Here Comes Gen Z!

I am often asked when does Gen Y end and what comes next? Because they are still children, there is room for debate as to when Gen Z start(ed) and what it will be like. Some say it began as early as 1991, but I would say later -- today's 18-year old looks like a Millennial to me. Some say it started in 2001 with 9/11, which would slam this group with a very unfortunate name.

What will define Gen Z is a more interesting and relevant question. In the absence of any real data, the temptation is to say that Gen Z will be just like Gen Y only moreso. I doubt it. Every generation so far has had unique qualities based on the times they were raised and prevailing parental attitudes. Those who ascribe to the Fourth Turning generational theory predict Gen Z will be a second 'Silent Generation'. This may prove to be true, given their common roots in a depression/recession.

There are some clues to be gained by watching Gen Z's parents, mostly Gen X'ers, but also late Boomers and early Gen Y's. These parents take 'helicopter' parenting to new heights. It's been said, never to allow work to get between a Gen X mom and her child. Until recently, these kids have had the best of everything technology and money can buy. Mintel data shows the best predictor of use of organic foods and locally grown foods by far is presence of children. Gen X puts 'time for family' among its top values.

In the end, there's really no way to really know yet how the combination of super-parenting and recession will influence Gen Z, but it will be fascinating to watch.

Do You Think Like a Millennial? Ten Simple Tests.

In the past week, I've been told I think like a Millennial and that I 'totally get Millennials'. As a Boomer, I am very proud of this accomplishment. It's not easy for people my age to think Millenniall-ly, I had to work at it.

Do you think like a Millennial? Here are some simple tests:

1. Is work something you 'go to' or something you just do? Younger workers view work as something you do -- anywhere, any time. They are experts at time shifting, asynchronous communication, and multi-tasking. They see no reason why they can't use Facebook at work and take work calls at home. It's just life.

2. When faced with a problem, is your first resort to check the manual or just dive right in? Gen Y knows they can find out the answer to anything anytime anywhere. Their first response to a question they don't know is to Google it. Lack of information is never a problem, because they know how to find out.

3. Do you prefer face to face communication or electronic? Gen Y uses all the tools, email, IM, text, Facebook, Twitter, blogs and more. If it can be handled electronically, why should we meet?

4. When you describe Millennials as 'entitled' do you mean it as a criticism or a compliment? What many Boomers think of as unjustified arrogance, Millennials believe is earned.

5. Do you feel loyal to the company or to your co-workers? Millennials have no sense of loyalty to a firm, but they do feel passionate about their team. They are collaborative to a fault.

6. Are you striving to make a mark or to make a difference? Gen Y's core value is to fight for what they believe in. They want to do well by doing good, not wait until they've done well to do good.

7. Do you laugh at or with Ryan Howard on the Office? Ryan is caricature of what Gen X thinks of Millennials -- overly technology laden, surly, and arrogant. Yet Ryan's humor is some of the most subtle on the show (in fact many of the episodes were written by BJ Novak who plays Ryan). Ex: "I miss the days when there was only one office party I didn't want to go to".

8. Do you embrace or distrust the term 'Millennial'? Millennials really hate being labeled at all. They chafe at the expectation that just because they are young, they are totally up on all things 'Millennial'. They prefer not to be thought of as part of a generation, but as an individual.

9. Do you think of a day as 12 hours or 24 hours? Millennials think of time as a resource to be allocated as needed, not by a clock.

10. Is your glass half empty or half full? Millennials are notoriously civic-minded and optimistic. It's no coincidence that Obama and Pepsi both made optimism cornerstones of their brands. No matter that the average Millennial carries $24,000 in college debt and is most likely underemployed. They see a better world coming.

Social Media: Time Suck or Time Well Spent?

New research by Ohio State reports a link between time spend on Facebook and academic performance. ("Facebook Use Linked to Less Textbook Time", USA Today). Students who said they used Facebook reported grade-point averages between 3.0 and 3.5; those who don't use it said they average 3.5 to 4.0. Also, Facebook users said they studied one to five hours a week, vs. non-users' 11 hours or more. Students who spend their time accumulating friends, chatting and “poking” others on the site may devote as little as one hour a week to their academic work.

There's no question that effective use of social media requires an enormous amount of time. 65% of the students in the Ohio State study who use Facebook reported using using it at least once every day, and many were accessing it multiple times. A new study of marketers who are using social media says nearly two-thirds (64%) of are using social media for five hours or more each week, with 39% using it 10 or more hours weekly. 10% are spending more than 20 hours each week with social media. In my own work, I find that 'social media creep' has set in. I now devote several hours a day to two blogs and Tweetdeck. I've been blogging for about a year now, and I devote more time to it every month. According to this study, I am pretty typical:

The survey found that there is a direct relationship between how long marketers have been using social media and their weekly time commitment. For people just beginning with social media, the median weekly time commitment is two hours per week. However, for those who have been at it for months, the median jumps to 10 hours per week. For those who report social media marketing use for years, the median is 20+ hours each week.

So what is the ROI on all that precious time that's being invested? Is it 'worth it'? I suppose it depends on what kind of reward you are looking for.

At the most basic level, social media is entertainment, that's why it's called 'media'. Does entertainment need an 'ROI'? If it replaces other entertainment like TV, sports or and video games, I would say 'no'. However, if it eats into study or work time, the answer is 'yes'.

There are more productive ways to develop social skills (see the Dentyne campaign for examples). According to my Millennial daughter, "there are plenty of people completely lacking social skills on Facebook, that's why they're on facebook rather than interacting and using said social skills." The skills students are developing in 'personal branding' also should be considered a poor tradeoff when thousands of dollars are being spent on education. But for marketers, boomers, and other professionals, the answer may depend on how social media 'rewards' are measured.

Accenture surveyed 3000 adults of all ages on their adoption of various technologies. The findings show there has been a very rapid adoption of blogging, podcasts and other social media among older consumers over the past year -- and a leveling off among Millennials. In fact, Accenture's research found "boomers increased their uptake of popular consumer technology applications at an average of 50 percent last year, nearly 20 times faster than Generation Y."

* Boomers increased their rate of reading blogs and listening to podcasts by 67 percent year-over-year. That's nearly 80 times faster than Gen Y (1 percent).

* Boomers posted a 59 percent increase in use of social networking sites, more than 30 times faster than Gen Y (2 percent).

* Boomers increased watching/posting videos on the Internet by 35 percent,while Gen Y usage decreased slightly (-2 percent).

Marketers appear to be happy with the rewards of their social media activities. 81% say their social media efforts have generated exposure for their businesses. At least two in three participants found that increased traffic occurred with as little as 6 hours a week invested in social media marketing, while those who have been doing this for years reported better results. The study also found more than half of participants reported a rise in search engine rankings. Improved search engine rankings were most prevalent among those who’ve been using social media for years, with nearly 80% reporting a rise. Though about one in two found social media generated qualified leads, only about one in three said social media marketing helped close business, and this number goes up as high as 61% for those using SM longer. Finally, most strongly agree that marketing costs dropped when social media marketing was implemented.

For non-marketing types, the rewards also appear to be worth the time. According to Accenture, "they are likely adding life-enriching experiences that they see the younger generation adopting, and striving to remain intellectually and technologically literate, versatile and job-skill competitive." Not bad for something that is also entertaining. No wonder newspapers and TV are having a hard time competing in the attention game!

In the end, how you measure 'worth it' may depend on what activity is being displaced. In my case, it is sleep. I think most Millennials would agree that is a reasonable tradeoff.

Gen Y: Personal Branding Experts

A posting on Penelope Trunk's Brazen Careerist blog this week posed the question "Is Gen Y better than everyone else at promoting itself?" The answer is 'You bet!'

The concept of 'personal branding' has been around for many years, ever since William Arruda and Tom Peters first introduced the then controversial concept 20 years or so ago. What's changed are the tools and the mindset.

In the past, communicating about yourself meant a resume and a web site, at least for those who could build one or afford to pay someone else to build one. Now, social media makes communicating about yourself free and easy. What is Facebook if not an 'ad' for youself? What is Twitter but a new type of press release? What is Linked In but a rolodex on steroids?

The other, more important change, is mindset. Gen Y sees its career path evolving much differently from their parent's. They don't expect to ever see the rewards for staying with one company, so they think of themselves as free agents, with no qualms about having a series of short term jobs. Many are by-passing jobs altogether, selling their skills directly as freelancers or starting their own companies.

Dan Schwabel, 25, is emblematic of this new approach. In a matter of a year or so, he has built a personal brand on the subject of (what else?) personal branding. This week, he introduced his new book, Me 2.0. Dan must practice what he preaches because the blogosphere is alive with news of this book, as are the mainstream media. Here he is on the Huffington Post.

"Me 2.0: Build a Powerful Brand to Achieve Career Success is the first book written by a millennial (I'm 25), for the millennial generation, about personal branding and it is the paramount book for using social media tools to build a personal brand. Me 2.0 follows my journey through social media, while walking the reader through my proven 4-step personal branding process (discover, create, communicate, maintain). It also includes over forty expert quotes from leaders including Don Tapscott, Libby Sartain, Penelope Trunk, Guy Kawasaki and David Kirkpatrick. There are more than seventy research reports, three personal case studies and enough tips to keep you occupied for hours. "

I have been following Dan on Twitter for many months (@danschawbel). He has over 16,000 followers and over 4000 tweets focused on personal branding advice and links. His blog, http://personalbrandingblog.com has over 5000 readers. There is also a magazine. He has been featured in Businessweek, NYT, Fast Company and more. Dan may be the most accomplished Millennial in the personal branding space, but he is not the only one creating significant personal brands to showcase their areas of expertise. Here are a few of the more interesting Millennial marketer brands I've discovered:

Leah Hennessey: The Millennier: Millennials + Wine

Adrienne Waldo: Ask a Millennial @adriennewaldo

Blake Sunshine: The Perennial Millennial @blakesunshine

Nick Armstrong: I'm Nick Armstrong @imnickarmstrong.com

Greg Rollett: Gen Y + Youth Culture Marketing

Jabez LeBret: Jabez Productions@jabezlebret

According to Schawbel, here are five reasons why Generation Y is better at this process than everyone else:

1. We have the least amount of responsibilities. Personal branding is a very time consuming exercise that most adults don’t do because of the sheer amount of responsibilities they have, which are priorities to them.

2. We're already marketing ourselves intuitively. We’re all marketing ourselves without thinking much of it, but Gen Y is doing it on steroids. Gen Y is all hyper-connected with mass media, including the fact that their cell phones are an extension of their hands and that we go online more than any other generation.

3. We are equipped with a bottomless pit of marketing tools. Every communication channel is a marketing tool, and since Gen Y is the most plugged in generation, there isn’t a tool we don’t touch.

4. We understand how to build personal connections to build a brand.Gen Y’ers are the masters of social media, which means we understand that marketing exists through other people. We use social media tools to put us in touch with other people who can help make us more successful. Gen Y-ers can position themselves in their company as the go-to-person for all technology needs, making them an invaluable asset to their work group.

5. They have no choice but to be marketing mavens. Standing out among the millions of job seekers is quite hard in this economy and the competition to succeed in any industry isn’t declining anytime soon. Internship hiring will be cut by 21%, co-op hiring by 11% and 22% less jobs for 2009 graduates, according to NACE. The amount of pressure on millennials is immense and it forces them to rethink the way they are perceived and how they market themselves to stand out from the pack.

Perhaps the strongest testimony to Schabel's approach? He is advertising to hire an intern!

Gen Y Core Value: Fight for What You Believe In

Over and over in our research we hear Millennials talk about wanting to make a difference. This article by Chip Walker provides perspective on this insight and helps explain what their idealism means for their careers and brand choices. I am especially intrigued by his description of Gen Y's activism as 'self-activism' - the idea that their very life is a 'cause'. This is a key difference between Gen Y and Gen X. The article originally appeared on Mediapost's Engage Gen Y blog. I have never reprinted an article in totality before, but this one was just to insightful to excerpt. It carries a strong message to brands or others who want to motivate this generation: Be sure you have a purpose 'worth fighting for'.

The Rise Of Cultural Movements

by Chip Walker, Strawberry Frog

In 2007, I fielded a global quantitative study of Gen-Yers in 13 countries and was surprised to find the No. 1 attitude unifying the generation was: "I would fight for a cause I believe in." A large majority of global Gen-Yers agreed with it from among dozens of other attitudes. My colleagues and I were all puzzled by this finding and weren't quite sure what to do with it. As I've created campaigns for Gen-Yers during the past couple of years, the meaning of this finding has become crystal clear.

Simply put, Gen-Yers have an activist bent. But their activism is different from the idealism and rebellion of their Boomer parents in the 1960s and '70s. For today's Gen-Yers, activism is not about rebelling against institutions -- there's simply not that much left to rebel against. Belief in institutions like government and big business crumbled long ago. Rather, 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.

A big part of Gen-Y activism is what I call "self-activism." They treat themselves and their dreams almost like causes. It's less based on idealism and more a matter of necessity: If they don't activate the revolutionary inside, they simply won't get anywhere in today's hyper-challenging marketplace. According to the Wall Street Journal, half of all new college graduates now believe that self-employment is more secure than a full-time job. According to a Gallup pool, over two-thirds of high school students say they intend to start their own companies.

Clearly, an independent spirit pervades this generation, and it's fueled by a strong sense of their personal values and beliefs. Among GenYers' most important personal values are authenticity, altruism and community. Yet, it is this generation's consumer activism that makes them a unique challenge for marketers. Gen Y-ers don't just want to buy brands, they want buy in to what a brand believes in. They flock to brands like Red and Livestrong that spark movements.

Some are social movements -- the sweatshop-free and socially responsible clothing movements are making clothing brands like Timberland, American Apparel and Patagonia must-have items for GenY. Others are cultural movements -- rather than selling processing speed, Apple invites GenYers to join a creativity movement. Obama became the choice of Gen-Y voters because he asked them to join a movement for change, not simply to vote for him.

Would your brand fight for a cause it believes in? Would your employees? Most Gen-Yers would. Today more than ever, GenYers are seeking to summon their own passion, courage and determination. Thus, if you want to connect with them, it's time to stop doing traditional marketing and start believing in something bigger than making money.

It's not easy for a brand to spark a cultural movement. But it's worth doing because it allows us to go beyond having a point of difference and actually have a difference-making purpose in the world. I, for one, believe Gen-Y's unique activist spirit will be its lasting generational hallmark, one that will change the future practice of marketing for the better.

Full-Service Restaurants Work Hard to Keep Millennials

Our research on behalf of New York-based Rosa Mexicano Restaurants, reinforces the importance of having the right mix of food and atmosphere to attract Millennials. The main reason young adults eat out is to 'relax'. They want a place that isn't too stuffy and the food is exciting and different. What stands out about Rosa's are their signature items: tableside-prepared guacamole (photo left) and pomegranate margaritas. In addition, each of Rosa's eight locations has unique decor and a lively bar. When I visited their Lincoln Center restaurant last month; there was no sign of a slow down.

Unfortunately, Rosa's is the exception rather than the rule. Full service restaurant revenue has declined steadily since 2005, with fine dining being hit hardest. (IBIS, Dec. 2008)

With an average entree price of $19.52, 50% higher than at a casual restaurant, it's no surprise that 47% of consumers say they are "spending less at fine dining restaurants" (Mintel, Nov. 2008). Consequently, fine dining is one of the sectors expected to be hardest hit by the recession. Technomic predicts revenue falling as much as 12%.

Who eats at fancy restaurants? Just about everyone it turns out. It's true that frequency of eating at fine dining restaurants increases dramatically with income; all but the lowest income households eat at them at least a few times a year. The average household eats out at a fine dining restaurant about 8.6 times a year. Younger adults, 18-34 years, are especially important to fine dining restaurants with 10.9 visits a year. Their high level of eating out makes them 17% more important to casual restaurants as well.

Beyond mere frequency, younger age groups are also more likely to have larger dining parties than older age groups, a revenue driver that is only partially outweighed by the fact that "the larger the dining party becomes, the less is spent on a per-person basis." Finally, Mintel reports menu item sharing is more prevalent with younger patrons, "as a form of socializing and experimenting, as well as a way to keep costs down. Older people may be more apt to view the occasion in more intimate terms with a loved one."

In any event, younger patrons are critical to fine dining and casual restaurants, so it's not surprising to learn marketers are finding innovative ways to keep young adults from trading down to fast food or cooking more special meals at home. The Wall Street Journal ("Bar Wars", 4.3.08) reports urban high end restaurants are converting some of their dining space to bars and serving more affordable 'bar food'. Not only are the smaller portions and less expensive ingredients of appetizers more profitable, the margins on beer, wine and cocktails are much higher than on food. Here are just four examples of this new trend:

Alain Ducasse's Benoit bistro in New York recently rolled out a bar menu that includes sliders and $1 deviled eggs.

Daniel Boulud, the Manhattan chef behind one of the city's most formal restaurants, Daniel, plans to open DBGB Kitchen & Bar, featuring 24 beers on tap and homemade sausage and hot dogs, in May or June.

Christophe Émé, chef and owner of Ortolan in Los Angeles, has begun calling about 100 customers a week to tell them about his new bar menu.

Thomas Keller's Per Se restaurant in Manhattan, where the only dinner option has been a $275, nine-course prix fixe menu, launched an a la carte menu for its lounge area last week. Diners are seated around coffee tables.

Eric Greenspan's Foundry, in Los Angeles, featured high end cuisine until 3 months ago when it was turned into a lounge with nightly live bands, cocktail waitresses and promotions such as "fried-chicken-and-waffles night."

Casual restaurants are taking a different road to attracting Millennials, emphasizing low prices and special promotional offers. For example, T.G.I. Fridays is advertising its top ten entrees available on Friday's for just $9.99.

The Office Gets Generational Work Relationships Right

At the risk of undermining my cultural credentials, I hereby admit that I was just introduced to NBC's The Office by my 15-year old son. It's witty, well-written and I love the fact that it, mercifully, has no laugh track to inform you of what's funny. Above all, I am impressed by how accurately it captures the unique perspectives of all three generations: Millennials, Gen X and Boomers.

Gen X: Pam Beasley and Jim Halpert are Gen X'ers -- and the only sane people in the office. Jim and Pam alone are able to see the humor of each situation. Both are hard working but not that ambitious. They willing to sacrifice career advantage for personal happiness (continue to work in the same office). They reject the idea that Dunder Mifflin is their 'career'.

Boomer: Michael Scott, Manager of the Scranton office of Dunder Mifflin, is thoroughly Boomer. His personal identity is deeply connected to his co-workers and his career. He is so earnest about cultural issues in the work place that he inevitably behaves inappropriately whenever there is a racial, gender or privacy issue. He embarasses his younger staff members, and they don't respect his abilities, but love him all the same for being a 'nice guy'.

Millennial: Ryan Howard embodies the Millennial point of view. He is disdainful and incredulous of Michael's seeming ineptitude. He starts as a temp, but his MBA and careful cultivation of upper management, catapaults him to the position of Regional Manager at corporate in New York. This move makes Ryan Michael Scott's boss (a Millennial fantasy if ever there was one!). Once in the job, Ryan unleashes a series of well-intended, but disruptive, technology initiatives (web site, PowerPoint training, Blackberry's. He fails to grasp the impact of his heavy-handed ways which causes opinion about Ryan to shift from tolerated to actively disliked.

The Office portrays real generational tensions. Michael thinks Jim is 'lazy'.

Michael: "I can spend all day on a project and he can do the same project in 30 minutes, so that should tell you something!"

Jim does not aspire to be like his boss, Michael.

Jim: "I think of this as my job. If rose any higher this would be my career, and then I'd have to throw myself in front of train."

Ryan's introduction of Michael to his MBA class makes it clear he thinks Michael is a loser.

In telling it like it is, The Office reveals a truth about intergenerational work relationships: the generations don't have to respect each other's abilities or understand each others' values to care for one another as human beings and pull together for the common good. We could all learn a lot from The Office.