7: Selling to Generation X
Members of Generation X are in their thirties and forties, just now entering their peak earning years and taking on senior management and leadership roles in the workplace. At their present life stage, they are the leading demographic for real estate, automobiles, appliances, financial services, and other products aimed at this age group.
As previously stated, Generation X are also the toughest customers in the marketplace: they are skeptical of everything and everyone, and especially toward those who approach them with a financial motive. The moment they feel they are being lied to, they will disengage and go elsewhere. Naturally, hard selling and pushy closing tactics are strictly off-limits, and overselling will even derail them from a purchase they fully intended to make.
Tactics designed for the Boomer generation will fall flat with Generation X and may even be taken as offensive - you cannot flatter them, feed their egos, pander to a desire for esteem, or count on their being optimistic about the details they don't know. They will recognize these tactics and react negatively.
It also goes against conventional wisdom to leave the customer alone through parts of the sales process, but that is definitely the right approach for Generation X consumers. They expect to make an independent decision, and any new information puts them back in the research phase.
They are well-informed and resourceful, who will "stalk" their purchases for a long time, gathering information about the product and the company. At the beginning of the sales process, they will assume the salesman is an obstacle or an adversary and will treat him accordingly.
In spite of their penchant for investing time in the shopping process, they still value speed and convenience in the purchasing process: shopping is not a casual activity, but something they must do in order to obtain something they want or need and is done with intense focus and precision. They shop very slowly, but buy very quickly.
They do not seek to build a relationship with salesmen, but to avoid them as much as possible - a salesman is a walking television commercial, designed to put out marketing slogans and distract them from the truth. Perhaps because of their mistrust for personal selling, members of Generation X are the most likely to buy high-ticket items online, or at least conduct extensive research on the Internet before buying in person.
At the same time, they do not use the Internet in the same way as Millennials do: they are familiar with social networks, but do not participate in them as heavily. They take a dim view of public opinion and prefer to find objective information and make an independent assessment rather than seeking the opinions of casual acquaintances.
As consumers, members of this generation are on a search for truth and authenticity, and expect them to be very hard to find. They will begin as very guarded and skeptical, expecting to be disappointed - but entirely delighted when they do not find it, and highly loyal to those who offer it.
And that should be of great interest to salesmen: it is challenging to sell to members of this generation, but if you can prove your honesty and authenticity with them, you will likely have a life-long customer and many referrals over the long run.
Identifying Generation X Customers
Identifying a customer as a member of Generation X can be more difficult than it is with other generations - because of he narrow age range, older members of GenX may be mistaken for Boomers and younger ones from Millennials - and given that Boomers try to present themselves as younger and Millennials as older and more knowledgeable than they are, Generation X may blend into the scenery.
To make matters more difficult, the members of Generation X are highly diverse and individualized, so there are no set of common characteristics or a shared style that makes it easy to identify them on sight. They do have certain tendencies in common, and very pronounced consumer behaviors that are easily recognized, but they are not the kind of traits that are easily observed at a glance.
Case in point: the personal style of Generation X is plain and utilitarian. They don't dress up to make other people think they are important (like Boomers), nor do they sport a collection of badges in an attempt to make others think of them as being unique and individuals (like Millennials). If they have any stylistic preference, it is to avoid adopting any style, fashion, or accessory that will send a signal to others: plain, modest, and utilitarian best suits the Generation X sense of fashion.
Generation X will come well-armed with information about your products and your company. If a customer shows up with a sheaf of printouts, you are likely dealing with a Generation X consumer. They will also be very aggressive about engaging you with this information, and highly attuned to any conflicting facts or half-truths you might present. They also seek out recognized authorities: if someone says your product is popular on Facebook, they are likely a Millennial, but if they refer to Consumer Reports, they are more likely to be of Generation X.
GenX are also stalkers. If they enter your shop for the first time, they will avoid salesmen and head straight for the product -look it over, scribble a few notes, and then leave without buying. If they come back a second or third time, they are closing in on a purchase. If they are approached by a salesman, they will likely show signs of being annoyed or offended - and when they approach a salesman, they will indicate that they have a question (which he should answer and then shut up) or that they are ready to purchase (which he should immediately help them to do).
GenX are also assertive, even to the point of being aggressive, towards salesmen. To them, salesmen are walking commercials, full of grand claims and little truthful information. They will challenge the claims you make about your product, and they tend to ask "why" a lot: why does it cost so much, why is it configured a certain way, why is it packaged that way - and most importantly, why do you seem so eager to sell me this immediately? Don't take offense - realize that they are gathering information and sorting out fact from fiction - your goal should be to feed that curiosity.
Generation X are fiercely independent individuals. Unlike Millennials who shop in packs, Generation X are lone wolves - they do not enter a shop with a group of people, and very often shop alone. To them, shopping is not a social event, but a necessary task, and other people are a distraction. They don't care about what you have to say, and are wholly unimpressed by the opinions of others - except that it provides them information that they have to research before considering to be true.
Also unlike Millennials, Generation X are very firm about their personal boundaries. They do not disclose information about themselves, and even a typical question such as "Are you looking for something in particular?" might be taken as an assault. They do not want to be friends with a salesman, and generally see him as an obstacle or an adversary that gets in the way of their buying mission.
While GenX is tech-friendly, it is not as tech-dependent as the Millennials. To them, technology is a convenience that makes their life easier, and a nuisance in all other situations. A person of this generation may have an iPhone, but he will not be constantly consulting it: it's a tool he will take out and use when needed, them promptly put it away. If his cell phone goes off and he doesn't answer it, chances are he is Generation X.
Engaging Your Generation X Customers
Earning credibility and respect from Generation X consumers is one of the toughest tasks for a sales professional: they are evasive, skittish, and doubtful, and if you put forth an effort to close the gap, it's likely they will feel pushed or crowded and will go elsewhere. Your initial encounter will be brief and distant, and you may feel that you have lost a customer - and the harder you work to save them, the more you will be pushing them away.
Expect your initial encounter to be brief: introduce yourself quickly, let them know you are available if they need something, and then give them space. When they ask a question, answer it, but don't pressure or start into a sales patter. If they feel they are being pressured or watched over, they will look to make a quick exit.
Provide factual information only. Members of this generation are familiar with sales patter and skeptical of promotional claims. Testimonials mean nothing. For this group in particular, you need to sell the steak and skip the sizzle - they want the facts, and only the facts. Consider your initial encounter to be an information exchange and not a sales call - instead of pushing them to the close, accept that they won't be pushed.
Be scrupulously honest. Be up-front about any drawbacks or limitations - they will discover them anyway, and your credibility will be damaged. A willingness to concede a shortcoming or imperfection wins a great deal of respect and credibility. Rather than denying or downplaying a flaw, admit it openly - and if you want to dilute it, provide a factual benefit as a counterweight.
Also, provide full information. Give them information about all the options, solutions, services, and everything. Don't hold back an enticing bit of information for later. Be ready to provide them with product brochures, or refer them to the company Web site. Better still, refer them to third-party sources of information, which they will find anyway, and which they will consider to be more objective.
Provide full information online. Generation X are heavy internet users and have the ability to focus on a topic of interest for a long time. Your business should have extensive product information available on its Web site, and provide links to other sites that provide further analysis to facilitate their research. It would also be well to enable the customer to buy online, or address some of the steps of the buying process to expedite closing.
Be authentic with members of this generation. Typical Generation X customers can spot a phony quickly, and recognize hype when they hear it. You don't need to pretend to be like them if you are not - claiming to share their style, interests, or tastes will seem patronizing and offensive. When dealing with a salesman, they are probing for dishonesty, and looking for a reason to just walk away.
Provide proof. You will need to be a repository of information, and show that you are presenting objective facts from a reliable source. If you want to build credibility, show your expertise and knowledge. Your personal history (years of experience) are less important to the things you have done recently, and your job title is worth less than the expertise you demonstrate.
Peer referrals are very valuable to Generation X, but anonymous testimonials or popularity contest are not. You will need to produce the name of a person who is familiar to them and respected by them in daily life. If you have a good connection with Gen X clients, ask them if they would be willing to serve as references.
In your presentation to them, stress short-term solutions and immediate benefits. While they place some value on the long-term, the further in the future something will happen, the less likely it becomes that it ever will. Be careful to ensure that you present realistic and achievable goals, or it will be dismissed as hype.
Finally, plan for future engagements. Generation X are not impulse buyers and their shopping behavior, particularly for high-ticket items, is seldom once-and-done. Your initial encounter should be seen as the beginning of a longer engagement that will eventually lead to a sale.
Building Sales Relationships with Generation X Customers
Making it past the "background check" and getting a Generation X customer engaged is the hardest part of the sales process. But from there, you still need to build a relationship with them to ensure you don't fall by the wayside, and be attentive to things you might be tempted to do that will actually work against you. If you handle this correctly, not only will you win their business, but you stand a strong chance of getting their repeat business and word-of-mouth that will be invaluable in winning other clients.
The saying that "time is money" was intended to suggest a person's time is as important as their money - but for Generation X, this is an understatement: time is more important to them. They don't want to be courted, they want to make a purchase and get back to spending time on things they'd prefer to be doing. If you hound them, or appear too needy, then your product is "costing" them something that's more important to them than the money they might pay to obtain it. Be a source of information, be helpful, but don't be a nuisance.
To that end, be efficient in communications: they don't need or want a lot of face time or phone time - in fact, if you can communicate by e-mail, all the better. They are no insistent about using the latest technology, and will generally not want to "friend" you on Facebook or send text messages back and forth during the working day, but they do prefer efficient communications.
Also, this generation values options, and generally has a "Plan B" already in mind If give n a choice to take it or leave it, they will leave it, and they know exactly what they will do instead. To that end, you should also offer them options - rather than a single solution, suggest that you want to present what you think is the solution they would prefer, but make it clear there are other options you can present if they would like to explore them.
To the Generation X customer, the salesman is a source of information. He is not necessarily an expert who knows all the facts by heart, but is someone who can help them to find the information that they are seeking. IF you can offer them advice or point them to a third-party information source, you will gain some respect and esteem. This is especially true if you can provide them with "insider" information or details that the general public may not know about.
Generation X consumers will also be concerned about things that other consumers aren't: they will want to know about things such as financing options from the very start, and will become suspicious if a salesman attempts to avoid the topic by discussing it later. They will want to know about the sales process and return policies, and are likely to read the paperwork before they sign and ask questions about anything they don't understand or didn't expect.
In general, your tactic in dealing with Generation X customers is to provide them with information and let them know what to expect when they are ready to buy. If you are able to play by those rules and boundaries, you can do well with a hard-to-please prospect.
Closing the Deal with Generation X
Consumers of Generation X will not respond well to pushy closing strategies - you are more likely to lose a sale than close one by leaning on them or attempting to create a sense of urgency in getting them to closing the deal. Especially if you suddenly switch into "closer mode," they will recognize that something has changed and become suspicious of deception, and will likely slow down or disengage entirely.
Generally, the best tactic is to let GenX prospects close themselves. This is contrary to the way in which many salesmen are trained to close a deal, and the uncertainty is uncomfortable - but unlike other generations, GenX customers do not shop unless they have the intention to buy, and the only question is whether they will choose to buy from you. If you have been honest and efficient, if the deal is fair and transparent, they will generally indicate to you when they are ready to close.
On the other hand, selling to a Generation X customer can be low-stress to the salesman. You can relax, be yourself, and aside of being helpful and responsive, you don't really have to work very hard ... in fact, the harder you feel you are working, the worse you are actually doing. If you are thinking of a clever pitch, working to build enthusiasm for the hype, and pressuring them to close, it's more likely you are driving them away. Instead, simply talk to the customer about your products and services the way you would with a colleague or casual acquaintances - provide them with information, and let them do the rest.
What will lose the deal, however, is largely beyond your control: if your product isn't up to snuff, if your prices are too high, or if your company's reputation is poor, the GenX customer will choose a better product, a fairer deal, and a better provider. Attempting to use pressure to overcome these shortcomings is inadvisable: you will not get the sale - or if you do, they will be very vocal to others about having gotten a bad product, a raw deal, or their encounter with a bad company.
On the other hand, if you succeed in getting the same and provide adequate attention to ensure their ownership experience is positive, you will have gained a fiercely loyal customer who will readily recommend you to others.
A bit more information is provided about the importance of after-sale service. Nearly 75% of younger generations will switch to a competitor after just one bad service experience, and about 85% of them will tell their peers about it. Given that word-of-mouth is now down over the Internet, where it is heard by millions and remains online for a long period of time, this can be extremely damaging to your future business.
The younger generations give a lot of credibility to information they receive online, and even just a few red flags can take your company and product out of the running, long before a customer sets foot in a showroom or visits your Web site. What Generation X has to say online also impacts the Millennials - while the younger generation is more influenced by the opinions of their peers, Generation X is often the older, smarter, and more resourceful generation that authors the original opinions to which Millennial customers will later subscribe.
Further Thoughts on Your Generation X Customers
While the majority of this book focuses on the retail market, it's also important to recall that Generation X are now taking management and leadership positions, and are becoming key decision-makers in the B2B market. Especially since they are focused and resourceful, their opinions hold a lot of weight in that market - so not only is a Generation X customer going to be the next C-level executive, but he is also likely to have a great deal of influence with the current one.
Relationship marketing has become a topic of interest, but unlike the Boomers before them, the GenX see a relationship as something that begins after the sale is made. They don't want to get to know a salesman before making a purchase, and are on guard against people who cozy up to them as a way to make a sale (which is disingenuous and makes them suspect there may be a problem that this tactic is intended to cover) - but once a product is purchased, they expect someone, the salesman or a customer support professional, to be available and attentive to their needs during the period of ownership.
To Generation X customers, a salesman who periodically checks in after a sale has been made is genuinely interested in serving their needs, concerned about the value they are getting from the product, and willing to stand behind the product he has already sold. Doing this is a good way to ensure you will get repeat business and referrals from existing customers.