Increasing Smartphone Penetration and Spend in Older Customers
2018.04.05   |   50 pages   |   Revenue Continuity

Author:
Liam Mimnagh


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The seniors market category is a challenging one into which customers may fall for four decades (or more).  It is a demographic traditionally associated with being thrifty but also with being challenged by modern technology. 

Mobile Market Development believes that the times they are a-changin’ in this segment and, based on our review of MNO propositions for seniors across a number of markets, MNOs should re-visit this potentially lucrative segment.   

  • A decade ago, in the EU, only 10% of the elderly population (aged 65-74) used the internet at least once a week.  By 2016, this had increased to 45%.

This rise in technology adoption has arisen from younger generations using the internet now moving into the senior category, but also from retired people developing internet and technical skills in their older age. 

Retired household income, particularly over the last decade, has also weathered the economic storms more resiliently compared with working households. 

While MNOs have offered discounts for customers reaching the qualifying age of 60+, based on the view that the senior segment is mostly comprised of low use value seekers, real innovation in addressing the segment has come from specialist niche MVNO and device players.

  • While many seniors are still technology averse and looking for low prices, the segment has broadened in age terms (down to 55+, for example) and now includes highly sophisticated members, such that a review of the segment and propositions offered is urgent.

This report looks at the sophistication generally found in senior propositions today, and explores where MNO senior propositions are in terms of meeting the needs of an increasingly tech savvy and financially secure segment.

 

Companies: GreatCall, Bazile Telecom, Big Launcher, Wiser, AT&T, Wind Italy, O2 Germany, TIM, Telecom Italia, Deutsche Telekom, Vodafone Germany, T-Mobile USA,  Smart Seniors, Telia Sweden, Doro, Vodafone Australia, MEO Portugal, Telenor Sweden, Alcatel, Verizon Wireless, American Association of Retired Persons, AARP, Lyft,

Countries: USA, France, UK, United Kingdom, Australia, Portugal, Sweden, Italy, Germany,

Keywords: Urgent Response Button, Senior Tariff Discount, Health Tips, urgent response, broadband, Launcher, Seniors Marketing Channel, concierge service, Personal Operator, Easy Mode, privileged customer service, Doctor TIM, Fixed-line replacement, Smartphone penetration, Elderly, Young Seniors, International Academies of Emergency Dispatch, Doro Connect and Care App, digital divide, Fitness Tracker, Doro, Smartphone, Jitterbug, Wellness call, Special Assistance, Lively Mobile, handset set-up service, Seniors Phone, Classic Phone, Brain Games, SOS button, internet, Mobil'assistance, IAED, Hearing impaired, Seniors, baby boomers, Telehealth, fall detection, Flip Phone, Senior Tariff Plan, Emergency Assistance, Retirement, working households, Visually impaired, Emergency button, Senior Learning Centre, Lively Wearable, Retired, Smart Home, GPS Location, senior smartphone adoption, retired income, Senior handsets, Behaviour in home, Doro SmartCare, Doro Care, Health & Safety Packages, Medication reminder, Lyft Taxi for elderly, Paramedic, Feature Phone, retired households, Passive Sensors,

1

Overview

1

2

Introduction

2

2.1

Background to the Report

2

2.2

Report Content

3

2.3

Currency and Conversions

3

2.4

Further Questions and Feedback

3

3

Opportunity in the Senior Segment

5

3.1

Senior Smartphone Adoption

5

3.1.1

Confidence is Key - As are Family Members/Care Givers

6

3.2

Retired Households - Income Growth & Wealth

8

4

Senior Niche Players

10

4.1

GreatCall Connected Health Services - USA

10

4.1.1

Jitterbug Mobile Devices

10

4.1.2

Customer Education and Jitterbug Tariff Plans

11

4.1.3

Health & Safety Packages

11

4.1.4

Other Devices and Services

17

4.1.4.1

Lively Mobile

17

4.1.4.2

Lively Wearable – Linked to a Smartphone

17

4.1.4.3

Partnership with Lyft

17

4.1.5

Expansion B2B2C, Smart Homes and Commercial Senior Care

17

4.2

Bazile Telecom - France

19

4.2.1

Point of Service Differentiation

22

4.2.1.1

Facilitating Handset Set-up

22

4.2.1.2

Accompanier - Customer Service

22

4.2.1.3

Simplifier - Concierge Service

22

4.2.1.4

Connection to a Contact

22

4.2.1.5

Mobil'assistance - Emergency Assistance

23

4.2.2

Bazile Telecom Tariffs

23

4.3

Specialist Senior Handsets and Launchers

25

4.3.1

Doro

25

4.3.1.1

Handsets for Seniors and Families

25

4.3.1.2

Resolving Handset Difficulties and Addressing Family Concerns

26

4.3.2

App Store Launchers

26

4.3.2.1

Big Launcher

26

4.3.2.2

Wiser HELPER Launcher

27

5

Seniors Propositions from MNOs

29

5.1

Basic Tariff Discounting – Qualifying Age

29

5.1.1

Vodafone Australia – Seniors Discount

29

5.1.2

MEO Portugal – Seniors Discount

29

5.1.3

Telenor Sweden – Seniors Discount

29

5.1.4

AT&T – Senior Nation Plan 65+ Only for Feature Phones

29

5.1.5

Wind Italy – Basic Tariff with Data Add-on

31

5.1.6

O2 Germany – Exclusively for Seniors

32

5.2

Adding Value Through Assistance

34

5.2.1

Telecom Italia - TIM 60+ Tariff Incorporating Assistance

34

5.2.1.1

Doctor TIM Mobile

35

5.2.1.2

How To Guide for Online Services

35

5.2.1.3

Handset Offers – Doro’s & Alcatel’s Ava

36

5.2.2

Deutsche Telekom – Smartphone Offering for Seniors

37

5.2.3

Vodafone Germany – Seniors and Elderly Handset Range

38

5.3

Younger Senior 55+ Propositions

40

5.3.1

T-Mobile USA Unlimited 55+ ONE

40

5.3.2

Verizon Wireless Response to T-Mobile Unlimited 55+

42

5.4

MNO Use of Specialist Seniors Organisations

43

5.4.1

AARP Benefits Extending to Devices

43

5.4.2

Seniors Marketing Channel - Sweden

44

5.5

Observations on Senior Handset Offerings

45

5.5.1

How Smartphones are Generally Promoted to Seniors

45

6

Key Findings and Recommendations

48

6.1

Key Findings

48

6.2

Recommendations

49

 

Appendix – Feedback Questions

51

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