Millennial Marketing

It’s the last three weeks of December and Christmas, at least in America, is unavoidable. Everywhere you look there are lights, parties, gifts, shopping, music and wishes for a Merry Christmas. For Millennials, it appears, Christmas is a time of introspection, as there have been several articles and blog posts lately about the difficulty of making religious choices.

The concept of religion as a personal choice is a generational shift. My generation did not think of religious belief as a choice. You were Catholic, Jewish, Presbyterian or Baptist, just like your parents. But young people today take a more conscious approach to faith. As my 15-year old son put it, “If I were born in a Hindu family, I’d be Hindu”.  The implication being that religion should be a considered choice, not something that happens by  ‘luck of the draw’.  Adam DiSefano writes today, in The Next Great Generation blog, that for Millennials, it’s hard to know ‘how to choose the correct religion’:

“Nearly every major religion preaches that it is the one true religion. If there’s only one true religion, what happens to all the people who don’t subscribe to it? Do they rot in hell just because they chose the wrong religion? I was baptized Roman Catholic. I went to Church and Sunday School most weeks until I was eight. I was Roman Catholic because that was all I knew. There was no other choice. In the sixth grade, I had a class that aimed to teach us about morality and religions from around the world. One day, the teacher said something that stuck with me: “Religion is a choice. You can choose your religion….It used to be that if your parents were Catholic, you were Catholic, end of story. Religion had a captive audience.  Now, we have a choice. We’re shopping around for the best religion, and you know what?  We can’t pick a winner. We’re paralyzed by choice, and so, we decide that maybe we don’t need organized religion after all.”

No choice appears to be the choice of a large number of Millennials. According to research by Lifeway.com, “70 percent of young adults ages 23-30 stopped attending church regularly for at least a year between ages 18-22.”  Paul Eulette wrote in October for his blog, “QuarterLifeMagazine” that when young adults reach college,  ”the support of the “family atmosphere” is gone and now young adults of Generation Y are having to realize the need to make these decisions for themselves for the very first time.”

Young adulthood today seems to be a time of auditioning different beliefs. Adam reports that he is still in the process of deciding what he believes: 

“Today, I don’t consider myself a Catholic. I meditate and have dabbled in Yoga, but hesitate to call myself a Buddhist.  After all, I don’t believe in reincarnation. I have issues with organized religion in general, but still consider myself a spiritual person. I do good in a way that’s consistent with my own values, as they’ve been defined by my parents, my friends, social norms and my personal experiences. But as for a label, I haven’t chosen one yet.”

In this respect, as in so many others, Millennnials appear to be on the vanguard of a trend.

New research released today by Pew shows most Americans are embracing ‘multiple faiths’, with beliefs that do not ‘ fit conventional categories’.  Nearly three-quarters of Americans (72%) say they attend religious services at least a few times a year, including 38% who say they attend at least once a week.  Among those who attend religious services at least once a week, nearly four-in-ten (39%) say they attend at multiple places and nearly three-in-ten (28%) go to services outside their own faith. In other words, most church going americans are a lot like Adam DiStefano — they like to mix it up and avoid a ‘label.’ A surprisingly high number of Americans, say they believe in reincarnation, ghosts and fortune tellers.  Three fourths say they communicate with the dead.

“Though the U.S. is an overwhelmingly Christian country, significant minorities profess belief in a variety of Eastern or New Age beliefs. For instance, 24% of the public overall and 22% of Christians say they believe in reincarnation — that people will be reborn in this world again and again. And similar numbers (25% of the public overall, 23% of Christians) believe in astrology.

 

Nearly three-in-ten Americans say they have felt in touch with someone who has already died, almost one-in-five say they have seen or been in the presence of ghosts, and 15% have consulted a fortuneteller or a psychic. 

 

Twenty-three percent (23%) believe in yoga not just as exercise but as a spiritual practice. Similar numbers profess belief in elements of New Age spirituality, with 26% saying they believe in spiritual energy located in physical things such as mountains, trees or crystals, and 25% professing belief in astrology (that the position of the stars and planets can affect people’s lives).

 

Fewer people (16%) believe in the “evil eye” or that certain people can cast curses or spells that cause bad things to happen to someone.”

The desire to avoid a label and celebrate diversity is characteristic of Gen Y. What I find especially fascinating is how this characteristic appears to be migrating into other age groups.  The trend toward embracing broader spiritual views appears to be well underway.  Half of Americans (49%) say they have had “a religious or mystical experience – that is, a moment of religious or spiritual awakening.”  According to Pew, this represents a sharp increase over the past four decades. In 1962, only 22% of Americans reported having had such an experience, which grew to about a third in 1976 (31%) and 1994 (33%).  This seems to at least partly explain the current fascination in angels, demons, vampires, and other supernatural beings.

Will Millennials continue to forge a more individualistic spiritual path? Or return to a more conventional approach as they age? What do you think?

2009 “Cyber Monday” sales exceeded last year by 14%, thanks to plenty of deals and rising consumer confidence.  Consumers bought nearly 30% more items per order this year versus last year, and 10% more items per order online than they did in stores on Black Friday. 

Based on consumer survey data from Mintel (Online Shopping US May 2009), it’s safe to say Millennials played a role in the surge in online shopping last week.  Compared to older age groups, people 34 and under are more likely to shop online.  While overall they may not have the spending power of older consumers, their willingness to shop online makes them disproportionately important to online retailers.

• . When presented with a list of 25 major online retailers, only 30% of those 18-24 years old and just 29% of those 25-34 years old say they have never purchased online from any of those listed; the comparable number of all other groups is 42% or higher.
• Amazon has the strongest penetration of all online retailers among Millennials. Forty-one percent of 18-24 year olds and 41% of 25-34 year olds have purchased from Amazon; every other age group is 32 % or lower.
• Millennials are more likely than older shoppers use the store to research, and online to buy. Thirty-seven percent of 18-24 year olds and 41% of 25-34 yearolds say they price comparison after a store visit. This compare to just 31% for 35-44 year olds and 32% for 45-54 year olds.
• Millennials are more likely to pay attention to online peer reviews. Sixty percent of 18-24 year olds and 60% of 25-34 year olds “read consumer feedback online about products or services before making a purchase” compared to just 55% for 35-44 year olds an 51% for 45-54 year olds.

Two factors hold Millennials back from doing even more shopping online.

First, many 18-24 year olds lack electronic payment ability. 40% of 18-24 year olds and 46% of 35-44 year olds say they prefer to do business with retailers that accept Pay Pal or another service they are signed up with. This is a higher level of agreement than for other age groups.

Second, many lack the funds to do much shopping, at all. According to a new Fidelity study, nearly two-thirds of Gen Y checks their balance before making a purchase of $300 or more.  (“Recession Makes Gen Y More Conservative” 12.8.09)

“Over 70 percent (of those surveyed) are very concerned about their finances and have set the goal of daily money management and budgeting as their biggest focus. Most Gen Y individuals are using mobile technology to stay updated on their cash flow situations with 64 percent reporting that they typically check their balances online before making a purchase of $300 or more. On average, this younger generation holds over three credit cards with one fifth (20 percent) carrying a balance greater than $10,000 and one in four (25 percent) believing they will never be free of credit card debt during their lifespan.”

How can online retailers encourage young shoppers to spend online?

Although they are comfortable shopping online, the youngest Millennials (18-24) are the most careful shoppers. With money tight, it will come as no surprise that Gen Y is the age group most receptive to online coupons. According to IRI, 51% of 18-24-year-old shoppers indicate they would be very likely to use coupons presented to them online, the highest of any group.  Mintel research shows that EBay enjoys the highest penetration of any age group among 18-34 year olds.  

They want to deal with retailers they know and buy products they are familiar with. Of all the age groups studied by Mintel, they were the most likely to agree with these three statements:

I will only buy products from brands I am familiar with when shopping online 

I will only make an online purchase if I am familiar with the product I am buying 

I will only make an online purchase from a store I am familiar with 

For marketers, this is a warning not to take young shoppers for granted. They like shopping online, but it may take more effort to convert them to buyers than older age groups. Brand familiarity, online reviews, online coupons, and the abilty to see the merchandise in store before buying will all be important to winning their business.  They also like gift cards and are avid users of ‘wish lists’. Perhaps a strategy for reaching Millennials is to make it easy for them to let others know what they like.

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?

Was 2009 the tipping point? In  the past, there was little research available on generational differences that was useful for marketing. Often we were forced to conduct our own proprietary research  No longer!  This year saw an explosion of Gen Y research. Before you decide to field your own survey, be sure to check out these free survey resources, all from 2009.  We’ve provided links to our own analysis of the data where appropriate.

Millennial Consumer

The Mysterious Generation Y: by Graham Holter (May 2009) |Wine Intelligence analyst contrasts young wine drinkers in the US vs. UK based on data from Vinitrac Global.

“Millennials in Automotive” by Microsoft (ppt) |2009 survey of 18-27 year olds regarding automotive needs and shopping. (See “Millennials as Automotive Consumers” for highlights)

“Millennials and Baby Boomers Banking Channel Preference Survey” by Microsoft | 2009 survey of adult millennials (ages 18–29) and baby boomers (ages 45–63) shows different channel preferences for their banking activities.

Millennials and Media

Third Annual Millennials Survey: by William Blair and Co. (May 2009) (pdf available upon request) |Surveys media habits of college students. (See blog post, “What College Age Millennials Watch on TV” for details.)

“How Teens Use Media” by Nielsen (pdf) | Myths and realities of teen media use (June 2009).

“2009 Media Engagement Barometer” by Motorola | Generational differences in desire for and level of connectivity are narrowing. (see blog post “Where you Are Will Define Who You Are” for highlights).

“Why Y Women” by Radar Research and Pop Sugar | Examines Gen Y women’s influence on trends, how theyare influenced by media and who they are most influenced by. (See “Millennial Women Disproportionately Influential” for highlights)

“Social Technology Segmentation“ by Forrester (Groundswll) | Breaks out segments based on social technology preference, within age groups. (See “Gen Y Defined by Creativity Not Technology” for highlights)

“Feed” Razorfish’s annual study of how consumers engage with brands. pdf’s and downloadable charts.

Demographics an Attitudes

Civic Engagement and the Changing Transition to Adulthood: by Tufts University CIRCLE |

“Dissecting the Downturn Generation” by Thomas Blischok of IRI (pdf) | Detailed look at how consumers spending and shopping is behing affected by the recession. (Not Millennial specific, but addresses what may be generational shifts in spending.)

“After the Meltdown” by COLLOQUY | Study of loyalty perceptions and trends in loyalty program participation for Millennials (18-25 years of age) compared to General Population and other age segments.

Millennials and the Workplace

“360- Millennials Make Their Mark” by Steelcase (download the pdf) | Good summary of how Millennials are shaping the workplac

“Gen Y: the Reflexive Generation” by London Business School (pdf) | Research on how young professionals view work and career. (See “Millennials: Moving Home is an Option” for highlights)

“Teens and Entrepreneurship Survey” by Junior Achievement (pdf) | Seventh year of poll of teen’s attitudes toward entrepreneurship and business ownership.

“Technology Gap Survey” by LexisNexis (pdf) | 2008 survey of different generations view of technology in the workplace.

“Millennials at the Gates: New Generation Workers” by Accenture (Scribd) |Millennials expectations for IT in the workplace.

Millennial Lifestyle and Values

“How Gen Y Eats: Culinary Trend Mapping Report“ by The Center for Culinary Development and Packaged Facts | Generational differences in food preferences. Complete report costs $3000.  See blog post for highlights, “Gen Y Food Preferences, You Are What You Eat“)

“Millennial Poll” by New York Magazine | survey of New York graduating high school seniors provides revealing portrait of class of ’09. (See “Class of 2009: An Unscientific Profile” for highlights).

“The Secret Life of Teens: A Special Report” by Chicago Magazine | Survey of Chicago area high schoolers and their parents on a range of social issues.

“Good Intentions: the Beliefs and Values of Teens and Tweens” by Girl Scouts USA and Harris Interactive | Repeat of survey originaly conducted in 1989 provides longitudinal information on boys and girls in grades 6-12 vs their counterparts 20 years earlier. (See “Millennials More Upright Than Kids 20 Years Ago” for highlights)

“The Family GPS” by Nickelodeon and Harris Interactive | Longitudinal research on how the expanding role of technology and the current economic climate are narrowing the generation gap and drawing today’s American families closer together. (See  “Parenting Styles Shape Generations” for highlights)

“Stress in America” by American Psychological Association | Causes and impact of stress by generation, includes longitudinal data for past few years.  (See “Millennial Generation Experiences Stres Differently” for highlights)

“How  Different Groups Spend Their Day” by New York Times | Excellent interactive graphic based on data from the American Time Use Study. (See “Generational Differences in Time Use” for highlights)

“Student Poll” by the College Board and CIRP | While this study is from 2009, it has the value of being conducted among incoming college freshmen every year since 1966. The survey is administered during orientation by more than 700 colleges and universities nationwide, with 272,000 students participating in the fall 2007 survey. (See”Millennials: A New Generation of Family Values” for highlights)

Gen Y Self-Perceptions

“Attitudes About Generations” by Age Wave and Charles Schwab | How generations view each other in terms of social consciousness and other traits. (See “The Generation Gap: It’s Back” for highlights)

“Growing Old in America” by Pew Research |Explores the gap between the expectations that young and middle-aged adults have about old age and the actual experiences reported by older Americans themselves.

Looking for more? Check out our new wikispace for Millennial Marketing Resources: http://millennialmarketing/wikispaces.com

No Goody Two Shoes?

Don’t let the body art fool you…. According to a new nationwide study released  by the Girl Scouts USA, kids today are more upstanding than their counterparts 20 years ago.

• 62 percent surveyed in 2009 say they would not cheat on a test compared to about half in 1989.
• 58 percent say they would refuse an alcoholic drink if offered one at a party compared to 46 percent in 1989.
• Only 18 percent say they believe smoking is acceptable if a person finds it enjoyable. In 1989, more than a quarter  thought smoking was acceptable.
• One third of teenagers say they intend to wait until they are married to have sex compared to less than a quarter (24 percent) in 1989.
• 59% percent of teenagers agree with the statement, “Gay and lesbian relationships are OK, if that is a person’s choice.” Only 31 percent agreed in 1989.
• 59 percent say that being around people from different racial and ethnic backgrounds is important to them. (This question was not asked in 1989.)
• Compared to 20 years ago, youth today are more likely to say they intend to vote in the future (84 percent vs. 77 percent),
• 76 percent say they will give to charity vs. 63 percent in 1989. Some 79 percent say they will volunteer in their communities.

The best news is that behavior seems to be lining up with reality. Teen births have dropped by almost a third since the beginning of the 1990s; drug use is down, voting is up.  Pretty soon, adults will have nothing to complain about when they talk about “kids today!”

None of this will come as news to Wendy Shalit, author of a book I read last year, “Girls Gone Mild“ (which was recently republished as ”The Good Girl Revolution: Young Rebels with Self-Esteem and High Standards”).  One of the more startling points in the book is that the mothers of many young women are more likely to be pushing their daughters to be more sexual than they themselves find comfortable. A New York Daily News op ed last summer she wrote in response to Miley Cyrus’ Vanity Fair appearance  was titled “Why Miley Cyrus is Stripping Down As She Is Growing Up.” She wrote:

“Ironically, it’s Miley’s younger fans who are acting more mature. They are screaming not for stilettos and cleavage but to hear her inspirational hit “The Climb,” which encourages them to be themselves and “keep the faith.” Despite all the self-serving banter about her “taking the wheel” by disrobing, the truth is that a confident, modest Miley would be far more rebellious than a Miley who takes the usual route of pornification.”

What do you think? Are young people today more clean cut than their parents were?

My family experienced a mini-crisis last Friday when my son forgot to bring a bag of Halloween candy to school.  Naturally, he called me to bail him out.  I admit I nearly headed over to Walgreen’s and then up to school, but in the end decided not to.

It was a hard call; the mistake will cost him in an honors class where he dearly needs the points.  According to a new book I’m reading, How We Decide by Jonah Lehrer, I did the right thing by declining to rescue him.  There is a lot of research that says we learn more from our mistakes than our successes: “Mistakes aren’t things to be discouraged. On the contrary, they should be cultivated and carefully investigated.” (p. 51).  Apparently it’s not practice that makes perfect, it’s experience and analysis of one’s mistakes that provides the critical emotional response that allows experts to make the right calls consistently.

Much has been made of the fact that Millennials have been one of the most praised and encouraged generations in history. Yet, according to Lehrer, there is evidence that too much praise, or at least of the wrong kind of praise, can actually be detrimental to learning.  A series of experiments among four hundred New York City fifth-graders by Carol Dweck, a Stanford psychologist, dramatically illustrates the impact of praise on learning.  The group was randomly divided in half. The only difference between the two groups was a single sentence of praise they received after the first task. The impact of that one sentence was felt vividly across three phases of the research.  

Phase I: Praise affects how much challenge children choose to take on

One at a time , the kids were removed from class and given a relatively easy test consisting of nonverbal puzzles. After the child finished the test, the resarchers told the student his or her score and provided a single sentence of praise. Half of the kids were praised for the intelligence. “You must be smart at this,” the researcher said. The other students were praised for their effort: “You must have worked really hard.” The students were then allowed to choose between two different subsequent tests. The first choice was described as a more difficult set of puzzles, but the kids were told that they’d learn a lot from attempting it. The other option was an easy test, similar to the test they’d just taken…. The type of compliment given to the fifth-graders dramatically influenced their choice of tests. Of the group of kids that had been praised for the efforts, 90 percent chose the harder set of puzzles. However, of the kids that were praised for their intelligence, most went for the easier test.

Phase 2: Fear of failure impacts the ability to learn from mistakes

The same fifth graders were given a test designed to be extremely difficult — it was originally written for eight-graders. The students who had been praised for their efforts in the initial test worked hard at figuring out the puzzles. “They got very involved,” Dweck says. “Many of them remarked, unprovoked, ‘This is my favorite test.’” Kids that had initially been praised for their smarts, on the other hand, were easily discouraged. Their inevitable mistakes were seen as signs of failure: perhaps they really weren’t smart after all. After taking this difficult test, the two groups of students had to choose between looking at the exams of kids who did worse than them and looking at the exams of those who did better. Students praised for their intelligence almsot always chose to bolster their self-esteem by comparing themselves with students who had performed worse on the test. In contrast, kids praised for their hard work were more interested in the higher-scoring exams. They wanted to understand their mistakes, to learn from the errors, to figure out how to do better.

Phase III: Kids who learned from mistakes outperformed those who didn’t

 The final round of tests was the same diffiulty level as the initial test. Nevertheless, students who’d been praised for their efforts exhibited significant improvement, raising their average score by 80 percent. The students who’d been randomly assigned to the ‘smart’ group saw their scores drop by an average of nearly 20 percent. The experience of failure had been so discouraging for the ‘smart’  kids that they actually regressed.

I know it took a while to read all that, but the point is that the impact of praise is remarkably potent and subtle. “When we praise children for their intelligence,” Dweck wrote, “we tell them that this is the name of the game: Look smart, don’t risk making mistakes.” Now multiply that across many tasks and tests and you can see how well meaning parents in an attempt to help their children could impact an entire generation.

 I see my kids and my students struggle with the need to be perfect, to live up to expectations, to not fail. They have been so used to succeeding, that failing at something important takes on outsized signficance. How many students have I seen close to tears over a B+?  Too many. Millennials need to start seeing failure as a way to get better, the way all experts become that way.  

Sam Davidson, a Millennial and one of the people behind the organization, Cool People Care, recently wrote this entry on Brazen Careerist.I wish more Millennials felt the same.

Not meeting expectations (ours or theirs) in any world (business or personal) looks like (on paper) a whopping failure. Close is good, but in many cases for many people, it doesn’t count. At least not like succeeding does. Therefore, we need to be careful to define failure for ourselves.  We need to realize when we didn’t accomplish something and be motivated to try better next time. But we also need to realize that attempting something great is worthy of respect, and falling short is proof that you fought.