5 ways to engage the next generation of family business leaders.

Close to 90% of U.S. businesses—including 50% of contractors and about 35% of the Fortune 500—are family-owned or -controlled. According to a recent McKinsey report, they tend to outperform other types of companies, thanks to their “adaptability, resilience, and impact.” 

As one of the fastest-growing sectors of the economy—with 71% of family businesses reporting growth (43% in the double digits)—they’re an audience your B2B company can’t afford to ignore. 

They also have staying power. A recent study found that 74% have endured for 30 years or more. Another showed that 72% want to keep control in the family by passing the torch to the next generation. And many do that successfully for decades, including household names like Levi Strauss and L’Óreal. That means nurturing strong relationships with family businesses can yield a steady stream of revenue over the long term for companies that can provide the right solutions for them.

But these transitions present many challenges for would-be suppliers. New execs bring their own opinions about the next steps the company should take, and their needs and priorities may be very different from their predecessors’. 

One major factor is age. PwC’s Global NextGen Survey 2024 describes the next generation of family business leaders as between 18 and early 40s (a range that spans both Gen Z and millennials), and finds they have a better understanding of the need to embrace new technologies such as AI than the incumbent generation (with a mean age of 60 and a penchant for remaining at their posts long past standard retirement age).

Of course, older leaders can be forward-thinking and comfortable with technology. But research shows that overall, younger generations tend to be more digitally savvy, values-driven, and sustainability-focused. When they take the helm of the family business, they often look for suppliers who not only provide high-quality products and services, but also align with their business values.

Here are five ways up-and-coming family business leaders differ from their predecessors, and how B2B companies can adapt to remain relevant and appealing to them.

1. They live in a digital world.

Growing up with computers, the internet, and even smartphones, millennial and Gen Z family business successors are overall better prepared than their elders to embrace and adopt new digital tools and platforms to communicate, market themselves, and improve productivity—and they expect companies they deal with to do the same.

How to adapt: Speak their language through digital channels. Research shows that 62% of millennials are more likely to become loyal customers if a company engages with them on social networks. So meet them where they are, and communicate with them through posts and direct messages highlighting their industry and business needs.

They are also more likely to use self-serve channels such as e-commerce websites to make business purchases. You can make it easier and more appealing for them to buy from you by modernizing your website with features and tools that enhance the customer experience, including emerging tech solutions like customer support chatbots.

2. They expect customization and flexibility.

As described in Forbes, “Millennials and Gen Z are digital natives who have grown up expecting tailored content and recommendations. If you’re not offering personalized experiences, you’re at risk of losing these valuable customers.” That’s just as true for younger leaders making purchase decisions for their businesses as it is for younger consumers buying for themselves.

How to adapt: Personalize your partnership. Reject a one-size-fits-all approach! Customize your products, services, and communications to meet the specific needs of younger family business leaders. That can include everything from product design and packaging, to AI-enhanced search tools that deliver personalized results, to flexible service models that adapt to the specific needs of each business.

In addition, consider developing thought leadership resources tailored to your family business customers, such as blog posts and e-books that address their specific challenges or industry issues.

3. They’re on top of the latest trends.

The next wave of family business leaders wants to engage with brands that are in step with industry trends and who can provide innovative solutions beyond the tried-and-true. They are stepping up to their new roles with fresh ideas and new perspectives, and they value companies that can bring the same energy to their engagements.

How to adapt: Innovate continuously. Stay on the lookout for emerging trends—from product development to customer service technologies—paying special attention to your younger target customers’ needs. Act on opportunities to enhance your offerings, and keep your customers informed about new product and service launches. 

And remember: Image is everything, especially in a digital-first business landscape. Regularly evaluate your brand identity—from your logo and web design to your social posts and marketing messaging—and see where you can modernize and update it to be relevant and appealing to younger business leaders. Consider expanding your image and video library to meet the needs of your digital marketing efforts for social media, blogs, landing pages, and more.

4. They embrace purpose over pure profit.

Recent studies show that a majority of millennials and Gen Z demand sustainability from companies and make work-related decisions driven by their values. They are holding organizations to higher standards when it comes to social good—including their own. Moreover, a McKinsey study found that leaders of 58% of outperforming family-owned businesses “embrace social responsibility and sustainability.”

How to adapt: Make corporate responsibility part of your brand identity. Companies that prioritize sustainability, ethical practices, and transparency can appeal more strongly to younger family business leaders by showing they align with their values. 

That means going further than committing to environmental and social responsibility—it should include making that commitment part of your mission, vision, and values, and communicating your real-world progress to family business heirs in clear and relevant ways. That can help you create deeper connections with them and show that your company will promote their own social good goals.

5. They value strong relationships with suppliers who “get them.”

By its very nature, a family business can inspire intense levels of dedication and passion in its leaders, whose ties to the company are deeply personal. The sense of connection and identity they feel with the business makes them more likely to engage with companies they can relate to, have faith in, and feel secure that they are the best choice for their family’s most valuable asset. 

Research also shows that buyers are almost twice as likely to recommend a company to their colleagues if they trust that company than if they don’t—making trust an essential ingredient in long-term B2B relationships.

How to adapt: Make them feel special. Sharing your authentic company values with family business successors can go a long way toward gaining their confidence. But making an extra effort to create personal connections can help you cross the line from reliable supplier to trusted partner. 

Start with research to understand the pain points and challenges of younger family business leaders. Online surveys and social media polls are fast, cost-efficient ways to gain customer insights, including feedback on your products and requests for additional solutions. Then, let them know how you are actively using their input to improve your offerings. That will help strengthen your partnership by demonstrating that you value their perspectives and are invested in their growth and success.

You can continue to build trust by showing your knowledge of their company story and heritage through customized communications like emails; providing tailored solutions and support based on your knowledge of their industry and challenges; and offering services or benefits exclusive to family business leaders, such as special pricing and early access to new products.

Successful brands don’t stand still—they evolve along with their customers.

By adapting your brand to the needs and priorities of the next wave of younger family business leaders, you can nurture rewarding long-term relationships with them.

 

We can help you rethink, refresh, and reimagine your brand to be meaningful and relevant to all your audiences. Get in touch and let’s talk.