists prefer to buy from businesses that closely match their needs and values. Once a business identifies its primary customer demographics, then it needs to develop a marketing and advertising program geared to these specific customers.

Branding your business is more than creating a logo and an advertisement. This process involves developing a mission statement (objectives), strategic business plan (game plan), marketing plan (implementation), and advertising campaign (sales). When you position your business, you are defining how it relates to a particular market as well as to your primary customer base.

Answering the question “How will you continue to meet the current and future needs of your top customers?” is the directing force that guides marketing planning. By knowing your customers and their needs, you can build your business by better meeting these needs. Customer-driven businesses succeed by always incorporating their customers’ needs into their growth strategies.

Jack Evans is president and CEO of Global Media Marketing, Malibu, Calif. Contact him at (310) 457-7333 or through his Web site at www.retailhomecare.com.