New Perspectives

Top Desk: Passing the Torch
with Rosemary Redmond

It seems that the theme at the beginning of the 21st century is "attract the next generation." There are three very good reasons for this thrust; one or all three may fit your company, as they did Weekenders USA. The primary reason is to ensure longevity for your company. The silent generation (born 1922 to 1943) retired on average at age 65. Many in the baby boomer generation (born 1943 to 1960) are retiring in their early 50s! The sheer number of boomers leaving the work force and adapting to a retirement lifestyle and spending habits can make a dramatic impact on the future of a company.

Many companies that have celebrated their 20th anniversary did so with an audience of grandparents and even great-grandparents. These companies are feeling that impact on recruiting, leader development and sales, right now. This scenario illuminates the second reason to attract the next generation: immediate market expansion. It's hard to ignore them, and yet, in many ways, because of the success of the baby boomers who built our companies, it's a real challenge to create an inclusive brand that will attract a younger market segment. That reality becomes more pertinent when aligned with the simple fact that the average primary party plan hostess and attendee is the 25- to 42-year-old Gen Xer.

It's imperative to have strong field leadership in this age span to maintain the viability of the party plan channel. This is the third and critical reason for party plan companies like Weekenders USA to attract the next generation. To do that, changes probably need to occur. If you have a core group (baby boomers) that is doing well and you continue to create products and programs for that market segment, they will sell to people just like themselves and recruiting will begin to slow down. That approach can be very limiting, vs. looking at the broader market, who isn't part of your company, what segments you aren't appealing to and what you are willing to do to attract them.

Once you determine a strategy to continually enroll the next generation into your brand, the next step is to develop a keen market awareness. The old saying that a visionary needs one eye on a telescope and the other one on a microscope truly applies.

Market Awareness arrives in two distinct packages, and it's wise to keep them separate.

First, using the microscope, gain information from within the current field to determine how much and how quickly the evolution must occur. As you look at the new leaders recognized on stage, identify which generation they represent. Find out the ages of new consultants (make sure this info is on the application form). What percent are Gen Xers? What percent are baby boomers? What are the 90-day and 120-day success rates of those in your target?

Simultaneously, use the telescope to gather information outside your current field. Identify who the next generation is for your company. Then learn everything you can about them-demographics and psychographics! Learn their vocabulary, the messages that motivate them, their likes, dislikes, their learning style, their leadership style, their principles, their current buying patterns and their long-term anticipated buying power.

Once you have interpreted the market trends for your company, the objectives surface with ease. Will you adjust product as your field ages to stay in tune with that generation or will you prepare for the next market segment to come of age by having product and programs in place to attract them now? While product is core to every direct sales company, fashion is highly volatile and very age-specific, so Weekenders started the evolution with product.

Initially, we added some very youthful styles to the core collection, but that was not sufficient. We found that did not get the attention of the younger market, and they still viewed Weekenders as clothes their mother wore. So we created a separate collection of fashions with its own name, label and sizing. We call it the Joy Collection by Weekenders. Since then, we've recruited a much higher percentage of Gen X women, who (like those who came before them) are coming into the business because they can see themselves selling our fashions to their friends.

Concurrent with the introduction of the Joy Collection, we made significant changes in our image. The appeal of the catalog can determine if a woman accepts the invitation to go to a home party. So not only do we use age-appropriate models for photos of the Joy Collection, but we also introduced lifestyle photos, altered our verbiage and honed our use of color to identify the brand as quite youthful.

We also learned that the business had to be geared to the needs of Gen X women. Two of the major challenges that many young women face are lack of money and lack of time.

Of course, the money problems can frequently be solved through a direct selling business. But many times prospective representatives don't have the money to buy the samples to start a business. While the amount can vary by company, when it comes to clothing, customers must be able to try on samples. So the startup cost in Weekenders is probably higher than most.

We employed a two-pronged approach to solve this. First, we started a three-month payment plan so new coordinators can get all of their samples at once and, as they earn money, pay for the product. Second, we have a New Coordinator Incentive Program that allows them to earn credit based on their sales in the first 30 days. So, even though they spend $500 to $1,000 for samples, with this program they can easily become profitable in their first month.

Lack of time is another major issue. In addition to children, many representatives have full-time jobs, so fitting another part-time business into their schedules can be a real challenge. Weekenders traditionally delivered all products to the Fashion Coordinator, who then bagged and delivered it to the Hostess for distribution. In August 2006, we introduced our Direct Ship Program. Now the Coordinator sends us the order and customer's address, and we ship directly to the customer (not the Hostess). Not only is direct ship a great recruiting tool, it has also increased the ease of securing bookings because the Hostess is not responsible for delivering the product.

These are examples of Weekenders strategic initiatives that affect our business today. Of course, each company must roll out its own plan to fit its product and current programs. Blending generations within a company can be a source of creative strength, new opportunities, and the kind of momentum that heralds outstanding personal and company-wide success. The simple truth is that we must all watch the trends, and make sure we are planning for tomorrow rather than repeating yesterday.

Rosemary Redmond is President of Weekenders USA.

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