Strategic branding is based on insights about the audience you want to reach. To create a meaningful brand, you first need to understand what is meaningful to your target. For Obama and the Republican Presidential candidates, The Occupy Wall Street movement reveals a lot about what the Millennial market is thinking.
Why Millennials Matter
The Millennial vote will be pivotal to winning the election in 2012, just as they were in 2008. In 2008, Millennials made up 17% of the electorate. Collectively, they accounted for a significant part of Barack Obama’s national popular vote.
In 2012, even more Millennials will be of legal voting age. Millennials are projected to make up nearly one fourth of the electorate next November. Many of these young voters will be casting ballots for the first time, and are likely to be more ‘independent’ than partisan. Nevertheless, Pew figures from November 2011 show Obama with a 26 point lead over Mitch Romney among 18-29 year olds in a hypothetical match-up. A lot will depend on how many Millennials actually show up to vote as well as what both candidates do to capture their attention in the next 12 months.
Millennial Mood Shift
In the recession-dominated four years since the last Presidential election, Gen Y has gone from being optimistic and ‘hopeful’ to discouraged and angry. The shift seemed to have happened quite suddenly, triggered by the realization that trillions of stimulus dollars, gigantic industry takeovers and costly bank bailouts were insufficient to create jobs and give young adults a toehold in the economy.
Why ‘sudden’? Even as little as a year ago, I would never have predicted anything like the Occupy Wall Street movement. In fact, when Jon Stewart and Stephen Colbert launched their “Rally to Restore Sanity/Fear” in Washington DC last October, I wondered whether it would resonate with a generation notable for its lack of protest and desire to work within the system to create change:
“… the truth is, this generation does care. They are caring by not participating, by disassociating. Stewart also understands this; he gets their approach. They are conservative liberals. They want to change the system without marching down Main Street. Without lowering themselves to the same tactics, name calling and bickering they detest. It’s hard to have a voice when you are disgusted by the tone of the conversation. So instead of joining, they are quiet rebels who challenge the status quo by the way they live, not how they protest. …. The “Rally to Restore Sanity” was a TV staged event they attended, not a grass roots rally they created. Just like Demand TV or ITunes, it was offered up and they clicked “attend.”
When you’re hurting, inequity is an easy concept to grasp — just ask any four year old. In 2011, evidence of unfairness was easy to find. The concept that lit the spark was growing lopsidedness in wealth distribution. The target of resentment was easy to find, as well – Wall Street. The way money is made by corporate fat cats and Wall Street bankers became the focus of Millennial discontent, not those who set the rules in Washington. This is good for Obama, and bad for Republicans who are more associated with the 1% than the 99%.
What It Will Take to Win With Millennials
Winning with Millennials will require either championing the idea of inequality, or refocusing the dialog. Obama seems to understand this with his recent populist stance and anti-business actions, like the decision to block the Keystone Pipeline and the AT&T/T-Mobile merger. The Wall Street Journal writes, “The deal landed just as the Obama administration was rolling into its rel-election campaign, which, amid a depresssed economy, will be about vilifying big business and playing to economic pessimism.” (“How AT&T Miscalculated”, WSJ, 12.21.2011)
Yet there is evidence that refocusing the dialog may be a better way to win the hearts of Millennials. Most people accept that wealth is inequally distributed and say that even in an ideal world, the top 20% should in fact control about a third of the wealth. Millennials especially have been raised to believe that hard work and talent are what matters to success. What they struggle with is inequal distribution of opportunity. In other words, it’s okay if someone has more than I do, as long as I have a shot at being part of the 20% myself.
Shifting the conversation to distribution of opportunity rather than wealth would resonate with Millennials, who contrary to myth, are not looking for a handout. Democratic pollster, Douglas Schoen, reported in October that the more radical ideas of those Occupying Wall Street are in fact out of step with the mainstream of Millennial thinking, which is more focused on a level playing field than redistributing wealth: “People are frustrated by an economy that does not reward hard work and responsibility.” (“Polling the Occupy Wall Street Crowd,” WSJ, 10.18.11)
Paul Conway, leader of the non-profit organization, Generation Opportunity, agrees with this assessment. He says the Occupy Wall Street protesters are out of step with most young voters:
“Despite this loud minority, though, most young voters believe lowering business taxes creates jobs, and that businesses are able to grow with less government interference…President Obama’s 2008 electoral victory was attributed in part to his support from first-time voters. But his public expressions of sympathy with the Occupy Wall Street movement, and his disdain for public spending cuts, could alienate a large number of young voters this time around.”
Listening to young voters and getting the real message of Occupy Wall Street right could make the difference between winning and losing in 2012.
Michelle Nunn, CEO of the Points of Light Institute, concurs that the Occupy Wall Street group does not represent mainline Millennials who continue to be more interested in changing business from the inside out than via protest.
“The Occupy Wall Street movement is largely fueled by a relatively small set of young people who view the protests as a fight for their future. The vast majority, however, are getting up and going to work every day — or wishing they could. These individuals are part of a less dramatic but, perhaps, equally powerful movement of Millennials shaping the future of business.” (“Millennials to Business: Social Responsibility Isn’t Optional, Wash Post, 12.20.11)
Creating a Meaningful Presidential Brand
We should be thankful to the Occupy Wall Street movement for making us recognize Millennials as a political force, even if they do not represent the majority of Millennials. If I were advising the President or one of the Republican Presidential campaigns, I would tell them to get busy. They need to engage with motivated young adults, who’s only request is that they get a fair shake and know a fair shake won’t come from Wall Street but from the politicians that set the rules — for how jobs are created and wealth is made, not how wealth is redistributed. With Millennials becoming the most influential generation to vote in 2012 and beyond, I am hoping that this dialog starts soon.
Judging by the outpouring of eloquent grief on the passing of Steve Jobs, I’ve concluded if a black turtleneck was a sports jersey, it would need to be retired. (In fact, sales of black turtlenecks are going through the roof.)
We are witnessing a cultural moment celebrating a life well-lived inspired by the death of someone who was NOT a politician, a sports or entertainment icon, or a religious leader.
What makes this testimony so remarkable is the high degree of consensus about what made Jobs’ life admirable.
Steven Paul Job’s life, ideals and accomplishments resonate across the generations. He was born at the height of the Boomer generation in 1955, but in many ways he was the ultimate Millennial, and also the ultimate Gen X’er. His 2005 Stanford commencement speech has over 5 million hits on YouTube so far. Perhaps this says something about generational differences: they may be more on the margins than on the big ideas.
Above all, Job’s occupies a special place in the hearts of Millennials. On The Next Great Generation blog, Millennial, Meghan Ross, writes:
…the iPod, the iPhone and the iPad have granted us accessibility to the world at the touch of our fingers. These products (along with the MacBook and MacBook Pro) not only make an endless amount of tasks easier to accomplish, but they also are present for some of the most significant life events we experience. I had my entire music collection in my pocket the first time I left the country, read my first “real world” job offer email from my iPhone, and completed my final undergraduate projects on my MacBook.
In fact, it’s hard to imagine Millennial life without Apple products, as this infographic demonstrates. Would Gen Y be so “Millennial” without them? Ross goes on say that Job’s greatest contribution, however, was his exemplary life, “his unwavering beliefs and an acknowledgment of unavoidable death that drove him to take chances on life’s uncertainties that come with chasing your dreams.” Similarly, Melanie Shreffler write sin the Business2Community blog, “Although Jobs wasn’t a Millennial, he “embodied the Millennial spirit of innovation and entrepreneurialism, following his passions and not worrying about what the outcome would be.”
An entire generation now has a shared idea of what it means to be a leader that has nothing to do with titles held, degrees earned, fashion (turtleneck aside), or social media Klout. Being a leader is about who you are and what you stand for. Jobs inspired us to understand that leadership is about more about great taste, willingness to collaborate and a laid back working style. As Shreffler explains, the Genius of the Genius bar is that it demonstrates, “Anyone can be an expert, even if they’re young and wearing jeans and a t-shirt.”
Above all, Jobs’ enduring contribution will be his demonstration that it is possible to live your values.
The power of the Stanford commencement speech comes from Jobs’ commitment to his sense of self even in the face of devastating loss and death. In the end, Millennial values are not that different from those of other generations. They aspire to be successful, to make a difference in the world, to have functional marriages, and to be good parents.
What will make Millennials unique is — if they can manage it — is to hold on to their sense of self and values even as life presents challenges that have caused other generations to make compromises. This is what makes Jobs so inspiring… and so Millennial.
Footnote: I am writing this on my latest computer, a desktop Macintosh, my first Apple that wasn’t a phone or iPad. Seems fitting…
Millennials define themselves more by their interests and passions than their careers or even technology. The desire to connect with brands that share their passions is a key motivation, both online and offline.
Consequently, identifying and understanding Millennial passions is an important first step in designing effective marketing programs.
Last week the Kansas City-based agency, Barkley, shared new research that shows Millennials have a greater range of activities they are passionate about than those over 35. Significantly, Milennials are more likely to define success in personal terms and to put greater importance on it than older generations. “Seventy-nine percent* define success as “doing what you are passionate about“. Today’s youth are not influenced by money or the image of success. In fact, even in their online communities, only 6% feel that “having lots of friends on Facebook” is an influential quality. The vast majority believe “Being True To Yourself” is inherently more influential in life (62%).” *
Millennials want to be defined by their passions, not their careers.
Last week I moderated a panel at the conference Barkley sponsored to reflect on the findings of their research and its implications for marketers, “Share.Like.Buy” in San Francisco. The panel was titled “Tapping Millennial Passions,” and the panelists were noted Millennial researchers: Barbara Bylenga, CEO, Outlaw Consulting, Alex Smith of Mintel, and Tracy Panko, CEO, Spiral16.
The session focused on how Millennial passions are expressed and how they differ from those other generations. The panelists also discussed the potentially disruptive implications of these differences for marketing products and services across a number of categories.
Alex Smith began by noting that while Millennials’ passions may be similar in some ways to those of older cohorts – the environment, causes, music – the way they express and pursue those passions is very different. They have more tools to express their passions, which are used to curate their personal identities and gain attention. Their overall goal is to express themselves in a way that is true to who they really are.
Barbara Bylenga added that Millennials are especially passionate about things that impact others: the planet, the environment, social justice, poverty. They see their passions as a way to define themselves as ‘changemakers’. What other generations might consider an ‘interest’, Millennials see as central to who they are. They define success in terms of their ability to turn these interests into accomplishments or even a career. Hence their passions are especially motivating.
Use a lifestage lense to predict and plan for Millennial impact
Bylenga says lifestage is a good lense for thinking about how Millennials will change categories. The latest Census data confirms Millennials are putting off childrearing, staying single longer. Currently they are in the ‘explorer’ lifestage, but as they mature, many are entering the ‘spinner’ stage, forming households and settling down, and in some cases readjusting but not necessarily abandoning their passions. They still want to make a difference, but will realize (rationalize?) that making a differences lies in the cumulative effect of small decisions, little actions, not necessarily a big career accomplishment. Every little decision is going to take on added significance. Marketers can leverage this insight by helping them feel like their consumer choices are helping make a difference.
Bylenga went on to say Millennials will increasingly see it as a stepping stone to independence, with many aspiring to be entrepreneurs rather than bind themselves to a sure paycheck. (In fact, this prediction may be already coming true. There was a 250% increase in the past two years in the number of Millennials who choose freelance work over a job.)
Characteristics of brands that generate passion among Millennials
When asked the characteristics of brands that generate the greatest amount of passion among Millennials, panelists repeated mentioned the importance of authenticity. According to Barkely’s research, Livestrong is the number four most recognized charity among this age group, a position it achieved by being authentic according to research by Spiral16, said CEO, Tracy Panko.
Despite dramatic and controversial events surrounding Livestrong founder Lance Armstrong, the Spiral16 data shows that Livestrong has continued to successfully engage their community and turn them into passionate evangelists. Besides amassing a huge following on Twitter, Livestrong has also spread its influence and message across other social media platforms with a clear and concise message. Eight out of the Top 10 most influential web pages in the study are components of the Livestrong organization, while the remaining two pages were created by passionate Livestrong fans. (The RSS feed for the Livestrong blog ranked even higher — number two — than blog URL itself.)
Panko points out that this kind of community and presence is impressive. As much as brands would like to, they cannot just control online attitudes at will. A digital presence this dominating, nonprofit or not, can only be built up from years of consistent hard work and clear strategizing. She also cited Patagonia as another brand with a strong authentic brand with special appeal to Millennials. Patagonia’s willingness to willingness to show the less desirable parts of their brand suggests an honesty that allows them to win with consumers. Other brands cited for their authenticity were Trader Joe’s and In ‘N Out Burger.
The fastest growing digital company in the world is Chicago-based Groupon, which this week announced 2010 revenues of $760 million, up from $33 million in 2009. Even bad Superbowl ads can’t undo that kind of head-turning performance.
Rocket-like growth inevitably brings intensified competition. Right on cue, the category of ‘social coupons’, which also includes Living Social and Gilt, among others now also includes a new, niche entry, YouCeleb.com. Think of it as Groupon for fashionistas – “YouCeleb gives you access to the hottest celebrity fashion without the celebrity bank account” In a nice twist, a portion of the proceeds go to the celebrity’s favorite charity.
The female focus of YouCeleb.com is not an accident. A cool infographic from Digital Buzz highlights the profile of Groupon users – young, wealthy, educated women.
- 77% female
- 66% 18-34 years
- 50% have bachelor’s degree
- 30% have post college degree
- 70% have above average incomes ($50K or more)
Given this profile, it’s not a surprise that many of the most successful Groupon offers are for things young women enjoy – salons and day spa’s, dining out, and yoga classes. And they do LOVE them. Here are some comments by members of our Millennial Marketing “super consumer” community:
Sasha Muradali: “I get really good deals on these and I’ve seen really good deals on them too. There was an 85% MMA discount about a week ago on The Dealist I think. I bought one on them recently for a 6-week foreign language class. The thing is, places I wouldn’t normally go to, or things I wouldn’t normally participate in, I get the opp too through Living Social/TheDealist/Groupon. Besides for the discounts, it just opens your eyes to new and cool things. Discounts are always good — really good discounts are even better!
”
Katie Lorenz: “I use Groupon, Living Social, Foxling, and Deal a Day Online. I cancelled my gym membership and only use Groupons for yoga, ballet classes, pilates and tennis (usually unlimited use for a month) and 90% of the time they’re places I’ve never been. I’ve loved all the facilities but their normal prices are usually too expensive for me to continue on so I find the next best thing. “
The men in our community are more equivocal in their assessments of social coupons:
Justin DeGraaf: “I subscribe to Groupon and just started livingsocial during the Amazon.com GC bonanza. Although I look at Groupon maybe 3x a week, I’ve never purchased anything. For some reason, I don’t feel like it’s a good deal, most notably on services. I don’t trust that the rates a spa, for example, gives are any cheaper than if you were to call them and ask for an introductory special. And in my town, the restaurants that are participating are the dodgy and struggling ones. Now, when Living Social did the amazon special I went crazy! Bought like 6 of ‘em. : )”
Steven Conway: “For me, it depends entirely on the category of the deal. When it comes to apparel/retail brands, I tend to purchase groupon deals from brands I currently shop at it like the Gap and Nordstram Rack, as there is a perceived higher risk in buying a groupon from a retailer I do not shop at or like – no matter how good the deal is. On the other hand, when it comes to a restaurant, I will take a chance on a place I haven’t tried as I feel there is less risk involved. Overall, I would rather have a bad meal experience than buy something from a clothing retailer I probably wouldn’t wear.”
Consider the Target
Marketers considering social coupons as a strategy for gaining trial (See my MENG Online post last week, “Social Coupons: Backward Marketing, Forward Thinking“) should first consider the characteristics of their target. Is the target young, upscale and female? Then social coupons may be just the ticket.
Social couponing fits with the overall social context of shopping for young women. E-marketer provides an excellent overview of how teen girls approach shopping (“Online Shopping Is Entertainment to Teen Girls“, 2.28.11). Millennial age young women are similar to teen girls in that they love shopping, but they like shopping with others even more. For them, shopping is more than deals, it is a way to bond. Talking about your Groupons and sharing deals generates important social currency, currency that is often less meaningful for guys.
YouCeleb.com may be the first of a wave of female-focused social coupon opportunities. It’s harder to imagine new Groupon-like sites just for guys – Trouton, anyone?
A special thanks to Suhan Park, Notre Dame MBA candidate, for alerting me to the YouCeleb.com launch.
Cee-Lo's Grammy Performance
Millennials are influencing our tastes in many subtle and not so subtle ways. I am keenly aware of the influence my Millennial age kids and students have on my tastes and purchases, in everything from cars, to clothes, to foods and entertainment.
Grammy Obsessed
To illustrate just how far I’ve come, Sunday night I was riveted by the Grammy Awards. I have never watched it before, and I actually watched it alone as everyone else in my family seemed to have more important things to do.
How could I miss Cee-Lo, Rhianna, Drake, Eminem, Gaga, Bruno and Katy do amazing performances of songs I that have become stuck in my head day in and day out? (Katy Perry’s “Teenage Dream” seems to be remarkably sticky.) I loved seeing Glee’s Lea Michele and Matt Morrisey in the limelight. In contrast to all that energy, Barbra and Kris seemed boring, though Mick Jagger still has the ability to energize a room the size of the Staples Center.
I truly cared whether the rap and dance artists would come out on top for Record and Album of the Year. They didn’t, and I went on line to share my woes and see if anyone else was as disappointed (here’s a great recap from a Millennial). My point? If someone had told me a few years ago that I would like rap, dance and pop music, much less care about these stars I would have sniffed and said I only listen to NPR.
Is Your Brand Culturally Aware?
Culture has always been a big part of youth marketing, and now it seems to be increasingly important to all marketing, thanks to Millennials. It wasn’t just his connections to Detroit that made Eminem a brilliant choice for Chrysler’s two minute SuperBowl spot. After all, they could have opted for Kid Rock.
A recent article by the PR firm, Edelman, titled “Why Millennials Matter to Every Brand” argues that Millennial’s influence is a strong argument for making them a key target now, even if your stated target is 25-54 or even 35-54. Edelman puts it this way:
“All of the chatter from Millennials, all of the sharing and noise, it makes an impact on the generations before them. They are listening. They are influenced by what their children and grandchildren are saying because they can say it loudly, with confidence and knowledge that only their Smartphones could give them. Millennials will continue to dominate influence and pop culture. That is, until the next generation, Generation Z, quickly changes the world once again.”
Edelman offers these reasons for even brands like diapers and home alerts to consider Millennials a key target, now:
1. Size: “By 2015, almost half (47%) of the world population will be under the age of 25.”
2. Influence: “Two-thirds of Millennials are now over the age of 21, and many have established careers, families and an incredible amount of influence.”
3. Digital Prowess: “They were raised digital. This fact alone makes Millennials unlike anything the world has seen.”
4. Global Reach: “Technology knocks down borders. Multiculturalism is the norm and new trends and opinions spread quickly.”
5. Brand-Happy: “Brand preference was the #1 personal identifier that Millennials were willing to share about themselves online.”
6. See Themselves as Influencers: “76 percent of Millennials think they are highly depended on for their opinions.
7. Active Advocates (and Detractors): ”Millennials are taking action on behalf of brands, both online and offline, every week. And, those actions aren’t just for high profile lifestyle brands.”
These arguments will be familiar to reader of this blog. But they serve as a great reminder that if Millennials are not part of your target now, you may wake up and find you are still listening to NPR – and your competition is listening to B96.
The rules around alcohol advertising and sports need to be re-examined. Why can’t I visit CaptainMorgan.com without answering the question, “Are You Old Enough to Come Aboard?” Yet – I can’t avoid seeing the Captain’s logo on ESPN when I am working out at my fitness club? A quick check of YouTube shows that the relationship with ESPN is more than logo-deep, as demonstrated by the :60 opening sequence created for Wednesday Night Baseball last summer (see above). The film doesn’t contain any drinks, but it’s all about the iconic Captain. What’s next, Joe Camel?
Mixing Sports and Alcohol
Thom Forbes, the respected writer and former editorial director of Adweek, wrote a powerful essay today titled “Alcohol and Sports Should Not Mix” (Mediapost, 2.7.11). In it he asks:“C’mon. Why is it that the only time that advertisers claim that advertising doesn’t work is when they are trying to squirm out of its impact on youth?
…We can throw stats at each other from now until Super Bowl C, as The Center on Alcohol Marketing and Youth at the Johns Hopkins Bloomberg School of Public Health and the Distilled Spirits Council recently did. But today’s argument boils down to a very simple proposition: Why do we continue to send the mixed message to kids that alcohol and sports are inexorably twined? In our culture, they are. They shouldn’t be.
Nearly two years ago, in this blog, I attempted to point out that it is ludricrous to think that a handful of responsible drinking ad campaigns were going to be of any use in fighting a youth culture that equates partying and having a good time with drinking, largely as a result of nearly saturation levels of advertising delivering the message that the fun only starts when the beer and rum arrives. (“Tough Sells: Anti-Tobacco and Responsible Drinking” 2.25.09)
As marketers, it’s time to admit that advertising does work and be more consistent in our application of rules.
The Captain Morgan multimedia campaign is one of my favorites. It’s great marketing and it’s working. Diageo reported in December 2010 that it holds a 34.5% share of the U.S. rum market and its share is growing, because its volume is growing faster than the overall market (which is growing 7% globally each year!).
Don’t get me wrong. I love great marketing like the Captain, and I support Diageo’s right to advertise a legal product. But Diageo needs to advertise responsibly to legal drinkers. Like Forbes, I don’t think sports and alcohol should mix, and I especially don’t think the Captain should be linked with baseball — or any other sport — on ESPN. It’s time to draw the line.
This week, the events in Egypt and “Blizzard 2011″ have dominated the news. For most of us, the ‘snow day’ has been a nuisance. But for unemployed Millennials, everyday is a snow day.
What’s more, the events in Egypt and Tunisia are making it clear young adult unemployment can have major consequences for society.
A Generation is a Terrible Thing to Waste
I highly recommend checking out Business Week’s cover story, “The Youth Unemployment Bomb” (2.2.11). The article points out that what we call ‘boomerang kids’ are not just a U.S. concern, but a worldwide problem that could have long-term implications if not addressed:
“In Tunisia, the young people who helped bring down a dictator are called hittistes—French-Arabic slang for those who lean against the wall. Their counterparts in Egypt, who on Feb. 1 forced President Hosni Mubarak to say he won’t seek reelection, are the shabab atileen, unemployed youths. The hittistes and shabab have brothers and sisters across the globe. In Britain, they are NEETs—”not in education, employment, or training.” In Japan, they are freeters: an amalgam of the English word freelance and the German word Arbeiter, or worker. Spaniards call them mileuristas, meaning they earn no more than 1,000 euros a month. In the U.S., they’re “boomerang” kids who move back home after college because they can’t find work. Even fast-growing China, where labor shortages are more common than surpluses, has its “ant tribe“—recent college graduates who crowd together in cheap flats on the fringes of big cities because they can’t find well-paying work.
In each of these nations, an economy that can’t generate enough jobs to absorb its young people has created a lost generation of the disaffected, unemployed, or underemployed—including growing numbers of recent college graduates for whom the post-crash economy has little to offer.
The article goes on to describe the “quiet desperation of a generation in “waithood,” suspended short of fully employed adulthood“. It challenges us to consider the consequences of failing to help young people find a place in society. Can we afford NOT to “harness the energy, intelligence, and enthusiasm of the next generation?”
Adulthood Delayed
Two recent books have both explored the difficulties of ‘emerging adults’ in the U.S. Both are based on extensive academic longitudinal research among what are now called Millennials. And both reach the same conclusion: Making the transition to adulthood has never been so challenging. What’s more, young adults who lack adequate guidance and support are increasingly losing their way along the path. Contributing factors include high job expectations, the high price of education, the Recession and a slowly dawning realization that the traditional ‘college prep’ approach is no longer a sure ticket to middle class prosperity.
“Not Quite Adults: Why 20-Something Are Choosing a Slower path to Adulthood, and Why It’s good for Everyone” by Richard Setterson and Barbara E. Ray
The authors draw on a variety of sources (many of the same ones I draw on for this blog) to describe a generation that is ‘lost without a compass’. “Given the importance of higher education tody to earning a living wage with benefits, it is surpresing how unprepared many young people are for college and how unformed their plans really are.” The authorsclaim many enroll because they don’t know what else to do. Others who should enroll don’t because they fear debt. The authors are especially concerned for what they dub ‘the treaders’ (as opposed to the ‘swimmers’). The final chapter urges the realization that we are all ‘responsible for the welfare of young people’, but there is a special burden on parents. While the dangers of hyper parenting are real, the dangers of leaving young adults on their own too soon is greater.
“Souls in Transition: The Religious & Spiritual Lies of Emerging Adults” by Christian Smith & Patricia Snell
This book is about much more than religion and spirituality, it encompasses the entire scope and culture of young adulthood. The book is based on research on the same set of young adults that began when they were 13-17 years old nearly 10 years ago. The authors conclude that the experience of young adulthood is changing rapidly. The fundamental driving goal is getting to the point where they can ‘stand on their own two feet’, but many are learning it is even harder than they expected. Many are overwhelmed with all of the skills, tasks, responsibilties, systems and procedures they must learn. Most feel ‘broke’, and live paycheck to paycheck whether they ‘objectively actually are out of money or not’. Money is a constant source of anxiety.
Getting on With It
As these books illustrate, we know what the problem is, but what are the solutions? A few prescriptions seem to be emerging:
1. Greater emphasis on career training, mentoring and vocational ed.
2. Incentives for older adults to retire or step back to create opportunities for young adults.
3. Greater understanding that a slow start is not ‘failure to launch’.
4. Greater voice for young adults in the civic process.
5. More alternatives like gap years, stipends for public service and other ways to put non-productive time to good use (without going into deeper debt).
Yet more seems to be called for. As the Business Week article suggests, youth unemployment, leading to estrangement between generations, may be the ‘epidemic’ of our age.
“In short, the fissure between young and old is deepening. “The older generations have eaten the future of the younger ones,” former Italian Prime Minister Giuliano Amato told Corriere della Sera. In Britain, Employment Minister Chris Grayling has called chronic unemployment a “ticking time bomb.” Jeffrey A. Joerres, chief executive officer of Manpower (MAN), a temporary-services firm with offices in 82 countries and territories, adds, “Youth unemployment will clearly be the epidemic of this next decade unless we get on it right away. You can’t throw in the towel on this.”
Millennials are famous for their optimism. Studies in the U.S. and around the world, confirm that a positive outlook about their personal future is one of the defining characteristics of the Millennial generation. ’Cynical’, ‘weary’, and ‘jaded’ describe very few young adults.
Christian Smith, sociology professor at Notre Dame, writes in his book, “Souls in Transition“, that emerging adults 18-23 years old are “some of the most optimistic people we have ever encountered or listened to” (p.36):
“For the most part, their eyes are firmly set on the future, and they look to it with great hope and confidence. Some are beset with trepidation or despondency about what awaits them in their lives. But these are not many. Rather, for most, their hopes run high, their expected propsects are bright, good things are anticipated.”
Even in the face of the Recession, which has hit Millennials disproportionately in terms of jobs, Pew Research shows that they still believe that things will turn out all right for them personally (“Millennials Still Optimistic” 6.21.10). In fact, as a generation they are more optimistic today than they were in 2006. Smith says this optimism sounds like this, even among young people who have suffered setbacks:
“This is my optimal path, what I’ve always wanted. You know, I really think where I’m going is exactly where I wanted to go in high school and the beginning of college”
“Right now I’m headed into finding my first, real, year-round job, and that’s very exciting to me. A lot of changes hve ahppened, but they’re positive changes.”
“Everything’s not where I want it to be, but I think with time, it will be where I want it to be, because like I said, I’m very determined, I’m absolutely sure of myself.”
Realizing the Dream
Millennials define their identity in terms of dreams and passions, yet we have also observed that they generally do not have a clear vision of how they will accomplish those dreams. They have high expectations of their being successful in life, yet a a vague idea of the connection between college and career and exactly how careers progress. There is often a disconnect between where they are, and exactly the steps required to get there. They sense that the traditional paths followed by their parents, of as one young man put it, “high school, college, career, death” have shifted. There are more options, yet more choice also brings greater uncertainty.
Josip Petrusa, a Millennial himself, made this observation on his blog in post titled “A Generation of Dreamers“:
[Millennials'] dreams, goals, attitudes and passions are vividly clear and ever-present and almost larger than life. And this is where things get absolutely intriguing and downright interesting. Ask any Millennial about their pursuits of their dreams and goals and attitudes and passions and you will receive the most colourful, beautifully chaotic and elaborate series of characteristics. But then should you ask them on the real-life details it would take to achieve and accomplish their dream life and I guarantee you that you will put them at a loss for words.”
Millennials themselves seem to be aware of this disconnect. Many speak of the importance of finding mentors, internships and ‘hands-on’ experiences. This is a complex transition, and to a large extent emerging adults are left on their own to ‘figure it out’. Petrusa notes that job-hopping is a trend we should be prepared to see grow “massively amongst Millennials”. He writes:
“… not because of boredom or self-discovery or about finding the right career. It will be based in the very essence that if it does not somehow correspond or benefit their pursuit of their dream and dream-life, they will leave and pursue and hunt and attempt to discover something they believe will deliver on what they want.”
‘Figuring it out’ on your own is not as realistic today as perhaps it once was, when jobs were plentiful and the ‘mistake’ of changing majors or careers was not as costly. As a society, I am concerned that our educational system has not adjusted quickly enough to help young adults in the practical life-tasks of choosing a career and understanding how to be successful within it. More than anything, they need help developing a clear vision of what their adult lives will be like and how to achieve it.
Perhaps this insight underlies the fact that the period of emerging adulthood is extending now well into one’s twenties, as has been observed by multiple researchers and authors, including sociology professors Setterson and Ray (“Not Quite Adults: Why Twenty-Somethings Are Choosing a Slower Path to Adulthood and Why That’s Good for Everyone“) and psychology professor Jeffrey Arnett (“What Is It About Twenty Somethings? NYT 8.14.10)
The Millennial Paradox
One of the challenges of understanding this unique generation is embracing these apparent contradictions. One the one hand, Gen Y is the most educated and well-prepared generation ever, yet it is the slowest to achieve the traditional markers of adulthood. They are both optimistic and uncertain, confident and anxious. They believe passionately in their dreams, and measure their current situation with those dreams as a reference point.
Far from feeling ‘entitled’, most Millennials understand that it is up to them to cross the bridge to their dreams, and they are willing to own that responsibility. Nevertheless, for many it is a challenge. As parents, educators and even marketers, the more we can do to acknowledge the gap and help them create those plans the better off we will all be.
How we communicate is one of the most obvious manifestations of the generational divide. Email is now the Internet’s equivalent of training wheels, while texting is the communications mode of choice for the digitally dextrous.
But the differences go beyond just the mode of communications. Different generations also have different ideas of what is polite e-behavior.
Act Your Age
Comscore data for 2010 shows a dramatic one year drop in time spent using email among 13-17 year olds (-48%). At the same time, there was a modest increase in email use among those 54 and over. Comscore says this is because some of those 55+ are online newbies for whom e-mail is often a starting point. This makes email the Internet equivalent of training wheels. For young adults, email is associated with formal communications, such as disputing a bank error or asking your parents for money. It carries little sense of urgency.
Texting shows a similar pattern in reverse. According to Nielsen, the average teenager now sends 3,339 texts per month, up 8% in 2Q 2010 vs. 2Q 2009. Although text use in other age groups is also up, Other age groups don’t even come close; the average 18- to 24-year-old sends “only” 1,630 texts per month. My 17-year old son informs me that texts are great for when you don’t want to actually talk to someone, which is most of the time. Given the brevity of most of his texts (“K”, “Ya”, “IDK” and “?”), I am not sure we can really consider texts a replacement for talking, either. I have been told that if you see a comma in a text, you can be sure it was penned (tapped?) by someone over 30.
The communications habits of young adults can seem rude to those of us accustomed to greetings, punctuation, and multi-syllabic words. But the process works the other way as well. Young adults are sometimes offended by older adults’ indifference to their preferences and codes of etiquette. A president of a digital ad agency I met recently, says she has come to appreciate the nuances of Millennial communications, particularly the importance of speedy replies and letting go of paper-back up documentation. “Their ways really are better sometimes”.
When You Absolutely, Positively Have to, Talk
When is the last time you just picked up the phone and called anyone other than a close friend? I thought so. Phone calls now have the gravitas that used to be reserved for face-to-face meetings. My phone rarely rings unexpectedly these days. Texts and emails asking, “When can you talk?”generally precede phone calls.
According to a study by Forrester for Citrix Online, 90% of Americans meet in person to communicate and build relationships, which is higher than any other nationality. 75% of American believe it’s very important to pay attention in meetings. However, the younger you are, the less you value meetings, and the less you pay attention. “Only 29% of Gen Y workers think meetings that are to decide on a course of action are very efficient, compared to 45% of Older Boomers. Gen Y is least likely to pay attention in meetings and only 51% believe it’s very important to do so in meetings to decide a course of action.”
How Casual is Too Casual?
Millennials and older generations both struggle with what is the right tone or level of informality. Millennial, Anne Mahoney, posted a question in our Gen Y community recently: “In a grad school class, we are doing a “millennial mentoring” project where we are paired up with an undergrad. My partner will respond to emails with no greeting, no capitals, no punctuation…nothing. I also had a PR intern who called me “dude” the first week he was hired. This seems to be a trend, and an off-putting one at that. Anyone else seeing this?”
Communicating Politely with a Ten Foot Pole?
We seem to be in a period of transition where one person’s idea of efficiency is another’s idea of a brush off – or worse. Over time, I believe a clearer set of standards will emerge, but in the absence of an E-mily Post to tell us what is rude and what is acceptable, here are my personal rules of thumb:
- Text message: For arranging schedules and asking factual questions requiring short bursty answers, not conversations. Answer immediately.
- Facebook/LinkedIn/Twitter message: Use sparingly, a way to say you care. Answer within an hour.
- Voice mail: Use sparingly, no one wants to listen to much less respond to a lengthy voice message. If the voice mail is just to say ‘call me’, don’t leave any message at all.
- IM/Skype/GoogleTalk: Great for conversations when multi-tasking.
- Email: Reserve for when conversations need to be documented – it’s a ‘paper trail’. Answer within a day.
- Phone Call/Skype Call: Use sparingly. No one likes to be interrupted.
- Web Conference: use for sharing information. Most presentations and reports don’t require meeting in person.
- Face to Face Meeting: Use for relationship building, ideating and getting different points of view.
What are your rules of etiquette?
Consumer spending is up, but I highly doubt Millennials are driving the trend. Many people are surprised when I describe Millenials as ‘frugal’, but the Gen Y’ers I know agree wholeheartedly.
As a generation, these children of the free-spending Boomers are tightwads who love a bargain.
There are probably many reasons for their collective thriftiness. Here’s a possible list of reasons why Millennials are such pennypinchers.
1. They hate waste. Efficiency is a core Millennial, value – they don’t like to waste time, money or any other resource.
2. Indecisiveness. Millennials often prefer to make no decision than the wrong decision. I think it has to do with fear of closing doors on possible opportunities more than indecisiveness, per se.
3. Cash-strapped. Many are students, unemployed, or underemployed; Increasingly, they are up to their eyeballs in college loan debt. Penny pinching is a rational response.
4. Fear of being cash strapped. Even those who are employed aren’t sure when they might need a rainy day fund.
5. Self-perceptions: Even if they aren’t cash strapped, they like to think of themselves as smart shoppers.
6. Debt averse: They don’t want to borrow any more unless they absolutely have to – including a car, a house, an education.
7. Eye on the future: Many want to use money to make money. They have a long term view.
8. Non-materialistic: This usually gets an incredulous laugh. But it’s true that they value experiences over things. They aspire to travel light in the world.
9. Saving is a game: It can be fun to see how far you can stretch a dime or a dollar.
10. Saving yields social currency: Knowing about how to get the best deals makes you a valuable resource to others.
How can marketers get Gen Y to open their wallets, purses, and smart cards?
1. Have a heart. Link the purchase to something they care about, such as a worthy cause, a passion or interest. Starbucks Project Red is a good example.
2. Offer deals not discounts. Is there a difference. You bet. To a Millennial, a deal is something you have to work for. You earn it or its exclusive. Anybody can have a discount, but a deal is special. This insider-ness is behind the appeal of QR codes, Groupon, and Foursquare offers.
3. Demonstrate why it’s smarter in the long run. Deals and incentives that expire, long-term benefits and savings over time are all time tested ways to incent a purchase now.
