T-Mobile Is Calling Millennials

Mobile phone sales plummeted in the first quarter of 2009, and a new Pew Research report released last week, says one-third of 18-29 year olds have changed cell phone plans as a result of the recession, a higher rate of change that was seen for any other age group.

These changes are likely to have the greatest impact on T-Mobile. Not only is T-Mobile the #4 U.S. provider behind AT&T, Sprint/Nextel and Verizon in both size and spending, it is also the only provider that skews significantly younger; 33% of 18-24year olds claim to have used T-Mobile compared to just 22% of the total population (Mintel, August 2008). With so many accounts in play, I thought it would be worth looking at what T-Mobile is doing to reach Millennials.

The most visible effort is the video of the "T-Mobile dance" stunt created in Liverpool's train station in January (see above). A second stunt April 30 featured13,000 karaoke singers in Trafalgar Square last month. The spots have a great tagline - "Life is for Sharing" - and were a viral web sensation. The Life is for Sharing YouTube channel continues to bring in traffic and videos. Adrienne Waldo's provides a great Millennial view on this campaign in her blog, Ask A Millennial.

This is what happens when a company puts a little thought, effort, money and heart into their marketing. They are getting hundreds of thousands of views a week and sitting solidly at the top of AdAge's Viral Video Chart. People are watching these videos over and over and sharing the gospel - blogging, tweeting, posting, forwarding and linking these videos into every nook and cranny of the web. What did T-Mobile do differently from the countless other brands trying to infiltrate the masses virally? They abandoned the stereotypes of "savvy internet users," realized that the people who use the internet are humans, and created their ads accordingly. I also have to give them mad props for their excellent song choices. Bang up job, T-Mobile, cheers and all that. Now, if only your service was as good as your marketing...

To see a great commercial inspired by the T-Mobile effort, watch this spot filmed in Antwerp, Brussels that features Julie Andrews singing Do Re Mi (don't ask, just watch it.)

I took a look at some of their marketing and was very impressed. Beyond a great branding effort, T-Mobile is addressing the current cost consciousness by directing customers and prospects to a third party site, BillShrink.com for a Mobile Makeover. By entering basic information on usage and rates, you can see if there's a way to do better on your cell phone bill. This seems risky unless you actually do offer better rates. I found the T-Mobile web site very intuitive and easy to use, in contrast to others I have visited. Finally, a quick check of JD Power shows customer service at T-Mobile is a strength: JD Power put T-Mobile first in customer satisfaction in its Feb 2009 report, primarily due to shorter wait times.

Now let's just hope that the rumors that T-Mobiles servers were hacked over the weekend are not true! It would be a shame given their overall great marketing effort.

Dr. Horrible's Sing-Along-Blog

A review, by Ariella Phillips, Student, University of Notre Dame, Class of 2012

"With my freeze ray, I will stop the world.....

That’s the plan/ Rule the world/ You and me/ Any day

Love your hair.”

Dr. Horrible’s Sing A Long Blog is a production that is utterly Millennial. Not quite definable, it’s a movie/blog/musical/webcast/thing. It was never shown on TV, never advertised, a case of completely out-of-the-box thinking and approach. Despite the low budget (it was made during the writers’ strike), the quality of the music and acting is top notch. And every college student has seen it.

If you haven’t seen it, here’s the link. It’s a little long (40 minutes) but if you have 10 minutes it’s worth watching through the first song, “My Freeze Ray.” In case you don’t have time, here’s why I think Dr. Horrible appeals to Millennials.

The message.

We want to change the world. We’re a little fuzzy on exactly how, but as Dr. Horrible says in the first few minutes, “the status quo is not… quo!” We’re a little innocent on this point, almost naïve. Still, we know there’s something wrong with our world, and we are going to fix it, either through Penny’s volunteering with the homeless and vegetarianism, or Dr. Horrible’s freeze ray.

The Medium.

Dr. Horrible is on OUR media, the Internet, which Millennials take special pride in. Yeah, yeah, we know our moms are on facebook now, but gosh darn it, we’re the ones who know it best. Dr. Horrible starts off talking to a computer cam, blogging his email responses on his exploits in world domination and love. If you look closely, you’ll see the remote for his heist is an iPhone. Technology is something all millennials use, know, and exploit. Even if we don’t have a transmatter ray, it’s our superpower.

The Nemesis.

Captain Hammer, the Corporate Tool, is Dr. Horrible’s "true nemesis". Captain Hammer is the ultimate boomer. Or gen X-er. Or just a jerk. But he represents everything our generation isn’t. If Millenials are trying to make a change, there is the status quo, thwarting us at every turn (Hammer: “It’s curtains for you, Dr. Horrible; lacy, gently wafting curtains”). Really, we’re sick of our Captain Hammers. Please forward the memo to all the boomers, gen X-ers, and the rest who say we can’t make a difference.

The Attitude.

Millennials are constantly struggling to prove to the rest of the world that we can make a difference, that we’re not the pampered, “everyone gets a trophy” generation, but one that will make an impact. We empathize with Dr. Horrible as he strives to show Penny he’s “not a joke, not a dork, not a failure.” Millennials who survived the gauntlet of college applications understand his anxiety to gain admission to the Evil League of Evil. Those who survived the gauntlet of the workplace understand Penny’s tale of all the times she was turned down and fired from jobs. Dr. Horrible tells Penny over frozen yogurt of wanting to do great things, and be an achiever, but it seems he just won’t be given the chance to prove it. It’s a worry of all Millenials. We just want to be given a chance to show what we can do – and we’re terrified it’ll never happen.

Pixar: The Ultimate Millennial Brand?

The oldest Millennials were just getting drivers' permits and the youngest were just being born when Toy Story became the first fully computer animated feature film. Since then, a progression of Pixar films have defined Millennnials early movie-going years in the same way Sleeping Beauty and Sound of Music defined mine. A post on Saturday by WhiteBoardMania blogger, Boomaga, reveals and articulates this generation's deep affinity for the Pixar 'brand'.

I’ve already got my ticket to see it, but it’s more than just a chance to go see a movie. It’s a chance to be that happy little kid again, sitting in the theater and not having a care in the world, if only for an hour and half. I’m the living 24 year old incarnation of Randall Graves from Clerks. I’m about as far as he is in life when it comes to relationships, career, income and most of all, cynicism. I spend most of my time listening to caustic, angry music. I do not have what I would consider high job satisfaction. I’ve been to 6 Phillies game this season, and they’ve only won one of them. Everyone is stupid to me and I’ll always be the first to notice or anticipate someone’s faults before their benefits. And yet, for the last few years, about once a year, I’ve been able to feel wonder, imagination and amazement like I did 10, 15 or 20 years ago. It’s hard to see the beauty in the world around me with my daily disappointments and frustrations, whether internal or external. However, when the film rolls and the Pixar lamp hops across the screen, I’m transported out of my life to a variety of truly magical worlds without me realizing it until the movie is over.

Pixar's latest, "Up", scored big at the box office this weekend -- $68 million, the third highest for any Pixar film and more than twice as much as "Night at the Museum" according to the WSJ. Mark Zoradi, president of Walt Disney Motion Picture Group says "Up" shows broad age appeal: "It was as strong with kids aged two to 11 as it was with adults both under and over 25. We think we've got a movie that's going to play across all demos." The twitter buzz for #UP is bursting with enthusiasm.

Other than its coincident timing, consistent quality, and fine storytelling, what is it about Pixar films that connects and engages so well with Gen Y?

If you have been reading this blog you can probably guess what I am about to posit: Pixar has perfect pitch when it comes to Millennial values, and may even have had a hand in shaping them. Each Pixar film expresses the abiding importance of family relationships ("Finding Nemo", "Up") and friendships ("Bugs Life", "Toy Story"). They are innocent without being naive, and rely heavily on evocations of childhood wonder ("Wall-E", "Up", "Ratatouille"). They are relentlessly optimistic about the human condition, reminding us of our better natures and what we can achieve if we only stick together; sentiment without schmaltz.

Okay. I think I know what you are thinking: What makes those MILLENNIAL values? After all, are those timeless qualities? Of course. But Millennials are young enough to still believe in them. Only time will tell if they will grow more cynical.

Somehow, I don't think so.

Conversation with Millennial Marketer, Carol Phillips

Carol Phillips answers seven questions posed by Pete Krainek of The CMO Club on advice for CMO's about marketing to Millennials.

Click here for more resources on marketing to Millennials or to learn more about our work.

(Photo: Carol Phillips and friend, Emily Fleming. Carol is President of research and consulting firm, Brand Amplitude, and teaches marketing at University of Notre Dame.

1) More and more companies are looking to engage, market and sell more effectively to Millennials. What are the most important things CMO's should consider as they develop their marketing plans?

The most important thing is to take time to truly understand their core values. It’s easy to get caught up in studying their buying behavior, media use and latest-must-have technology. But if you study their values, you will have a better idea of how to connect with them. Obama and Apple won their hearts because they ‘think’ like Milllennials.

In study after study -- on beer, education, social media, philanthropy, workplace needs and news media -- we find that understanding Millennial values helps shed light on behavior. Taking the time to really ‘get’ the way they think is well worth the effort and pays dividends in how you manage, communicate and ultimately market to them. Without those insights, the paradoxes can be baffling.

2) Who does a good job in engaging millennials and why?

Millennials love brands, but are cynical about marketing. They distrust commercial messages, so any effort must be authentic and come from a trusted source. The absolute best way to engage them is through each other. Our advice to clients is to engage them by giving them ‘social currency’, in the form of experiences and information, and then make it easy to share. Starbuck’s Red promotion at the holidays, Taco Bell’s long running late night promotion, and the Ford Fiesta car giveaway contest all have great Millennial appeal because they are about sharing. In the entertainment area, ABC Family did a great job of repositioning ‘family entertainment’ to be more Millennial-friendly.

3) What are some examples of approaches that didn't work or miss the boat?

An iconic brand currently popular with Millennials, but is due for a makeover, is Corona. Millennials love sophisticated tastes in beer, wine and spirits, and they prefer imported beer. But their idea of relaxation is not going on vacation or sitting on a beach. Relaxation is something that needs to happen every day, like watching Family Guy, throwing a frisbee to a dog or making a great meal.

Beyond specific brands, there are whole categories that are missing the boat. Millennials are literally begging wine makers to market to them. Casual restaurants also are missing an opportunity to build community around their brands. Realtors, travel and financial services need to start clueing into their future target.

4) Any myths you think out there on Millennials that CMOs should not believe as fact?

Yes, there a lot of myths. Unfortunately some of them have a grain of truth to them so it can be hard to sort out what is real and what is not. The main caution is not to make the mistake of thinking Millennials are simply younger, more techo-savvy versions of Boomers and X’ers. If you have teenagers or young adult children, you know this is true. They simply ‘think different’. Their sheer numbers make it inevitable that they will shape us – marketers and managers – more than we will shape them.

5)How has the recent economic downturn impacted Millennials and what are the implications for marketers?

Like everyone, Millennials are scared. No one knows what all those billions being spent now mean for the future. Millennials still have discretionary income no matter how poor they claim to be. And they are spending on what they consider ‘necessities’ – education, eating out, transportation, technology. But they are making big adjustments in other areas like housing, transportation and philanthropy. They are inherently cautious shoppers, and research everything before they buy. Marketers need to keep a close eye on what is being said about their brands and address issues right away. With Millennials, the line between marketing and customer service is blurring.

7)When you are hired to help marketers learn about Millennials what specific things have you been asked to do?

Consumer research is our core offering. We do a lot of online focus groups, we also have a special expertise in decision-mapping (laddering research) for which we also leverage special online tools. The projects we prefer are those where the questions and approach are still undefined so we have an opportunity to frame an approach that involves research, consulting, facilitating client worksessions, and in-market experimentation. We are about to launch a syndicated study of Millennials, food, wine, spirits and dining out.

8) What final words of advice do you have for CMOs looking to improve engagement and sales results with Millennials?

Listen to your own Millennials, at home and in the office. They will give you the best advice about how to reach others like them. We learn from our younger colleagues, our own kids and my students every day. There are also a lot of great blogs written about marketing by Millennials. Finally, its not a challenge to talk to them online – they love to talk and they literally ‘live’ online.

Engaging Millennials in the Classroom

If you think engaging Millennials in marketing is hard, try engaging them in discussions about marketing in the classroom. Not only are they accomplished multi-taskers accustomed to high levels of visual stimulation, most are incredibly tired from their 24/7 lives.

Since I began teaching at Notre Dame in 2003, I've moved steadily from the traditional read/lecture approach I knew in the 70's to a more interactive classroom format. After all, in an era when top lecturers are posted online there needs to be more than a talking head to justify coming to class. This sounds easier than it is. Many students don't want to talk in class, and others (shockingly) are not always prepared to contribute. Fortunately, technology offers new ways to coax participation from sophotmores -- threaded conversations, online quizzes, extra posted material, and blogs have all helped enhance my 'pedagogy'.

Sidney Eve Matrix, Assistant Professor in the Department of Film and Media at Queen’s University in Kingston Ontario Canada, takes technology in the class to new heights. @sidneyeve has brought many new ideas to my attention. To see the future of technology in the classroom, check out this slide share presentation, "Lectures That Stick: Digital Tools You can Use to Encourage Engagement and Retention." Even if you have no intention of stepping foot into a classroom soon, it's brimming with ideas for engaging Millennials that you may find useful in Millennial Marketing.

It helps of course, that her area of content, technology and culture, is well-suited to using technology to teach. Sydney Eve's blog, cyberpop is filled with great insights on mobile media use and gaming. Someday I want to take her course, FILM240: Mass Media & Pop Culture! It really sounds like it belongs in the marketing department:

"This course considers a variety of media and genres (including film, TV, gaming, music, magazines, advertising, news media, and online technologies). We study popculture productions, consumptions, and representations in order to better understand the importance of mass media in shaping our identities, choices, and imaginations."

What Millennials Want at Work (It's Not What You Think)

"They keep telling me, "here's what you get in five years, ten years, twenty years...I feel like -- what's that expression -- they are trying to sell me a bridge."-- Gen Y'er

"Not Everyone Gets a Trophy: How to Manage Gen Y" by Bruce Tulgan

What do Millennials want from a job? Not the bosses' job as it turns out. While it's true they are ambitious, their ambition is less about climbing the corporate ladder than making sure they are on the right ladder to learn and grow.

While Boomers and X'ers seek titles (and the responsibility and salary that go with them), Millennials are more likely to respond to increased challenge, unique experiences and recognition. Above all, they seek balance in their lives. 78% of high school students say that 'having close family relationship' is more important than money and fame in defining success.

Boomers and X'ers are prepared to compete and sacrifice to reach their goals. Most Millennials are not. This is often misinterpretted as 'laziness', but in reality reflects a different set of motivations, no less intense than that of Boomers.

From a young age, Millennials were taught group cooperation over individual competition. A colleague related a story to me earlier this week about her 15-year old son's race to be elected freshman class president. He prepared a speech, posters, a platform. But to her Boomer eyes, the degree of cooperation among the candidates was incomprehensible. Her son actually helped rewrite a competitors' speech, without considering that he was giving away a potential advantage. ("But Mom, it was lame!") When Millennials are asked to tackle something new at work, they are less likely to think of it an opportunity to shine individually as they are to wonder who they can involve to insure a better outcome and make it more fun.

Much as been made about the oh-so-Millennial ending of "The Devil Wears Prada". In the book as well as the movie, the protagonist, Andy, works hard to meet the unrelenting demands of her irrational boss. She triumphs, lands the promotion, then declines what appeared to be her goal and her dream job. This ending makes no sense to Boomers, but Gen Y find this ending quite satisfactory. The goal was to not to win, but to have a job you love enough to want to invest your life in. Andy realized early in the movie that the fashion world was not a good fit for her idea of a meaningful life. The only suspense for Gen Y was how she would quit, not whether.

Need data to support that? The percent of young adults answering 'yes' to the question, 'Would you like a job with more responsibility?' declined from 80% in 1992 to just 60% in 2002. That doesn't mean they wouldn't like a challenge, they just don't think their boss' job is 'worth it'.(Families and Work Institute)

What they do want is to make an impact while doing interesting meaningful work, in a job that allows them to lead a balanced life and doesn't box them in to a traditional career path. A survey across thirty-three countries showed that the top priorities were interesting work (29%), meaningful work (18%), and worklife balance (18%). ("Plugged In", Tamara Erickson, p.66)

Deloitte, one of the largest recruiters of top entry level talent, invested heavily in understanding what Gen Y wants from a job. At the Qualitative Research Consultants Association meeting in Chicago early this month, Tracey Scott of Deloitte Canada, shared the results of research conducted to provide strategic direction for their recruiting efforts. The resulting campaign, titled 'Truth', was based on the insight that Millennials have a different 'checklist' to evaluate their first job than those who recruit them. What Millennials want to hear is that 'everyone is willing to help you succeed'. They want to know that they will not be alone and they will have an impact. The Deloitte home page asks, "Will the business change you? Or will you change the business?". The next page challenges job seekers to "Find Yourself Among Our People" by profiling young professionals and telling their story.

While every generation brings a unique perspective, I suspect Millennials will shape the workplace more than the workplace will shape them.

Their attitudes are deeply rooted in the times and ways they were raised and unlikely to change.

Their sheer numbers will make them difficult to ignore for long.

Their propensity to look for greener pastures if they determine their needs aren't being met will cause companies to rethink what they have to offer.

They won't settle for higher salary and they aren't interested in waiting around or 'paying their dues'.

Consequently, the basic work 'contract' is likely to be fundamentally altered to accommodate the question 'what's in this for me?'. Bruce Tulgan, in his book, "Not Everyone Gets a Trophy" provides a the perfect quote:

"They keep telling me, "Here's what you get in five years, ten years, twenty years..." but they expect me to come back to work tomorrow. What do I get tomorrow?

Message to Millennials: Many CMO's Think You Are Like Them

I had the pleasure yesterday of speaking to a group of 70+ CMO's in New York City on the topic of Millennials in marketing. Actually I did very little speaking and let three fabulous Millennials speak for themselves, Justin DeGraaf, Marketing Manager at Unilever, Adrienne Waldo of Ask a Millennial and Brian Rosenberg of Prophet. The presentation was Titled "10 Things Millennials Wish They Could Tell Their CMO's". The 10 key points are nicely summarized on The CMO Club blog today.

The speakers did a great job bringing the points to life, but apparently many in the audience just weren't buying it. The Q&A session was unusually tense. The gist of the comments were that Millennials need to understand the workplace will not change to accomodate them Their issues are simply "management 101" - if they had good managers, their issues would go away. One CMO went so far as to say they are actively avoiding hiring Millennials because of the high maintenance demands.

I disagree. There is data, lots of it, that suggests this generation has different needs and expectations than Boomers and Gen X'ers. Their values are likely to have a greater effect on the workplace than the workplace will have on their values. If companies are to get the best from them, they will need to show greater sensitivity to these differences.

Beyond Management 101, understanding Millennials is critical for effective marketing. Millennials are the 'target of the future' and what better way to start to understand them than to listen to the Millennials in your own organization. While many of their tastes and habits are age-related, many others are generational. These differences will shape their lives as consumers for many years. For their sake, I hope that the CMO's in the audience take time to do some investigating among the Millennials in their organization and keep an open mind that perhaps their young workers are not just younger versions of themselves.