Nielsen declared 2009 the “year of the coupon comeback” with coupon redemptions soaring 27% overall and as much as 71% in discount channels. That’s 3.3 BILLION coupons. With new online and mobile methods of accessing coupons, the pace is expected to continue in 2010.
While I don’t have data to back this assertion up, I suspect coupons are not as effective among Millennials as other demographic groups. Gen Y, sometimes referred to as ‘Gen Frugal’, is just as cost conscious — if not more — than other age groups. But they have a different way of looking at value and the art of the deal.
Millennials want to know they got a deal, not just a discount. This may sound like hairsplitting but bear with me, according to our Gen Y ‘super consumer’ panel, there is a difference.
First, Gen Y is into saving money. According to Fiserv, 75% of Gen Y consumers have a savings account, 5% higher than any other generation. Their overall credit card debt has gone down, despite the fact that many are either unemployed or under-employed. Fiserv says they are ‘fiscally responsible’ as well.
“Several of the consumers interviewed by Fiserv expressed the sentiment that, “if you don’t have the money to pay for something, you shouldn’t buy it.” Gen Y consumers are selective when making big ticket purchases, and spend a lot of time researching products on the Internet. Many said they were more interested in having fun experiences with friends than having a lot of material possessions.”
But Gen Y does spend on things that matter to them. They will spend less overall, and make many sacrifices in order to afford more expensive items that many would consider “luxuries”, like the latest technology, a great pair of shoes, or even jewelry. These are seen as ‘investments’ rather than consumption as they are carefully considered for their return, not just as items of instant gratification. When a luxury buy is needed and fulfills a Yer’s purpose, it is considered a smart buy. For example, a suit that is needed for interviewing for jobs can easily be rationalized. They also spend on experiences. Millennials account for 12% of all travel spending in the U.S.
When Gen Y buys, they want to know they got a deal. A deal means exceptional quality at an exceptional price, not just a sale on everyday wares. National Jeweler (“Ready for the Gen Y Tsunami, Jewelers?”, July 2010), put it this way:
“Beware of putting items on “sale.” Gen Y consumers consider that word to be the radioactive kiss of death. They strongly prefer the word “deal” as a way to communicate bargains or price reductions. Getting a great deal sounds–to their ears, anyway–better than getting something on sale.”
In order to better understand the distinction, I asked Brand Amplitude’s Gen Y “Super Consumer” panel of marketing experts, “Is there a difference between a ‘sale and a deal’? Between a luxury and an investment?” Here’s what they said.
1. A ‘deal’ suggests exclusivity
“It’s not even so much about about the “sale” vs. “deal”. Although I admit “deal” does sound better to us, its about the exclusivity of the offer and product. Ultimately depending on the situation, I would beware of both the use of “sale” and “deal”. When it comes to luxury vs. investment, I would say their close. But still not close enough. They hit it dead on when by stating we expect exceptional quality. But we also except longevity and again, exclusivity. What’s the point of paying the dollars for “luxury” when everyone else is wearing the same thing?.”- Josip Petrusa
2. A ‘deal’ is more emotionally satisfying
“I’ve always associated deal with some sort of extra value added into it. Sale to me is just a reduction in price. Don’t get me wrong, I love both
but deals are a better “experience” for the simple fact I am getting some personal satisfaction in the value I am getting. I think “deal” has much more of an emotional connection (for me at least) than a sale.” – Joshua Opinion
3. A ‘deal’ is less gimmicky
“I do think they hit it on the head with the appeal of Deals to Gen Y instead of Sales. How many of us are members of sites like GroupOn, Woot, even Rue-La-La in the closely comparable high end clothing industry where we are able to see special Deals. These one-off, limited time offers certainly attract more attention that the standard Sale at your local car dealership, jewelry stores, etc. Frankly, I just assume that Sales are a gimmick and the prices have been so vastly marked up ahead of time in order for the “Sale” to seem like a bargain. I’m not biting.” – Kyle Judah
So there you have it. A deal is special while a sale is business as usual. ‘This week only!!’ feels gimmicky because it’s simply not believable. To these insights I would add one more, a ‘sale’ seems less impulsive, while a deal is more considered. Clipping a coupon may encourage a purchase that otherwise wouldn’t have been made at all. And that is the heart of frugality.
Josip Petrusa offers the last word, a caution against a wholesale rush on the word ‘deal’. If deal starts to replace the word ‘sale’, it too might lose its punch:
“Deal” does sound better than “sale” however in the minds of many people it implies being cheaper. I would say that if “deal” started to replace “sale” in use both would ultimately receive the same meaning. In my opinion “deal” should be used less often to keeps its value and attraction.” — Josip Petrusa
Contact me to learn more about Brand Amplitude’s Gen Y Marketers “Super Consumer” Panel. Why talk to a general sample when you can talk to the experts?
According to Pew, just 31% of Millennials have no plans to go to college, with the rest either in college, planning to go to college or already graduated. This may be the most educated cohort in history. Yet, there seems to be an increasing sense of uneasiness about the degree to which college is preparing them for life after college.
They are right to be concerned. Pew data also shows that in 2010, only 41% of all 18-29 year olds have full-time jobs compared to half in 2006.
By contrast, the proportion of older adults employed full-time stayed about the same. 10% of Millenials report losing their jobs recently, compared to just 6% of older adults.
The cost of a college education (amount families pay after adjusting for financial aid) according to Money magazine has skyrocketed 439 percent since 1982“. Increasingly, students are funding the cost of their education via student loans. College debt constrains their post-college options and places a drag on their income for a decade or more.
With high paying jobs in shorter supply, students, grads and parents are questioning what is the true value of a college degree?
ROI as well as depth of majors and the college experience are considered when it comes to selecting a college. A MarketWatch article reported the results of a survey among 2010 high school seniors. About two-thirds reported that their families’ economic concerns “greatly” or “somewhat” influenced where they were applying to college. The decision about where to attend is also being influenced by other practical considerations such as graduation rates and percent of students employed after graduation.
Harvard has been tracking attitudes toward college among undergraduates 18-24 years old for over a decade. Over the years the study has expanded to include non-college students and 25-29 year olds. Their most recent report is based on responses from 3,000 18- to 29-year-olds from late January through late February, 2010. They found that concern about finding and keeping a job is high across college students and non-college students alike.
“The biggest thing that [college] students share with their [non-college] peers is an intense anxiety about the economy. Sixty-percent of Millennials are concerned about their ability to meet their current bills and financial obligations and 59% are worried about being able to afford a place to live. Almost half of those who are currently in the workplace are afraid that they’ll lose their job, and this fear is echoed in college students’ anxiety about their future after graduation – 84% indicated that finding a job will be ‘very difficult.’ Students are also worried about their ability to keep paying for college, with 45% of 4-year college students and 64% of community colleges expressing concern about staying in school.”
Wednesday night, Josip Petrusa and Chanelle Schneider moderated an hour-long Twitter chat using the hastage, #GenYchat (transcript here). Their topic? The “Experience Catch 22″ – how to get a job or job experience without having any. The 34 contributors vented their frustrations and shared some practical advice. Most agreed that internships help bridge the gap between college and job, but often are not valued by employers. Blogger Jenny Blake of “LifeAfterCollege.com” (who just landed a book deal, congrats Jenny!), has this to say about an internship eased her transition:
“During the first quarter of my junior year at UCLA I got the opportunity of a lifetime. My political science professor and mentor suggested a possible internship opportunity for me at astartup company in Palo Alto. I grew up there and was ahead in school, so I told her and the founder I would move home to work full time if it meant I could help start the company. I anticipated filing papers…I was wrong. I had tremendous opportunities and responsibilities, but I hadn’t anticipated what it would be like to be in the real world – to work full time, to save money, to spend so much money, to be so far from my friends. As much as I loved the confidence I got from working so hard and learning so much every day, at times I felt incredibly lonely and confused.”
We were curious to see if other Gen Y had similar feelings, so we posted the question to our Super Consumer Community of Gen Y marketers. “Did your education prepare you for what your are doing? Should it have?” Here’s what they had to say:
Kyle: I feel like I come from a unique background having partaken in a specialized program at my Alma Mater called the BDIC (Bachelor’s Degree in Individualized Concentration). Essentially, what it allowed me to do was really narrow down the focus of my studies at college to the topics I KNEW I was interested in pursuing in the professional world. I had the incredible opportunity to work closely with 3 professors from 3 of the colleges within my University to design a classroom and experiential curriculum around my BDIC in Sports Marketing. My BDIC experience allowed me to handpick the courses I took and pair them with internships that allowed me to really get a hands-on feel for the subject matter. Had I not had been given the reins and allowed to work in the experiential learning aspect of my curriculum, i feel like I would have left college under prepared for the challenges that one encounters on the job. While I gained a great deal of knowledge and insight from my internships, it also didn’t hurt that it helped build my resume – I feel like I finished college with a leg up on the competition for jobs in the narrow industry of sport since I had 4 internships as opposed to 1-2.
Josip: I think education we’re getting is great and it would prepare you for that field your being educated in. The problem doesn’t so much lie in education, i think the issues lie in what happens after education. Also, sometimes education doesn’t prepare you for actual real world use. Being a philosopher, historian and many other programs that get a lot of students quite frankly don’t have real jobs associated with them. For instance my political science major does not dictate I join the government or politics. I also find that thousands of students graduate with degrees that quite useless unless you plan on being a teacher or something. Although, there are jobs for every field, the ones I mentioned at the end of the first paragraph have the most real world jobs waiting for them. My university has thousands of students graduating with political science degrees every year but I hardly see any political scientists in the real world.
Rob: This is the kind of question schools should be challenging themselves with at least once a year. I think an opportunity exists to bring more real world cases into the classroom. I know case competitions often give students the chance to sink their teeth in to real projects, but those are often some of the more challenging ones employees take on (read: looking for free consulting/ideas from students) and likely not typical enough tasks to get a solid sense of what an entry level marketing or finance person really might do at company X on a day to day basis.
Micah: Funny you should as this is a topic I have been wondering about myself very recently. I am in the midst of a Masters in Library and Information Studies and I am starting to get very worried about if I will actually have any practical skills when I graduate. Most of the coursework I have done thus far has been theoretical-based and while understanding information needs of groups and database structures seems useful, I still have no idea what it actually means to work in a library day to day. My former Master’s degree (I love college) was in American Studies, and while I learned a great deal about the culture and history of our country, I graduated with no practical work experience and went back to school after a summer working as a temp for a medical supply company. In conversations with friends recently I have started to think that if anything vocational training needs to become a more active part of our educational system. Internships are great, but since I have always had to work full time, I never had the opportunity to pursue one outside of my coursework. So basically, I have greatly enjoyed my education but I am not sure it has prepared me for active citizenry or professional life. Any steps I have made in those directions have been of my own interests and initiative.
Derek: Education itself is a wonderful thing. However, education in America today is something that is too broad. General education in college is the same things one learns in high school and middle school and even elementary school before that. This focus on general education prepares us for nothing but provides jobs for professors in the subjects. If we were to have those classes as options as opposed to being forced into them, perhaps we can begin the process of specialization. Internships further specialize but are a catch-22 in themselves. Requiring an internship as part of graduation (like Chapman University does) is an excellent idea because it helps build the résumé. The problem with requiring an internship is that not all students can afford to work for free or take time off from their paying jobs.
Tony Szymczak: Since I am in a totally different field not related to my degree my Education did not totally prepare me for what I am doing. I cannot count the number of classes that I was required to take that I had absolutely no interest in. When picking classes becomes a process of, what will count towards my degree so I can graduate on time, the education process fails. When you take a class that you really have no interest in it really destroys focus. Students face so many appeals for their attention it is hard enough to get them focused on education. The time they do spend on education should not be in classes they are forced to take because a college mandates it.
We take you now to State Street and Madison in downtown Chicago on a sunny Friday afternoon in April…
John: (Holding clipboard) Hi, do you have a minute?
Carol: (Pausing) What’s up?
John: (Perking up, surprised) Hi, thanks for stopping! My name is John, what’s yours?
Carol: Hi John, I’m Carol Phillips.
John: Nice to meet you Carol. We’re here to sign up members for Greenpeace, do you know Greenpeace?
Carol: Of course.
John: (Energetically) Greenpeace is the …
Carol: (Interrupting): John, are you a volunteer or paid?
John: (Sheepishly) Paid, but Greenpeace is a great organization, we ….
Carol: Can I ask you a question?
John: Sure….
Carol: What do you do when you’re not here?
John: (Confused) I work…(vaguely) and I have other jobs…
Carol: Are you a student?
John: I graduated last year from (well-known University) in Finance. But there aren’t many jobs so I saw this one in Craig’s List and I’m glad to have it. But it’s tough.
Carol: It keeps you out of your parent’s basement…
John: (Quickly) Oh, I have an apartment.
Carol: Do you have student loans you have to pay as well?
John: (Suddenly looking very worried). Oh yes, a lot. They are on hold until July, but after that I don’t know what I’m gonna do…I had a job out of school as a stock broker, but I quit after a few weeks. I just didn’t feel good about it.
Carol: Very Millennial of you…
John: I felt like one of those guys that got us in all the trouble. I didn’t want to be one of those guys.
Carol: How much does it cost to join Greenpeace today?
John: Most people go for a $1.00 a day or $30 a month.
Carol: $365 a year.
John: No, $30.
Carol: But over a year that’s $365, right, you were in finance…
John: (Smiling again) Right!
Carol: What’s the minimum to join?
John: $15. It’s more about the advocacy than the money.
Carol: Okay, I’ll sign up on the Internet when I get home.
John: (Looking worried now) Well, I have to sign up at least two new members a day to keep my job.
Carol: How many have you signed up today?
John: (Looking very worried) Well, actually none today.
Carol: I have to go make a phone call, I’ll come back if you’re still here, I’ll sign up then.
John: (Disappointed) Oh, we’ll be here, we’re here all day.
Fifteen minutes later…
Carol: Hi, I’m back.
John: (Befuddled) Oh hi, it’s not you, I just had a bad …. it’s so much harder here. I like being on college campuses more. Here no one wants to talk to you. They are so used to being panhandled.
Carol: Yeah, I agree, this is not the best location, why not go to Millennium Park (points down Madison Street).
John: We go where they put us. We’ve got locations all over the city. The people on campuses are so much easier. I like the campuses.
Carol: Have you gotten any more members?
John: No.
Carol: Well sign me up for $30.
John: Oh, great, thanks. Just fill this out.
Carol: Do I have to pay right now?
John: Well, yes. But in all our years, we’ve never had a problem with a credit card. I’ll give you my credit card…
Carol: No, that’s okay. Do you have a card?
John: (Reaching for his credit card)
Carol: No, I mean a business card, so we can stay in touch.
John: No.
Carol: Do you have a Twitter account?
John: No, I’m more of a Facebook user.
Carol: Okay, give me your email, I do market research and maybe I can use you in a study. I’ll be in touch.
John: Great. Thanks.
Carol: Bye
John: Bye!
The image of the poor artist living in a garrett was probably never as romantic in reality as it sounded. Unfortunately, many of today’s young adults, especially those without resources (like parents) to fall back on, are making that discovery. Mariam Shahab, a Boston University Senior and blogger, bemoaned in Twitter just today “Are we going to be forever known as ‘Generation Recession’“?
The definition of a ‘market’ is a ‘group of people or organizations with a need and the means to satisfy it’. Unfortunately, the “Millennial Market” may not be living up to its true potential, at least right now, due to lack of means.
I am confident Millennials would be lining up to purchase iPads immediately if it weren’t for the high price tag. Fifty-seven percent of 18-34 year olds say price is the number one reason they aren’t buying an iPad, double the average for all ages.
Tru-Research reports that 50% of teens in 2010 say “Not enough money” is their ‘biggest complaint’. This figure compares to just 30% ten years ago. Twenty-three year old Christine Carter wrote an article in Retail Customer Experience this week to explain “Why Gen Y isn’t Buying Your Products“. She writes:
“Our education expenses, our social desire for luxury goods and our inability to save money make us very cash-poor. Because our generation responds and adapts rather quickly to social changes, we have emerged from the recession as “Recessionistas,” informed shoppers who stick to tight budgets while still managing to stay trendy and cultured. We’re looking for inexpensive versions of the items we desire and durable versions of the items we need.”
I hear the same lament almost daily from my marketing students — they consider themselves cash-strapped. Last week, every student expressed a preference to watch ads to access TV shows online rather than pay to avoid them. When I see articles about Gen Y and shopping, they generally refer to teens. Young adults do not seem to get the same pleasure from shopping as those who are still spending their parents’ money. They see it as stressful and are extremely careful shoppers, researching larger purchases and avoiding impulse buys. Of all age groups, Nielsen points out, they make the fewest shopping trips.
Just how poor are Millennials? Let’s look at the data.
First, the Recession was just the latest in a long downward trend in young adult wealth. I have reported before on Gen Y being one of the poorest generations of young adults. According to a 2008 report by DEMO’s, “The Economic State of Young America“, young adults of 2005 were worse off on nearly every dimension of economic well-being other than education than young adults in 1975. Here’s how The Nation summarized the DEMO’s findings:
Men without a high school diploma suffered most, their annual income plummeting by 34.2 percent, while men with a high school diploma or the equivalent earned the runner-up slot, with an income drop of 28.5 percent. As for women, those with less than a high school diploma, as well as those possessing just a diploma, lost less ground than their male counterparts; but then again, they’re still doing worse than before and, perhaps more to the point, they still fare significantly worse than men their age.
At the same time, today’s young workers have had to do more with less. College tuition rates have skyrocketed–in fact, rates for four-year public universities have more than doubled since 1980–with the unsurprising result that nearly two-thirds of students graduating from four-year colleges in 2008 left in debt. The cost of childcare now eats up as much as 10 percent of a two-parent family’s income in many states (as much as 14.3 percent in Oregon). And young people between the ages of 19 and 34 are the most likely population to be uninsured–not because they don’t want health benefits but because employers don’t offer them. A case in point: 63.3 percent of recent high school graduates had employer-provided healthcare in 1979, whereas just 33.7 percent had it in 2004.
“What we’re looking at is a situation where young people entered the recession already feeling the brunt of thirty years’ worth of pretty gradual but nonetheless dramatic economic and social changes,” says Nancy Cauthen, director of the Economic Opportunity Program at Demos. “The recession just made a bad situation worse.”
Today’s BLS positive employment news was welcome, but doesn’t change the fact that unemployment among young adults is at an all time high, much worse than for older age cohorts. Sixteen to nineteen year old unemployment in March was 26%, twice what it was in March 2000.
An article in The Fiscal Times (“The American Dream Dilemma“, March 23) draws a vivid portrait of today’s Gen Y as ‘broke, unemployed, moving home, and living on food stamps.” The part about living on food stamps appears to be no exaggeration. Salon magazine this week also offers an extensive profile of Millennials signing up for EBT cards from the government’s Supplemental Nutrition Assistance Program (SNAP) , then attempting to satisfy their foodie and organic cravings once they have them (“Hipsters on Food Stamps“, March 15) — “Is it wrong to believe there should be a local, free-range chicken in every Le Creuset pot?”
Marketing to a target audience that faces true economic uncertainty is a challenge, especially a market that is used to thinking of what used to be considered ‘luxuries’ (cell phone and computer, high quality food, Internet access) as necessities. They are trying to stay away from credit, using debit cards for purchases and cutting corners whenever possible. Marketers who are winning are careful to explain the real benefits of their products, not just the sizzle.
Despite their current dire straits, Millennials strongly believe better days are ahead. Marketers that reach out to them in meaningful ways now could reap significant benefits later.
Target is a retailer that seems to understand the Millennial “thrifty yet hip” mindset best. According to Nielsen, Millennials are more inclined to shop there more often relative to other age groups as well as to outspdend them. (Nielsen, “Mining the Generations Gap“)
“Certain store banners hold a unique appeal for the younger generations, and Target is at the head of that retailing class. Target stores have managed to maintain a hip, trendy image with a strong value message with whimsical advertising; strong, almost pop art in-store merchandising; and a roster of high profile designers for everything from housewares (Michael Graves) to bedding (Todd Oldham) to women’s fashion (Mossimo) to cosmetics (Sonia Kashuk). And, with the interest in at-home meals, Target recently announced a new partnership with TV cook show host Giada De Laurentiis for a store-brand line of specialty food items and cookware.
Has the world finally woken up to Millennials?
Judging by the media attention focused on Gen Y yesterday, it seems we may finally have arrived at the tipping point. On Feb 24 alone, there were articles and segments that appeared around the country, sparked by the new Pew Report on Millennials:
Chicago Tribune: “Millennials Dubbed ‘Always Connected’ in Pew Report”
Washington Post: “Under 30 Americans: The Next New Dealers?”
Washington Post: “Story Lab: Quiz: How Millennial Are You?”
PBS News Hour: “Demographic Profile of a Generation”
Christian Science Monitor: “Great Recession Hits Millennials Hardest”
Huffington Post: “Our Generation: More Confident, Less Employed”
A quick Google search returned 56 ‘related articles’ for a search on “Pew Millennials“. I certainly welcome the attention on this remarkable demographic group, and I applaud Pew for its indepth coverage. But where are the marketing articles? The Pew data so far is mostly attended to by social scientists, political scientists, journalists and academics.
The marketing world, aside from youth-focused marketing firms, as yet are still fairly tone deaf about the coming shifts.
If you are interested in understanding how more mainstream marketers are reaching out successfully to Millennials, you have to dig a little deeper. MobileYouth’s profile of Ten Brands that connect with Gen Y is a good start for profiles of Ford Fiesta, Monster Energy drink and others. But once you get beyond these high profile stories the cases get a little harder to come by. Here are three less publicized, inspiring exceptions:
Houlihan’s: (Fast Company, March 1, 2010)
“Last summer, it created its own social-networking site, HQ, an invite-only “brand community” of 10,500 “Houlifans” to serve as a virtual comment card. Customers appended that a-little-too-cute prefix to all things Houli-, and they’ve helped the formerly stodgy Irish pub rebrand itself as a contemporary suburban lounge-style hangout.”
StarkSilverCreek Web Publication: (PR Web, February 17, 2010)
All Things West Coast, the company’s flagship brand, is one of the fastest growing digital media properties. Readers value inspired and thoughtful coverage of the west coast including arts (film, stage), wine country, travel, and technology. Alexa Internet, Inc. ranks starksilvercreek.com 93,401 in the US and 285,000 globally. According to Quantcast, readers are affluent (28% earn $100K+), highly educated (67% college/grad school). Generation X and Y (Millennials) account for 68% of visitors.
Herbal Essence: (Business Week, July 2008)
“The shampoo and conditioner bottles are curved so that they literally fit together on the shelf. The nesting shape not only helped Herbal Essences stand out from others on the shelf but also encouraged more young women to buy both products, driving up conditioner sales. To appeal to Millennials, the team also updated the language on the packaging. The ho-hum “dandruff” reference gave way to “no flaking away.” Names for different hair styles were changed to more youthful phrases such as “totally twisted” or “drama clean.” “We totally reframed the proposition,” says Lafley. ….soon after the shampoo was relaunched the brand was growing again, with sales growth rates in the high single digits.”
A lot is known now about how to build a more appealing brand that connects more directly with Millennials. It requires a different approach, because as anyone who reads this blog or the Pew Report knows, it’s a different kind of audience. Getting results like these requires a more collaborative approach to research and a more engaging approach to marketing.
Marketers will be wise to begin now. The rewards for early movers in categories like banking, wine, leisure travel, retailing, and media will be great, both in immediate sales lifts (like Houlihans) as well as in better positioning for future consumers. Gen Y trends have a way of migrating up the generations.
Soon it will be more than just the wine industry that is experiencing ‘classic market disruption’, it will be most industries as this 75-million strong demographic recovers from the Recession, and gets about the business of creating homes and careers. Will your brand be ready?
Meanwhile, we are launching a new page on our MillennialMarketing.wikispaces.com wiki to aggregate successful Gen Y marketing case studies. Check it out and feel free to contribute your stories.
Frances Schwartz, 98
One of my best friends, Frances Schwartz, is 98 years young.
Until last year, Frances lived in her own apartment on Walnut Street near Laurel Village in San Francisco. Now she lives in the Jewish Home. We have been friends now for over 10 years. I feel closer to Frances than to many people my own age, even though I moved away to Michigan in 2001. She is still ’sharp’, mentally and verbally. When I lived in San Francisco, Frances loved to take me to lunch at her favorite Chinese restaurant downtown. We would have the lunch special — three courses and a glass of wine, for $20, including white tablecloths, fresh flowers and deep carpet. She loves a good joke and See’s Candies. She hates George Bush with a passion. She always wants to know what I’m up to. I want to know how she likes the food at the Home (it’s great).
Q: What does Frances have to do with Millennials?
A: Neither group feels their age.
Frances has confided to me that she doesn’t feel 98, in fact she feels like the same person she was at 19. Maybe that’s why she doesn’t look or act her age?
“The person behind my eyes is still the same girl I was in 1920. I don’t feel 98 years old. I can hardly believe it’s true.“
Blake Sunshine, wrote last month in her blog, “Do Millennials Feel Young?” Drawing on Pew Research data, she concluded Millennials are the ONLY group that feels its actual age. (Other age groups all feel younger, like Frances). Today, Blake continued this line of thought with a thoughtful essay titled, “Millennials Are Having a Hard Time Growing Up“. (Note how much Blake sounds like Frances!);
“I do not feel like an adult. I support myself, have a job and live 818 miles away from my Mom and Dad, but I still feel like a child most every day. And I know I’m not the only one. Millennials everywhere are having a hard time growing up.”
I am sure Blake is not the only Millennial struggling to take her place in adult society. The economy has thrown Gen Y a curve ball, causing many to delay the usual markers of adult life: job, marriage, mortgage, children. Living at home, ot doubt, undermines one’s sense of independence.
Yet Blake Sunshine seems to be getting at something deeper and more fundamental. Growing up requires letting go of options, narrowing those infinite dreams and choices to just a few. For Millennials, this may be harder than for other generations, since they have been told from an early age that the sky is the limit. She also places some of the blame on parents.
“We still want to be astronauts- We don’t really all want to be astronauts, but we still do want to believe that we can do whatever it is we want to do with our lives. Millennials do not want to settle, and if you aren’t a grown up then you don’t have to settle. Which is why it’s hard for Millennials to grow up and try to discover what they really want to do with their lives. … I hate to blame our parents entirely for why we aren’t growing up, but they definitely aren’t helping us either. A lot of Millennial parents (not all!) are used to hovering over their children, and they only want them to be happy. And if that means not settling for a job that they don’t want, then many Millennials parents are happy to support their children for as long as they can. But this is a terrible thing, because we need the push from our parents to force us to grow up.”
I have a different hypothesis. Perhaps the real reason Millennials don’t ‘feel’ grown up is that no one ever really feels completely grown up.
For marketers of ’grown up’ products such as investment services, insurance, furniture, automobiles and travel, this insight may prove more helpful than it appears. If Millennials aren’t feeling like grown ups – and don’t really want to feel that way– then positioning these products and services as part of an adult lifestyle would miss the market entirely. They would feel like ‘posers’.
A better approach might be to position them as responsible steps for anyone to take, whatever their age.
Unemployment is the story of year, and by now we all know young adults are suffering most. Several new studies show just how much pain they are enduring.
The Lumin Collaborative, an association of PR firms just released a study of 1,000 Millennials, ages 18-27, focused on understanding their changing expectations of the workplace. The study shows nearly all have been either directly or indirectly affected by unemployment.
- Over half (55 percent) have experienced a layoff or loss of work in their family within the past year.
- Nearly three-fourths (72 percent) feel threatened by a possible layoff or loss of work in the coming months.
- Two-thirds (66%) say they have lowered their expectations of being promoted. This compares to 51% among other workers.
Given the deep reach of the recession, it’s not surprising that economic worries are top of mind with Gen Y. A mobile survey of over three hundred 18-24 year olds reported this week by Engage Gen Y revealed the overwhelming concern is “The Future. College. Jobs. The Economy“’. One 24-year-old male said: “Jobs and our future are a big concern. We are a really talented bunch that just happens to be at the height of our ambition at the exact time the economy is hurting.” This finding was confirmed by a recent Harvard poll (reported by Don Tapscott’s blog).
“The economy is unquestionably the top national issue of concern for young people today. Almost half of 18-29-year olds today (48%) say economic issues are their foremost concern, more than double the second highest issue (health care: 21%) and nearly five times the third highest (War: 10%).”
With sentiment this strong, it won’t be long before Millennials start to direct some of their influence, clout and energy toward Washington.
Obama came into office on a wave of Millennial optimism and good feeling. While Gen Y so far as remained fairly silent about his performance, the Harvard poll suggests they are losing confidence in the government’s ability to resuscitate the economy: “More young Americans now believe that the government’s efforts will hurt (30%) rather than help (26%) their financial situation. The majority, 41 percent, say these efforts will have no impact.” John Della Volpe, the Director of Polling for the Institute of Politics at Harvard, says the numbers show that “If nothing else, this generation is fiercely independent and should not be taken for granted. Young people are no longer outliers — their opinions of Obama fall in line with rest of USA.”
For many Millennials, who in addition to unemployment are suffering from crushing college debt, jobs alone will not be enough to right their financial ships any time soon.
The average debt for a graduate is now $23,000. Many also have credit card debt exceeding $3,000. Without relief from the burden of hundreds or thousands of dollars a month in loan repayments, it will be difficult to get their lives moving forward again. Little wonder a Vanguard blog recently christened Gen Y, ‘Gen D for ‘Debt’. The impact of the double whammy of no job and high debt is millions of lives set on hold. According to a study by Alliance Bernstein, 34% of those who graduated with college debt have had to sell personal possessions to make ends meet. More significantly for our collective economic recovery, they are deferring the usual life events that trigger spending and economic growth: 18% have delayed getting married, 44% have delayed purchasing a house, and 28% have delayed having children (see chart). Other deferments include medical procedures, home repairs, car repairs and more.
Source: Alliance Bernstein
Coincidentally, According to the U.S. Department of Education , the total outstanding federal student loan debt exceeds $500 billion.
That number sounds a lot like the kind of numbers we hear when Washington talks about the economic stimulus. I recently posed a question to Paul Solman, the financial journalist for NPR’s NewsHour via Twitter and their web site:
“Question: Why isn’t some of the stimulus money being earmarked for college debt forgiveness, which would put money in the pockets of those most likely to spend it?”
He replied that it had been considered and shouldn’t be ruled out, but the idea currently has no momentum. That tells me it may not be such a dumb idea after all….
I am a marketer, not an economist or politician. But it seems to me that a transfer of funds from the government to loan programswould be less complicated and surer to work than costly ’jobs creation’ programs.
The impact of this action on Millennials would be immediate. Once released from the increasingly desperate burden of finding a job and paying down debt, this creative generation could set about generating new businesses, jobs and and economic activity. Unlike the rest of us who would be likely to save a windfall, Gen Y would spend it — smartly — for the benefit of all.
That’s my big idea. Gen Y, what do you think? Are you ready to mobilize?
