1: Selling and the Generations
A customer's decision to buy is usually about 85% emotional and only 15% rational (EN: Another point of contention is that "emotional" is separated from "rational" as if they have nothing to do wit hone another), but this varies by the situation: where the customer is faced with a significant investment, or many alternatives, they will spend more time choosing among them.
Aside of their qualities of the product and the reputation of the manufacturer, which the salesman often cannot control, they react emotionally to the sales professional. Given that most products and brands are generally the same, the assessment of the seller is often a significant factor in deciding whether to buy from a given person: the more they like and respect the salesman, and the more they feel liked and respected in return, the greater the likelihood they will buy from that salesman. Conversely, if they don't "like" a salesman, they won't buy from him, and will likely give little attention to anything he has to say.
The problem is that "liability" is often considered to be an innate ability or natural talent - you have it or you do not - and it's assumed that a person who does not have charisma is not cut out for a career in sales. But when you examine charisma, it becomes clear that it's not something a person is born with, but something they learn and something that can be learned.
Building connections depends on communication skills: people "like" others who communicate in their own terms. If you speak in an entirely different language, literally, it's obvious you cannot make a connection. If you speak the same tongue but use words they don't understand, likewise. But it's even true if you speak in a language and terms the other person is capable of understanding, but express beliefs and values they do not accept, then no connection is made. You're not on the same "wavelength" and might as well be speaking a foreign tongue.
Our natural mode of speaking is as if the listener shared our culture and values. Everyone does this in their daily lives, and they connect with people who are similar to themselves and do not connect with others who are different. It's a matter of random chance that two people who happen to meet will be alike, and as a result will like one another.
A salesman cannot count on random chance - if he can only connect to people who are like himself, he will not gain many customers or make many sales. As such, he must make an extra-ordinary effort to be liked by those customers and prospects he encounters. Communicating with each prospect in the right way is critical to making connections, and making sales.
Some random tips:
- Get them to listen. You have to connect quickly, even immediately, to get the customer to be willing to listen to what you have to say.
- Establish a connection. You need to put the customer at ease, so they are open to you rather than defensive.
- Don't turn them off. You have to be careful to avoid saying "the wrong thing" and putting the customer back on the defensive.
- Get the last look. Ensure that the prospect looks at your product last, giving you a chance to offer a rebuttal against the sales tactics of other companies.
Understanding and being sensitive to a prospect's background, biases, and preferences is critical to being able to achieve these goals.
Generational Differences
Knowing the differences between generations is important to gaining the respect and trust (hence, the business) of an individual, especially one whose generation is different to your own. Sales tactics that work well with one generation may be ineffective or even offensive to another, what one may see as a simple question may seem excessively intrusive to another. Using he wrong tactic can alienate prospects and even drive away current customers.
Market research has demonstrated that different generations have very distinct views about products, among many other things. It's easy to notice the outward signs of generational differences: hairstyle, vocabulary, music, and clothing. Others are not so evident until you interact with them. For example, some generations are inclined to take sales professionals at their word, or are impressed by credentials and endorsements, whereas others are not. One generation may wish to have the "standard" product that everyone else buys, whereas another wants everything customized.
The concept of "generation" involves more than just a person's age: the shared history and experience among members of a given generation creates distinct attitudes and beliefs. While it's generally accepted a person in their twenties is "different" to a person in their forties, but even the current forty-year-old was not the same at age twenty as the current twenty-year old because he grew up in a different time. Growing up in the 1940's, 1960's and 1980's are very different life experiences.
In a static culture, the differences from one generation to the next are minor, but in a period of change, such as the past several decades, the "world" in which a child grows up is different than that in which his parent grew up. He has difference experiences, and a different culture.
As such, you can no longer assume you "know" a person because you once were his age: when you were his age, the world was a different place.
The Four Generations
For the sake of the present study, the author considers four generations to be an active part of today's marketplace:
- Matures - Born before 1946 (65 and older in 2010)
- Boomers - Born between 1946 and 1964 (age 45 to 65)
- Generation X - Born between 1965 and 1979 (age 30 to 45)
- Millennial - Born between 1980 and 2000 (age 10 to 30)
(EN: Older sources draw a distinction between the matures. The "Silent Generation" born between 1930 and 1945 and the "Jazz Age" generation born before 1930 - but given that the Jazz Age generation is age 80 and older, I'd agree they are not worth considering from a marketing perspective except in the rare instances of products targeted to the elderly.)
Each of these generations has shared experiences that lead to attitudes and beliefs that are unique to them, and that differentiate them from other generations. There's a bit of a disclaimer that these aren't entirely ironclad, as people of a given generation are not uniform, nor is it the only factor that influences their personality - but some general observations can be made that are largely accurate.
Matures
Matures number about 40 million, or 19% of the American market. (EN: I totaled this with other figures, and it comes to 210 million, somewhat less than the entire US population, but I expect that those under age 18 and over age 80 are not considered to be part of the economy, in the sense they are not producing or buying goods.)
The Matures were born between the two world wars of the early twentieth century, during a time of economic and cultural stability. Being self-sufficient and responsible are important to Matures.
They are very traditional and conservative, and are known for their sense of patriotism and self-sacrifice for the common good. People of other cultures were expect to assimilate into the mainstream, and Matures themselves try very hard to "fit in" with everyone else.
Currently, the matures have reached retirement age, but due to increased life expectancy, they remain more independent and active than retirees of previous generations. They are also the wealthiest generation, due to their frugality and propensity for saving money. As such, most are very well-supplied for their retirement years.
Boomers
Matures number about 70 million, or 33% of the American market, which is the second-largest segment (second only to the number of their own Millennial children).
Their vast number is attributed to the return of American soldiers from the second World War, who all settled into civilian life and began families around the same time. It's noted that they mostly are the children of the Jazz Age generation, and not the matures.
The Boomer generation experienced some upheavals in American culture, namely in the integration of ethnic segments. Many can recount the day when the first pupil of another race appeared in their classrooms, and are resentful of this intrusion into "their" culture.
The Boomer generation came of age in a nation of relative peace and prosperity, and were shocked by the emergency of the cold war and the political and social upheavals of the 1960's, a time in which American as a nation lost its innocence. Even so, they are known for optimism and ambition.
Boomers are also markedly more self-centered than previous generations, having grown up in a time of peace and prosperity. This generation never had to work together against a common foe, and as such constitute a significant shift in culture from a collective "we" orientation to an individualistic "me" orientation.
Because many are in their late careers, they have higher income than the matures, but less wealth. The boomer generation was not frugal in their lifetimes, and tended to spend as they earned (and then some). As such, the prospect of retirement is uncomfortable, given they have accumulated so little to carry them through their nonproductive years. Many are retiring later in life, and trying now to amass wealth quickly.
Generation X
Generation X numbers 60 million, about 29% of the American economy.
A common theme for Generation X is upheaval and change. They grew up during the cold war between the United States and the Soviet Union, uncertain if they would see much of the future. During the same time, political and corporate scandals left them unable to trust in the institutions of society, and a skyrocketing divorce rate left them unable to trust even in the institution of the family.
As such, they are market by skepticism, distrust of authority, and cynicism. And despite being labeled as "slackers" for the despondency and nihilism of their youth, Generation X is more independent and self-sufficient than members of previous generations, having no expectation that anyone would be concerned for their welfare. They are more frugal even than their Mature parents, contemptuous of the wasteful behavior of the Boomers, and are more cautious consumers than any other generation, being media-savvy and distrustful of advertising claims.
At the same time, they are the most highly multicultural generation, having grown up with a mix of people of different races and cultures. Unlike the boomers, they were not shocked by the appearance of "outsiders" in their communities - they were around them from the very beginning.
Generation X is also the most tech-savvy generation. While the Millennial generation is more accustomed to using technology, Generation X is more adept with it, seeking to understand not only what a gadget does, but how it works.
In the present day, Generation X are mid-career professionals who are settling into the high-earning period of their lives, but are more frugal and cautious about how they spend. Most put off commitments such as getting married, buying a house, and starting a family until later in life - and some not at all.
Millennial
The Millennial Generation numbers about 80 million, or 38% of the American market, and are the largest demographic segment. As the youngest segment, there has not been sufficient time to consider their behavior patterns, though they are now entering an age when evidence is more abundant.
Millennials are the children of the Boomer generation, and have lived during a time of peace and relative prosperity. Given that the Boomers were spendthrifts, many children of this generation were pampered children who were doted on by their parents and given much of what they desired to have. They are less independent or self-sufficient than previous generations, but highly narcissistic.
As such, the Millennials are expected to be impulse buyers and debt accumulators. They are accustomed to having what they want without the necessity of earning it, and statistics on consumer debt bear out that this will be a growing problem for the economy.
In their present stage of life, the Millennials are just emerging from college and are starting their careers. They are also beginning to start families, later in life than the Boomers but earlier and in greater numbers than Generation X.
Generational Insight for Selling
The first step in applying generational tactics in selling is to become familiar with the characteristics of each generation. This insight will help you tailor your approach to the individual or group to whom you are marketing.
Next, analyze your own customer base to determine what generations your customers are from, your own generation, and the generation of the decision-makers within your own company. This helps to identify the groups in question and identify areas in which they may not be communicating appropriately with one another - typically, it's members of an older generation (Matures and Boomers) marketing to younger generations (Generation X and Millennials) simply because people in positions of authority tend to be older. But it's also common for a younger salesman to approach an older client or prospect.
In most cases, a product does not have specific appeal for a given generation, and the company may seek to serve broader markets to gather as many customers as possible - though even in those instances, marketing campaigns tend to be more segmented.
Information about the demographics of consumers is often available on the Internet, or gathering it may require paying a fee to a market research service or industry group that has conducted research, or it may require doing some primary research (surveying) of your own customers if it cannot be derived from your customer databases.
In terms of research, it is common to avoid asking a person's exact birth date (which is sensitive) or even their age (which can be offensive), but if you ask them to identify themselves as member of a given category, you can generally count on getting accurate information. (EN: The exception being marketing to teens and young adults, who are often inclined to overstate their age to avoid being shut out or treated like a child.)
In direct sales, you can generally get a good idea of a person's age by just looking at them, though it can be difficult to tell with some people. Asking a person their age, early in an encounter, is worse that guessing wrong. You can also assess a person's age by their props, actions, choice of words, and the attitude they express.
- If a person who is on the border of Generation X and Millennial seems focused on the information you present about your product, and ignores his cell phone during the presentation, he is likely Generation X. If he answers it immediately, he is Millennial.
- If a person on the border of Boomer and Generation X seems interested in the esteem others will give him for owning your product, he is likely a Boomer; of not, he is likely Generation X.
- If a person on the border of Mature and Boomer is concerned that someone else might be happy with the purchase, he is likely a Mature; if it is all about "me" and no-one else, a Boomer.
Naturally, it's not an exact science, but such observations tend to be accurate more often than not.
Generational Selling Tactics
Once you have identified the generation of a target, you can begin to use generational communication strategies and tactics - the difference being that a "strategy" is the standard sales pitch that is designed in advance to suit a given target market, while a "tactic" is an on-the-fly adjustment that is implemented when the strategic approach is not getting the desired results.
Ultimately, your goal is to communicate effectively and make a connection with a prospect or client, and the generational knowledge will help you to choose the most effective approach. For example, suggesting that an expensive item:
- Credentials and certifications will make it seem more valuable to a Mature
- Suggesting others will envy them for owning it will make it appeal to a Boomer
- Describing the quality of the item will make the price more palatable to Generation X
- Portraying the item as something the customer deserves to have will speak to a Millennial
Each of these approaches will be highly effective with the generation for whom it is intended to work, but will have no effect or may even be offensive to a member of another group.
A Look Ahead
In the chapters ahead, the author will seek to provide a "clear snapshot" of each of the four generations. The order will be that of the level of their economic spending activity: Boomers, then Millennials, then Generation X, than Matures.
The chapters will identify their characteristics, their recognizable traits, their buying behavior, and the tactics that "work" in selling to them.