Millennials. Generation Y. Echo Boomers. Whatever
you call this group, there are 76 million of them,
the oldest are just turning 30 and, according to Steven
Worth, president of Plexus Consulting Group (Washington,
DC), they have already transformed just about everything
you thought you knew about the marketplace.
“My generation grew up local, and local was all there
was,” he says.
“This generation has grown up with the world at their
fingertips and they’re accustomed to going out and
getting exactly what they want.
The days of members sticking with a fat and happy
organization are long gone and not coming back.”
Here Worth reflects on several notable attributes
of the Millennial generation and the impact they are
having on membership organizations.
Around 40 percent of millennials are of a minority
or racially-mixed background.
“It used to be you did business only with people you
knew, who looked like you, were part of your ‘tribe.’
Now business is based on competency, and the U.S.
is headed toward becoming a majority-minority nation.
That is all for the good, but it means membership
organizations have to give serious thought about how
they appeal to people with different work habits,
value propositions and languages.
Sensitivity is part of it, but ultimately associations
must find ways to define their missions in ways that
are universally compelling, regardless of racial or
ethnic background.”
Millennials are often said to be the first American
generation expected to less well economically than
their parents.
“The millennial generation will face, literally, a
world of competition. America will no longer be the
unquestioned leader in any industry, and many people
will advocate reactionary and protectionist stances--but
shutting out the world is exactly the wrong thing
to do. Successful organizations will be the ones that
realize that, along with all the competition, they
are also facing a world of potential members and customers.
Globalization, if only marketing to overseas industries
and professionals, will be the way to a prosperous
future.”
Millennials are the first generation who have
never known life without the internet.
“Growing up on the internet, millennials are used
to going out and getting whatever they want. In many
organizations, membership has dropped, prompting some
to suggest that this generation simply aren’t ‘joiners’.
But in this same period volunteer activities have
risen. What has become clear is that millennials are
more motivated by mission than any previous generation.
While they will not show loyalty to an organization
like previous generations did, they will show loyalty
to a cause. Membership organizations must therefore
articulate a clear and compelling cause, mission and
purpose.”
Millennials tend to frequently change positions,
jobs and even fields.
“Many membership organizations are going to have to
rethink their entire business model – what their purpose
is, how they relate to members, how they make money.
In the old paradigm, money came through membership
dues. Now many of the most successful associations
rely not on dues but on the products and services
they sell. To them, membership rolls are important
only for the data they provide, and as long as people
are participating in their courses and purchasing
their products ,they are not bothered by members coming
and going. Some of our fastest growing clients don’t
even have formal membership departments. They know
that if you offer essential services, members will
come as a matter of course.”
Causes for Concern: For-Profit Competition, Advancing
Age Sometimes member organizations don’t recognize
trouble when they see it, says Steven Worth, president
of Plexus Consulting Group (Washington, DC). To stay
on top of needed changes and developments, he suggests
watching for the following warning signs.
· For-Profit Competition. “Non-profits should
be able to offer better
products at better prices because they don’t have
shareholders to pay,” says Worth. “So if for-profits
are gaining traction in your area, it means your organization
is not operating as efficiently as it needs to be,
or is not offering products the target market wants.”
· Advancing Age. “Any organization should
see membership pick up
around age 25 and drop off around 55, because those
are the prime years of a career,” says Worth. “If
the average age of your members is right down the
middle, you’re where you need to be. If the average
is pushing to the high end of that range or off into
the sixties, you’re developing an association of retirees
getting together socially, and that’s trouble.”
Source: Steven Worth, President, Plexus Consulting
Group, LLC, 1620
Eye Street, NW Suite 210, Washington, DC 20006. Phone
(202)
785-8940. Email: steve_worth@plexusconsulting.com.
Website:www.plexusconsulting.com