Understanding Generational Differences

Understanding Generational Differences
CONNECT WITH YOUR CLIENTS Understanding Generational Differences Welcome and thank you for attending this session on improving communication across the generations. We’ll see how the generations have migrated from “WE Generations” to “ME Generations.” The Matures were Conservative, emotionally scarred by the Great Depression and World War 2. The Boomers were Rebellious, and grew up during great economic prosperity and growth of the “suburban middle class.” The Generation X-ers were Spoiled, but in their early lives they’ll remember the Vietnam War and the energy crisis. And the Millennials are Technology Dependent. They remember September 11, 2001, increased “globalism,” and “the internet age” where everything is available and anything is possible. Many of their attitudes were shaped by the experiences of their youth.

American General Life Insurance Company has financially sponsored this activity. Our sponsorship of this activity creates a conflict of interest to the extent that you consider our sponsorship in rendering advice to your clients regarding our products. As a result, you cannot consider American General Life Insurance Company’s sponsorship in determining which products to recommend to your clients. You are prohibited from recommending our insurance products to customers based on incentives provided to the firm and its financial advisors. Tip to Presenter- Read disclosure and do not make a joke of it.

GENERATIONAL DIFFERENCES
Today we’ll talk about GENERATIONAL DIFFERENCES by discussing the different “growing-up experiences” that have molded the way they think, so that you can more effectively connect with each generation to help grow your business. Read slide

There are five generations in play.
Only one generation (Gen-X) is fully engaged in the work force i-GEN MILLENNIAL GEN-X BOOMER SILENT There are actually five different generations currently “in-play” in the United States. They are: The Silent Generation (often also known as “The Greatest Generation”) The Baby Boomers Generation-X Millennials i-Gen (also sometimes called Gen-Y or even Gen-Z) We’re only going to talk about the three generations that really affect the financial services business. The Silent Generation is now old enough that they don’t play a crucial role in the financial services business. And the i-Gen group is still not out of high school, so they’re not really a player, either. Of all five of these generations, only one is “homogenous” as regards their place in the working world. Only Gen-X is fully engaged in the work force. Essentially half of the Baby Boomers are retired; And a good chunk of the Millennials are still in high school and college. Millennials and Baby Boomers are half-in, half-out

There are two ways to identify the generations.
Also be aware that there are two ways to identify the generations. One way is based on their birth rates. After World War II the birth rate in America spiked dramatically for 20 years. From The Silent Generation spawned a much larger cohort, functionally separating the Boomers from the Silents. Birth rates then slowed quite noticeably from about 1964 to about When birth rates increased again in 1980, it signaled the end of Generation-X. That increase in birth rates began the defining birth years of the Millennials… from roughly 1980 to the year 2000. Slowing birth rates around 2000 started the group we know as i-Gen. But, in addition to birth rates, you can also identify each of these generations with different growing-up experiences. We’ll explore a lot more about that in just a few minutes. Birth rates “Growing up” experiences

I’m going to make very broad generalizations.
Also realize that, throughout my comments today, I’ll be making broad generalizations about very large groups of people… 60-to-80 million people at a time. Know that not everyone in each generation embraces all of the characteristics of their generation, although you’ll see a lot of consistencies within each group. You’ll also see that there are certain groups within each group that can display very different characteristics as a result of certain “rights of passage.” For example, someone from Generation-X that has military experience may exhibit some of the behaviors of the Boomer and Silent generation due to the disciplines and experiences of military actions. Certain religions also have significant rights-of-passage. The Mormon faith, for example, and their requirement that young members must spend a year or two away from home engaging with people about the Mormon faith. Farmers are another example. A millennial farmer is raised with a much different level of discipline than a typical millennial, making them behave much more like the older generations. So, as you hear me describing these broad generational generalizations, keep in mind the many factors that cause people to behave in ways that are inconsistent with their generation, and to consider these differences when assessing how to interact with your clients.

Some people may have characteristics of two generations.
Closer to the mid-point of the generations’ age more fully represents the stereotype. MILLENNIAL GEN-X Lastly, know that the closer someone is to the middle of their generational age group, the more they tend to embody the general behavioral and attitude characteristics of their generation. As people move away from the midpoint of their generational age, they begin to pick-up more and more of the characteristics and behaviors of the adjacent generations. For example, someone born between 1960 and 1965 is right on the border between the Boomers and Gen-X. We call them “tweeners”…. In this case, more specifically, “Boomer / X’er tweeners.” So if you were at the younger end of the Boomer generation, and had younger brothers and sisters that were more Gen-X, you may possess more of the behaviors of Gen-X than Boomer. Alternatively, if you were an older member of Gen-X, but had older brothers and sisters, you might express more of the characteristics of the Boomer generation than your own Gen-X group. Moving away from the middle, an individual may exhibit some characteristics of another generation.

So let’s begin with a discussion about our Baby Boomers, their growing-up experiences, the challenges they face, and how you can communicate in a way that enables you to connect more effectively. born ages 51-69

“GROWING UP” EXPERIENCES
So let’s begin with the growing-up experiences of the Baby Boomers.

Rebellious children of WW2 and The Great Depression parents
From “Leave it to Beaver” to “Happy Days” to Rock ‘n Roll MTV and Saturday Night Live Harley Davidsons The Baby Boomers were the largest generation of children born in the United States (approximately 80 million strong) until the Millennials took over that position a group of 85 million). Boomers are also currently the wealthiest generation in American history. The Silent generation was comprised of patriotic, dependable conformists that respect authority. They are socially rigid; and morally and financially conservative, with a solid work ethic. Boomers grew up in the shadow of the Matures and Silents, as children of parents that experienced The Great Depression and World War II. Their parents were very financially and morally conservative; and were very strict disciplinarians (“Spare the rod and you’ll spoil the child!) and much of this “rubbed off” on the Boomers, who then struggled with how they’d been socialized by their parents vs. how they wanted to see the world change… and how they’d raise their own children. They wanted personal freedom. Think of the “flower child” generation. In their early days, the Boomers watched “Leave it to Beaver”, showing how compliant they should be, but a little mischievous. Then came Happy Days, which started introducing them to rebellion. Fonzie on his loud motorcycle, flirting with girls, striking fear into other guys cuz they just knew Fonzie could beat them in a fight. Then came Rock ‘n Roll. They were there for MTV and Saturday Night Live, and the rebellious attitude was well on its way. They lived their rebellious attitude in their muscle cars and Harley Davidsons. Even today, they don’t drive the same Cadillac their parents drove. Their parent’s Caddy was a Titanic on wheels. The modern day Caddy can be bought with a 550-hp engine and 100-Watt-per-channel stereo with a subwoofer! Today’s Boomer can now zip down the highway in a high-performance-Cadillac rocking to Led Zeppelin, but as he pulls into the neighborhood, he can shut everything down and sneak in as quiet as a mouse! Hash-tag-rebellion! And what better symbol of the Boomers’ rebellion than the loud bark of a Harley Davidson? Ya know, Harley Davidson understands their market, and they know the Boomers are getting older. They’ve lowered the center-of-gravity on their motorcycles as low as they can to help those old legs balance them. But now, to make sure they won’t tip-over, they’ve added a third wheel! That’s right…. They came-in to the world on a trike, they’re gonna go out on a trike!

Vietnam, Woodstock, the Pill, drugs Presidential assassinations
White House dishonesty (Watergate) Dr. Martin Luther King, Jr. Protests, demonstrations and riots Boomers saw things nobody ever expected: The horrors of the Vietnam war, both personally and politically Woodstock The birth control pill and the sexual revolution Hallucinogenic drugs (even more rebellion) Presidential assassination Dishonesty in the white house (Nixon and Watergate) The death of Dr. Martin Luther King, Jr. Events like anti-war protests and civil rights demonstrations galvanized most of the Boomer generation against the values of their parents.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Amplified sound The technology explosion that hit their parents (the Silent Generation) was the Television. But what really changed the world for the Boomers was “amplified sound.” Think about it. Prior to the 60s you had “orchestra’s.” You needed lots of musicians playing lots of instruments at the same time to make it loud enough for a large audience to hear you. Think of the Glen Miller Orchestra, for example. Music was not an “individual sport.” The only way to play in public was as part of a group. But when the Boomers figured out that a musician could plug their guitar into an amplifier, it enabled musicians to play all by themselves, LOUDLY! Every voice could be heard. It became an incredible outlet for the voice of a rebellious generation. Think Bob Dylan, Jimmy Hendrix, The Rolling Stones and The Beetles. Boomers were raised to “be seen and not heard,” and as they became teenagers and young adults, they made it clear that they would be heard. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Dual Income, NUMEROUS Kids!
DINKs and Yuppies Works lots of hours Dual Income, No Kids Dual Income, NUMEROUS Kids! Eventually Boomers realized that “life isn’t free,” and they realized that “it’s time to go to work.” Through the economic good times that followed they realized they could make unprecedented amounts of income. In fact, if mom & dad BOTH got jobs, they could really make some money! From this attitude came the acronyms DINK’s and YUPPIE’s. The combination of “a robust international economy” and the Boomer’s work ethic and drive for money allowed them to enjoy unprecedented economic good fortune. Boomers are ambitious and entrepreneurial. They’re willing to work for everything they get. They’re considered idealistic, loyal, competitive, materialistic work-a-holics that seek “personal fulfillment.” Boomers value titles and “the corner office.” They have an intense work ethic, measured in “hours.” They associate “productivity” with “lots of hours.” Someone that works 60-hours-a-week is far more respected than someone that only works 50. If you ever want to know if an Boomer works hard, just ask them… they’ll tell you they log 70-hours-a-week, that’s how they know they work hard. They transitioned from being DINK’s that were Dual Income, No Kids to DINK’s that were Dual Income, NUMEROUS Kids as they gave birth to the “latch-key kids” that came home from school to an empty house and needed to fend for themselves until mom and dad got home.

Trophies The Boomers worked so hard that they are very proud of their accomplishments. Trophies, ribbons, certificates and awards mean everything to the Boomers. And they keep them forever. We don’t often think of the Boomers as “a trophy generation,” but in their own right, they are. If you’re a Boomer with a trophy, how’d you get it? That’s right… you EARNED IT. That’s because you only got trophies for first, second and third place. Everybody else got NOTHING. There were no “participation awards” for Boomers! They also want those trophies to be recognized by others. They want others to comment on their certificates and congratulate them for the effort it must have taken to achieve those things. I’m a perfect example. I was raised as one of 10 children. Only two of my siblings are younger than me. 6 boys, 4 girls. My dad pitched for the White Sox Triple-A team, and my mother was a scholarship basketball player in college. They raised us to be a highly competitive, athletic bunch. Has anybody heard of a competition called Punt, Pass and Kick? For most Boomers, it was a “right of passage.” You get to do it from age 8 through age 13. If you get fourth place, you go home empty-handed. Third place gets a solid metal bronze trophy. This thing is nearly a foot tall. If someone was breaking-in to your house, this might be one of the things you’d reach for to defend yourself! Second place gets the same trophy, but it’s silver. First place gets the same trophy but, of course, it’s gold. Out of the 6 Ross boys, not a single one ever got a Punt, Pass and Kick trophy of any kind… Except me! And it’s not bronze or silver, it’s the gold one! And it’s not one…. It’s TWO!!! Now, if you think I don’t rub my brothers’ noses in that one from time-to-time, you’d better think again! So where do you think those trophies are today? That’s right, they’re 45 years old, and they’re proudly displayed on my bookcase in my office. That’s the way Boomers are. So, if you notice on your Boomer client’s wall a certificate for passing a course on Microsoft Word 1.0 in 1996, be sure to congratulate them on that! And if you, yourself, have achieved something that has earned you a trophy or award, make sure your Boomer clients can see it. It impresses them to know that you made the sacrifice to achieve.

Change the world The Boomers are an optimistic group that believes “anything is possible” if you work at it hard enough. They thought they could change the world. Remember songs like: “I’d like to teach the world to sing, in perfect harmony…” Coca Cola commercial? And “We are the world, we are the children…”? And Live Aid, Farm Aid, etc.? Boomers tend to have a lifelong connection with their youth in the 60s. They’re very nostalgic. PBS knows that if they need money they can just show a concert of James Taylor or Peter, Paul & Mary or The Beach Boys or The Eagles with DVDs for sale, and the money from the Boomers will come pouring in! But did anything really change? Not sure about that one… at least not the things they thought they were going to change. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Team meetings, singing, and fire:
…all be on the same page …singing from the same sheet of music …pulling on the rope in the same direction …pour some gas on the fire …burn the candle at both ends …burn the midnight oil …hold our feet to the fire until we get this done! Boomers like “team” and “meetings”. They’re often credited as the inventor of the “Monday morning Team Meeting.” And every meeting starts with SINGING and ends with FIRE! This is the template for how a Boomer runs a meeting: “We’re gonna have a weekly meeting so we can all be on the same page, singing from the same sheet of music with all of us pulling on the rope in the same direction…. Then…. We’re gonna pour some gas on the fire, burn the candle at both ends, burn the midnight oil and hold our feet to the fire until we get this done!”

Arrived online after spending a big part of life off-line
Digital immigrants Arrived online after spending a big part of life off-line Participated in the full spectrum of the tech revolution: From a technology perspective boomers are considered “digital immigrants.” They started with no real technology at all, but the technology immigrated into their lives. They arrived on-line after spending a big part of their life off-line. But more than any other generation, they really participated in the full spectrum of the technology revolution, from: 3 channels to Cable TV to VCRs to DVDs to Streaming And everything in between. Three TV channels Cable TV VCRs DVDs Streaming …and everything in between.

Silents = Superiors vs. Subordinates (seen, not heard)
Parenting Silents = Superiors vs. Subordinates (seen, not heard) Boomers = Kids lack for nothing! Kids = Friends Boomers were raised by parents that adhered to strict discipline. Their parents (the Silents) were the superiors, and they (the Boomers) were the subordinates, meant to be seen and not heard. The Boomers wanted to be devoted parents whose kids lacked for nothing. But they worked so much that they weren’t around much, and they made up for it by showering their kids with virtually anything that money could buy. As parents, the Boomers raised their kids as their “friends” and wanted them to have every bit of the attention, every valuable experience, and every trendy plaything they could afford.

Young forever Hair transplants Joint replacements Stents Cosmetics and cosmetic surgery Adult exercise (Jane Fonda revolution) Health care/medications Boomers are intent on staying young FOREVER. They’re getting hair transplants and implants, joint replacements, stents, cosmetic enhancements. They’re the first generation to begin incorporating exercise into their lifestyle. And, during the adult life of the Boomers, technology has spawned a revolution in the health care and medications industries. They’ll eventually bottle themselves in some sort of pickle-juice where they can be preserved until one day, hundreds of years from now, they can be brought back to life to experience many more good years. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

CHALLENGES

$303,880 = Average losses in lifetime wages and retirement benefits for adults supporting elderly parents.2 Source: MetLife Mature Market Institute: The MetLife Study of Caregiving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents, 2011 $260,000 = The average retiring 65-year-old couple pays $260,000 for health care costs in retirement.1 Source: Fidelity: Healthcare Costs for Couples in Retirement Rise to an Estimated $260,000, August 2016 61% of Americans surveyed helped adult children financially in the past 12 months. Source: Pew Center Research: Family Support in Graying Societies, How Americans, Germans and Italians are Coping with an Aging Population, (1,692 surveyed) Note that the Baby Boomers are the first generation to bring meaningful mortgage debt into retirement with them. The Silents and Matures lived in one house their entire lives, while they worked for the same company their entire lives. They bought their home with a 30-year mortgage. When they retired, the mortgage was paid off. In today’s world, many Boomers in their 50’s and 60’s re-financed their mortgages. Rather than refinancing into short-term mortgages, they leveraged their money by leveraging into new 30-year mortgages, meaning that these mortgages won’t be paid off until they reach their 80s or 90s.

Only 23% of Boomers surveyed have enough money for retirement.
Source: Insured Retirement Institute: Boomer Expectations for Retirement 2017, 7th annual update on the retirement preparedness of the Boomer Preparation (800 surveyed) 48% of Americans retire earlier than planned due to health problems or disability, downsizing or closure of company, etc. Source: Employee Benefit Research Institute: The 2017 Retirement Confidence Survey – Many Workers Lack Retirement Confidence and Feel Stressed About Retirement Preparations, March 21, (1,671 surveyed) About one out of four 65-year-olds today will live past age 90. Source: Social Security Administration, accessed July 2017 Read stats on slide

WORKING WITH BABY BOOMERS

WORKING WITH BABY BOOMERS
Make it personal. They want to develop personal relationships in both their personal and professional lives. Create face-to-face opportunities to get to know as much about them as you can; family, interests, birthdays, etc. Make it personal – they want to develop personal relationships in both personal and professional lives Tip - Create face to face opportunities to get to know as much about them as you can – family, interests, birthdays, etc) Boomers believe in face-to-face meetings and phone calls as the key ways to communicate and develop rapport. By opting for a phone call or a face-to-face meeting, rather than a text or instant message, you’ll find that Baby Boomers will be more responsive and your chances of developing a positive relationship doubles.

First impressions count Integrity and knowledge vs. a sales pitch
WORKING WITH BABY BOOMERS Exhibit professionalism .They appreciate experience, accreditations, credible company reputations, brands, etc. Tip: Acknowledge both yours and your client’s credentials, experience and success, as well as affiliated company credentials First impressions count Integrity and knowledge vs. a sales pitch Optimism Exhibit professionalism – they appreciate experience, accreditations, credible company reputations, brands, etc Tip - Acknowledge both yours and your client’s credentials, experience and success as well as affiliated company credentials. Key traits of the boomer generation include valuing experience over education, strong loyalty and expecting consistent hard work to produce results Boomers gravitate toward idealistic and optimistic communication that echoes their glass half-full idealism. Boomers want to feel like they have a direct and tangible way to give back and pass along the things they’ve learned. Commonly if your Marketing Strategy sends out a message that you offer the experience along with the security that comes along in today’s technology world and the expertise to provide cutting edge financial services you’re more likely to attract clients. It’s not unusual for Baby Boomers to display rewards, certificates and letters of appreciation where they can be publicly viewed. They value praise and recognition and are motivated by a sense of being valued or needed by others. Customer service organizations can appeal to these values through loyalty programs and personalized engagement strategies. Agents can also use these values to their advantage by genuinely expressing gratitude for the customer’s loyalty or acknowledging milestones (such as birthdays or anniversaries). They are proud of their accomplishments, especially monetary and other financial gains. “You have done well” is an appropriate congratulatory comment to offer them. First Impressions Count – This generation will appreciate the time you take to introduce yourself as a trusted professional. Your appearance (don’t be too informal), communication skills, and ability to build a rapport with your potential client will be as important as the quality of your services and insurance solutions you are hoping to sell. Integrity & Knowledge Over A Sales Pitch – Baby boomers have seen it all – and they will appreciate the knowledge and expertise in insurance plans you bring to the table, as opposed to an effort to persuade them to buy a product. Despite your own age (as you might be a younger broker in the industry), make sure you present yourself as a trusted advisor with the resources to support them, now and in the years ahead. Optimism will always be the key to this generation. Boomers want to be reminded of the positives you can bring to their lives and their wealth. You should address their questions encouragingly, give them examples of how to make the most of their money, and quell their fears without over-extending your abilities or their financial goals. Boomers are also looking for an advisor to help them navigate the overlapping transitions with the least possible disruption to their already busy lives. To make an impression with a potential Boomer client, show them you’re not all doom and gloom, and that you’re there to help them cut through the complexity – in short, you’re there to increase wealth and decrease worry.

See the big picture. They like to have a long-term plan.
WORKING WITH BABY BOOMERS See the big picture. They like to have a long-term plan. Tip: Recommend a tailored long-term plan that is specific to their personal needs/situation See the big picture - they like to have a long-term plan Tip - Recommend a tailored long-term plan that is specific to their personal needs/situation Some of the most valuable things that boomers want a financial advisor do for them include: helping create a plan to set and achieve long-term financial goals Helping make sure they have enough money to last Helping them understand the big picture for their money (spending, saving, and retirement) This is the type of advice and financial coaching that a financial advisor can provide only after spending a significant amount of time with their client to determine that client's goals, both broad and specific, discuss their risk tolerance, and understand everything necessary to provide the best financial strategy for that

Desire a team They like contributing to a team effort.
WORKING WITH BABY BOOMERS Desire a team They like contributing to a team effort. Focus on common goal and how your recommendation will add value. You are on their team. Be their “partner.” Don’t remind them of their age. Focus on future accomplishments. Desire a team - they like contributing to a team effort Tip - Focus on common goal and how your recommendation will add value – you are on their team Many Baby Boomers have built their teams from scratch. They hold more of a traditional model of teamwork dear to their hearts, believing in face-to-face meetings and phone calls as the key ways to communicate and develop rapport. Boomers tend to think of the financial advisor as a partner more than the other generations do. The advisor is someone who will in partnership with the client to plan for and achieve the client’s goals. There’s an intimacy here that’s not nearly as important as the two younger generations. Boomers also need to build trust with a brand before they will buy. What does this mean for your campaigns? It means you need to commit to a longer sales journey and continue to nurture the relationship the entire way. Sure, these sales might take longer, but they will lead to brand loyalty. Boomers respond best to straightforward honest approaches that highlight the benefits that your business can offer If you promise a baby boomer that your product or service will help solve a specific problem, you better follow through with that promise. This is all about building and maintaining trust between your business and your audience. Don’t Remind Them of their Age - If you think ‘aged’, ‘senior’ and ‘elderly’ are effective buzzwords for baby boomers – think again. They don’t want to be reminded of their age, but of their accomplishments and of their future.

born ages 36-50

The ENTITLEMENT generation Gen-X’ers were the first part of the “Me Generation,” focused far more on individual needs and selfish wants than on the group or on society as a whole. They had a very different childhood experience than their parents. They were the latch-key kids of DINK’s (Dual Income Numerous Kids) and YUPPIEs. They were raised during very prosperous economic times. Their parents nurtured and coddled them constantly, and provided them with everything money could buy. The Boomers thought they were doing the right thing to shower these kids with trinkets, toys and money while they (the Boomer parents) worked endless hours leaving the kids essentially on their own… the “latch-key kids.” Gen-X grew up being used to that, and they continue to expect it. Many thought of the Gen-X’ers as “the Entitlement Generation.” “I am here, therefore I deserve everything. And I shouldn’t have to work for it, either.” Their parents fixed everything for them. If something broke, they got a new one. If there were problems outside of the house, the parents would resolve the conflict for them. Pampering parents of the X’ers have allowed them to move back home after college. They weren’t thrown into the “dog-eat-dog world of survival” like their parents (the Boomers) were. X’ers were originally thought of as “slackers” because they didn’t have to work for anything…. Their parents just gave it to them. In fact, however, they have turned out to be a hard-working well-educated group. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Latch-key kids of DINKs and Yuppies Divorce But just as the Boomers were emotionally scarred by the Vietnam war, the Gen-X’ers had their own life-changing experiences. First off, because of their Boomer-parents’ work ethic, their parents worked long hours, and were rarely home, especially during the week. This gave rise to the latch-key kids. When they came home from school, there was nobody there. They had to let themselves into the house, take care of the family pet, and get started on their homework. They may even need to get dinner started because their hard-working Boomer parents wouldn’t be home from their 70-hour-a-week job until late. And then something happened that they didn’t see coming: They are the first generation of kids to really experience parents divorcing. Many ended up in broken homes. Think of the movie Kramer-vs-Kramer. On the weekends they’re with Dad hearing him complain about Mom, then they return to Mom’s house only to hear Mom complain about Dad. When they saw their parents together, they were often arguing. This shook the formative bedrock of the Gen-X kids. The one thing they thought they could count on – that Mom and dad would always love each other and they would always be able to count on one thing: being a close, loving, happy family – had fallen apart right before their very eyes. The Gen X-ers don’t like what their Boomer parents did to them. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Scandals (Nixon) Enron Inflation Gas rationing Distrustful of authority International threats on American soil Skeptical In addition, their parents’ optimism gave way to the scandals, inflation and world crises of the 1970’s and 1980’s. Nixon and the Watergate scandal Enron’s collapse due to dishonest management Rapid inflation and high interest rates Gas rationing Gen-X’ers were the first generation to watch major international threats come to American Soil. Think about it. Every major war since the Revolutionary War was fought on foreign soil (World War I & II, Vietnam, Iran & Iraq). There were no threats to American life on American soil. The Gen-X kids witnessed the Oklahoma City bombing, 9-11, and numerous other “terrorist threats” that brought the risks to their own back yards. The “fall-outs” of these experiences have made the X’ers skeptical, cynical and quite pessimistic. They’re considered to be distrusting of authority, entrepreneurial and tech-savvy (although not tech-dependent like the Millennials). FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

35% Carpe diem – Short-term thinkers – “Need it NOW!”
don’t expect to receive any social security income. Partly as a result of their skepticism and pessimism, they grew up with a Carpe Diem attitude about life. They don’t count on the future and they like short-term rewards. Anything that takes too long to unfold “probably won’t ever happen.” As an example, surveys show that many Gen X-ers believe they have a better chance of winning the lottery than receiving Social Security benefits. When you think about that, keep in mind that according to the chance of winning the lottery is about 1 in 258 million! (and there are only about $350 million people in America!)

Parents = Friends Spanking vs. emotional penalties Time-out “No presents!” They don’t have much “traditional respect” for their parents (or parents, or their elders, in general) because: their parents (the Boomers) also defied authority; and their parents (the Boomers) weren’t their disciplinarians, they were their friends. The days of spanking your children ended with Generation X. They were disciplined with “time-outs.” Their disciplinary problems rarely resulted in any meaningful consequences. Their “punishments” were far more lenient, and were always “emotional” rather than “physical.” They always knew that if they got into big trouble they could just “go to their room” and sit-it-out, and eventually everything would be OK and return to normal. Their parents threatened that they wouldn’t get any birthday presents or Christmas presents, but the presents invariably appeared. Oh, and then they got to go on the nice family vacation, too. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Tech comfy – rode the technology wave Crave “work/life balance” Social consciousness Just graduate from college and life will be good … jobs will be plentiful Gen-X really lived through the introduction of technology into the home, and embraced it all the way. The era of “intuitive electronics” prevailed, making it easy for them to pick-up on the rapidly-evolving technology. The advent of the Personal Computer and the Internet during their youth made them the first tech-savvy generation. They grew up watching shows like The Simpsons and Beevis and Butthead…. A different kind of “rebellious child” than the Boomers were. They watched “rented movies” on VHS Videos from BlockBuster, then upgraded to DVD rentals. Their work ethic is way different from their Boomer parents. They are very intent on having a work-life balance. They don’t want to host or attend meetings. They want as much free time as possible. They want to be paid a small fortune “just for showing up.” They think their parents’ work ethic is crazy. “You have horrible time-management skills! Just get the job done and get outta here!” Because of their discomfort with conflict, they are becoming some of the most challenging managers in corporate history. Rather than call someone into their office, they’ll send an or text. (although it looks like Millennials might be even worse as managers) They don’t want to talk to you about their personal life. They don’t like lots of “small talk.” Socially, they have embraced some recent trends like environmental awareness and organic foods. They like to do things that are “good causes.” Because of economic good times throughout their youth, they grew up thinking that all you needed to do is graduate from college and 6-figure salaries would be everywhere. That bubble has certainly been burst for them. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Hundreds of TV channels, thousands of commercials (they’re not impressed with commercials) Don’t push me to buy! Because of technology and TV with hundreds of channels, they’ve been hit with every kind of TV commercial and advertisement known to man, and they are not impressed. Their belief is that “if someone is pushing me to “buy something,” there must be something I don’t know, so I won’t believe a word they say.” FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

CHALLENGES

$180,018 Average U.S. mortgage debt
Source: Nerd Wallet: 2016 American Household Credit Card Study, 2016 $181,480 Total cost of a four-year private college Source: College Board: Annual Survey of Colleges, Average Published Undergraduate Charges by Sector, 86% of GenXers are concerned that Social Security will not be available at retirement. Source: Transamerica Center for Retirement Studies: 17th Annual Transamerica Retirement Survey, A Compendium of Findings About American Workers, 2016 (1,232 surveyed) Generation X has many challenges that affect their financial readiness for retirement. College debt Delayed adulthood Families starting late Home purchases starting late, etc. Undersaved for retirement (but many could inherit a lot from Boomers)… living more for today than tomorrow Not looking at retirement as “giving up,” but rather as the beginning of “phase 2” of life. Hit hard by The Great Correction of 2008… very memorable… they saw what it did to their Boomer parents, and even further shakes their faith in Corporate America and the American economy.

WORKING WITH GENERATION X

Initiate research They make decisions based on facts, data, and reviews. Tip: Support their educational needs and substantiate your claims with data, stats, and research by offering a variety of non-biased sources. Engaging Generation X might require you to be a little more reserved and restrained than you would normally be. This is counterintuitive for many financial professionals. Boomers are often taught that aggressiveness is rewarded with results. With Generation X, almost the opposite is true. The more “hands-off” and passive you are, the more your Generation X prospects will feel like they are in control of the process. If they feel pushed or crowded, they are likely to look elsewhere. Here are some ways that you can engage Generation X consumers without scaring them off. Remember, Gen X seeks to become an educated consumer. When they feel like they’re being ‘sold’ they disengage. Initiate research – they make decisions based on facts, data, reviews) Tip - Support their educational needs and substantiate your claims with data, stats, research by offering variety of non biased sources Gen X consumers won't buy a product until they've thoroughly researched it, which often means conducting extensive Internet searches and scouring online review sites and social media networks. They're skeptical about marketing tactics and use their extensive research to avoid being a target. Before making a purchasing decision, they dig into every available resource they can find. Gen Xers believe in “don't trust, validate”. They will vet you in three or four places online, so before they ever meet you they’ll know what you do, what you say you do and how much you charge. If you say something on your website that's wrong or misleading, you’ll lose their trust forever. Because Generation X straddles the line between digital and traditional media, Gen Xers look both online and offline to inform their purchasing decisions. Gen X likes to research while shopping online. They read more reviews and visit more opinion sites than any other generation. Most won’t even buy a product until they’ve thoroughly researched it, whether through online reviews or opinions on social media sites. Generation X finds "hard selling" harsh, rude, and obnoxious. They are turned off by this sales method. If you are going to pitch to Gen X, you need to do so in a manner that will get them to listen. Gen X prefers hearing who you are, what your business is, what you stand for, and the quality of your product before making a decision whether to trust your business. When marketing to Gen Xers, make your product or service highly visible online, using search engine optimization, keywords, social media and review sites. Frame your marketing message in a way that illustrates exactly what consumers can expect from your brand and how buying it benefits them. Address their skepticism by offering a significant reason to buy, such as a money-back guarantee.

Take control They prefer to be in the driver’s seat when making decisions. Tip: Offer multiple scenarios and consider worst case scenario options that offer a way out for maximum control. Take control – they prefer to be in the driver’s seat in making decisions that include a back up plan Tip - Offer multiple scenarios and consider worst case scenario options that offer a way out for maximum control They want to stay in control of their financial lives and understand the advice they receive and make the important decisions themselves. They are reluctant to buy discretionary services and they are increasingly comfortable conducting their own research. Unlike boomers, who had the good fortune to live through years of strong market performance, Xers experienced a tech boom followed by a tech bust, followed in turn by a real estate boom and then a worldwide financial crash, points out Kitces, the co-founder of XY Planning Network, an organization of fee-only advisors who specialize in Gen X and millennial clients. As a result, this middle generation is much less confident about the markets and financial institutions than either Boomers or Millennials. Gen X's fundamental risk tolerance isn't very different from boomers’, he says, but they are more skeptical about the markets. They may be open to taking risks in a different way, such as by investing in their own business or in real estate. Generally, Xers don’t trust others to act in their best interest, whether at work or in an advisor’s office. They depend on themselves. In short, be sure to work with them, not for them. And don’t forget to be transparent every step on the way Gen X and Y want an empowering and engaging approach. They want to be listened to, not spoken down to. They want to make their own decisions, not have you choose for them. If your current planning approach is top down, consider taking your expert hands off the wheel and let your clients drive. As an advisor, you may know that it will take an aggressive strategy to achieve stated goals. And you should present that aggressive approach as one option. Always provide at least two alternative approaches, along with your honest assessment of what the investor is gaining and losing with each model. Then let them make the decision. There is little Generation X hates more than being painted into a corner. They need to feel in control, yet they are often not the best suited for the job when it comes to their own money.

Evaluate viability They are very practical and prefer quick results.
WORKING WITH GENERATION X Evaluate viability They are very practical and prefer quick results. Tip: Be brief, be brilliant, and be gone. Meaning, be efficient and don’t waste their time – focus on results. Evaluate viability – they are very practical and prefer quick results Tip - Be brief, be brilliant, be gone, meaning be efficient and don’t waste their time - focus on results. Show generation X the value and practical uses of your product, but be genuine and authentic about it. Gen Xers are more likely to bite if you offer them something of value that could ultimately change their lives. To appeal to Gen-X it’s important to emphasize those features which can be utilized not only today, but those which have value in the near years. Generation X grew up in a totally different economic climate. Because of this, they’re more practical, more grounded. They look at what they have to do to compete and make their aspirations come true. Because Gen-Xers have no desire to forfeit their standard of living, they are pragmatists when it comes to financial decision-making. They acknowledge the need to take rational steps to save or invest as well as being willing to educate themselves or employ the services of a trusted professional. Baby Busters are short on time, so make sure you explain the essentials of your program in a way that is quick to digest. The last thing they want is to hear about a product or service sold in the form of a verbose, detail-laden sales pitch. Xers are a cohort looking for proof. Avoid preamble or belabored explanation of your systems or processes. Instead focus on proving yourself through results. For this generation more than others, the proof is in the pudding. What you need to do: Streamline your sales process, and make it as simple and concise as possible. Create customer-friendly, time-saving web portals, including; schedules, surveys, and even order forms. Make yourself available for some (limited) hours beyond the standard 9 to 5.

Remain connected They are big online buyers.
WORKING WITH GENERATION X Remain connected They are big online buyers. Tip: Use technology to empower decision making; provide online education, tools, test drives, etc. Work with them, not for them Update your online presence Provide an easy way to estimate retirement savings (example, Rule of 25) Remain connected - they are big online buyers Tip Use technology to empower decision making; provide online education, tools, test drives, etc A disproportionate share of middle-aged Americans shop online – Those aged 35 to 44 are overrepresented in the online shopper population and they spend about $1,930 annually online, just $70 less than the millennial cohort. Gen X and Y want to be educated, but they aren’t going to take your advice because of your education, credentials, and wisdom. They have grown accustomed to their environment with access to limitless information from the Internet. Anything they want to know is only one click away. Start by giving them web resources you trust that will help guide them. Rather than losing control, you will gain their trust. Generally, Xers don’t trust others to act in their best interest, whether at work or in an advisor’s office. They depend on themselves. In short, be sure to work with them, not for them. And don’t forget to be transparent every step on the way You’ll need to make sure your online presence and the technology you use to power it is modern. Do you have a modern website? Are you using the latest technology to the greatest effect? Focus on educating and explaining your investment decisions. If they understand your strategy and trust your judgment, they're more likely to keep their money with your firm for the long term. Educate your prospects by simplifying the concepts around the features, advantages, and benefits of your products or services. Creating multimedia assets like explainer videos, infographics, and editorial-style content is often more effective at catching the eye and engaging the reader.

Give them options Clearly explain their options, then follow up to see what they’ve decided. Gen-X likes to be in control of their decisions. Clearly explain their options, then follow-up in a few days to see which option they’ve selected. Explore “why” they chose that option.

born ages 15-35

Change the world Tech dependent Creepers! Like the Boomers, the Millennials are very idealistic. The Millennials also want to change the world, but like the Boomers before them, there’s not a lot of evidence that they’re succeeding. They say they want to change the world, but they spend most of their time on SnapChat and InstaGram sending funny pictures to their friends in the hopes they’ll be “followed” or “liked.” Millennials are considered to be optimistic, civic minded, impatient, multi-tasking, and tech-dependent. They aren’t just technology SAVVY, they’re the first generation to be truly technology DEPENDENT. Their ability to access and manage information is unprecedented. They’ve always had over 200 TV channels, and don’t find any of them particularly compelling. They’ve seen every conceivable ad and they aren’t easily swayed… unless it has something to do with gadgets and technology. Hailed as “Digital Natives” (they’ve never known a world that wasn’t Digital), this is the greatest generation of CREEPERS that has ever existed. They spend a lot of time creeping on virtually anyone, whether they know them or not… their friends, their enemies, celebrities… you name it! They are the founders of companies like YouTube, FaceBook, Twitter, Groupon, Instagram and Tumblr. Many of them think they can do the same, and are working feverishly on generating their internet fortune, while working from home in their pajamas. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Herd mentality, but different within the herd Tattoos “Badge of Honor” (Boomers) vs. “Part of the Group” (Gen X) Praised and programmed “You’re special,” Soccer moms, everyone gets a trophy! Trophies are backfiring! Generations prior to the Millennials were largely educated in elementary school sitting in rows. You looked at the back of the head of the person in front of you. The Millennials, on the other hand, were educated facing each other, normally in groups of four. There seems to be evidence that this has created a “herd mentality.” They like to do things as part of a group. They want what their friends have (part of the herd) but with a difference (individuality). Many of them have tattoos (so they can be like the herd) but they want their tattoo to be unique (so they have individuality). They express their individuality through their quirky clothes and music, but never want to go anywhere without their friends. Unlike the Boomers (the “other” tattoo generation) that got tattoos as a “badge of honor” for some significant accomplishment such as the Vietn War, the Millennials get tattoos to be “part of the group.” They want to get tattoos to belong, but they want their tattoos to be unique and different within the crowd… a totally different purpose for their tattoos. They grew up protected, praised and programmed by their parents, introducing us to the concept of “soccer moms.” As a result, they’re not adept at planning things for themselves. The need someone to tell them what to do… that’s what they’re used to. They are the poster-child generation that defines “everyone gets a trophy.” As such, they have a very strong sense of “entitlement”…. Even more so than the Gen X-ers before them. (Sometimes called “the entitlement generation”, or “Generation ME”) In fact, some evidence is surfacing that suggests that “everyone gets a trophy” is actually doing more harm than good. Their (Boomer) parents thought it was too emotionally distressful for the children to “lose.” No child wants to “be a loser,” right? But when everybody gets a trophy,,, The high-performers no longer have an incentive to perform at high levels, because the non-performers get the same recognition that they (the top-performers) get. With no incentive, top-performers lose interest in performing at top levels. AND… Poor performers become even worse performers because they realize “we don’t actually have to do anything and we’ll still get a trophy!” This seems to have carried-over into their adult lives where they aren’t nearly as competitive in the workplace as previous generations. They just want to show up, do the work, and get the trophy (translation: get paid well simply because they showed-up… like getting a “participation award” at work). FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Well educated and diverse Socially tolerant, social consciousness They’re very well-educated and diverse, and very accepting of peoples’ differences (individuality). They’re accepting of: Same-sex relationships Unmarried couples Inter-racial relationships Marijuana legalization and usage Breaking the mold, Millennials are more likely to cohabitate without marrying than previous generations. Their transition to adulthood is being dramatically delayed. They’re late to establish their careers, marry, buy homes, and start families. Remember: 1 out of every 10 Silent’s was a minority 2 out of every 10 Boomers was a minority 3 out of every 10 X’ers is a minority 5 out of every 10 Millennials is a minority Purely because of their much-increased exposure to minorities, Millennials are much more accepting. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Ambitious and directionless $1 million or Fridays off?
Independent, but content to live at home Want to work from home, but will struggle with time management and discipline Millennials are often considered to be ambitious but directionless, epitomized by phrases like “I either want to be a surgeon, or run a bakery.” Ask a Millennial whether they’d rather have a million dollars or Friday’s off for the rest of their career. Many will choose the Friday’s off. Amazing! They proclaim their desire for independence, but they’re perfectly content to remain living at home well into their adulthood. Because of the magnitude of available information, they have been pushed academically, and are busy and stressed. They’ll be the first generation where more than half of them have at least some college education. But they’d all prefer a career where they can work from home.

Shared bedrooms? Confrontation? Very few Millennials have ever shared a bedroom with a brother or sister while growing up, and (like the X-ers) Millennials were also raised to be their parents’ friends. As a result of all of this pampering, they’re NOT good with confrontation or making concessions. They’ll just avoid the confrontation altogether. They will NOT want confrontation with you as their financial advisor, either. Learning how to “push them” to take action without being confrontational is going to be a delicate but valuable skill when working with Millennials. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

CHALLENGES

$233,610 Estimated cost to raise a child to age 17.
34% annually Amount of income a 25-year-old waiting until they turn 35 to begin saving for retirement will need to save in order to retire at age 67. Source: Nerd Wallet: Millennials May Have To Save 22% of Yearly Income for Retirement if Market Returns Drop, 2016 $4 a day A latte costs $4 a day. Life insurance costs as little as $1 a day. Source: LifeHappens.org/TrueCost, Accessed 2017 $233,610 Estimated cost to raise a child to age 17. Source: U.S. Department of Agriculture, Center for Nutrition Policy and Promotion: Expenditures on Children by Families, 2015; Revised March 2017. Millennials have several financial challenges including Graduating with significant college debt A fast-changing job market making high-paying jobs more difficult to find Housing market coming back (home prices rising) and interest rates rising, making home purchase more difficult Less intense work ethic Some trending beginning to require employees to show-up at headquarters for work, rather than working from home Boomers aren’t saving enough for their own retirements, so inheritances may be less than Millennials expect.

WORKING WITH MILLENNIALS

Tough to close in one appointment They want to check you out.
WORKING WITH MILLENNIALS Peer influence is critical. Peers are an important source of information. Tip: When meeting with millennials, meet with them and their friends. Talking on the phone and going to meetings = time-consuming and intrusive. Tough to close in one appointment They want to check you out. They rank their peers as their number-one source of information in many of their important purchase decisions. This is important to know in the sales process. Millennials are difficult to close in a single-appointment because they want to “check you out” and check-out your recommendations with their friends before moving forward. In fact, you may want to consider meeting with them and their friends. They consider talking on the phone and going to meetings to be time-consuming and intrusive. Only structure meetings and phone calls when absolutely necessary. And always keep the calls and meetings brief.

Script really good voice mail messages.
WORKING WITH MILLENNIALS Script really good voice mail messages. Consider asking, “What do I need to know about you?” Leading Millennials to water and getting them to drink will be very challenging. When you call them, you’ll call a cell phone, not a land-line. They’ll know you’re calling, but they won’t answer. They’ll wait for the voice mail. And it better be to-the-point. This suggests that you should have a well-worded, concisely scripted voic message you can leave, with specific instructions about what you expect from them. They can listen to your brief voic message and know exactly what to do. The best question an advisor can ask a millennial might be: “So, what do I need to know about you?” Then sit back and listen Learning how to “lead Millennials to water AND get them to drink” will be a very difficult area of finesse for financial advisors.

Be all digital They access everything online: Information, people, products, etc. Tip: Use technology in all interactions, including communications, during the sale. Also provide useful digital resources to them along the way. As you know, earning likeability and respect from prospects and clients is key to successfully building business. And earning likability and respect begins with getting them to listen—to “lean forward.” Engaging Millennials and getting them to listen is largely a matter of appealing to their generational sensibilities. Here are some ways to do it: Be all digital – they access everything online: information, people, products, etc. Tip - Use technology in all interactions including communications, during the sale. Also provide useful digital resources to them along the way Millennials are 2.5 times more likely to be early adopters of technology than are older generations. They are more likely to use the Internet, broadcast thoughts, and contribute content. Millennials stand out when it comes to producing and uploading online content (60%) compared with non-Millennials (20%). Make it easy to sign up for life insurance. Send interactive digital materials and ensure that signups have a paperless option. If you use technology effectively to communicate with Millennials, you will stand out and increase the likelihood that they will refer you to their peers. It’s important for Millennials to have all the information they need before making a purchase. They care more about value and price than anything else. So make sure you engage them in price and value communication. Motivate them by making it easy to shop online, to learn about products, and then to purchase and engage. Studies have shown that Millennials don’t like brands that explicitly “sell” to them; but brands that sell by providing new, robust, relevant information will have more success and create repeat engagement. The millennial shopper today wants to be shown and equipped with an understanding of the product category before coming to a conclusion Give them information and advice rather than sales pitches. Point them to some resources on the Web where they can find more information -- sources you trust, rather than ones they might randomly find. Explain to them how insurance works and why it's smart for them to buy it now rather than later.

Desire instant gratification Everything needs to be quick and easy.
WORKING WITH MILLENNIALS Desire instant gratification Everything needs to be quick and easy. Tip: Provide useful resources regarding their financial concerns, such as calculators, checklists, online quoting tools, etc. Desire instant gratification – everything needs to be quick and easy Tip - Provide useful resources regarding their financial concerns such as calculators, checklists, online quoting tools “I want it fast, and I want it now.” U.S. Millennials are all about instant gratification. They put a premium on speed, ease, efficiency, and convenience in all their transactions. These consumers are always in a hurry, and it’s critical to determine how you can get them to spend time developing a relationship with your brand. Because Millennials are internet trained, there is an expectation for instant gratification. is too slow and cumbersome. Text messaging is more immediate and can be used when a phone call is inconvenient. Twitter, Instagram and Pinterest shares your thoughts in real time.

Seek membership They gravitate towards groups while striving for independence. Tip: Include the group in prospecting, but take time to focus on each individual’s needs. Leverage online tools to demonstrate the ability to see individual scenarios. Seek membership - they gravitate towards groups while striving for independence Tip - Include the group in prospecting, but take the time to focus on each individual needs. Leverage online tools to demonstrate the ability to see individual scenarios. Millennials seek out brands that feel unique to them (and make them feel unique). These brands have been vetted and approved by their peer set. Millennials are a social generation—and they socialize while consuming (and deciding to consume) your products and services. They are more likely than other generations to shop, dine and travel with groups, whether these are organized interest groups, less formal groupings of peers or excursions with extended family, according to Boston Consulting Group data. Online, their sharing habits on Facebook, Snapchat and other social sites, and the opinions they offer on Yelp, TripAdvisor and Amazon reflect their eagerness for connection. Millennials want customized products. The New York Times coined a perfect term to describe what Millennials want. MESPOKE: (me-SPOKE), adj. Tailored exactly to one’s lifestyle. Cultivating Relationships. To sustain Millennial loyalty to their brands, companies must engage Millennials individually and in small groups through direct, two-way communications. More than other generations, Millennials desire opportunities to interact with brands, to be listened to anywhere and anytime, and to have personal, timely, and straightforward communication about their concerns and experiences Millennials are a sociable generation. A shopping habit that sets millennials apart from non-millennials is their tendency to shop in groups and seek the opinions of others. More than two-thirds of millennials, don’t make a major decision until they have discussed it with a few people they trust,” compared to around half of all non-millennials. Seventy percent of millennials are “more excited about a decision they’ve made when their friends agree with them, compared to 48% of non-millennials Social Sharing – Importance of Authentic/User Generated Content According to AdAge, Millennials are spendign an average of 25 hours per week online – and they’re craving content-driven media. They’re scouring websites, blogs, and social media because they feel empowered by all of the remarkable content they’re discovering. They’re also sharing, liking, pinning, tweeting, snapping, forwarding, and commenting on all of their findings to impart this sense of empowerment to the online community. So, what makes this type of content really resonate with this group? Millennials trust what they feel is authentic. Interacting in a user-centric environment is what engages them, as 43% of Millennials rank authenticity over content when consuming news. Today, young shoppers’ attitudes and behavior are largely inspired by people they know in person or online, or even strangers who share their interests on social networks. Millennials carry these “advisors” with them on their smartphones and everywhere they go. They trust relevant, authentic opinions from real product users they can relate to. In fact, 84% of Millennials say user generated content has at least some influenc eon what they buy and 73% say it’s important to read others’ opinions before purchasing. For brands that want to successfully reach Gen Y-ers, they simply need to speak their language. People ages 18 to 34 will perk up when hearing or reading words that could have come from the mouths of their peers, as these messages warrant comfort and trust. When you offer your audience content they would proudly share with others, you’re building a real brand-consumer relationship. millennials#sm.0000imhfu7xvpf9gxnb14mxb0tjwp

Value transparency They value honesty and have a low tolerance for inauthenticity. Just be yourself to win them as a client and a referral. Tip: Leverage referrals and other familiar relationships to build your credibility (especially digital), and make it easy to share information when they choose you. Value transparency – they value honesty and have a low tolerance for inauthenticity, just be yourself to win them as a client and a referral Tip - Leverage referrals and other familiar relationships to build your credibility (especially digital) and make it easy to share info when they choose you Millennials have a very low tolerance for inauthenticity. They value colleagues that treat each other with respect, and they gravitate towards supervisors who are relatable and accessible. If you are going to reference pop culture in order to relate to your millennial employees, just make sure you actually know what you are talking about. If you are simply out of touch with millennial culture, embrace that and just be yourself. Never try too hard to impress people. Just remember: Most millennials would rather work with Dwight Schrute than Michael Scott (there is no shame in having to look up that reference). Inspiring Millennials to Make Brand Referrals. Engaging U.S. Millennials after a purchase is not only critical to keeping them as customers; it is important also because Millennials are more eager than other generations to share their opinions with friends and on social networks. More than half of U.S. Millennials said that people seek them out for their knowledge and opinions of brands, compared with only 35 percent of boomers. Millennials are also influenced by different types of people. Traditionally, companies have used testimonials from “experts,” such as doctors or financial advisors, to convince consumers of the merits of a brand. But less than half of Millennials said that they trust expert advisors, compared with 61 percent of non-Millennials. And a mere 4 percent of Millennials—compared with three times as many boomers and silents—said that they are most influenced by experts.

SUMMARY Read slide

History, experience, credentials, earn trust
Be optimistic – the “big picture” vision. Clearly explain your solution – in person. Be part of their team. Be professional and courteous. Customize their solution. Tell them what to do (“close” them). Read slide

Tell them everything – don’t hide anything.
Educate them – offer options (Plan B). Be quick and efficient. Help them determine what’s best. The decision needs to be theirs, not yours. They’ll “close” themselves Once they understand the options, ask which they would prefer. Read slide

Tell them where to research the information.
Set small, “bite-sized” goals. Let them research … stay in touch with technology. Be a trusted resource – invite challenges. Don’t be pushy – don’t press for a close! They’ll tell you when they’re ready to buy. Read slide

Understanding Generational Differences
CONNECT WITH YOUR CLIENTS Understanding Generational Differences

Policies issued by American General Life Insurance Company (AGL) except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life). Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of the issuing insurance company. Products may not be available in all states and product features may vary by state. This information is general in nature, may be subject to change and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your individual circumstances, consult a professional attorney, tax advisor or accountant. FOR FINANCIAL PROFESSIONAL USE ONLY- NOT FOR PUBLIC DISTRIBUTION © AIG All rights reserved. AGLC EJ

Understanding Generational Differences

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