AUG 2007 - ‘Broadbanding the Boomers’ – Ericsson Research Suggests Switching Gears to Move Older Consumers Onto Broadband
The Internet industry should adjust its messages to effectively target a valuable segment of consumers, according to the results of a research project released today by Ericsson.
The project, “Understanding the Next Broadband Market – Broadbanding the Boomers”, examined the attitudes, values and drivers of Australians and New Zealanders aged 46 to 61 years – the baby boomers – towards broadband Internet. Ericsson used focus group discussions of users and non-users of broadband to better understand this market segment.
Colin Goodwin, Strategic Product Manager Networks, Ericsson Australia, said that the next growth areas for broadband adoption will be in new areas of the population including the boomer generation. To be successful, operators and Internet service providers need to understand how to communicate with this age group.
Today around 67 per cent of Australian Internet users are on broadband, while approximately 50 per cent of New Zealand Internet users have broadband. However, in both markets, broadband adoption is the lowest among older consumers.
The research revealed that key drivers for boomer broadband adoption were the desire to communicate with family and the perception that Internet access is important for their children’s education.
“The boomers account for the bulk of consumers still to adopt broadband. However, selling the benefits of broadband to a retired grandmother is going to require a different proposition than to, say, a recently graduated student,” said Goodwin. “In commissioning this research, we wanted to understand how different it is and what the boomers see as value when it comes to broadband.”
The research focused on:
- Attitudes towards technology and the Internet
- Perceptions and understanding of broadband
- Perceptions and understanding of the elements of acquiring broadband (process, price, obstacles)
What wasn’t said
Mahssa Hosseini, an expert on consumer market research and Strategic Marketing Manager Services for Ericsson Australia, commented, “The focus groups proved most of our ideas correct. But the real surprises were in what wasn’t said.”
While all the focus groups saw broadband as a faster and more efficient way to use the Internet, it wasn’t seen by any group as ‘cutting edge’ or the latest technology ‘must have’. Rather broadband was seen as largely a normal part of today’s communications options.
“The fact that most boomers see broadband as just another way to communicate has implications for how to market and sell broadband to this group. They aren’t looking for flash, attention grabbing, eye-popping commercials as may be appropriate if you were marketing to 20-somethings. They want simplicity and top line benefits – almost as if they were shopping for any other utility,” Hosseini added.
The Ericsson team was assisted by Associate Professor Elaine Lawrence of UTS (University of Technology Sydney), who has specialised in the behaviour of older consumers and their attitudes towards telecommunications technologies.
Professor Lawrence said, “It’s essential that organisations who wish to sell to older consumers adapt their messages to the attitudes and values of this group. The Baby Boomers represent a large and affluent market for service providers, if they are approached correctly.”
Adopters, Intenders and Rejectors
The focus groups were divided among three segments – boomers who have broadband (Adopters), boomers who are thinking of getting broadband (Intenders) and those who have no plans or interest in broadband (Rejecters).
The Adopters largely saw broadband as a positive part of every day life.
“It’s a fact of life now, so he sort of takes it almost for granted now that he has got it,” said one boomer.
While all the groups felt certain degrees of pressure to keep up with technology, the Intenders in particular felt as if they were being pushed into it.
“She is having to go along with it because everyone else is doing it and it is part of life really,” said one Intender.
Another said, “It is always nice to be up-to-date I guess …especially when you have got children.”
Rejecters, as the name implies, have no intention of getting broadband and see it as detracting from relationships.
“You have to be strict to make technology work the good way. It’s intrusive, and these kids grow up think[ing] it’s the norm. God knows what they’re going to do with their kids. It really worries me, I tell you,” said one Rejecter.
Australia vs. New Zealand
Australian and New Zealand groups shared many of the same views on broadband and technology in general. However, one significant difference between the two was a distinct perception in New Zealand that broadband is both slower and more expensive than other countries.
“We pay lots in New Zealand for broadband, we must be one of the most expensive countries,” said one New Zealand boomer.
Further findings
The focus groups also looked into varying perceptions according to gender, whether or not participants had children, and also what triggers might exist that would act as a catalyst for getting broadband such as moving house, buying a new computer or having family overseas. The research also delved into other existing barriers to broadband adoption including cost, confusing plans and set up, and fear of technology.
“The results clearly show a necessity for operators and ISPs to switch gears in order to convince boomers to adopt broadband,” said Ericsson’s Goodwin. “From the advertising to home set up, to the bill, it needs to be very straight forward and with obvious benefits.”
Ericsson is a major supplier of broadband products and services to Australian and NZ service operators. To assist operators Ericsson regularly conducts research into the social and behavioural aspects of telecommunications. The biannual ConsumerLab study provides a global view of consumer behaviour regarding mobile and broadband services based on surveys of many thousands of users, including a sample of 2,000 people in Australia.
Ericsson will be sharing the details of the “Broadbanding the Boomers” research with customers in Australia and New Zealand over coming weeks.
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