Consumer Behavior Trends 2015 Understanding and Leveraging Consumer Trends for Your Business

© 2015 Campos Inc

Leveraging Consumer Behavior

Understanding and Applying Consumer Trends for Your Business

The Constant of Changing Consumer Behavior

Consumer behavior is constantly changing, and staying on top–better yet, ahead–of what’s

on the consumer’s mind is key to success. You want to understand what’s developing in new or de-

veloping consumer preferences affecting buying behavior, thus, the marketplace.

The Evolution of a Trend

There are several types of trends of varying lifespans, societal impact and scales of behavioral

change. In this report, we describe consumer trends, which mark changes in lifestyle and purchase

behavior that the longer-term trends effect.

Leveraging the Patterns

Our full trends report looks at major consumer behavior trends we are currently tracking. Our

analysis includes a briefing each of the trends and how they are manifesting in the marketplace

now, plus insights to help you start thinking about how your company can meet consumers’ new

and growing needs.

Image: wevolve

© 2015 Campos Inc

“Made-to-Order” Taking customization to an entirely new level

UNDERSTANDING “MADE-TO-ORDER”

Over the last several years, the proliferation of MADE-TO-ORDER opportunities—across

virtually every product category—has taken the Internet and even brick and mortar stores

(think Build-A-Bear) by storm. Once reserved for the top 1% crowd, who could order

custom or made-to-measure clothing while the rest of us tolerated the relative fit of “off the

rack,” the diversity of products that can now be custom-ordered or personalized, with fast

turn-around around and accessible price points, is rather staggering. For everything from

handbags and shoes, to food, gifts and technology, the options are seemingly endless. And

the impact is huge.

© 2015 Campos Inc

Three key elements appear to be driving this trend:

1. From consumer access to your organization via the Internet to the production

technology on the producers end, the rapid proliferation of this phenomenon would

not be happening without the connectedness and cost efficiencies being provided by

technology.

2. Consumers are clearly expressing a profound desire—perhaps grown out of the local

food and carbon footprint movements—to know about and control what is going into

the products they purchase and consume. Giving consumers this control also offers the

advantage of charging a high price point.

3. The creative desire to engage in experiences—being active participants in the process

of producing something—rather than simply consuming products is something that is

happening across all age and socio-economic groups.

The MADE-TO-ORDER trend is especially relevant to Millennials. Consider the case of

Chipotle. Customers actively choose every single ingredient that goes into their meals, and

can watch it being made or place their order online to be picked up at a designated time.

And Chipotle provides readily accessible background information on all of the local

ingredients they use.

This MADE-TO-ORDER trend is likely to have a shelf-life of at least several years, as

consumers become increasingly exposed and accustomed to the opportunity to have

personalized goods custom-created to their individual specifications. Companies of all

shapes and sizes need to consider how to apply the MADE-TO-ORDER concept to their

business. Here are some ideas on leveraging this trend.

LEVERAGING “MADE-TO-ORDER”

First, address the basic instinct among consumers that something that is produced special

for “me” has to be better. Consumers are embracing the notion of “active choice” and

need to be provided with product options, including enhancements. Note the rapid rise of

“a la carte” for everything from health plans and employment benefits packages to cell

phone offerings. This is especially important for Millennials, who have been fed a lifelong

diet of Subway and Chipotle and seek to customize everything in their life. Please stay

tuned for our post on our 2015 trend, ADD-VENTURE, which examines an additional

layer of this behavior.

© 2015 Campos Inc

Second, companies face a choice between two broad strategies: either diversify their

product lines by offering a greater variety of options, which Tropicana chose to do by

increasing their product line three-fold, or embrace online configuration tools that allow

customers to customize their products: there are over 300 sites in the U.S. that do this.

Third, there are some general strategies that businesses have adopted to leverage this

trend. They include:

• Get consumers more involved in product creation through crowdsourcing.

• Consider options that improve product functionality—and provide a unique

customized fit. There is a burgeoning literature on the subject of Value Engineering.

Alphonse Dell'Isola’s Value Engineering: Practical Applications for Design,

Construction, Maintenance and Operations is a recommended resource.

• Broaden your product lines with personalization options—simple extensions of

basic products. A good example is “Image Cards” offered by credit card companies,

which allow people to personalize their cards with photos of themselves (or even

their dogs!)

Image: Mickey Destro

© 2015 Campos Inc

“Reject U” The diminishing perceived value of a college education and what it says about us

UNDERSTANDING “REJECT U”

REJECT U, one of our top consumer trends for 2015, describes the diminishing perceived

value of a college education among consumers—especially parents and students—and

what behavior is happening as a result of it. What’s driving this trend is the student loan

debt crisis and a poor job outlook for college grads. And it’s a double-edged sword: not

only are students and parents questioning the value of a 4-year degree, but so are

employers.

Recent statistics are alarming:

• In 2012, 71% of all students graduating from four-year colleges had student loan debt.

That’s 1.3 million students graduating in debt, up from 1.1 million in 2008.

• The average student loan debt upon graduation rose to $29,400 in 2012—a 25%

increase from $23,450 in 2008.

• With the unemployment rate of recent college graduates at around 9 percent, and

underemployment at nearly 19 percent, many are struggling to find a job.

But here’s what is most frightening: even the kids graduating from college aren’t prepared

for today’s jobs. In a recent survey, over 1 in 3 business leaders and recruiters said that the

recent grads they hired should get a "C" or lower for job preparedness. And 2 in 3 percent

said that their business's day-to-day productivity suffers because of recent grads' lack of

preparation.

Yes, parents are starting to take notice. Although the vast majority still wants their kids to

go to college, there is a discernable trend toward acceptance of higher education being

defined as community college, or even certificate programs. Why? Because associate

degrees and even certificate programs are resulting in jobs that pay enough for a person to

start a family, have kids and buy a house.

We have conducted many focus groups with parents and students and gauged their

reactions to statistics that show they will earn more overall if they have a 4-year degree.

But low-cost online courses, the growing significance of certificate programs, and

businesses’ acceptance of them are causing younger people to stand up and pay attention.

We recently completed a study among business leaders and educators for Carnegie

Science Center’s Chevron STEM Center. One finding: there are lots of jobs in this region

that pay well for people with an associate degree or program certification—in some cases

more in the advanced manufacturing and energy industries. Students are making the

calculations for paying off student loan debt and projecting when they can buy a new car

or their first house, and many are deciding, “A 4-year college isn’t for me.”

Colleges and universities are also to blame. Set aside, for a moment, the egregious and

well-documented rising cost of tuition. Many colleges are now positioning themselves as

career schools, as opposed to places to learn, grow intellectually and become a well-

rounded citizen. They’ve decided to change their value proposition and today’s students

aren’t buying it.

The REJECT U trend is not going to go away soon. Consumer trends typically last 2-5

years; this one has 6-8 years, or even longer, written all over it. What will the future bring?

LEVERAGING “REJECT U”

When attitudes and perceptions align with economic trends and are supported by political

developments—Obama’s call for free community college is an example—consumer trends

can turn into mega-trends that last 10 years or longer.

This trend strongly suggests that younger people are going to enter to market economy at a

younger age. They may have less disposable income than previous generations, but these

graduates of community colleges and certificate and apprenticeship programs will be

looking to spend it.

© 2015 Campos Inc

Purchases in the automotive and household goods sectors could increase sharply, and,

sooner rather than later, companies will need to prepare for this with low-cost financing

and products that meet their needs.

In this vein, forget the presupposition that Millennials don’t want to buy homes. The

reason they haven’t is because they couldn’t afford it, having entered the job market with

student loan debt. One recent poll conducted by the American Planning Association

shows that 64% of Millennials want to buy a house, but are reluctant to do so due to

student debt. Expect a change in attitudes as younger people enter the workforce sooner.

This trend also suggests that apprenticeship programs at businesses will flourish. Business

is starting to come to the realization—whether it is a perception or misperception doesn’t

matter—that candidates with 4-year degrees lack the business acumen to succeed.

Businesses are going to need help developing apprenticeship programs, marketing them,

and designing advertising that resonates with young people. The U.S. Department of Labor

apprenticeship program is a good place to start.

Career coaching services will be in greater demand. (4) Younger people will seek

education in the form of instruction that is likely to lead to a viable job and career.

Businesses do not know how to implement these and are too often naïve about the steps

necessary to make such programs successful. But they recognize their worth and they

need help.

The bottom line is that students who will not be going to 4-year colleges or universities

will be looking for alternatives, and there are ways to capitalize on this opportunity.

“Reject U,” one of the top 10 consumer trends we recently presented at an event with the AMA

Pittsburgh, was rated by guests as second most useful to them in creating opportunities in their

own businesses and in the work they do for their clients.

Image: Sean MacEntee

© 2015 Campos Inc

“Coalescence” Baby Boomers and Millennials are starting to see things more and more alike.

UNDERSTANDING “COALESCENCE”

Campos Inc’s COALESCENCE trend, the underlying premise of which is Baby Boomers and

Millennials starting to see things more and more alike, is changing the social landscape.

Buckle your seat belts as we further describe this trend and talk about ways organizations

can capitalize on it.

By all accounts, these two generations are uniting around specific social issues and around

the idea of social activism in general. Boomers, it turns out, have experience and success

in “making a difference” in just the ways that Millennials are seeking today. While the

career and achievement orientation of Boomers has often over-shadowed their earlier

achievements in social justice, later in life they are finding the time to reintegrate the

activism of their earlier youth their drive for success. And just in time to unite with their

Millennial counterparts. Marc Ross, founder and executive director of Rock the Earth, a

national public interest environmental advocacy organization, has described the

phenomenon of these two generations uniting within his organization as “generational

cohabitation.”

As it turns out, these two generations aren’t just collaborating

over causes, they are actually cohabitating in unprecedented

numbers. According to the U.S. Census Bureau, a record

57.1 million Americans (18% of the population) now live in

households with two or more generations, a doubling since

1980. The average age for leaving home has jumped from 19

to the mid-20s in just the last 20 years. This is a result of

many factors, including rising student debt and the poor

economy, but the bottom line is that we are witnessing the

slowest marriage rate in U.S. history as well as the highest

rate of non-marital births. Millennials are not racing out of

the house even now, as the economy is starting to turn

around.

Cohabitation may be contributing to coalescing of views on

a host of issues. We previously posted that it is the Boomers

who have the fastest growth rate in acceptance of same-sex

marriage. We see similar trends in acceptance among Baby

Boomers on other social issues as well, including the

legalization of marijuana and abortion rights.

Is it possible that Millennials, by all accounts, the best-

educated cohort ever in American history, are asking the

questions and generating debate about issues with the

previous generation in ways we haven’t seen in the past?

And, ultimately, finding in their Boomer parents kindred

souls in these sorts of debates?

High levels of engagement and multi-generational cohabitation are having other more

subtle effects as well. In a recent Campos study entitled “How Multi-Generational Living is

Changing the Way We Eat,” we found that people who live in multi-generational

households are eating at home more often, eating meals together more often, and also

eating healthier. Living under one roof with adult children and/or grandparents is also

causing more communal eating; on average, people from multi-generational homes eat

© 2015 Campos Inc

meals together more than four times per week. This helps explain why multi-generational

families living together go out to eat and order take-out less frequently.

LEVERAGING “COALESCENCE”

So, what are we to do with all of the COALESCENCE behavior? How do we leverage it

and learn from it?

First off, the fact that Boomers AND Millennials are noticeably aligning on shared notions

of social equity and shared goods suggests that there will be greater calls for investing in

social welfare and in infrastructure. For example, both want cities to invest in new

transportation options and municipalities to invest in public works. Taxes will be raised by

politicians stumping their support for public projects. This will greatly benefit U.S.-based

construction and manufacturing companies that have a local presence and green

technology.

See, Baby-Boomers’ and Millennials’ views on the environment and sustainable energy are

moving closer and closer together: A recent DDB Worldwide survey shows that 41% of

Baby Boomers would pay more for an environmentally-safe version of a product; only

slightly less than the 46% of Millennials. Expect green technologies to expand into

everyday products and become a criterion for public-based projects.

Second, opinions about education among the two generations are also starting to align.

Baby-Boomers are starting to question “standards” generated by No Child Left Behind, and

Millennials are developing angst and outright anger over being defined as the

“measurable” generation (see our paper, “Sequencing the Millennial DNA”).

This alignment suggests a strong growth in the need for innovative models generated by

both the public and private sector in the areas of education and workforce development. A

perfect example is how the two generations are starting to form a consensus around the

importance of STEM education, as long as it is defined by a collaborative, hands-on,

problem-solving and project based learning, and as long as it delivers a good job, not

necessarily a 4-year college degree. Supporting this is recent polling that shows that both

Millennials and their parents are questioning the value of a 4-year degree. There is

definitely coalescence when a child no longer fears telling their parents, “I may not want

to go to college next year.”

© 2015 Campos Inc

Third, while Baby Boomers and Millennials are competing for jobs in the workforce, Baby

Boomers are being motivated to increase their knowledge and use of technology and

participation on collaborative teams—values held dear by Millennials. Likewise,

Millennials are embracing protocols related to more conventional work norms.

COALESCENCE is taking place in the workforce, and companies will need help from

companies who can supply innovative Human Resources Systems and internal

communications programs that use both traditional and digital methods. Those companies

that have been struggling to forge consensus in the workforce had better do their

homework on collaborative models.

Fourth, this trend suggests to advertisers that, although the days of targeted marketing will

never go away, there will be an increased need to develop messaging and messengers or

third-party endorsers that appeal cross-generationally, or are at least inclusive of both

generations without the same biases we have traditionally assigned in the past. We will

have to move beyond the sense that including the “other” generation (usually the older

one) in our marketing approaches could spell the kiss of death for our product or service.

Think Honda Element: originally intended for adventurous youth, the brand planners went

crazy when it actually became attractive to gardener-type middle-aged women. Today

there will clearly be more opportunities to promote subject and message congruence, as

well as an increased use of cross-generational images, as a result of a convergence of

styles and tastes.

As this recent headline, “Kale: Not Just for Hippies Anymore,” suggests, the line between

who is leading whom—the Hippies or the Hipsters—has become quite blurred.

Image: campionkid

Chart: Pew Research Center

© 2015 Campos Inc

“Subscription Economy” Consumers move from sharing to subscribing.

UNDERSTANDING “SUBSCRIPTION ECONOMY”

From the time Neil Papworth used his PC to send the very first text message in 1992

—“Merry Christmas”—we have witnessed an evolution in online behavior from texting, to

JOYNING, to sharing. The trend we call "SUBSCRIPTION ECONOMY" is the result of the

intersection of this evolving consumer behavior and the business world’s response to it,

making it somewhat unique among our top ten consumer trends for 2015.

What’s most interesting about the SUBSCRIPTION ECONOMY is its truncated time frame:

anyone over the age of 20 has either been an active participant in the behavioral change

the trend describes, or, at the very least, has been a casual observer to it. Through their

online behavior, consumers have demonstrated a deep passion for, and even commitment

to, sharing. Now business is starting to change its model to profit from it.

This trend could very well change the way companies provide products and services to

customers—forever.

Digital technology has facilitated this change in consumer behavior: from texting as a way

to connect, to JOYNING, one of our top consumer trends last year, which takes

connections to the next level and is activity-based (e.g. purchasing products, playing

games, watching movies while exchanging feedback, doing joint projects, etc.), to sharing,

where consumers provide passwords to each other to access HBO GO, Netflix, Hulu and

other streaming sites and services. It just seems that people today would rather subscribe

to services than pony up the cash to own products.

Now, sharing is ushering in a new phase, the SUBSCRIPTION ECONOMY, and it derives

as much or more from the business response to sharing as it does from the consumer

behavior itself. The responses from the CEOs of HBO and Netflix to illegal sharing of

passwords for their products have basically been, “It’s not a major problem yet,” in part

because they can’t stop it, and also because the behavior is, in some ways, generating new

and future customers. But businesses have taken notice, and they are seeking ways to

profit from the prevalence of sharing by developing a new business model. Zipcar, Netflix,

and Birchbox may have led the way, but a new subscription model long used by cellular

providers is coming into being.

LEVERAGING “SUBSCRIPTION ECONOMY”

In some ways, we are at the infancy of the SUBSCRIPTION ECONOMY. Subscriber-like

services such as Zipcar have been around for some time, but the increasing sharing of

passwords and steaming services has caused business to awaken go the opportunity of

selling subscription-based products and services across a broad range of product

categories.

© 2015 Campos Inc

Consider these market developments:

• Subscription-based and recurring revenue models are in vogue for all types of

products, from Harry’s Razors, to toothbrushes, and even including genome

sequencing.

• Companies like Zuora sell software that helps firms move toward subscription-based

revenue models.

• By 2015, 35% of Global 2000 companies will generate revenue from subscriptions.

• 51% of leading global companies are in the process of changing the way they deliver

goods and services, all moving in some way to a subscription model.

• The Hudson Hub-Times of Kent, Ohio published an article announcing the nation’s

first subscription-based driver safety training program.

There are many other examples, but the outlook is clear: companies must find ways to

leverage this movement toward a subscription economy. Experts writing on this issue

suggest a number of steps companies must take.

WHAT, NOT WHO

The first is to set up shared customer networks of consumers based on needs. This involves

profiling your customers on the basis of their product purchasing patterns and creating

segments based not on demographics or who they are, but on WHAT they purchase. This

orientation is difficult for some companies, but is a necessary shift in thinking.

MULTI-USERS

Second, design plans that allow for multiple profiles or users all on one subscription. An

investment analyst consulted for this article cited a mid-size grocery chain that had the

idea of selling subscriptions to multi-generational families so that grandparents, parents,

and adult children could all use the same account and share in the savings. What was

brilliant about this idea is that parents of young adults are eager to help their children, but

want them to learn the lessons of responsible finance and individual accountability.

Somehow, helping them out with groceries is not perceived as interfering with these life

lessons.

© 2015 Campos Inc

NEW CUSTOMER RELATIONSHIP

Above all, companies must realize that running a subscription company means that there

is a continuing relationship with customer. The relationship doesn’t end with the swipe of

a credit card or a cash transaction. In the article, “How to Excel at the Subscription

Economy” on the Kissmetrics blog, the author offers three key attributes about a

subscription that companies should emphasize, including uniqueness, differentiating

quality, and simplicity.

image: recipeluv.com

© 2015 Campos Inc

“Righteousness” A virtuous life redefined.

UNDERSTANDING “RIGHTEOUSNESS”

The decline in public trust of major institutions, government, business, marriage, and even the NFL has been well documented, and the various causes have been explored and debated by pundits. What has received far less attention is the resultant consumer mindset and behavior that has sprung from this lack of trust. Rather than becoming cynical and dejected, people have reacted with a genuine call for better and kinder behavior, which underlies the trend we call RIGHTEOUSNESS.

RIGHTEOUSNESS is defined by Webster’s as “the quality of being morally right or justifiable.” We believe the trend represents a forging consensus on key social issues, and a growing demand for key shared values, all caused in part by outrage over recent highly publicized police-related events, such as those in Ferguson and on Staten Island, and other disturbing demonstrations of violence, like the Ray Rice incident. But what makes this trend really interesting and unique is that, at its very core, people are calling for the need for virtue and the non-religious sharing of key values. RIGHTEOUSNESS is about spirituality, not religion. It is a demand that people act ethically and display kindness to

one another simply because it’s the right thing to do. We describe it as a virtuous life redefined.

In her excellent opinion piece on CNN.com, Linda Mercandante writes about the meteoric rise in people who claim to be “spiritual but not religious,” and she argues that this should be seen positively, especially by religious people. Is she right? Is religiosity on the decline at the very same time people are calling for a shared sense of values and behaviors that could be described as righteous? The Corner of Church and State, a religious news service blog that tracks religiosity in America, certainly thinks so. They refer to the phenomena where the number of people with no religion is growing, and fewer and fewer people reporting that religion is an important part of their lives as “The Great Decline.”

Other organizations that track religiosity in the U.S. concur. In its Global Index of Religiosity and Atheism, WIN/Gallup reports a 13% decline since 2005. In its 2014 U.S. Religious Landscape Survey, Pew reports that religious affiliation is down 28% in the U.S.

These publications offer great reading, but do not necessarily prove a relationship, let alone a causal connection, between the trend RIGHTEOUSNESS and a decline in religiosity. To show that, our researchers monitored posts on Facebook and Twitter, reader comments on CNN, The New York Times, and other media sites, and online conversation boards like Philosophy Forums, Hacker News, Quora, reddit, and our own VO!CE of the Region online panel, to see how people were talking about lack of trust and bad behavior and what should be done about it. Key themes and words emerged from this online review of conversations about recent events, companies, relationships, and society, and they focus on people’s behavior toward one another, not religion. They were, in order of frequency, the following:

© 2015 Campos Inc

• Kindness

• Moral/ethical

• Honesty/integrity

• Respect

• Transparency/openness

• Giving back/volunteering

• Virtuousity

• Decency

• Principled

LEVERAGING “RIGHTEOUSNESS”We believe that both consumers and companies will react in certain ways to the

RIGHTEOUSNESS trend. First and foremost, we expect consumers to increasingly judge

companies on the perceived proximity to shared values. It will be critical for companies to

articulate openness, transparency, and authenticity, in both their internal and external

communications. Robert Craven, CEO of MegaFood, makes the point that the expectation

for transparency has extended beyond personal interactions and is now a reality in

business. He argues that embracing transparency and openness will improve service and

increase customer loyalty.

Second, one would expect to see an increase in the number of people supporting not-for-

profits. Nothing is more righteous than giving, and Philanthropy Outlook projects giving

by individuals and households will increase 4.4% in 2015 and 4.1% in 2016. These are

not modest gains coming out of a recession. Not-for-profits must adapt by demonstrating

how supporting their organizations is indeed a virtuous behavior that borders on kindness.

Third, we may finally witness companies adopting a culture of kindness that, among other

things, inspires great customer service and makes for a place where employees really want

to work. Ed Horrell’s The Kindness Revolution: The Company-wide Culture Shift that

Inspires Phenomenal Customer Service, which was first published in 2006, is strongly

© 2015 Campos Inc

recommended reading on this topic. It now appears that he was prescient, as the

RIGHTEOUSNESS trend suggests that customers are now measuring a company’s service

based on issues related to kindness. In fact, we recently completed a public transit market

research study that identified “friendliness and kindness” of employees as the most critical

factor in influencing their perceptions.

As a personal aside, I am gratified that one of the first things I was asked to collaborate on

with A.J. Drexler when she took ownership of the firm a little over a year ago was

articulating Campos Inc’s values. Kindness was included as a core brand value. Here are a

few tenants:

• Each employee has an important job to do that fits them well.

• The company has a meaningful purpose, and that is to serve the customer in a way that

delivers value.

• Each employee should be empowered to make decisions.

• Companies attract the best employees and customers by running an organization based

on sincerity and consideration.

• There is value in dignity and courtesy, and, above all, kindness.

images: nadir hashmi

johnhain

© 2015 Campos Inc

“A Measurable Life” Making sense of the world through measurable benchmarks.

UNDERSTANDING “A MEASURABLE LIFE”

As a nation, we are about to learn what happens when a whole generation of people in America becomes accustomed and accepting of having their lives publicly measured and scored: Success or failure measured by numbers and little else.

The students who started kindergarten in 2001—the year of the passage of No Child Left Behind—have now spent their entire educational experience in schools defined by that bi-partisan law. These kids knew all along that how they performed on standardized tests (it went from 6 to 17 annual tests overnight) was not only an indication of their individual success or failure, but it seriously impacted the “grade” their teachers and their school received—for some, even if their school would remain open. It’s that kind of pressure has led to the current uprising with, in some districts, whole grade levels of students boycotting the test.

But those first kindergarteners are now deep into their college educations, and the middle school-aged kids who were, let’s say, 12 at the time, are now 26 and they are both fully (finally) in the work force and smack-dab in the middle of the generation now known as the Millennials: the largest generation America has ever produced.

And the truth is, this wasn’t the only “measuring stick” for success that began to appear at roughly that same time for these kids. Facebook launched in 2004 and became fully public in 2006, and a new system of public measures was born. Never before had your number of “friends” been such a public and documented form of social clout. Very quickly thereafter (sometime between 2006 and 2010 depending upon whom you ask) we have yet another series: “followers” on Twitter and Instagram, and “connections” on LinkedIn.

All told, the 26-year-olds of today have grown up fully entrenched in what we at Campos refer to as “A MEASURABLE LIFE.” And the worries are starting to surface.

While Millenials may be, on one hand, the fastest moving and most socially engaged generation as a result of the near constant “learning for the test,” they also now require more specific constructs in order to succeed in business. And businesses are going to have to quickly learn to provide those constructs because, as the baby-boomer retirements ramp up, this generation generation is going to be asked to step up more quickly than any generation in the past.

LEVERAGING “A MEASURABLE LIFE”

So the big question is, how do we as business owners provide a work environment that,

considering A MEASURABLE LIFE, contributes to the rapid growth and development of

Millennials? As a business owner who happens to see great promise in the Millennial

generation, I offer these few guides:

1. Adopt formal performance management structures. Millennials are comfortable being

measured, so set up measurable metrics. Clarify roles and responsibilities early on and

accentuate that throughout their career. Build timelines and expectations that relate

back to performance goals that are clearly stated. They strive to meet a numeric goal,

so give it to them! This is not a bad thing, just a different way of thinking.

2. Make it safe to fail. The pace of innovation that surrounds business at this time will

demand the near constant generation of new ideas and ways of looking at the world.

And this skill set may likely have been the one we have sacrificed (and therefore will

become increasingly valuable) as fewer and fewer people are comfortably able to take

the risks that innovation and ideation require. If your business requires this (and how

many won’t?), you will need to clearly discuss this and build a culture that (contrary to

all of their schooling) rewards Millennials for taking risks that will most certainly

involve failure. The best ideas just don’t come out fully baked. Our employees have to

© 2015 Campos Inc

be willing to take the risk of putting an idea out there in order to see where it will go—

whether there is immediate success or not.

3. Facilitate collaboration. Growing up in A MEASURABLE LIFE has conditioned

Millennials such that their first inclination when given an assignment may be, “How

does this project affect me personally, and how will I be judged?” They are not against

collaboration, and, in fact, they have lived and flourished on Facebook and in other

communities. So set up team goals, but provide each person with an individual

objective. Set parameters and expectations early on. And provide a convincing reason

as to how individual accomplishment leads to reaching shared goals.

4. Be clear about goals, consequence and incentives. Millennials are the hardest working

of all generations, but tend not to embrace tasks or projects in which the objectives are

not clearly defined and expectations are not related to performance goals. They do not

shy away from explicit directions or mope when told that they are expected to be at

work at 8:00 a.m. and not leave unless they check in with a supervisor. They just want

to first understand what the measures are, and then they will seek to exceed them.

image: maessive

© 2015 Campos Inc

“We-Fi Generation” Being rooted in technology and collaborative by nature.

UNDERSTANDING “WE-FI GENERATION”

Another of our top consumer trends for 2015 is WE-FI GENERATION, which is how we describe a generation rooted in technology and collaborative by nature. It seems that trendwatchers have tended to focus on the first part (rooted in technology) and have ignored the second (collaborative by nature), a somewhat critical oversight.

Let’s start with what we know. Millennials were born into a world where innovations in consumer technology were rapid, constant and all-pervasive. They’ve grown up with laptops, iPods, iPhones, and tablets, and their constant and continual access to technology at a young age has made them much more comfortable and conversant with technology than any generation that preceded them.

Consultants and commentators have focused on this singular aspect of Millennials, and there are thousands of polls and reports that document their behavior online, whether it is purchasing goods and services, comparing products, taking and sharing photos, or playing games. Millennials are said to make purchase decisions quickly because they can access numerous comparison shopping sites at the touch of a finger. A good early treatment of this is Pew’s Generations Online in 2009 Report. And now there are now entire departments at ad agencies and PR firms full of professionals who specialize in

investigating how Millennials “relate to brands online,” and which visuals resonate most strongly with them.

But there has been little focus on the impact of their behavior online, which is that it has made Millennials more collaborative by nature. Constantly plugged in, Millennials regularly converse with and seek advice and input from peers online, while projecting their personalities and posting their hopes and fears for all of the world to see. They are more likely to seek consensus from peers and to be open and transparent in their communications.

LEVERAGING “WE-FI GENERATION”What does it mean that Millennials are more collaborative

by nature, due to the fact that they have been rooted in

technology since birth? What are the implications of the

reliance on and trust in a communal voice and consensus?

These are the kinds of questions that few are asking and even

fewer are answering.

Understand that they are deliberate decision-makers

First, and contrary to the misperception that they simply

reject authority and are obstinate in their belief that they

always know the right answer, Millennials are deliberate decision-makers, weighing input

and evidence from numerous sources. They trust community members who have

demonstrated expertise and practical experience in a specific area.

So:

• Win them over with analytical arguments and data, not emotional appeals or conjecture. They become convinced by proof, and not conjecture.

• “Because I told you to” is not a directive they want to hear and are unlikely to follow.

Such a directive from a supervisor is simply counter-intuitive to a generation rooted in

social discourse of questioning that is promulgated by technology.

© 2015 Campos Inc

Be aware that they embrace transparency and openness

An extended notion of self to the group also helps explain why Millennials value openness

and integrity. These are the catch phrases for something of paramount importance to

Millennials and, above all else, it is authenticity. They’ve made their lives an open book

and expect the same of others. There is a collective consciousness surround their

willingness to expose one’s self in an honest fashion, gather feedback from others, and

then act on the basis of this transparent process.

So:

• When trying to when them over, expose Millennials to real-life scenarios and messages they encounter every day. They can “smell a rat,” and they expect to be dealt with in an open fashion.

• Make sure that your corporate social responsibility efforts have teeth to them, are

related to the brand in a meaningful way, and provide evidence of positive outcomes.

Technology and social networking have made Millennials more aware and able to

connect and share concerns with others.

Be ready to defend your communal voice

Perhaps the major lesson to heed about Millennials rooted in technology and collaborative

by nature is this: If you compromise the quality of your communal voice, you’ll lose

credibility. It is therefore critical to be smarter about infiltrating social and online

communities with an authentic voice and a defendable position.

• When done well, the community will not even realize you are marketing and will sing

and share your praises.

• But, if done poorly–such as posting a self-congratulatory message or flattering image in

a form on reddit–your brand is now subject to criticism and mockery in a very public

forum, and could become somewhat infamous in the online community.

images: cienpiesmomosmiles

© 2015 Campos Inc

Like what you’ve read? Want more on trends?

Contact us for a top consumer trends presentation to your team or organization.

Bryan DeCeccoDirector, Business Development

412-471-8484 ext. 512BDeCecco@campos.com

www.campos.com

© 2015 Campos Inc