Palace of Versailles
The best part of learning history is realizing how much of what happened in the past echoes in events and decisions of our own day. Last week Ken Burns’ new documentary series, “Prohibition,” spelled out the unintended consequences of a well-meaning effort to fight an alarming social ill. The sad lesson about what happens when we attempt to ‘legislate morality’ still resonates.
A Turning Point in the French Revolution
I just learned that one event in 1790, over a year after the storming of the Bastille, turned out to be pivotal in securing the gains of the Revolution. This event, related in Paris: Capital of Europe by Johann Wilmm, seems eerily reminiscent of the current gatherings on Wall Street:
[On the morning of October 5] “A large gathering of people and unusual excitement filled the square in front of the Hotel de Ville, when several large groups of women, who had gathered in the districts, began to arrive; they asked to be admitted to the Hotel de Ville and stated that they wished to speak to the mayor and representatives of the Commune to inform them that they had decided to march to Versailles. They added that they would not permit any men to join them.”
This spontaneous movement of women had no leader and no demands, just a sense that something was not right.Ultimately, the National Guard did join the women’s march, and the rest as they say, “is history.” The author writes:
“In the revolutionary history of Paris there had not been, nor was there ever again, anything like that mass action of October 5. All of Paris went to Versailles – for reasons that varied greatly – and saved the Revolution by bringing the king back to Paris in triumph.”
On the evening of October 5, Louis XVI gave his written agreement to the decrees issued by the National Assembly between August 4 and 11. Not many hours earlier he had said he would never consent to these regulations. Furthermore, Louis agreed to move back to Paris, and so did the National Assembly. They all set out on October 6 and that evening the king in Paris “as a prisoner of his people.” Three years later in 1793 he was executed, as every 8th grader knows!
The Modern Day Parallel
Fast forward two centuries and we see some startling parallels between the October Parisian women’s march of 1790 and the October Occupy Wall Street events of 2011. Could this leaderless, demandless group ultimately do what no political party has yet accomplished? We will see. But meanwhile, I think it is foolish of politicians and pundits to dismiss it. Something is not right, and the people know it. If there was a King Louis in New York, he would be on his way to Washington.
Millennials (Finally?) On the Move
Collectively, marketers know Millennials are a potent force. They are a large cohort, more homogenous than older cohorts due to their relative similarity in life stage and upbringing, and uniquely empowered through technology to ensure their voices are heard. What has been more surprising up until now is why they haven’t mobilized. I speculated in the past that it may be that they are less comfortable advocating on their own behalf than that of others. Now that the economy has given them a big enough cause, the time may have come for them to mobilize.
It is characteristic of Millennials that their movement is relatively calm, leaderless and still collaborating on its agenda. It may take a while for them to find their voice, but once found it is sure to be heard.
In fact, it is precisely their lack of unity and singular demands that may be its greatest strength, just as it did the Parisian women of 1790. Beka Economopoulous, an unofficial media spokeswoman for Occupy Wall Street, told the International Business Times that she feels the lack of one specific demand actually gives the movement more strength.
Much of the media attention on Occupy Wall Street has centered on the lack of singular demands and unification amongst the hundreds of protesters camped out in Zuccotti Park. “The longer the occupiers don’t have demands, the stronger they are,” said Economopoulous, a vice president at Fission Strategy, a social media company specializing in strategies for nonprofits and foundations. “I don’t believe there will be a stand on one particular reform that we want to see happen. We believe the system is fundamentally broken.”
According to one young marcher, the Occupiers want to preserve a system where everyone has an opportunity to pursue their dream which now seems corrupted. The writer, Dax Devlon-Ross, claims that the movement is actually inspired by the death of Steve Jobs and his widely circulated Stanford commencement speech:
It may not seem that way today, but in the beginning nobody wanted to listen to the Occupiers either. Even now most of us still won’t allow ourselves the permission to dream of a world without widespread greed and corruption. Most of us are still resigned to just getting a piece of the pie. It’s understandable. Corruption and disillusionment rob our faith and steal our dreams.
This is where Steve Jobs fits in. In a rightly celebrated 2005 Stanford commencement address that has been viewed on Youtube some 10,000,000 times, Jobs talked about the inevitability of death and the urgency of life:
Your time is limited, so don’t waste it living someone else’s life. …
Occupy Wall Street is fundamentally about breaking free of the dogmatic thinking and policy making that has resulted in a wildly unjust social and economic order.
More than Just Millennials
I’m not sure what the modern day parallel would be to the National Guard of 1790, but given the mood of the country it may not be long before others join the young marchers.
According to Pew Research, it’s not just Millennials who feel this way. A recent report eloquently spells out a high degree of disillusionment with the system, and a sense that it no longer works fairly for everyone.
- Fifty-four percent of Americans believe “businesses make too much profit”.
- Forty-seven percent believe Wall Street ‘hurts [the economy] more than it helps.”
What’s more, Pew says these attitudes do not divide cleanly along partisan lines. I also suspect they do not reflect age differences. Many trends that started with Millennials sparked change in other generations. Why not this one?
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.”
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.
This week my daughter will no longer be a teenager. She was born in 1990, the peak year for Millennial age birthdays, and in many ways she is typical of her generation – raised in a child-centric household, well-travelled, highly creative, connected, Harry Potter-loving, and profoundly optimistic. As she should be. After all, young women today are empowered as they have never been before in history.
Consider these basic facts: A higher proportion of 18-24 year old women are enrolled in college than men (42% vs. 37%). Women account for 57% of all college students. The age of first marriage is delayed to enable many young women to establish themselves in careers before having families.
Being a mother is still important, but not as high priorities in one’s twenties as being independent and living life on one’s own terms. According to research sponsored by Levi’s, 96 percent of Millennial women worldwide list “being independent” as their most important life goal. They define success as “being able to shape their own futures (87%)”.
The world is indeed opening up to young women. The glass ceiling, while still very real, is being addressed in the only way it can be done sustainably, by having companies recognize that including women in the C-suite makes good business sense. A 2010 McKinsey survey shows 72% of business leaders believe that more diverse leadership leads to better financial performance. (The belief is supported by the facts — the report found the 89 listed European companies with market capitalization over 150 million with the highest gender diversity also had the highest return on equity, operating results, and stock price.)
Teen age girls are ready for the challenge. They are, as a generation, active, engaged and aware of their own influence and leadership potential.
A recent national survey by Varsity Brands among U.S. girls age 13-18 years, shows they are highly active and engaged.
- 93% participate in one or more types of school activity, 65% participate in sports, and 65% volunteer their time in service to their community (twice the rate of teen boys).
- 47 percent more teen girls identify themselves as “leaders” than as “trendsetters”.
- Three-quarters (77 percent) are “comfortable in their own skin.”
Their behavior lines up with their self-perceptions. Marketers wishing to connecting with this audience would do well to understand this high degree of self-confidence.
- Nearly half of teen girls hold some type of leadership position in or out of school
- Almost three quarters feel people look to them as a leader.
- 84% say they ‘speak their own minds’.
Teen girls are highly skilled at connecting, evangelizing and influencing each other, more so than teen boys. Nielsen reports the average teen girls sends over 4,000 texts a month, far more than teen boys. While teen boys and girls spend roughly the same amount of time online, teen girls are more likely to use that time for connecting, self-expression and relationship building. According to the Varsity Brands Survey (PDF):
“(Girls) are almost twice as likely to have shared photos through a website, posted a comment on a blog or community, blogged themselves or kept an online journal. In contrast, boys use their time online primarily to find gaming tips and to seek out sports information. Girls’ usage of newer social media site Twitter is also gaining traction, with a third of teen girls adding the site to their list of top social media outlets like YouTube and Facebook.”
When it comes to brands, girls are more more loyal and more vocal about their brand choices within their social circles than teen boys. 9 out of 10 say they ‘enjoy sharing recommendations’ with friends and 53% believe their opinions ‘greatly influence’ their friends’ purchase decisions. An even greater number (77%) say their friends opinions influence them! 48% follow a brand online.
Marketers who want to connect with the influencers of future should also note what’s on teen girls’ minds today – as a group they admit to suffering a lot of stress and anxiety. Teen girls are under greater pressure than ever before to succeed. They are more than three times as likely as teen boys to say they feel ‘stressed out all the time.’ Some of the stress comes from money worries. They say they have a great deal of anxiety about money, paying for college and finding a job. These concerns are expressed to a greater degree than concerns about teenage pregnancy, bullying or date rape.
Happy Birthday, sweetheart! You are our future.
“Oh man, I’d make a career out of the Muppets if I could. That’s my real dream job…” — Jason Potteiger, comment on The Next Great Generation Blog
When the Founding Fathers wrote “life, liberty and the pursuit of happiness” I think they must have had Millennials in mind. For the framers, ‘happiness’ meant the freedom to pursue prosperity and wealth as each individual saw fit. Millennials are turning the pursuit of happiness into their life goal. Their biggest fear is having to sell out or trade off their passions for an ordinary job, an ordinary life.
Millennials seek to be extraordinary, or to use their word for it, “awesome”, in every area of their lives, but especially their careers.
Of course, every generation strives to be great. What makes this generation different is the intensity of their commitment. Chip Walker describes their aspirations this way an article last year:
“In a world of almost infinite lifestyle choices, Gen-Y activism is about young people knowing their own inner priorities and making a vow to live by them — even in the face of adversity.” — Chip Walker, Head of Planning, Strawberry Frog
When the New York Times wrote about unemployed Millennial, Scott Nicholson, turning down a $40,000 a year job in insurance because it didn’t meet his idea of a fulfilling job, Gen Y’ers understood. They saw nothing wrong with having high standards and admired Nicholson’s willingness to wait for the right opportunity.
Nicholson’s choice, and those of many others, suggest Millennials are looking for more out of work than just a job. They are looking for a place they can grow, and where their work will have meaning. Little surprise that the Great Place to Work Institute Survey identified Google, EBay, Starbucks, Container Store, ScottTrade, UMPQUA Bank, and CarMax as among the top 25 companies that people under 25 give exceptionally high marks. (For more on what makes these companies “Millennial Magnets”, read Neil Howe’s article, “Models for Managing Millennials“).
MindValley is a publishing company with a Millennial heart.
The company describes its mission as “to bring together marketing and technology to help spread enlightened ideas. We work with authors, thinkers, teachers and leaders who have pioneered new ways of doing traditional things: parenting, entrepreneurship, spiritual growth, self-development and more.” Here’s how the web site describes their attitude toward work:
“J-O-B is a dirty word. Work—we believe—needs to be fun, educational and something that makes you so excited that you jump out of bed each morning. Screw the traditional 9-5 job. Instead, get paid to play, create, learn and grow. It’s like being a child again. But with a salary.” MindValley Career page
Employees come from 22 countries and show an impressive diversity of backgrounds. MindValley has an award winning culture and who wouldn’t love their policy of flying all employees and their families to a paradise setting each year? Last year it was Bali, this year Costa Rica. I was especially impressed by MindValley’s recruiting video, titled “Is Happiness the New Productivity?“. These are REALLY happy employees! (This video is worth watching if you want to see what happy Gen Y employees look and sound like.)
Alex Cattoni is one of MindValley’s 35 employees. On the TNGG blog, she describes herself as “Personal development junkie. Marketing diva. Thrill-seeker.” A 2007 business school grad, she was headed to law school when “… like a cold hard slap in the face, I woke up one morning completely and utterly terrified. I had finally listened to that voice in my head telling me law school was not for me. I then had to ask myself probably the scariest question of all “What do I REALLY want in life?””
For Cattoni the answer was a hard shift that brought her to a dream job that involves a lot of travel, managing four businesses and launching a fifth. When asked what is most inspiring about her job, she said it was the company’s drive to think big:
“I would have to say it’s been witnessing my team achieve some incredibly outrageous and scary goals. We like to think BIG. In fact, this is the top value on our “Code of Awesomeness.” In the past 1 year alone, we have grown an outrageous amount – all because we dare to dream big. I love being part of a team that believes we can achieve anything and pulls together to make it so.” – Alex Cattoni, MindValley employee
Not all companies are as Millennial-friendly as MindValley. Increasingly, Millennials are sensing that they will have a better chance of pursuing their passions by entrepreneuring or intrapreneuring their way to jobs they love.
An October 2010 Junior Achievement survey of high school students asked why they admired entrepreneurs like Steve Jobs and Oprah Winfrey. The top answer was their ability to make a difference in people’s lives (31%). Their reasons for wanting to be an entrepreneur, however, focused on independence – working for yourself and controlling your destiny.
If you are a Millennial looking for entrepreneurial inspiration, check out Shatterbox.com. The site features dozens of video stories of “innovative young people who love what they do.” The common thread in each of these videos is a profound desire to do something that reflects their individual passions. Here’s just a sample:
“So I decided to start my own company to deal with it… and it just became my passion.”– Emily Doubilet, Oberlin graduate, founder Sustainable Party
“It was extremely exciting because it was so interactive. That was something I really fell in love with. I got really excited about bringing a craft that seemed so dusty to new life.” — Nora Abousteit, Harvard graduate, founder of social network sewing site, Burdastyle.com
In the last year, I have had the pleasure of working with many young people who have a vision for a new company. They include Matt Cheuvront (Proof Branding), Mark Sawyier (Off Campus Media), Sam Davidson (Cool People Care), and Jon Levin (ClearPoint Communications).
Mark Sawyier started Off Campus Media and its sister company, Moving Off Campus, in the noble tradition of the ‘dorm room start up’ while studying at Washington University. Today, OCM has 5 full-time employees, an admirable client list, a network of campus ambassadors on 18 college campuses and is looking for office space in New York City. The company does great work helping local and national businesses connect with college students. Starting this month, my firm, Brand Amplitude, is partnering with OCM on a project for one of our clients.
Are they happy? I would venture the Founding Founders would approve.
More research on Gen Y and Job Expectations
Meet the Millennials: Our Most Educated Generation Faces a Most Challenging Time Seattle Times article profiles 11 Millennials who are looking for work as well as provides statistics on Millennial (un)employment
Seeing Eye to Eye… or Not? Research by Citrix on how Gen Y Views work meetings.
Millennials Have Their Own Take on Ethics in the Workplace Research by ERC Shows Millennials Share Interest in Fairness and Respect With Older Co-Workers; Concerns on Privacy and Calling in Sick? Not So Much.
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.
