How to vary a sales approach based on age demographics

6 minutes read 

There are many ways to divide your prospects into different demographics; this can be based on location (which part of Singapore do they live in?), income, education, gender, or even hobbies. However, one of the most effective general methods is to use age. In this article, we’ll examine how different approaches are needed, for prospects in different life stages:

Why is age such an important demographic?

Age is one of the most important demographics, especially for finance, because it affects all of the following:

• Income level – A student, retiree, or young adult in an entry level job will not have the same disposable income as a business director, or other senior manager.

• Key financial concerns – A 20-year old is probably not yet dealing with home ownership issues, whereas a 30-year old, first-time home owner would be very interested in such a topic. Likewise, a 70-year old prospect has much greater
  healthcare concerns, as opposed to a 25-year old.
• Dependents – An older prospect is likely to have more responsibilities. For example, a 45-year old may be looking after both their parents and their own children, resulting in much less disposable income, despite earning more than a 25-year old.
• Product / service suitability – It is probably inappropriate, for example, to sell a 30-year savings plan to someone who is 70-years old, or to sell a low-interest, long term bond to a 20-year old.

These factors are almost (but not always) universal, which is why age is a useful way to segment your base of prospects.

Based on the above, here’s how to vary your sales approach, based on your prospect’s age:

• Find the right channels for the age group
• Use examples relevant to the right life stages
• Vary the tone and choice of words
• Use age-appropriate frames of reference or anecdotes

1. Find the right channels for the age group

By channels, we refer to the methods used to attract the prospect, or communicate with them. Prospects of different ages will have different preferences here.

Older and more traditional prospects (late 60’s and above), may find face-to-face communications more trustworthy. As such, you may want to quickly set up a meeting or call directly, rather than texting, sending email, etc.

Conversely, millennials and Gen Z may actually be annoyed if you try to start with a direct phone call. Some may not even pick up the phone, if they don’t recognise the number. “Why are you calling when you can just text me that?” is a common refrain.

Even with regard to social media, channels will differ based on age. For example, most teenagers, to prospects up to their late twenties, will use Instagram; older prospects who are in their late thirties and up may be more inclined toward Facebook.

Research your chosen age demographic thoroughly, and revise your methods to match.

2. Use examples relevant to the right life stages

Always consider what’s important to your prospect, based on their current life stage. For example:

• Young adults in their  20’s typically have aspirational interests, such as wanting to own a car, go on a month-long trip to Europe, etc.
• Prospects in the 30 to 35 year age range are confronted – and often confused – by their first real major decisions. They are buying their first house, trying to fund a wedding, have a first child, etc. They often have interests related to clarity and guidance.
• Prospects in the 40 to 50 year age range are often at their career peaks, and are focused on protecting the wealth they have accumulated. They often have interests related to retirement and legacy planning.

You need to tailor your examples and value propositions to the right life stages. A 40-year old who is already a senior manager probably doesn’t need to hear about how he could “afford to go overseas every year”, while most 20-year olds are not going to sit through an hour-long speech on how to reach their full retirement sum.

Know what’s important to your prospect, and build on that.

3. Vary the tone and choice of words

To an older prospect, always aim to be friendly but not familiar. Don’t talk to them like you would one of your old friends, with the back-slapping and blunt jokes; it may come off as unprofessional and untrustworthy (even if you think you’re being warm).

Conversely, you should avoid seeming too corporate looking, when dealing with
millennials: remember they’re the generation that went through the Great Financial Crisis, and many have a distrust of mainstream financial institutions. Relaxing and being warmer can make a huge difference.

4. Use age-appropriate frames of reference or anecdotes

Storytelling is a great way to engage your prospects; but make sure it’s a frame of reference they will understand.

A millennial or Gen Z may get your personal finance jokes about avocado toast, but an older prospect is probably just going to be confused. Likewise, using financial examples from the dot.com bubble in the ‘90s can be alienating to some younger prospects (the concept of ecommerce in the early ‘90s is completely different to the way it works today).

Using age-appropriate references isn’t just for clarity: being able to use the right references tells the prospects you live in the same frame of reality they do, and can grasp the same issues that matter to them.

It takes research and practice, but over time, you will get better at adapting your sales approach to different age groups. At Exodus Capital, we mentor financial advisors on how to best deliver their message, even if they need to work outside the warm market – or outside their comfort zones. If you’re interested in expanding your scope, drop us a note so we can help.