Who is Jaci and why does she want to be my friend?
I started using Twitter because I was curious to see what it was all about. With Twitter, it took a few months to realize how it could be useful to me, so I expected to have to use some patience with Foursquare. Like Twitter, it was easy to sign up and in the early stages it felt a bit ‘game-like’ - who else do I know who uses it? How do I find followers? With Twitter, it wasn’t that long before I recognized its value and could bore my friends, colleagues and students at Notre Dame with reasons why they should join. Today I am proud to say even my husband tweets.
I signed up for Foursquare earlier this year out of the same sense of curiousity that led me to Twitter. However, I am still baffled as to why I should continue or draft others to start.
To date, I have over 60 Foursquare check-ins, 8 badges and one lame mayorship (my apartment building). I am pretty good about remembering to check in when I am at a conference, travelling or spending a day out and about. But I will admit that I often fail to check in at the places I go regularly (like home, the fitness club, Trader Joe’s). I keep thinking if I just stay with it, all will be revealed. But I am about ready to give up. Here’s why:
1. My network lacks critical mass
I have 255 ‘friends’ but I don’t really care where they are, unless they are somewhere near me. Most of them are not the people I really care about anyway and many are total strangers. It’s a little more exciting when I am at a conference like Ad:Tech because I can find the handful of Foursquare users, but what do I have in common with them other than Foursquare? I connect anyway, but much prefer the connections I make at conferences via Twitter.
2. I never get offers
Despite checking in numerous restaurants and stores, I have yet to receive an offer, even from restaurants and stores I have checked into repeatedly. I was at Lucky Store in Oakbrook Terrace Monday night buying jeans. Foursquare indicated that store has over 1000 members. You would think Lucky would make some acknowlegement of that fact? After all, according to Paco Underhill’s book, half of all retail store visitors don’t make a purchase. Perhaps the absence of an offer makes sense though: retailers have many ways to make me an offer once I’m in the store that don’t require a GPS signal. But why don’t t retailers nearbyshoot me some kind of alert? After all Oakbrook Terrace is a very big mall.
3. Checking in is work
Even though I have the app on my phone, I have to remember to check in. It’s another step – why can’t it check me in automatically? If the place I am visiting isn’t already on Foursquare, it’s tedious to enter it. If it is on the list, I have to scroll through and find it. This isn’t my first priority on entering a restaurant and is mildly irritating to my family. There goes mom again…. Apparently I am not the only one who forgets. According to Forrester, of the 4% of U.S. adults who have used a location based service like Foursquare or Gowalla, only 1% check in more than once a week.
4. There are no psychic rewards
Foursquare makes me feel boring. I didn’t realize how little I actually go out and about until I used Foursquare. Really, a night with 4 check in’s is probably beyond me, unless I am travelling. The solution is that I probably should do more. Twitter on the other hand has the opposite effect. Each RT and @ reply makes me feel more interesting.
Location-Based Marketing Is Still in Early Stages
I continue to believe in the power of location-based marketing, but I tend to agree with Forrester that it’s too early for marketers to make a big move onto Foursquare. Of the 2 million users, over 80% are male, 70% of whom are age 19-35, and college educated. While it’s true that these men tend to be highly influential, that target concentration makes ‘FourSquare’ more like ‘ForMales’ – an attractive niche audience. As a Boomer woman this could explain in part why I feel rather left out.
Another reason for caution is that there have been some missteps on Foursquare, even by marketers the likes of Starbucks that should know better, as David Teicher (aka @aerocles) points out in his Ad Age Blog this week. Apparently, Starbucks ended a Foursquare loyalty promotion without letting barristas know how to let participants redeem their offers.
Nevertheless, location-based marketing holds a great deal of promise if these early obstacles can be overcome, as Sara Hoftstetter points out in her Ad Age blog post yesterday (“Four Reasons Brands Must Check In To Foursquare. Now“) Regardless of whether it’s Foursquare or another, yet to be invented service, retail locations are still the last mile for marketers trying to connect with prospects. Any service that promises to bridge the gap will get marketers’ attention.
I just wish there was something that required less work on my part relative to reward. Meanwhile, I think I’ll wait and check in again in a year.
Was the Featherbone Parlor a forerunner of NikeTown and the Apple Store?
Was the Featherbone Parlor a forerunner of NikeTown and the Apple Store?
There’s a myth that Millennials don’t like marketing and are indifferent to brands.
The reality is, as my friend Rishad Tobaccowala reminded me last week, that Millennials are ‘besotted with brands‘. While that may seem like a strong choice of words, he isn’t far off the mark. It’s easy to engage a Millennial in a conversation about brands. They love to talk about what their favorite brands are doing, as the buzz about Old Spice Guy and Nike’s World Cup marketing attests. They understand the ‘language’ of brands and the role they play in communicating about culture. And many choose to friend or follow their favorite brands in social media so they can stay up to date on the latest news or provide their feedback. Insider information about brands is strong social currency.
What Millennials actually dislike is interruptive advertising.
This is traditional advertising that is designed to appear everywhere and anywhere, irregardless of context, without personalization, with the single goal of gaining awareness and conveying an idea that may or may not have any relevance to the person seeing it at the moment. This type of advertising is becoming less and less effective because Gen Y (and others) don’t see any reason why they should put up with it and — and don’t.
As marketers look for new ways to engage empowered consumers, ironically they are returning to the origins of marketing. Marketers are finding ways to add value that may have nothing to do with purchase, but everything to do with making consumer’s lives more informed, more interesting, or more convenient. This is marketing that aims to get noticed, even engaged with, by promising that the marketing itself will improve consumers’ lives.
The book having the greatest impact on my thinking at present is Bob Gilbreath’s, The Next Evolution of Marketing: Marketing with Meaning. Gilbreath points out that there’s nothing new about thinking about brands as offering real service and real value independent of purchase. He points out that David Ogilvy’s first ad for Guinness was a reference guide to selecting oysters. The 100-year-old Michelin guide was originally a travel guide for car owners in France ‘complete with information about auto maintenance, lodging, restrooms, and restaurants’ that created awareness for its tires and emboldened consumers to take to the roads. Betty Crocker cook books helped consumers try new recipes and gave them confidence in the kitchen.
Gilbreath believes that the answer to today’s challenge of consumer avoidance of ‘interruptive’ marketing tactics is to return to meaningful approaches like these that connect brands more directly to their target audiences.
I think he’s right. We could learn from these old school marketers. Here’s another example, dating back to the 1880’s. Warren Featherstone was the inventor of the ‘featherbone stay’, a replacement for whalebone stays in corsets created from by-products from the manufacture of feather dusters. Featherstone knew a thing or two about branded utility and community building.
“Featherbone Parlors were established in major cities and fashion shows were held to demonstrate the latest uses of featherbone to customers. With changing fashion styles, Warren kept adding new products and promotional campaigns. Featherbone bustles, bust extenders, featherbone-stiffened fabric, different weights and widths of feather bones, collar and belt foundations were among the new features offered. Promotions included instruction booklets and in 1893 Warren began publishing the Featherbone Magazinette for distribution to dressmakers and retailers plus advertisements in Ladies Home Journal and other women’s magazines. To further reach the home market and dressmaker, Warren patented and market a featherboning attachment for the home sewing machine in 1895. This 3-1/8″ long attachment mounted on the bed of the sewing machine and aided in the insertion of featherbone or stay.” – http://www.fabrics.net/joan905.asp
Think of the ‘featherboning attachment’ as an app and the ‘Featherbone Parlor’ as a 19th Century Apple Store, you can see just how far, or little, we’ve come from those early days. But there’s more. Warren Featherbone also understood the power of philanthropy. In 1917 he “acted on his vision to help create a better world for future generations by establishing the Warren Featherbone Foundation.” The foundation was intended to establish new methods for everyday people to engage in philanthropy. and led directly to the donation of properties for parklands and wilderness areas in the State of Michigan, known as Warren Dunes State Park and Warren Woods.
As we move from an interruptive model to an engagement model for marketing and brand building, brand strategies will also need to evolve, and perhaps what was old will be new again.
Marketers are investigating the power of ’branded utility’, ‘community building’, ‘user generated content’ and new forms of ’cause marketing’ as means for adding value and meaning to their brands.
We may look back and see the ‘Mad Men’ era of mass media as the exception, not the rule in the evolution of marketing.
For some great examples of campaigns that made participation the goal, see “Five Fantastic Campaigns that Put Digital First” by Jim Nichols of Catalyst.
At over 80 million strong, Millennials are a consumer market force today and will be even more important in the future. According to Alloy Media, the college market alone is made up of a record 16 million young adults with collective economic power of over $300 billion, $69 billion of which is discretionary. Yet economic clout is only the the most rudimentary reason marketers should be paying attention to this cohort. Young adults today have greater influence on consumer behavior than their enormous spending power even suggests.
The main reason Millennials matter to marketers is that they indicate future trends to a greater degree than young adults in the past. Here are a few reasons why:
- Technology proficiency has empowered Millennials to weild a disproportionate influence on the culture and on the buying decisions of other generations.
- Millennials are the first to put new technologies to use to make the most of their media time.
- Gen Y’ers are less impulsive shoppesr. They place a priority on experiences rather than possessions, and are more likely to make every purchase a considered one.
- Gen Y’ers also display a distinct generational “personality” when it comes to responding to marketing programs and messages. Consequently, push marketing is on its way out, the new marketing is all about engagement, and much of the shift is due to Millennials.
- Finally, Gen Y cares more about the company behind the products they buy and the places they work. Corporate branding and brand architecture are more important than they have been in the past.
Here are a few of the Millennials trends I have been seeing lately. I wonder how many will move mainstream?
1. TV is escaping the home. Many Millennials are talking about cancelling their cable subscription in favor of seeing shows via their Internet connection or on their mobile devices.
2. Nostalgia is Cool. Maybe it started with Toy Story 3 but Millennials are reconnecting with their childhoods.
3. Facebook Fatigue. Facebook fatigue has begun, or perhaps there are just better options now for connecting with friends. Long live text! (Until something better comes along).
5. Byte Sized: Posts are shorter. Texts are shorter. No one reads to the end.
6. Who Needs a Car? Many are forgoing a car in favor of less expensive and more environmentally conscious transportation.
7. Let’s Be Spontaneous! Last minute travel. Last minute dining. Who needs to plan? Text me!
What are you seeing? What trends are hot? What else is about to jump the shark?
Financial services are waking up to the potential of Gen Y consumers. Millennials may not have a lot of money now, but they are determined to pay down their debt and conserve resources for the future. Coming of age in an era of massive financial uncertainty, they may even come to be known as “Gen Frugal”.
That’s good news for community banks and credit unions which are all about helping moderate income people responsibly manage their own money.
Last week I was interviewed by Myriam DiGiovanni of the Credit Union Times. She wrote an article titled “Forget the Cool Factor, Focus on Millennials’ Needs” based on our talk. Here the full article (bold face mine):
Looking to engage meaningfully with younger consumers? Then stop assuming and start connecting through a common interest rather than trying to sell credit unions. “I think the main difference in marketing to Millennials and other generations is that they have great filters–they only see what they want to see. If you want to engage them, the message can’t be about brand but rather something they care about,” said Carol Phillips, president of consulting firm, Brand Amplitude, LLC. “It’s not about being hip but providing services they find useful now, like finding a job, figuring out how to finance their education or new business. They are starting out their lives at a difficult time and credit unions should credibly speak to that.”
She added that credit unions shouldn’t fall for the stereotypical myths surrounding this group such as they are all tech savvy–they are in fact tech dependent. Another myth is that they have money–many don’t and those that do are in saving mode or paying down debt said Phillips.
Forget about making the luxury appeal. When pricier purchases are made they tend to rationalize it based on whether it’s a good investment. According to Philips, for example, moving in with their parents is not viewed as an admission of defeat. Rather they see it as a strategy for saving.
Don’t look to the exclusive use of social media as a guaranteed in either. While they are very social, Millennials have close bonds with their parents, often consulting them regarding financial matters or major life decisions. Phillips said it’s yet another challenge because typically you’d market to the buying group, which in this case would include their trusted board of advisors consisting of parents, family members and friends. The key is for credit union to reach out and be a part of their world, and Phillips said initiating a conversation is a good start. Given the age span of the group is from 16 to 30 years old, she also advised credit unions to segment by interests. From there, credit unions can figure out how to connect in interesting ways whether around careers, music, causes or even sponsoring events that matter to them rather than talking about the latest checking product.
“Meaningful connecting requires recognizing that they are not the same as their parents. They do not respond to marketing, and that is the definition of different,” said Phillips. “Take time to understand who they are as people and introduce your services in context of what is relevant to them. Social media is about a humanization of the brand but is still just a tool [and] not a strategy. So be interesting, have a conversation.”
She added their values are no different than previous generations-they care about family, leading a good life, finding a fulfilling job and they want to give back.
One bank that seems to be getting it right with young adults is UMPQUA, a fast growing regional community bank in California, Oregon and Washington.
Their web site looks more like an ecommerce site than a traditional bank and they call their branches ‘stores’. The language is plain English and yet stylish. The checking account featured on the home page is called HIP( for High Interest Paperless Checking) and offers 2% APR on deposits and returns ATM fees. Nothing tricky about that! News is broken out locally and is called ‘murmurs’. There are quick links to ‘deals and steals’, ‘reorder checks and supplies’ and ‘attend a neighborhood event’. The navigation is straightforward as well and feels like you could do everything you need to do from opening an account to managing it to taking a loan, right from the web. There are spam alerts and interesting discussions. The site is very sticky and feels quite local, despite being spread across three states.
The short, awareness-oriented TV spots featured on the home page are cheerful, and perky, and not very ‘bank-like’ — “Bank on the Bright Side“, “Optimists Unite“, “Pursue Hopefulness“, ”You deposit your check in the Northwest economy, like a gentle rain in a garden of courage“, “Optimists are just realists ahead of their time“. The graphics and the voice over work together to create a hopeful feeling. I feel better just listening to them!
The part of the website I like best is under the tab heading ‘UMPQUA Life”. The sub categories speak directly to Millennial lives – Support, Belong, Discover, Inspire. The sub-subcategories further emphasize local charitable and volunteer opportunities, neighborhood events and community responsibility. There are links to social media like Twitter, but they are discreet. The site itself already feels like a social media site. Even the history page is fun, with just the right information about the banks’ origins with emphasis on what it is doing in the community with music, eco-friendly programs and being included in Fortune’s Best companies to work for.
It should be noted that UMPQUA’s products are not all that special. But, they are presented in a relevant and very accessible way that speaks directly to the Millennial mindset.
I suspect UMPQUA has been successful in attracting a higher than usual percentage of young adults and people who want banking to be less stuffy and more a seamless part of their lives. Other banks and credit unions could learn from their example.
Gen Y has already given birth to more than 13 million babies and is expected to produce more children than baby boomers. Right now, Millennial Moms are of great interest to marketers of baby products, toys, apparel, eating out, books, food, and more.
I’ve recently come across two terrific reports that describe Millennial Moms. The first, “Millennial Moms 101″, (PDF) from Mr. Youth Agency, says they are a lot like college students – connected, multi-tasking and technology dependent. The second, “Marketing to Millennial Moms“, (slideshare, see above) from Matrix Media FX, provides several mini-case histories of how marketers have connected online. I’m not going to summarize these decks as they are both easily skimmable and so graphically well designed, that they are worth reading if this is a topic of interest.
Both reports emphasize the two groups large influence and propensity to share, learn and even ‘overshare’ online, in communities through social media networks. This is not a surprise. What is more of a surprise to me is the intersection between Millennial Moms’ online and offline worlds.
Moms Want High Tech AND High Touch
Last week I had the pleasure of hearing, then meeting, Scott Heiferman, (@heif) Co-Founder and President of MeetUp, a site that allows people to find and meet with others in their area who share common interests. According to Heiferman, there are 79,000 groups hosting 250,000 meetups every month. The number one shared interest? parenting issues! There are 105 meet up groups classified as “Moms” within 10 miles of my home in Oak Park, IL. And this despite the fact that 2/3′s of moms are the primary or co-breadwinners for their families and will be the first to tell you “I have no time!“.
At Ad:Tech I heard another group, HouseParty, speak about some work they are doing with Kimberly Clark. This project helped Moms host 5000 parties in their own homes where they encouraged each other around the topic of potty training in a ‘fun social environment’. Moms were selected to host the parties based on applications submitted to a microsite. HouseParty provided everything they needed to create a fun and useful time, including of course samples and a potty training ritual called “Do the Potty Dance” based on their Pull-Ups TV spots.
Stores provide a natural venue for bringing Moms together. Outdoor retailer Bass Pro, perhaps taking its cue from the success of American Girl, has created an ‘experiential’ program called “Family Summer Camp“. Now in its second year, the program is designed to “build a community for outdoor-loving consumers”. The camps are offered at 56 locations.
Marketers would do well to remember that connecting Moms online is great, but they also need real world support. Programs like these provide an opportunity to help facilitate the conversations and real world encounters socially oriented Millennial Moms crave.
