According to data from The Institute of Customer Service, 1.3 million over 65s in the UK have experienced poor customer service because of their age. For this year’s International Day of Older People, which takes place on October 1, customer-first SIM-only mobile operator spusu explores the dangers of relying on stereotypes, as well as the importance of choice in ensuring excellent service.
The findings from the survey support anecdotal evidence that the customer experience industry is failing older people. Of those who reported experiencing bad service because of their age, 57 per cent felt patronised, while just under half claimed to have been overlooked or not taken seriously.
Alienating older customers not only reflects poorly on customer service departments but can also have a significant financial impact. Back in 2016, Saga estimated the value of the so-called ‘grey pound’, which refers to the purchasing power of older consumers, to stand at £320 billion annually. Given that 2021 census data shows the average individual wealth for 60 to 64-year-olds is nine times higher than 30 to 34-year-olds, it’s likely that the spending power of older customers remains high.
With three quarters of those surveyed by The Institute of Customer Service having told their family and friends about their bad experience, companies who get it wrong when dealing with older customers are setting themselves up to lose money. So, what can businesses do to ensure the needs of this group are met?
Support, not stereotype
The key to delivering excellent service for more senior customers lies in understanding them as individuals and not making assumptions based on age.
For example, the enduring stereotype that older people struggle to adopt modern technologies could potentially lead to these customers feeling patronised or overlooked by staff who assume they have a low level of understanding. Equally, within telecoms, treating customers with a lack of patience if they feel unconfident in using customer service apps and messaging platforms or if they do not understand terms such as roaming and data could also tarnish a company’s reputation.
There is some truth in the belief that older customers are less confident in using technology than digital native generations such as Gen Z, with BT Group research showing that only 13 per cent of surveyed over 65s judged their own abilities as ‘very good’.
However, the adoption rates of smart technologies by the UK’s older population is growing, with Uswitch data from 2023 revealing that four in five over 65s own a smartphone. BT’s research shows that 19 per cent of respondents would be more likely to build their confidence with digital technologies if they had someone to show them how to use it, while 57 per cent would like to be more confident in using tech.
This means that older customers may not necessarily be averse to digital customer service options such as live messaging services, as long as staff provide them with the support they need. This could include using plain language rather than technical terms, as well as asking them first to rate their confidence and knowledge in using digital technologies. Consequently, customer service agents can adapt their support to the appropriate level.
Improving customer choice
Even with the support in place to help older people navigate digital customer service options, many customers will still want an alternative. As service providers, it is our responsibility to offer a wide range of options to ensure that everyone feels included and listened to, regardless of age. All spusu customers can choose the contact method that best suits them, whether that be via email, a live agent messaging service, or speaking to an agent on the phone.
To us, it’s important that our customers can speak to a human customer service advisor, no matter which option they select. Although AI chatbots are growing rapidly as a customer service channel within the telecoms sector, we have chosen not to include them in our own offering. While we are open to the idea of implementing AI tools for back-end use, we believe that AI chatbots lack the nuanced emotional understanding that human agents have, which is essential for delivering excellent customer service.
Moreover, AI-led approaches could potentially alienate older customers. Recent Office for National Statistics research shows that around 55 per cent of 50 to 69-year-olds believe AI will worsen their experience of customer service, compared to just over 40 per cent of 16 to 29-year-olds.
Ensuring that older people feel supported by the customer service industry not only makes life easier for them, but also makes business sense. Moving away from stereotypes and towards a wider range of customer service options allows older people to feel listened to not only on the International Day of Older People, but throughout the year.
To learn more about spusu’s approach to customer service, visit the website.