How Gen X, Millennials & Gen Z across europe feel about direct selling.
A landmark study details how generations of Europeans across all genders, geographies and socio-economic levels perceive, engage with and measure success and opportunity in direct selling.
Times have changed, but in the direct selling channel, executives can easily assume that some things never will.
That belief was challenged in 2022 when Jason Dorsey, President of The Center for Generational Kinetics (CGK), presented his generational research at Direct Selling University. Generational research identifies differences between generations in underlying motivation, actions, behavior and predictable tendencies. And while his findings illustrated how deeply the generational divide impacts how people perceive and engage with the world around them, the insights were borrowed from research done in other industries. I quickly discovered that no generational study of any significance had ever been done solely for direct selling.
As the Founder of Bridgehead Collective, a firm founded to help companies in the channel innovate, form and execute strategic plans, I know the importance of well-researched data. Data is the foundation for determining how to allocate investments; where to leverage human power to lead through change; how to identify and overcome internal and external obstacles to growth; and how to decide which strategies will have the most impact on measurable results. I knew we needed to harness the power of original generational research in a way that would specifically analyze the direct selling industry.
Generation-Specific Strategies
In a first-of-its-kind study in 2023, Bridgehead Collective partnered with the Center for Generational Kinetics. We set out to discover America’s perceptions of entrepreneurship, the gig-economy and—more pointedly—direct selling.
We repeated the process this year, but with an international—specifically European—focus. We had several key objectives, including investigating current attitudes, motivations, limitations and beliefs and uncovering participants’ attitudes, beliefs and overall perceptions of direct selling. We aimed to test specific messaging, positioning and marketing strategies and discover existing perceptions and preferences.
We designed the study to provide Actionable Insights across 10 Key Categories:
- Perception of Industry and Channel
- Recruiting and Prospecting
- Motivations and Decision Criteria
- Onboarding and Getting Started
- Training
- Compensation and Value Proposition
- Recognition
- Incentive Trips and Events
- Retention
- Duplication and Role of Team Building
This study targeted the UK, Spain, France, Germany and Poland, and while the research presented in this article focuses on the generational differences across Europe as a whole, the study also provided striking differences between each of these growing direct selling markets.
Each generation across Europe has strong feelings about how we recruit, onboard and train. But no two generations are remotely the same in what motivates them to want to stay. In fact, as we looked at the data, it was common to see results that were significantly polarized. Each of these 10 key categories provided new, actionable insights that every marketing, sales, field communication and compensation team will want to design around. Here are just a few of the most important insights.
- Europeans are interested in starting their own businesses, but older generations are deterred by the cost of getting started while younger ones are afraid of failing.
- Across the generations, Europeans have clear and strong opinions about recruitment, onboarding and retention.
- Significant generational, gender and country differences exist when it comes to attitudes, beliefs and overall perception of entrepreneurship and direct selling.
What is clear is that the industry is in flux. And a one-size-fits-all approach simply doesn’t work. But many companies still rely on a historical positioning of direct selling that doesn’t really fit anymore.
Precision Messaging
It’s common to hear direct selling executives and field leaders say they are eager to pursue Gen Z. In an effort to court the youngest shoppers, however, brands can jump on trend bandwagons that have the opposite effect for older generations, effectively alienating their loyal customers and distributors in the Gen X and Millennial age brackets.
The key, then, is to deliver our messages with precision. No two generations have the same preferences, experiences and motivations—our messaging shouldn’t either. We need to become students of generational divides, fine-tuning our communications so that they speak the language of each specific customer and seller for maximum credibility. With the right data, it’s possible to truly reach everyone by refining our audience and tailoring our messages for maximum impact.
The Sweet Spot of Opportunity
The good news is, across the board, Europeans are generally interested in starting their own business. Sixty-eight percent would like to own their own business in the next three years, including 80 percent of British individuals, the highest of any country tested.
Europeans also have an open mind about what starting their own business looks like. Forty-nine percent consider “gig economy” jobs (driving for Uber, delivering for GrubHub, etc.) as starting their own business, including 63 percent of Polish individuals—the highest of any country tested.
However, it is really the inverse of this statistic that’s most notable—almost half of all Europeans that are looking for a “gig economy job” do not see your brand (as you currently position it) as a solve for that. The data would suggest that calling out our “business opportunities” in more specific language will result in higher engagement.
From a geographic standpoint, Spanish (48%), British (43%) and Polish (41%) individuals are significantly more likely than the French (32%) and Germans (20%) to want to start their own business in the next five years.
From a generational standpoint, Gen Z (42%) and younger Millennials (46%) are significantly more likely than older Millennials (34%) and Gen X (27%) to want to start their own business in the next five years.
Strong gender differences exist as well, men (42%) across all European countries tested are significantly more likely than women (31%) to want to start their own business in the next five years. This represents a strong difference from the US where women expressed a higher inclination than men to own their own business.
If we use precision messaging, we can recruit in these segments while also tailoring our communications with the older, more skeptical demographic in a way that speaks to their doubts and concerns.
Breaking Down the Barriers
Being an entrepreneur is no easy task, so it’s no surprise that high startup costs (55%) and failure itself (53%) are the biggest barriers Europeans face when considering a new business venture.
In fact, 67 percent think owning their own business is harder than being an employee at a business.
With these barriers in mind, it’s imperative we maximize our effectiveness by talking about our opportunity where, when and how Europeans are most receptive and address those fears head on with specific solutions, specifically calling out low cost of entry. Spoiler alert, $115 USD or less was the magic number for Europeans.
Not surprisingly, Europeans would feel the most comfortable learning about new direct selling opportunities through discussions with friends or family. However, they pointed to brand websites as a place of distrust when finding out more about the opportunity. They were much more likely to turn to social media channels or YouTube as their primary source of information, so make sure your channels represent your brand accurately.
Younger generations, especially younger Millennials, are significantly more comfortable than Gen X learning about new direct selling opportunities in every way tested. Across all opportunities tested, younger Millennials average 10.5 percent more comfortable compared to Gen X.
What’s Their Win?
Making extra money is by far the biggest benefit for Europeans when becoming a distributor. From there, having control over when and where work happens (41%) was a strong driver.
Control over their time and where they work would significantly influence older Millennials (44%) and Gen X (44%) to get involved as a distributor compared to Gen Z (36%).
Opportunities to get recognized and rewarded for their unique talents (Gen Z: 23%, Younger Millennials: 26%, Older Millennials: 18%, Gen X: 18%) and building their influence and impact by building a business (Gen Z: 24%, Younger Millennials: 24%, Older Millennials: 17%, Gen X: 16%) would significantly influence Gen Z and younger Millennials to get involved as a distributor compared to older Millennials and Gen X.
Money is the best and most welcomed benefit by a long shot. In fact, it’s the highest predictor of whether a European would choose to keep working their business after the first three months.
While this is obvious, there’s more to the story. Europeans are cause-driven in surprising numbers. The data shows 77 percent are more likely to work with a company that supports a social cause they are passionate about. That’s huge and significantly higher than the US.
How Much Is Enough?
We’ve all reframed our opportunity in increasingly compliant ways, referring to extra, additional or supplemental income instead of a specific dollar or some other atypical earnings amount. The problem though is that this general approach to pitching opportunity will mean different things to different people. Now, with this research, we know for the first time how much money additional, extra or supplemental income actually translates to.
Sixty-three percent of Europeans would have to make between $250-$999 in the first 3 months of direct selling to absolutely convince them it’s worth it.
British individuals are significantly more likely than all other European countries tested to be convinced that direct selling is worth it if they make $250 or less in the first month.
Polish individuals are significantly more likely than Spanish, British or French individuals to be convinced that direct selling is worth it if they make between $500-$999 in the first month.
Seventy-six percent of Europeans say they would get involved in direct selling if they knew they could make $500 of extra income each month, including 85 percent of Spanish individuals, the highest of any European country tested.
Unlock Untapped Opportunity
The study clearly shows that generations perceive this industry in vastly different ways. The often-touted homogenous funnel marketing technique may appear more efficient, but this study proves that it is likely also less effective. We must balance efficiency with effectiveness. When we think about investment, we need to also think about changing the lens with which we’re viewing that investment. What’s a bigger spend: one cheaper, ineffective communication approach or a multi-pronged message that may cost more but delivers results?
WANT TO KNOW HOW ATTRACTIVE YOUR COMPANY IS TO EACH GENERATION? Schedule your Generational Attraction Assessment today, complimentary for DSN Gold and Platinum Supporters.
With 20+ years of cross-functional experience in direct selling, Heather Chastain brings a solid understanding of sales, marketing, technology, manufacturing, operations and C-Suite challenges as well as a strong collaborative and relational style of leadership to the table. Heather has held executive roles at Shaklee, Arbonne International, Celebrating Home and BeautiControl. Heather also serves as the Strategic Advisor at DSN and is the Founder & Chief Executive Officer of Bridgehead Collective.
From the July/August 2024 issue of Direct Selling News magazine.
