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Generational Marketing

Recruit more members, increase nondues revenue, and strengthen member loyalty by delivering services that reflect the personalities of your members’ different generations.

By John Gunn, John Gunn Marketing Partners, LLC

As the U.S. population of Baby Boomers moves toward retirement, many association executives are striving to prove their relevance to older members while still appealing to younger audiences. Associations that rely heavily on membership dues are at particularly high risk, but a shrinking membership also means less nondues revenue from product sales and affinity programs, not to mention fewer advertisers, exhibitors, and sponsors. The current-day economics of managing associations requires new ways of developing, communicating, and delivering services to generationally diverse audiences.

Generational marketing involves identifying and understanding how the beliefs, attitudes, emotions, needs, and interests of each generation influence their decisions and behavior. And effective implementation of generational marketing practices is key for targeting member segments of all ages.

A Generation Primer

First, let’s review the differences and similarities of each generation.

Matures or Mature Adults (also known as the World War II or Silent Generation)
Born before 1946, most of this generation came of age during the Great Depression, World War II, the Korean War, and the Cold War against the Reds. This generation tends to possess a strong sense of duty, tradition, and loyalty. As a group, Mature Adults value personal ties and relationships. They require time to get to know a person, product, or organization. They are brand loyal and likely to have joined an association to get involved and help their industries or professions. They tend to be more mission- or cause-driven versus self-interested. You may hear this generation say they became association members because “It’s the right thing to do” or “I’ve always been a member, so I always will be a member.” Far less technology savvy than more recent generations, Mature Adults prefer print communication and face-to-face interaction. According to Imprint magazine, the fastest-growing age group in the last decade was 85-plus, and by 2030, Entrepreneur magazine reports that 20 percent of the U.S. population will be over age 65.

Baby Boomers (born between 1946 and 1964)
Born in a period of prosperity, low unemployment, and greater access to education, Boomers are now approaching mid-life and entering into retirement. As a group, they have been described as self-absorbed, materialistic, and externally motivated – appearances matter and possessions count. But as they approach mid-life, Boomers are becoming more introspective and subjective, examining a fuller range of life values and experiences. Advancements in medicine and health are helping Boomers maintain an active lifestyle, and the 50-and-over market remains a prominent consumer target audience.

Boomers view professional advancement as a series of sequential steps in climbing the career ladder and “paying your dues.” All but the oldest Boomers are comfortable with technology, and they use e-mail and the Internet regularly as means of communicating with others, retrieving information, and conducting business. Currently, the vast majority of association members are Boomers. They are likely to use a variety of information and networking association products, ranging from traditional meetings and seminars, to reading print magazines, to reading electronic e-newsletters, to lurking on listserv discussion groups. Because they juggle a myriad of professional and personal demands, time is a precious commodity to Boomers. As a group, the purchasing decisions of Boomers are becoming less price-sensitive as they place more emphasis on the value and total experience of using a product, service, or brand.

Generation X (born between 1965 and 1976)
More Gen Xers were raised in single-parent and working-parent homes than in past generations. They grew up in the age of corporate downsizing and layoffs, AIDS, environmental concerns, and widely publicized violent crimes. As a group, they tend to be skeptical, realistic, responsible, pragmatic, self-confident, independent thinkers who are not easily intimidated by authority. They value honesty and straightforward communication, and they are somewhat immune to commercial hype. Researchers believe the values of Generation X more closely mirror those of the Mature Adults than the Baby Boomers. Gen Xers place greater value on flexibility than do preceding or subsequent generations, and they appreciate opportunities to learn. They view quality of life as more important than a successful career, working to live versus living to work. They are opposed to rigid environments and place little value on chains of command. They believe work should be fun. Gen Xers tend to be non-traditional, interested in new concepts and new products. Gen Xers are enthusiastic, creative, multidimensional, diverse, highly educated, and computer-dependent. They have a global mindset, and an estimated 70 percent of all new businesses in the U.S. are owned by Gen Xers. Your association’s Gen X members might ask “What’s in it for me?” and “Does this support my beliefs?” when making decisions about renewing associations memberships, attending conferences, purchasing products, or volunteering with your association. Gen Xers are more loyal to individuals than organizations, and they scrutinize the return on investment for their money and time.

Generation Y – Born between 1977 and 1995
The 70 million people in Generation Y ages 7 to 25 currently comprise 21 percent of the U.S. population and are expected to exceed the number of Baby Boomers – to represent approximately one third of the U.S. population by 2020. Born into affluence, as a group Gen Yers tend to be materialistic and more like their Boomer parents than their older Gen X siblings who value experience and honesty. Gen Y is a generation of consumers, spending $91.5 billion in 1997 – 60 percent more than their predecessors of the same age spent 10 years earlier, according to American Demographics. Nearly half of Generation Y teenagers have a part-time job, one fifth have their own phone numbers, and two-thirds have a TV in their own bedroom. American Demographics reports that children aged 4 to 12 directly or indirectly accounted for $500 billion in household spending in 1997. Generation Y is brand-conscious, and brands must reflect their lifestyle. Jupiter Communications reports that 67 percent of 13- to 18-year olds and 37 percent of 5- to 12-year-olds have researched or bought products online, and that annual e-commerce from Generation Y will total $1.3 billion in 2002.

Implications for Associations

The ASAE Foundation names “generational issues” one of 14 major trends shaping the future of associations. In Facing the Future (1999), the ASAE Foundation suggests that association executives examine the ratios of Matures, Boomers, and Xers in their memberships, determine which groups are predominate, and determine if their volunteer structures and Boards reflect the actual membership profile. The Foundation suggests that associations develop ways to determine generational differences in terms of:

Perceived level of satisfaction
Types of programs and services desired and delivery preferences
Attitudes about meetings and time away from home or office
Attitudes about governance and leadership of the association
Loyalty to the association
Willingness to volunteer, motivations, and preferred time commitments

Here are some suggestions on how to proceed:

Establish an accurate starting point. You’ll first need to ensure the obvious – that you do, in fact, have accurate information about the age of your members. Now is a good time to also ask about the year your members entered the profession or industry, and the year they anticipate retiring. Incorporate questions into existing membership applications and order forms to collect data and update individual member records.

Implement market segmentation practices. Age is just one of many characteristics association managers capture to better understand subgroups within their memberships. By practicing market segmentation (or target marketing), they collect geographic, demographic, and behavioral data in an effort to create customized communications and services that reflect the unique characteristics of different market segments. Their efforts are often rewarded with above average to exceptional response rates and lower expenses from reduced quantities of promotional collateral and postage.

Assign responsibility. Make sure the staff person assigned the duties of a “database marketing specialist” not only understands the mechanics of managing information, but also understands your goals so they can effectively filter marketing data and provide management the most relevant information about members.

Develop generation-based business practices. With relevant and accurate marketing information available, association managers can begin making generation-based distinctions between members – differences in their purchasing behavior, levels of involvement, interests in new products, and their communication and product delivery preferences. With marketing strategies that incorporate generational thinking, associations can more accurately match up products and benefits to the generational cohorts who will find them to be the most valuable. They can also cross-sell complimentary products more effectively.

Engage your audience. For Mature Adult audiences, create ways they can contribute to the prosperity of their profession or industry. Look for products and services that extend the usefulness and relevance of your association. Benefits derived from some associations’ affinity and insurance programs are reason enough to renew membership year after year. Explore benefits of lifetime membership and make sure they can’t be found elsewhere.

Lead with a mission. In communications to Mature Adult audiences, lead appeals with mission and purpose statements, and write for older eyes – a minimum of 12-point typeface, serif fonts, wide margins, and amble white space. And offer guarantees – one of the most effective customer retention tactics and a great way to reduce risk and counter purchasing objections.

Celebrate milestones. Consider a life-stage marketing approach to reaching older members, if appropriate for your association. Some associations find meaningful and sincere ways to connect with members on milestone events such as a child’s marriage, the birth of grandchildren, retirement, and anniversary dates.

Understand your Boomer audience. On the surface, the demographics for your mostly-Boomer membership may seem similar, but the expectations, attitudes, and perceptions held among members of this group can be radically different. You’ll need accurate market research to customize products and promotions to appeal to the largest Boomer subgroups in your membership.

View the whole picture. Attempt to deliver services and benefits that meet a full range of needs for Boomer audiences. They are less price-sensitive than other groups, so offers based on money savings or other specific product features will be less successful than those that deliver genuinely valuable experiences for Boomers. Communicate in simple, bulleted, quick-read, and user-friendly formats. Be original. Boomers have a long history of breaking the mold and re-creating themselves anew. As a group they are likely to reward new approaches and products and reject things that are done as they have always been.

Understand your Gen X audience. Members of this generation are very diverse, both among themselves and among other generations. Consider redesigning existing products or creating altogether new services to reflect the interests of your Gen X members. Act naturally. Be sincere, honest, and straightforward with Gen Xers. They are skeptics and skilled at quickly seeing the sales “spin” in an appeal. Rethink messaging and deliver what you promise.

Prepare for the future. The oldest Generation Yers represent the youngest and by far the smallest portion of most associations’ memberships – if any at all. But the oldest members of Generation Y are now young entry-level staff or interns. They may be aware of their industry’s trade and professional associations but are not yet decision makers about association purchases. Be mindful of the sheer size of Generation Y and the dramatic role it will inevitably play in the life of your association. Because Generation Y consumers as a group tend to favor brands and develop opinions about brands at an early age, association marketers and mangers should take their interests into account when developing new brand marketing strategies and products.

Essentially every person on your association’s staff can benefit from knowledge about generational marketing concepts and practices. From developing and selling products, recruiting members, and managing volunteers, to selecting speakers and authors, providing customer service, and raising charitable gifts – a customized approach recognizing the unique characteristics of different generations enhances the impact of your marketing efforts.

John Gunn is the CEO of John Gunn Marketing Partners, LLC,
specialists in marketing assessments, research, strategy and plans for associations. For more information, please contact the author at (703) 299-0774, jg@GunnMarketingPartners.com

For information about reprinting this article, please contact Cindy Robinson at cr@gunnmarketingpartners.com.

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