Marketing a cause to Millennials should be easy, especially when the cause is anti-marketing. Millennials are a prime target for financial services, but often see credit as ‘free money’…. until they find themselves suddenly in debt. Truthout, in a blog post titled: Millennials: Debt Becomes You, informs us college students are more heavily in debt than ever.
The Federal Reserve says graduates now shoulder three times more debt than a decade ago, after adjusting for inflation. Undergraduates now average almost $20,000 in debt, with a quarter taking on more than $25,000, according to Robert Shireman, director of the Project on Student Debt, a Berkeley-based think tank.
The issue goes well beyond educational debt, however. College students graduate with $4,000 of credit card debt, on average, according to the U.S. PIRG Education Fund.
The PIRG’s FAll 2007 campaign, ‘Truth about credit’ shows a solid understanding of how to reach and motivate Millennials, and is worth a closer look. It starts with a web site, www.thetruthaboutcredit.com that explains the pitfalls of credit card debt and the marketing techniques used by credit card companies to lure new customers. PIRG goes further by sending out peer marketing teams to get students to sign petitions about marketing practices on campuses. The teams will look and act like a regular credit card company, working for a fictional company called “Feesa” (tagline: “Free stuff now. Huge debt later”) and handing out lollipops saying, “Don’t be a sucker.” Volunteers fanned out across 34 universities last October, distributing information and collecting petition signatures to persuade colleges to establish specific “principles” regarding credit card marketing on campus. The principles include prohibiting the use of gifts in marketing on campus and blocking the sale of student lists. The volunteers wear blue Feesa shirts that are designed to look and sound like a real credit company (sounds like VISA). 
Facecard (love the name) uses similar techniques to promote its pre-paid debit card. Facecard marketing teams will distribute informational packets on 50 college campuses around the country. The brochure, titled “Get smart. Get more,” provides tips on budgeting, banking and preventing identity theft. Mobilizing Millennials to educate other Millennials and enroll them in the cause sounds like smart marketing to me.
As a middle age, middle of the pack Boomer, there are few categories that I have left untouched as a consumer. Yet as the parent of a college bound freshman, I find myself in the middle of a marketing bullseye that is entirely new to me. Needless to say, ‘in my day’, we hardly thought of the stuff we brought to college as ‘decor’, and an electric typewriter was the limit of our college ‘technology’. According to the 8th annual College Explorer study from Alloy Media, the students reporting to campus in droves this week are the largest class in history, with 13.6 million college students (ages 18-30). They are also among the best equipped, with spending expected to reach a record $237 billion, up 20% since LAST YEAR! With that much money on the table, no wonder it feels like a feeding frenzy for marketers.
The photo is from Better Homes & Gardens which offers designer Q&A on dorm decor. Here’s sample:
Simple tricks like “removable wallpaper” can easily add a splash of color to whole dorm room or on even just one wall. Also, using tension rods or simple hooks to suspend drape panels on the walls can add some visual interest to a boring room. Draped panels even allow students to divide a shared space to give each roommate more privacy.
At a more practical level, several retail web sites (JCP.com, Bed Bath & Beyond) offer special college microsites that make it easy to find bedding for those extra-long dorm beds and will even ship directly to the dorm to arrive at just the right time. These sites do more than offer stuff, they also offer checklists and advice on how to achieve the ‘suite life’ in a dorm. JCP.com incorporates its advice into a Facebook group and allows members to commment. Unfortunately, most of the comments are not terribly flattering. Apparently, (shock) many students see through these helpful sites to the not so veiled motivation to sell more stuff. As Melissa Massey puts it: “I am sick and tired of seeing “Dorm Life” advertised everywhere. What did kids do before all this dorm shit was made? They made it through college just fine. I’m tired of it being advertised as a lifestyle and a decorating style.”
Perhaps the most intriguing assertion in this week’s Ad Age article on What Marketers Can Learn from Obama is this one:
Mr. Obama’s packaging might discomfit older generations, who may think of themselves as immune to mass marketing. But it is “no problem” for millennials, whom Mr. Howe sees as averse to chaos and unpredictability (a trouble spot for both the Hillary Clinton and John McCain campaigns), and are “very comfortable with a very smooth brand that has minimal turmoil.”
I happen to agree. I agree both that Millennials are comfortable with mass brands and also that a certain corporate smoothness may be part of Obama’s appeal, or at least make his brand of ‘change’ more palatabale than one would expect of a Presidential candidate promising ‘reform.’ On the first point, Millennials are comfortable with mass brands, I can offer evidence. At the beginning of each term, I ask students to name some of their favorite brands. Out of a typical class of 40, 39 will name a mass brand like Apple, Nike, Budweiser, Gatorade, Starbucks, or Jamba Juice. Outlaw Consulting published a list of the top 15 brands among their panel of Gen Y trendsetters. The favorite 15 included Apple, Jet Blue, Whole Foods, H&M, Levi’s, Volkswagen, Vitamin Water, Ben & Jerry’s, In N Out Burger, Trader Joe’s, Target, Adidas, Converse and American Apparel and Red Stripe.
A contrary view is offered by Rob Walker, author of Buying In, in his ‘murketing’ blog post, “Gen Y and mass brands: Made for each other?” What makes this worth reading is the response it evoked from Millennials themselves, who reject the idea that their generation likes mass brands. Here’s a sample:
As a millennial myself, big brands don’t do it for me. We’re a generation that needs constant stimulation, which can be seen in the diverse trends and niches today. That also means lots of niche brands. We also like things to be fast and are always searching for the new. Big brands have a big image, and they usually keep that image constant. So we get bored. I know I do. And we’re also more discerning then previous brands. Some people don’t like the way big brands do their business, so they chose to support local or smaller businesses. Or they may question their marketing tactics, like do they really believe in my well-being or are they just trying to make money off of me? – Kaitlin
While I am sure Kaitlin, like my students, is sincere in her belief that she is bored and suspicious of mass brands, I only need to point out the number of brands they are wearing and carrying to make my point. There is something endearing about someone rejecting brands who is toting an iphone, wearing a Notre Dame hat, wearing Adidas shoes, and sipping a Starbucks latte. Millennials may relate to brands differently — they may not think of these brands as ‘their brands’ or make lifelong attachements. But it would be misguded to say they are not influenced by mass brand techniques, like the ‘smoothness’ and 360 consistency exhibited by Obama.
One of the most defining values of the civic-minded Millennials is their desire to do good and ‘make a difference’ in the world. The 2006 Cone Millennial Cause Study showed that “61% of Millennials, (defined as those born between 1979 – 2001), feel personally responsible for making a difference in the world.” According to this study, Millennials who are active ‘doers’ are especially receptive to purchasing brands based on perceptions of social responsibility and cause branding.
These “Doers” volunteer at least once a week and represent nearly 20% of Millennials surveyed. Survey findings indicate that volunteerism unleashes a more engaged citizen, consumer and employee. The estimated 15.6 million Millennial “Doers” in this country are a company’s most loyal brand ambassadors. To support the causes they care about, “Doers” will reward a company that meets their standards. At the same time, they are not afraid to refuse to work for an employer that lacks a sincere commitment to social issues. 42% who volunteer weekly describe their “ideal” work environment as a place that will help them make the world a better place, outranking all other factors, including high salary (41%) and flexible hours (37%).
The study points out that 87% of those who volunteer bought a product that supported a cause in the past year compared to just 48% of non-volunteers.
According to the 6th Alloy Media + Marketing survey of College Students, this trend has continued:
“College students demonstrate strong commitment towards the brands they feel are contributing positively to world issues and the environment, and students’ preference for brands they perceive to be socially responsible is on the rise. 41% of respondents prefer socially responsible brands, compared to the 37% reporting last year and a 24% increase since ’06 figures….In current collegiate environment it is very cool to be ‘good’. Brands who enable college students to reflect their own social responsibility… have an advantage”
So what corporate actions catch Millennial’s attention?
69% expressed “donating money to a cause or charity” or “using eco-friendly or “green” business practices”
68% stated “fair labor practices”
49% say that social messages incorporated into advertising have an effect.
For 2008, the #1 choice for “Top Socially Responsible” Brands were:
• Food/Beverage: Yoplait
• Automotive: Toyota
• Personal Care: Burt’s Bees
• Retail: Target
• Shoes & Apparel: Nike
The latest Gallup poll shows Barack Obama leading John McCain 56% to 35% among 18-29 year olds. By now, Obama’s strategy of mobilizing youth is generally acknowledged to be the edge that can/will win the election. Recent articles in Ad Age and Newsweek do a great job of analyzing Brand Obama’s singular appeal to Millennials. Andrew Romano, a 25 year old associate editor for Newsweek traveling with the candidates, first wrote about Obama and Millennials back in February, in an article titled, “He’s one of us now,” he wrote, “”how fully and seamlessly he embodies the attitudes, aspirations and shortcomings of the generation that’s rallied around him.” Today, Ad Age features an article, “What Obama Can Teach You About Millennial Marketing” that praises Obama’s ‘brand management’: “Mr. Obama’s brand management, unprecedented in presidential politics, shows pitch-perfect understanding of the keys to appealing to the youngest voters.”
Where does this leave Brand McCain? Well, he needs to play catch up for sure, but all is not lost. Fortunately, there is more than one way to appeal to Millennials, as many marketers are discovering. Here are some ideas for Brand McCain as it attempts a “Millennial Makeover”.
1. Emphasize Authenticity. Many Millennials voted for the first time four years ago, and many of them voted for McCain. Millennials value authenticity above all. Obama, according to Ad Age may have the smoothest brand, but McCain should emphasize his willingness to take the unpopular stand, when it is true to his values.
2. Downplay Age. The age jokes have to go. The lack of technology, the fact he is proud of never having done a Google search. Vietnam for these voters is what WWII is for Baby Boomers — WAAAY before my time. Half of all Millennials aren’t even aware that their generation has been labeled. They don’t think of themselves as a ‘generation’ yet, just as young people working on their resume and figuring out what impact they want to make on the world.
3. Tell Stories of Personal Altruism: Focus on John and Cindy McCain’s personal rather than only political efforts to make a difference: John and Cindy McCain have real track record of jumping in when their personal money or compassion can make a difference, as they did when they adopted a child from India and encouraged others to do so. They need to stop being modest about these deeds, or let someone else tell their stories.
4. Talk About Economic Opportunity. Millennials are deeply concerned about their personal economic future and ability to maintain the standard of living their parents enjoyed. As they begin to make paychecks, they are experiencing the real impact of high taxes. As a business owning, wealthy, successful American family that has managed to do good while making a personal fortune, John and Cindy McCain should in a good position to speak to Millennials’ economic aspirations.
5. Show Them Your Team: Millennials are famously collaborative and team-oriented. They understand that leadership is about who is ‘on the bus’ and how they are managed. By making wise choices and allow Millennials to peek inside the inner workings of Team McCain, the leadership story will resonate more deeply.
As the class of 2012 winds down its college search and arrives on college campuses later this month, it’s time to take a closer look at how Millennials make this, their first significant life choice. At Brand Amplitude, we have been especially involved with incoming freshman. Hanover College is a client. I teach at University of Notre Dame. Most significantly, I lived every step of the process with my 17-year old daughter this past 18 months (that’s her in the photo with a friend at one of our dozens of campus visits). College admissions professionals have been pondering how Millennials think about college for several years and much as been written about the differences relative to previous generations. As the largest generation since the Boomers, their sheer size has made getting into college more competitive. The number of high school graduates peaked in 2008 and won’t reach this same level again for a decade. As one of the most closely parented and best chauffeured generations, they are uniquely qualified with after school activities, awards, and impressive SAT/ACT scores (yes, math scores are improving). Consequently, the process starts earlier (as early as sophomore year) and requires more diligence, and applications, than ever before.
Our work suggests that the main difference is that Millennials love and demand choices, but have a hard time narrowing them down. Making a choice, means giving up the alternative, something they seem particularly loathe to do. While most will tell you that their decision process was driven by financial considerations, College Board statistics show the actual cost of attending college, adjusted for ‘tuition discounting’ (also known as financial aid), is flat or declining. Less than 10% say financing college is a ‘real concern’ (down 100% from a decade ago) and 39% say it is no concern at all.
So what is the real driver? A quick look at how many students remain close to home suggests that location is key. With the exceptions of Alaska and many New England states, most 2007 graduates stayed within their home state. In Michigan, Indiana, and Kentucky, less than 15% of 2007 graduates attended school out of state.
Academic reputation is consistently the attribute that college students say is their main choice criteria, but with so many excellent schools to choose from, the difficulty of comparing schools, and the ‘undecided major’ status of most incoming freshmen, this finding must be taken with a large grain of salt. So what is actually driving decisions? Ask an admissions officer this question, as I have at George Washington University, Notre Dame, Hanover College and Purdue North Central, and it is remarkable how often you will get a knowing smile. The true answer is that the minds of Millennials are a mystery — many times even to the students themselves. Seemingly random elements such as the tour guide’s attitude, the weather the day of a campus visit or a call from a faculty member can make the difference.
Millennial indecision makes life especially difficult for college marketers, who spend millions a year on glossy view books, web sites and college fairs. Our advice to colleges is that with differentiating based on academics so difficult, 1) details matter more than you think 2) parents are especially influential (although students will tell you otherwise) and 3) third party endorsements are key. On this last point, we found that students are likely to dismiss the avalanche of school generated propaganda in favor of peer information. At the same time, Facebook has made it easy to find ‘friends’ at other schools, so you no longer have to wait until Christmas break to hear how they are doing. Sites such as Rate my Professor and StudentReviews.com make it easy to get the “real” scoop on what other students think of their school, good and bad.
(For a hilarious send up of school literature, check out this fake commercial for Quendalyn College.)
So how do Millennials decide? In the end, it often comes down to immediate questions of where they think they will ‘fit in’ and have an enjoyable experience. Schools that extend themselves and show that they really want the student, as opposed to just ‘admit’ them are likely to have the edge. For this collaborative generation, the need to ‘belong’ trumps most other considerations.
Generalizations about generations are generally unwise, however, there is some evidence that Millennials may not be as green as we thought. According to Mintel (July 2008) women aged 35+ “are generally more green than their younger brethren, suggesting that values change with age, marriage, and children.” Interest in recycling and buying recycled products increases with age, income and education. Mintel speculates that price sensitivity may overcome green impulses among younger age groups
More clues as to Millennials’ attitudes toward buying green comes from a new report from Outlaw Consulting. Outlaw surveyed 100 of its most forward trendsetter panelists living in New York, Los Angeles, San Francisco, and Miami, asking them for a list of their favorite “green brands” – that is, companies they like and see as making efforts to help the environment. They also asked them what these companies were doing to be green, and why it resonates. The brands they listed tended to be green category leaders (Toyota), minimalist in design (Method, Apple), or contributing to the conversation (Honest Tea). Trendsetters are the first to admit not all of their purchases are green. Sometimes they insist on hunting down the greenest product on the shelf, and sometimes they don’t even think about it. So when does “green” become an issue? According to many trendsetters, it depends on the category.
Anything they personally ingest – i.e. what they eat, drink, and breathe – gets foremost priority on the green issue. “I definitely try to make green choices for anything going on or in my body.” This includes food, obviously, but also beauty items and cleaning products. “Living in a small apartment, I feel it’s very important to choose cleaning products that aren’t harmful to breathe.” Green products in these categories allow consumers to feel they are doing a favor to the environment and their own bodies.
More external consumer categories, such as technology and clothing, are much lower on their green priority list. “To be honest, in terms of clothing, my sense of ecology kinda goes out the window. If I see something cute, I’ll buy it.” However, this is also because unlike food and home care, these categories present them with little choice. Green technology products are almost unheard of, while eco-friendly clothing tends to be expensive or unfashionable (“it’s all crunchy looking,” as one trendsetter described it).
When green options become readily available in more categories, it seems likely that trendsetters will become more discerning. But for right now, the hot green shelves are food, beauty and home care.
Apparently Microsoft does have a clue. I found this video on Jeff Taylor’s blog, Millennial Marketer. (Definitely worth checking out for a Millennial’s view of ZipCar, Nokia and more). According to Jeff, “this video shows Microsoft’s vision for their future in the youth market. It is a perfect example of how Millennials want technology to fit seamlessly into their lives. The title is fitting: it is called “Your Digital Lifestyle.” High praise.
What I find interesting about the video is that it tells a wordless story where the technology enables the action, rather than is the action. It makes Microsoft’s various platforms and products appealing and actually seem related. It also takes them well beyond PPT and Word and puts them squarely in Apple territory, a part of your, well, digital life. According to other blogs, the video has been shown internally to a good response, but has not aired commercially. If this video is any indication of where Microsoft is headed, it is definitely encouraging–and likely to be relevant to Millennials.
While it’s fun to generalize about generations, the College Board (those folks who bring us the SAT, AP Tests, etc.) sent up a loud cautionary note in May. As one of the few organizations who have studied college students over time, they are in a position to know. According to StudentPoll data, an ongoing study of incoming freshmen, CB maintains Millennials are not that different from other generations in their goals, aspirations, values and college choice criteria.
Millennial Myth: Student interest in “making a contribution to society” is on the rise while interest in “having lots of money” is declining. studentPOLL’s Freshman Survey data conclusively show that interest in “being financially well off” remains high and at levels comparable to previous generations.
Millennial Myth: Students are more intellectually oriented and less career focused than previous generations.Again, studentPOLL’s findings and CIRP’s data demonstrate that students are very much career focused, but equally interested in the academic aspects of college that challenge them intellectually.
Millennial Myth: Millennials associate themselves with the name “Millennial Generation.” Despite the public and media hype about the “Millennial Generation,” only 6 percent of students associated their generation with the name “Millennials.” In fact, 43 percent reported that they didn’t know or that none of the six generational names tested was the name used to describe their own generation, and as many identified themselves as Generation X or Y.
Millennial Fact: Raising a family tops the list of life objectives that are “essential” or “very important” to Millennials—even more so than their parents’ generation. In 2007, 77 percent of the 272,000 students surveyed indicated that “raising a family” was an “essential” or “very important” life objective to them. In 1977, only 59 percent of students gave the same level of importance to raising a family, although this figure has remained relatively constant since the early 1990s.
Millennial Fact: College Bound Seniors welcome parental involvement in college planning. Ninety-five percent of students indicated that their parents were either “very involved” or “involved” in their college plans but, contrary to anecdotal suggestions, the students reported very little unwanted, intrusive behavior on the part of their parents. In fact, nearly 30 percent of students want more, not less, parental involvement.
