Selling To Different Generations

By Barbara K. Mednick, Star Tribune Sales and Marketing

Knowing your customer has taken on a greater meaning and requires an informed generational perspective to reach target markets like Veteran, Baby Boomer, Gen-Xs and Gen-Ys.

Today’s sales and marketing professionals are being challenged like never before to meet the needs of four generations of individuals in today’s work force. Knowing your customer has taken on a greater meaning and requires an informed generational perspective to reach these target markets – Veteran, Baby Boomer, Gen-Xs and Gen-Ys – and to recognize what influences their buying decisions.

These changing dynamics require changing strategies, according to sales/marketing experts. In other words, the successful strategies used in the past may not work with today’s decision makers.

Generations Colliding In The Workplace

“There are several different generations of workers, and we need to learn how to harness the needs and desires of these groups to achieve good sales results,” explains Danita Bye, president, Sales Growth Specialists, Medina. “Companies that fail to do so will be frustrated by lackluster sales performance. If everyone were alike, it would make our lives and our relationships easier, but that simply isn’t reality.”

Debby Magnuson, certified life coach and program director, ReFirement Coaching, in the Twin Cities, echoes that sentiment. “These four generations colliding in the workplace is causing new problems and requiring new solutions. You have to understand the people in each group and how they live,” she says.

Currently, the Boomers and Gen-Xs constitute more than 80 percent of the work force, according to Magnuson. There are increasing members of generations X and Y entering decision-making positions, according to a March 15, 2006, article on the website of EWF
International, which creates peer advisory boards for women business owners and executives. “Most marketers already understand how to reach Boomers and Mediators, but very little research has been dedicated to understanding the corporate purchasing habits of Gen-X and Gen-Y,” according to EWF.

Key Generational Characteristics

Following are the key characteristics of the four groups as they relate to selling, according to Magnuson:

Veterans: Ages 61-84: Led the way toward social change and are now retiring.
Baby Boomers: Ages 42-60: Grew up with prosperity and are into status symbols. Have high expectations and want to be fulfilled in every aspect of their lives.
Gen-Xs: Ages 26-41: Are willing to live with less “stuff” to have the lifestyle they want. Their battle cry is “I work to live; I don’t live to work.”
Gen-Ys: Ages 6-25: Want to be respected, and technology is an expectation, not an extra. They are very media savvy and team oriented.

Tips For Selling To Each Generation

Magnuson offers the following selling tips by generation:

Veterans: Appeal to their interest in seeking new experiences.
Baby Boomers: Want to have personalized service.
Gen-Xs: They know they are being analyzed and sold to, so understand their lifestyle and they will use a particular product/service.
Gen-Ys: Respond to their expectation for instant communication. They tend to shop in groups, so there is a need to understand who the decision maker is.

Primer for Boomers: Bridging the Sales Management Gap

First and foremost, Generation X and Generation Y employees are not as materialistic as Baby Boomers. To get them to stay, managers must do more than pay well. Another difference is attitude. Baby Boomers’ strong work ethic is rooted in the belief that they should be grateful to have a job: work hard, don’t screw up, and the company will take care of you. GenXers and Yers have witnessed their parents endure layoffs and corporate failures. As a result, they don’t harbor loyalty. They have strong confidence in their skills and abilities. They’re not afraid to make mistakes, take some risks, and move on if they need to.

GenXers (46 million born between 1965-late ’70s)

Independent, creative thinking, addiction to change and emphasis on family. They are less motivated by promises of overtime pay and more motivated by personal satisfaction with their jobs. They want to grow in their jobs and learn new skills.

GenYers (70 million born between 1977-2002)

Questioners who are much less likely to respond to traditional command-and-control management. They need autonomy on how to reach goals. Both groups share some common characteristics and values, some to a greater degree and others to a lesser degree:

* Financial smarts
Having witnessed financial insecurity resulting from layoffs and the dot-com bust, they are skeptical of Social Security and care about benefits like 401(k) retirement plans. 49% say retirement benefits are a very important factor in their job choices, and 70% contribute to their 401(k) plan.

* Work-life balance
They are more interested in making their jobs accommodate their family and personal lives. They want flexibility and telecommuting options, so they are excellent candidates for sales positions.

* Change, change, change
GenYers don’t expect to stay in a job, or even a career, for too long – they’ve seen the scandals that imploded Enron and Arthur Andersen, and they are reluctant to pledge their loyalty to a company. They also don’t like long assignments; they are multitaskers, juggling e-mail on their BlackBerrys while talking on cell phones while surfing the net. They are adept at small assignments with tight deadlines. Belief in their self-worth prompts them to try changing the companies they work for. Xerox’s slogan, “Express Yourself,” is an appeal to GenY’s desire to develop solutions and change.

* Communication
The annual review doesn’t cut it for GenYers, who have grown up getting constant feedback and recognition from teachers, parents and coaches and expect it from bosses in the workplace. They thrive on frequent, honest communication.

* Diversity
1 out of 3 GenYers is a minority, so they appreciate workplace diversity for its learning opportunity.

* Socially Responsible
Concerned about the environment.

I’ve matched some practical techniques for managing these groups based on motivators that Edge International, a professional services consulting firm, found in their study:
*    Opportunities for advancement
Offer lateral and rotational assignments. The old way of thinking was, “If you’re not moving up, you’re moving out.” Not anymore. Instead, young employees see it as a way to get experience in different roles and responsibilities at their level.
*    Professional growth
They don’t leave the job as soon as the training ends; in fact, the more training they get and the more professional development that they see, the more likely they are to stay. Mentor and career development programs are valuable to them as are perks like tuition reimbursement.
*    Achievement
They want praise and want to know that they are contributing and how they fit into the big picture.
*    Leadership
Involve them in decision making. They are eager to be included in determining how work goals will be met. These previous latch-key kids grew up when the divorce rate was skyrocketing and learned independence at an early age, which they want to carry over into the work environment.
* Information
Being a member of a team-Share information with them. Managers who horde information and don’t share will cause a big problem for this group. All businesses, regardless of size, maturity or industry, must harness the needs and desires of Baby Boomers, Generation Xers and Generation Yers to maximize their unique contributions. The simple truth is that companies that fail to do so will be frustrated by results that do not meet corporate goals and objectives.

Barbara K. Mednick is a Twin Cities marketing PR/communications consultant and freelance writer. Here is link to the original article: Selling to Different Generations

For more information on Sales Target Markets, get Danita’s e-book called Target Sales Focus.

Bio: Danita Bye

Nationally recognized sales management and leadership expert Danita Bye built her reputation on building and inspiring process-oriented, no excuse, high-performance sales teams that deliver bottom line results. With her unique Fortune-100-turned-entrepreneur perspective, Danita helps CEOs and company presidents take their businesses to the next level. Her practical, no-nonsense approach to sales management, combined with her leadership acumen, enables sales leadership to increase sales, creating predictable revenue streams.

As a 10-year veteran of the Xerox Corporation, Danita consistently achieved award winning sales performance before leaving to become an equity partner and national sales manager for a Minneapolis-based medical device company. In this capacity, she increased annual revenues from $300,000 to a run rate of $20 million in just ten years.

Danita has authored numerous articles on sales management and leadership. In addition, she was a featured as a sales development expert on the TV show, “The Ruthless Entrepreneur,” which is currently airing on the Oxygen Network. Leadership Shift, Management Acceleration and a library of eBooks on critical sales management issues are available on the Sales Growth Specialists’ website.

Danita can be reached at Danita@SalesGrowthSpecialists.com, 612-267-3320 or 800-256-2799.

For more insights on Sales Strategy and Sales Process, visit www.SalesGrowthSpecialists.com.