The Millennial Generation as customers From the book: “Millennials and the Popular Culture: How...
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Transcript of The Millennial Generation as customers From the book: “Millennials and the Popular Culture: How...
The Millennial Generation as customers
From the book: “Millennials and the Popular Culture: How the Next Generation will change arts and entertainment” (Lifecourse.com)
Dr. Pete Markiewicz
Indiespace.com & Lifecourse AssociatesArt Institute of California, Los Angeles
5 views of Millennials as customers
• The “entitlement” generation
• The “call for a feeling” generation
• The “DJ/generative” generation
• The new Millennial brand
• The “virtual” generation (next deck)
The entitlement generation
• Derives from the “special” core trait– Millennials see their needs as “rights” – Everyone’s a “micro celebrity” worthy of special
customer service– Expect benefits (and a list) from the start – Expect free stuff
• “Special” enough to deserve it• They’ll give up their privacy to get it
– Helicopter parents will defend their “rights”
Reaching an ‘entitled’ generation
• Give them enhanced peer to peer communication – it’s their greatest “right”
• Tell them they have a ‘right’ to virtual products and services (that can reproduced at low to zero cost)
• Mashups, Widgets
• Membership
• Online entertainment
• User-generated entertainment
• Let them barter their privacy for your content• Parent/child co-marketing (parents will foot the bill)
The “call for a feeling” generation
• Derives from the “team-player” core trait– Millennials don’t have an “inner compass” (unlike their
mostly Boomer parents)– Online peer groups in Web 2.0 provide the “wisdom of
the crowd” for personal decisions– Short, frequent “ping” style communication (texting
rather than long calls, emails, or letters)– Definition of “friend” loosened to anyone you can
communicate with– Virtual personas to broadcast their inner state (e.g.
avatars in virtual worlds)
“Inner compass” vs. “The wisdom of the crowd”
Older generations have a feeling (excitement, sadness), and call a
friend to share…
Millennials call a friend to get their next feeling…
Millennials consult the group to know what to think/feel next! – Sherri Turkle, MIT
Calling for a feeling…
“Students can’t go for even a few minutes without talking on their cellphone. There’s almost a discomfort with not being stimulated – a kind of ‘I can’t stand the silence’…”
-Donald Roberts,Stanford Professor, quoted in “Generation M”, Time, March 27, 2006
Answering a “call for a feeling”
• “Ping” them via their networks• Viral, Internet every day (really hour)• Mass media when Millennials are “sharing”• Drop the Superbowl ads
• Tell them how to be… like everyone else• Do this – your friends are all doing it!• We help everyone share what you do!• We help you get the coolest product/service possible• We tell you how to plan your future • We support the “right” social causes (‘clickthrough’
activism)
The DJ/generative generation
• Derives from “team player” core trait– All Millennials are “media creators”– Preferred technology is generative– Media is “cut and paste” mashups– More parts, options, features = better product– Multiple origins, sources, ok– “Authenticity” less important
Generative technology
• Millennials have grown up with technology that encourages– Configuration– Flexibility– User modification– User sharing– User-created content
Generative technologies have…
• Leverage – simple product or concept enables a broad new range of activity
• Adaptability – easily built out, ramped up, modified• Ease of mastery – users can learn how to use –
and repurpose product• Accessibility – everyone can be creative using the
technology• Transferability – changes/innovations made by one
group are easily transferred to others• Payoff - allow amateurs to come up with the really
big innovations
Generative plus/minus
• Advantages– Easily “ramped up”, modified– Allow amateur innovation– Innovations rapidly propagate through system– Quick fixes for problems
• Disadvantages– Configurable may equal “too complex”– Too arcane (PNG versus GIF)– Lame amateur stuff crowd out professionals– Vastly more susceptible to damage through viruses,
hacking, malware
Carterphone vs. Pod
• The “Carterphone” or “Pod” gambit – Turn a generative system into a non-generative one– Take end to end control– Improve ease of use– VASTLY improve security
• BUT, when a wireless carrier controlled which cellphone could be used in their network– Quality suffered– Features valuable to consumers were removed– Undesirable features were not improved
SOURCE: Tim Wu, “Wireless Carterphone, 1 International Journal off Communication
389, 404-15 (2008), at http://ijoc.org/ojs/index.php/ijoc/article/view/152/96
Reaching the DJ/generative
• Millennials don’t want – ‘Freedom’ for freedom’s sake at the hardware or
network level– Generative ability at the software level
• Millennials DO want– Configurability– Generative “mashup” ability at content level
(media exchange, visual language)– Sharing mashups (media creations versus open-
source software)
The Millennial “mashup”
• Features– Existing data and media re “DJed” together– Generative tech allows end-users to “overlay” media
from other sources– Results are easily shared via the network
• Types– Media creations (e.g. blog)– Virtual products/widgets (e.g. virtual pets)
• Creates value from – Word-of-mouth advertising– Virtual product sales and distribution
Selling to the generative…
• Your product should– Let them generate at the content level– Let them generate at the media level
• Build mashups• Create online characters/personas• Upload “micro-celebrity” video, commercials• Create/sell virtual products (IVMU example)
– Less important at hardware, software level• Don’t create products that
– Are stripped-down, inferior to “protect” the vendor– Show them the walls of your garden– Allow only one-way watching and listening– Don’t be the one who stops the Millennial Carterphone!
(unless you still think the music industry is cool)
Generative for mobiles
• Do– Keep the “walled garden” for hardware, network– Keep code, network private (security)
• But…– Lower gates for developers (e.g. add Flash)– Provide tools for media generativity (mashups)– Figure out a revenue model (micropayments)– Provide tools for sharing between users
• Don’t– Use celebrities (professional content producers)– Rely on “top down” entertainment, media as a sole
strategy
The new Millennial brand
• Brand loyalty, with a difference…• Loyalty to the transaction, not the big picture• Loyalty to companies giving them “generative” ability
Loyalty to companies with a social cause
• Millennials trust • A few “big, bright, and friendly” brands that give them
generative capacity– Think Apple, Google, MySpace, Facebook
• Millennials don’t trust• Brands catering to narrow race/gender classifications• One-way brands (they don’t get to generate)
Brands and networks
New network allows
more brands to reach
an audience due to
lower cost barrier
Network technology allows
ever-larger groups of consumers to
form consensus on a small number
of preferred brands
# of
Brands
Time
New network (telegraph, telephone,
radio, television, Internet) is introduced
End of brand fragmentation?
In the long term, Millennial consensus building will reverse brand fragmentation and a few
“big, bright and friendly” brands will re-emerge - Neil Howe
Becoming a Millennial brand
• Cool Brands– Enable me to create via technology– Tell the truth– Are NOT edgy or cynical (software LINK)– Are serious (no ironic humor, jackass behavior)– Are something my parents and I agree on
• My Brands– Part of my communication network– Say/prove that I’m special– Mix (apparently) free stuff with payment– Let me make and share stuff– Show social responsibility (‘click through activism’)
The virtual generation
All the features of Millennials as customers described thus far are small potatoes
compared to their participation in virtual worlds
See you at the next deck!
References• Millennials and the Popular Culture
http://www.lifecourse.com/pubs/books.php • Millennials Go to College (2nd ed.)
http://www.lifecourse.com/pubs/books.php • The Press-Democrat - Millennials fight Boomer-led Wi-Fi bans
http://www.pressdemocrat.com/EarlyEdition/article_view.cfm?recordID=9085&publishdate=04/13/2008 • “Generation M”, Time Magazine March 27, 2006• Sherri Turkle MIT cyber-psychologist, in The Economist, April 12, 2008• Online traffice at compete.com
http://siteanalytics.compete.com • Cnet - Neilsen 2008 results for social networking sites
http://news.cnet.com/8301-13577_3-9948219-36.html • Why virtual worlds are overtaking the game industry
http://www.virtualworldsnews.com/2007/10/why-virtual-wor.html • New World Notes - New World Notes' True Community Search: Top Twenty Popular Second Life Sites, September 20
http://nwn.blogs.com/nwn/2007/09/new-world-notes.html • “Total minutes” netratings for web 2.0 sites
http://www.netratings.com/pr/pr_070710.pdf• MySpace real pageviews
http://www.mikeindustries.com/blog/archive/2006/04/myspace-click-factory • Fun with numbers: Do New Ratings Mean New Valuations?
http://voices.allthingsd.com/20070712/robert-seidman/• Second Life statistics
http://secondlife.com/whatis/economy-graphs.php• Second Life engagement “Second Grade Math”(Oct. 5th 2007)
http://blog.secondlife.com/category/economy/ • Kid’s worlds poised for growth spurt
http://www.emarketer.com/Article.aspx?id=1005410&src=article_head_sitesearch • Harvard Business School Conference, Nov 2007
http://www.gamasutra.com/php-bin/news_index.php?story=16326• There.com demographics (2004)
http://findarticles.com/p/articles/mi_m0PJQ/is_6_2/ai_114573226 • Daedalus Project - The Psychology of MMORGs
http://www.nickyee.com/daedalus/archives/001369.php http://www.nickyee.com/daedalus/archives/pdf/3-4.pdf
• Comparing virtual worldshttp://www.kzero.co.uk/blog/?p=978
• Virtual World Growth Projectionshttp://www.slideshare.net/nicmitham/virtual-world-growth-projections/
• Round-up of 50 virtual worldshttp://fabricoffolly.blogspot.com/2007/10/second-life-in-perspective-round-up-of.html
• eMarketer report on virtual worldshttp://www.emarketer.com/Article.aspx?id=1005410&src=article_head_sitesearch