Customers for Life: The Older Population

An “older” woman stops by the service department of a large, busy dealership in Florida to have her air conditioning checked. “It's the Schrader valve and it will cost $229 to have it fixed,” shouts the counter person. The older adult, in a soft voice, expresses concern about the price and says she doesn't know much about a Schrader valve. Guessing that the old lady is simply hard of hearing, the counter person raises her voice and repeats the price. A line forms, the woman becomes unnerved, and out of frustration and a lack of understanding, declines the service. The counter person responds (in the same loud voice), “It will cost $29 to put it back together and you can go to the waiting room. When it's ready, we'll call you.”

The dealership missed an opportunity to win this customer for life, which many older adults are likely to become once trust is established. Instead, this bad experience likely became the subject of that day's conversation among older friends who rely heavily on word-of-mouth recommendations when it comes to buying services, especially automotive repair.

An “Older” Profile


Donald Smith, 72, Nokomis, Fla.
The “older” market - age 65 or older citizens - represents business opportunities for repair shops that understand mature consumers' attitudes, concerns, needs and behaviors, and then take steps to reach out to this growing segment of the population.

According to the U.S. Census Bureau, this age group grew 74 percent between 1970 and 1999 - from 20 million to almost 35 million people. In 1999, the older population represented approximately 12.7 percent of the total U.S. population.

The Administration on Aging (AOA) reports that in 1999, there were 20.2 million older women and 14.3 million older men, or a sex ratio of 141 women for every 100 men. As the population ages, it becomes increasingly female.

The AOA predicts that the older population will continue to grow significantly in the future and will burgeon between the years 2010 and 2030 when the “baby boom” generation reaches age 65.

Medical advances, a better-educated society, healthy eating habits and exercise are all contributing to a society that is living longer, according to analysts. However, although people are living longer, the AOA reports that most older persons have at least one chronic condition such as arthritis, hypertension, hearing impairments, heart disease or cataracts.

Major sources of income for this age group, as reported by the Social Security Administration in 1998, were Social Security (reported by 90 percent of older persons), income from assets (reported by 62 percent), public and private pensions (reported by 44 percent) and earnings (reported by 21 percent).

Geographically, the AOA reports that in 1999, about half (52 percent) of persons 65-plus lived in nine states: California, Florida, New York, Texas, Pennsylvania, Ohio, Illinois, Michigan and New Jersey. Persons 65-plus constituted 14 percent or more of the total population in 10 states: Florida, Pennsylvania, Rhode Island, West Virginia, Iowa, North Dakota, South Dakota, Connecticut, Arkansas and Maine. In 12 states, the 65-plus population grew by 17 percent between 1990 and 1999: Nevada, Alaska, Arizona, Hawaii, Colorado, Utah, New Mexico, Delaware, South Carolina, North Carolina, Wyoming and Texas.

The Importance of Driving

According to AARP, persons over age 65 make more than 90 percent of their trips by private vehicle, either as a driver or passenger. The trips they make connect them to the goods, services and activities that make it possible for them to continue to live independently. An increasing proportion of the older population has relied on being able to drive themselves through most of their lives. This is reflected in the growing rates of persons age 65 and older who are licensed drivers. AARP reports that in 1996, 74 percent of all persons aged 65 and older were licensed drivers compared to 61 percent in 1983.

What does this mean to automotive service shop owners? It means you should be proactive in recognizing the size, strength and needs of this large market and take steps to make your business “user friendly” to older adults. Many of these accommodations pertain to how employees communicate with older adults and therefore, can be made with little, if any, outlay of capital.

Give Us the Information!

The female segment of the older population is immense and growing. They require a lot of information when it comes to spending money, and they appreciate businesses that are active in the community and accommodate their needs.

According to the AOA, almost half of all older women in 1999 were widows. When a husband who was the primary caretaker of the family vehicle passes on, it leaves the widow wondering, “who is going to take care of my car?”

“You can be that person for life once trust is established,” said Thom Gyder, president and general manager of Wilhelm Automotive Service Center, Peoria, Ariz. Gyder's business is on the edge of the area's Sun City retirement community and retirees make up 50 percent of the business.

Older women are also more likely to talk with their friends and family about big decisions and purchases they plan to make. They seek out other people's ideas more so than men and often travel in groups when shopping, exercising or visiting, making word of mouth extremely powerful. (In a survey done by Wilhelm Automotive of Sun City residents, 87 percent said they select a repair business based on word-of-mouth recommendations.)

When it comes to automotive repair, women are often concerned about being over-sold services or repairs they don't need. Theresa Kohler, age 72, East North Port, N.Y., sometimes has the feeling that she is “being taken advantage of,” and feels this way due to her general lack of knowledge of automotive repairs. “My first concern is that I can trust the person I'm doing business with and that I will be treated fairly,” said Kohler.
Older people are very concerned about how long the repair will take of the length of time they might be without their vehicle. People assume that because retirees don't work, they have a lot of free time and can live without their cars...they do have free time, but its booked with golf, doctor's appointments, social outings and volunteer commitments.


Make it Quick

As people live longer, the issue of mobility becomes more critical.

Older people are very concerned about how long the repair will take or the length of time they might be without their vehicle. “People assume that because retirees don't work, they have a lot of free time and can live without their cars,” said Gyder. “They do have free time, but it's booked with golf, doctors' appointments, social outings and volunteer commitments,” he said.

In addition, they are less prone to driving an unfamiliar vehicle, such as rental cars or loaner vehicles, especially if their personal vehicle is equipped to help them function with a disability. This makes a shop's pick up and delivery service very attractive to older adults.

Here are some other items that will make your business easy to use and attractive to older adults. Check your parking lot and access to your shop. Gyder's shop dates back to 1928 and he noticed cracks and settling in the concrete pad leading to the front door. He poured fresh concrete to eliminate safety hazards for customers. Is the lot free of potholes or obstructions, and does it have parking stalls large enough for full-door swings? If you have a lot of steps, can older adults easily access your front door via a ramp? Does your front door open easily?

The personality and skills of the front office employees who will greet older customers are key to building trust. Are these employees articulate and well mannered? Do they have the personal touch that will reassure these customers that everything is going to be OK? Are they patient and understanding as they interact with older customers and can they avoid the use of highly technical terms and complicated explanations?

“If you're in a hurry, you'll turn them off. You have to allow time for face-to-face discussions that sometimes have nothing to do with automotive repair,” said Gyder. His employees will often step out from behind the counter and sit down with customers to explain the repair. “We also have learning aids and books with pictures and illustrations. This shows customers what we recommend and why, and works well,” said Gyder. The shop also has a book with maintenance schedules that it uses to encourage preventive maintenance to customers.

In addition, is your waiting area clean and comfortable with handicap-accessible restrooms? Do you provide drinking water since many older adults take medication? Do they have access to a telephone to contact a friend for advice or to line up alternative transportation (if you don't have a shuttle service)? “Comfortable chairs with high backs are very important. And they have to have armrests since many older adults use these to help themselves up,” said Gyder. In particular, his shop has some “nodding off” chairs that are perfect for taking a little snooze while waiting for the repair.

Make it Obvious

If your business provides a warranty on parts and labor, post this information somewhere in your waiting area. This will signal to your customers that you stand behind your work. If you have a parts policy (used and new), make sure this information is stated clearly and prominently. “I would be disappointed if original parts were not used to correct any repair problems that occur,” said Donald Smith, age 72, Nokomis, Fla. “Quality workmanship is very important to me,” said Smith.

In addition, make it clear to your customers if your business is a full-service shop. Older adults appreciate having a one-stop shop to meet all their repair needs. They also are less likely to change residences so once you earn their trust, they can be customers for life.

Be Involved

To promote Wilhelm Automotive to older adults, Gyder volunteers his time to speak to retiree-related groups. He usually talks about cars and repairs, but occasionally is asked to speak about his love of the Grand Canyon. “It's very personal and spending this time with people lets them really get to know you ... and to trust you,” said Gyder. The business also supports many local groups, such as the theatre, symphony and bowling leagues.

Gyder reiterates the importance of earning trust with older customers. “You can make or break it in just one visit. After you establish trust ... a rapport, then they (older customers) can be more forgiving,” he said.