After just a brief conversation with Reston, VA-based Anne Loehr, it doesn’t take long to understand that she is not one to rest on her laurels. In fact, she’s used her entrepreneurial nature, instinctive desire for knowledge, and tremendous life experience to develop and define what would ultimately become her specialty and niche — generational marketing.
Amy Guettler: You’re something of a pioneer in the field of generational marketing and relationships. What inspired you to get into this particular niche?
Anne Loehr: For 15 years, I owned and managed international hotels and safari companies. I found it to be very frustrating trying to manage, lead and communicate with 500 Kenyan employees from four different tribes — each of which had its own culture, language and history — so I started studying the subject myself.
When I returned to the U.S., I started specializing in executive coaching and leadership development. I realized that trying to manage and communicate with four different generations in the workplace is just like managing four different tribes in Kenya: each generation has its own culture and history, which determines how you approach them.
AG: That’s a great analogy, but is sounds like there wasn’t much information out there you could draw on to learn about working with multiple generations; is that correct?
AL: Absolutely. I personally had to do a lot of research on the subject.
AG: What strategies did you use to basically teach yourself the art of generational relationship marketing?
AL: I started little by little, using both hard and anecdotal research. I would do informal focus groups on the issue, and I would always use CEOs in the focus groups. I started writing a lot of blogs about what I learned, and then I started getting Gen Y “hate” blog responses. People started to react, showing there was a real need for this information. So I started teaching generational marketing for free at local community centers. I would always invite the CEOs from the focus groups so they could see what came of their input.
AG: You mentioned there are four generations in the workforce today. Could you elaborate on what distinguishes them from one another?
AL: This is really an unprecedented time, having four generations with four different perspectives working together. While the dates that define these generations can be kind of fluid, I use the industry standards. They are:
- Traditionalists (or “The Silent Generation”): Born between 1924 and 1945, many are preparing to retire from the workforce.
- Baby Boomers: Born between 1946 and 1964, this 82-million strong cohort will also begin to retire, but the majority will require resources to better communicate and work with their Gen X and Gen Y clients and coworkers.
- Generation X: Born between 1964 and 1980, this relatively small group of about 52 million tends to be more cynical, and will need to know what’s in it for them before they make a decision.
- Generation Y (or “The Millennials”): Born between 1981 and 2000, only half of the 80-million people in this generation has even entered the workforce. The oldest Millennial is only 29; they still haven’t hit their 30s!
Each of these generations was shaped by the events occurring during their formative years, which has a significant impact on how they see the world and their role within it.
AG: Why is it so important for advisors to understand what drives these generational differences?
AL: All too often, an advisor who’s been working with a wealthy client for years — but has not worked with or even met his or her successor — is shocked when the patriarch dies, only to learn that their children have decided to take the family’s assets to a competing advisor who is more in-synch with their needs and goals. So if you plan on keeping a high-net-worth family’s assets across the generations, you need to learn each generation’s motivations, likes and dislikes, and how to speak to them in a language they understand so you can involve the whole family in developing a succession plan.
AG: So how do you go about developing those relationships?
AL: First ask who your client’s successors are, and then inform them that you’d like to meet their kids and in some cases, grandchildren. It is absolutely imperative that you meet with these successors — it’s your duty as a financial advisor. Get to know them in a non-business setting that appeals to them generationally; for example, you could invite the family out in honor of the work your boomer client does for the community. Try to understand what the younger generation likes: you can do this by paying attention to what they eat or drink, what they wear and what they say during the family meal. You must take the time to cultivate these relationships or you will lose all the family’s assets.
AG: Would this then be the time when you bring the two generations together?
AL: Yes, this is when you start preparing for your succession planning presentation with your client and their successors.
AG: How do you incorporate generational considerations into your presentation?
AL: Use words that work. Each generation likes to see and process data differently. For Generation X, use a variety of on- and offline resources that favor their reflective learning. Using images with text, be pragmatic, quick, and to-the-point when speaking to them. They tend to be more cynical, so show them quantifiable results and data that demonstrate what’s in it for them.
If you’re talking to Gen Y successors, they’re generally going to prefer media-rich nuggets of information, Web-based resources and images that play to their need for balance.
The Baby Boomers are more familiar with offline resources, but also appreciate useful hyperlinks. They don’t really need images; just make sure you use large font sizes.
AG: Do you ever encounter resistance from either generation, especially when it comes to finances?
AL: Sure. Sometimes the adults don’t want to share the details of their finances with their children, and sometimes the children feel uncomfortable knowing these things too. But you have to make it happen if you want to succeed.
AG: What do you say when that objection comes up?
AL: Again, it’s back to words that work; those that resonate with different generations.
If I were talking to a boomer about how important it is to create a strong succession plan, I would say something like, “I can understand why you might feel that way, but your kids need to know the big picture as well as the small details. This will make a real difference in your family’s future.”
For Gen X, which loves hard data and numbers, I would say, ”You really need to know the data and numbers behind your parents’ estate. Just think about what the tax consequences could be.”
Finally, when talking to someone from Gen Y, it’s more like, “You need to know about your parents’ situation so you can help them plan for a green world,” or something similar.
AG: Advisors can visit your site, www.anneloehr.com, to learn more about what makes each generation tick and to ensure they retain family assets across generations via your blog and articles. Do you have any other helpful offline resources that you like?
AL: I like the book “Mind Your X’s and Y’s,” by Lisa Johnson, which focuses on sales, and Tamara Erickson’s “What’s Next, Gen X?” You can also find books like “Millennial Incorporated: 100 Ideas to Motivate Gen Y” by Lisa Orrell.
AG: But when it comes to financial advisors and succession planning, you’re definitely the Generational Guru?
AL: (Laughs) According to the Washington Post!
Related posts:
