book summary xygeneration connected generation needs

8/6/2019 Book Summary XYGeneration Connected Generation Needs

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In this issue:

Understand...the most powerful force inmarketing today the 136million Americans betweenthe ages of 9 and 41 whomake up the ConnectedGeneration.

Explore...the 10 consumer cravingsthat will generate big rev-enues and profits for thecompanies that know how tosatisfy them.

Build...compelling brands by givingcustomers personal recogni-tion, providing a sense ofadventure, and helping peo-

ple to connect with eachother.

Appeal...to the ConnectedGeneration by using cleverdesigns, giving customersfewer choices, using word-of-mouth advertising, andletting people collaborate.

Gain...customer loyalty by using

brand theater, fulfillingyour customers needs forspirituality, and helpingpeople give back to thecommunity.

Mind Your X's and Y's

Satisfying the 10 Cravings of a New

Generation of Consumers

byLisa Johnson

A summary of the original text.

THE RISE OF THE

CONNECTED GENERATION

Today more than ever, busi-nesses need to understandhow to reach the customerswho have grown up in theInternet era. Generation

X, which consists of people

born between 1965 and1979, and Generation Y,whose members were bornbetween 1980 and 1997,together make up the mostpowerful force in market-ing today: the "ConnectedGeneration." We call themthe Connected Generationfor three reasons:

1. They are connected totechnology 24/7.

2. They are connected tothe people in their lifein tight circles andlarge networks of looseconnections.

3. They are seeking apowerful interactive

connection with thebrands they love.

The recent technologiesthat this generation hasembraced are radicallychanging the way today'sconsumers think not justabout what they buy but

how they buy, how they actand react, and which prod-ucts and services they findcompelling. This shift hasleft thousands of compa-nies scrambling to keep up.

In five years, thisConnected Generation willrender many traditionalbusiness and marketing

practices obsolete. In thenext 10 years, most mem-bers of Generation X willturn 40. Historically, theseare the peak earning andspending years. They'll beearning more than everbefore, and they'll spendtheir money on their kids,spouses, and aging par-ents, as well as themselves.

Volume 15, No. 9 (2 sections). Section 2, September 2006.

2006 Audio-Tech Business Book Summaries 15-18.

No part of this publication may be used or reproducedin any manner whatsoever without written permission.

To order additional copies of this summary, reference

Catalog #9062.


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At the same time, Generation Y, despite its youth, is proving to be a crucial demo-graphic, based on its large numbers and proven brand loyalty. According to a recentstudy published in Harvard Business Review, this younger generation of consumersnow wields the ability to make or break new brand-name products only a few monthsafter they hit the market, thanks to the Internet and other information technologiesthat connect them.

Unfortunately, the Connected Generation is not easy to reach. Generation X is frag-

mented, because it has an antagonistic relationship with the media and with overtbrand labeling. Inundated with hundreds of thousands of advertisements over theyears, Gen X has been called cynical, independent-minded, and difficult to reach withproducts and services.

Generation Y, on the other hand, embraces the marketing process but presents a dif-ferent, yet equally important, challenge: They have been studied only as teenagers,so marketers understand their attitudes and behaviors only through a very smallbrand spectrum. They have no idea how this generation will interact with a range ofhigh-end products, such as real estate or insurance.

However, we can anticipate what they will buy by understanding 10 consumer cravingsof the Connected Generation. These are:

1. Shine the spotlight: Extreme personalization gives marketing a new face.

2. Raise my pulse: Adventure takes its place as the new social currency.

3. Make loose connections: People redefine the meaning of "families" and socialnetworks.

4. Give me brand candy: Everyday objects get sharp, intuitive design.

5. Sift through the clutter: Editors and filters gain new prominence.

6. Keep it underground: The rejection of push advertising and the rise of peer-to-peernetworks.

7. Build it together: Connected citizens explore their creative power and influencechange.

8. Bring it to life: Orchestrating everyday activities to deliver a sense of theater.

9. Go inward: Spiritual hunger and modern media find common ground.

10. Give back: Redefining volunteerism and community contributions.

2 A U D I O - T E C H

In order to understand the 10 consumer cravings that are driving this group, it'simportant to recognize the five essential criteria that underlie all of the cravings. Theyare:

1. Experience. Today's consumers want to get out there and test personal limits.They want to feel alive and shake up a stale routine.


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Let's examine each of the 10 market cravings, and define the underlying reasons thatdrive them.

1. SHINE THE SPOTLIGHT

The Connected Generation is eager for personal recognition. The marketplace is wak-ing up to an unprecedented national obsession, in which ordinary citizens desperatelywant to achieve celebrity.

Whether it's singing onAmerican Idol, writing a popular blog, or getting their videosplayed on Current TV, this generation longs to be recognized for who they are and whatthey can do.

Acknowledging this trend, companies are waking up to the power of personalizationand highly engaging tools that celebrate the individual's talents and potential.Personalized license plates and mailing labels were just a hint of what's coming.

Today, a whole slew of products can put the customer at the center of the action. Forexample, a customer can order a bag of his favorite color of M&Ms, and have themprinted with two lines of text. Other businesses will customize movie posters, comicbooks, or romance novels around the individual. What this means is that customersare leaving the audience and taking the stage, and brands that tap into this power withcustomized efforts will enjoy a whole new level of brand loyalty.

There are seven reasons for this phenomenon:

First, it's human nature to crave attention. Everyone wants to be recognized and

celebrated.

Second, they've seen what's possible. Everyone knows the almost mythical storiesby now of the nerdy guy who makes billions, the obscure college student whoinvents MySpace, or the unknown who gains national fame on a reality TV show.

And they all have new venues with which to launch their own personality into thepublic eye.

Third, there's a sense of entitlement. Members of the Connected Generationbelieve they deserve their moment in the spotlight. They don't have the patienceto build something slowly and methodically. They want it now.

B U S I N E S S B O O K S U M M A R I E S 3

2. Transparency. The Connected Generation wants and knows how to get fulldisclosure. The "push" model of marketing will no longer work.

3. Reinvention. The X and Y generations demand what's new, better, faster, and moreefficient. If something doesn't work, they'll find something else that does.

4. Connection. The new market runs on cooperation. The hottest sites on the Internet,such as MySpace, eBay, and Craigslist, connect people to one another.

5. Expression. People are searching for new ways to define and express themselves.


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Fourth, every industry has a celebrity culture. From cooking to plastic surgery tolandscape architects, people find famous gurus everywhere they look. This holdsout the possibility that they, too, may find the spotlight through an obscure skill.

Fifth, people want to become famous in familiar formats. In the past, only thewealthy got their names out there. Today the criteria for celebrity are random,quirky, and wide open. Consider Jared the Subway guy, who became famous forlosing weight by eating Subway sandwiches.

Sixth, youthful celebrities wield power. With so many kids in the spotlight, chil-dren begin dreaming about their own celebrity sooner and with greater specificity.By the time they have the tools, they're ready with a plan. Moreover, parents,teachers, and coaches are all there to give them a head start.

Seventh, they want promotion without the appearance of self-promotion.There's a fine line between self-promotion and having others celebrate your contri-bution. The Connected Generation craves the spotlight, but frowns on shamelessself-promotion. Currency comes from recognition by others.

To tap into these basic needs and drives, begin by dividing your customers into tiers. Your top tier should include people who will be most passionate about your brand.These highly influential customers are worth more than all the others in your market.

Next, think about how to reward the top tier. Don't limit yourself to products or dis-counts. You can also provide full access to inside information or resources, createspecial events, and ask for feedback on early product design.

Also, look for ways to connect your top-tier members. For example, a group of BMW motor-cycle enthusiasts created a club that offers roadside assistance to BMW drivers. BMW gavethose customers a way to contact each other, help each other, and share stories.

2. RAISE MY PULSE

In the past few decades, the bar for what a brand must deliver to customers has beengradually rising. The Connected Generation is demanding not just products or evencustomer service, but compelling, exciting, interactive experiences. There is a newpremium being placed on venturing into the world, collecting new adventures, andpushing personal limits.

Ten years ago, an expensive new car or gadget was often the preferred status symbol;

today, the Connected Generation turns to activities like international travel, extremesports, and exotic hobbies.

Adventure does not necessarily mean doing something daring, like skydiving. Butit does mean breaking away from the realm of everyday experience. As a result,unusual, learning-based adventure opportunities are cropping up across the nation.

Kids are losing interest in the traditional summer camps in favor of rock star camp orrobotics camp. Restaurant customers can have a meal while taking sushi-makinglessons. And home improvement stores are offering do-it-yourself workshops forwomen.

A U D I O - T E C H4


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In short, these consumers don't want a predictable routine they want to disrupt theroutine with adventure. They want to engage their senses and emotions and haveexperiences they can share with family and friends.

Where did this sudden hunger for experience come from? Why is everyone so eager toget out and explore?

Here are eight reasons that explain why people increasingly crave adventure:

First, people are bored. The Connected Generation is constantly flooded with infor-mation, images, and words, but with very little first-hand experience. This canspark a desire to jump into the center of the action.

Second, there are great new creative tools available today. New technology hasmade it possible to become creators instead of observers. From fantasy footballteams to digital video, people have the tools to create their own content.

Third, behind-the-scenes access has whet their appetites. Reality TV, the Internet,and other media have erased much of the mystery behind every profession, from

celebrity chefs to film directors. People can now see how something works, andenvision themselves doing a better job at it.

Fourth, learning has become the ultimate status symbol. People crave first-handlearning that engages all five senses. Saturday afternoons are no longer spentwatching TV or mowing the lawn. There's an exciting line-up of workshops avail-able, from creating digital family albums at the local camera shop to cookingclasses at the gourmet grocery store.

Fifth, external experiences trigger internal transformations. People are looking fora catalyst to give their lives a new direction. Changing careers, climbing a moun-tain, writing a book all these pursuits breed confidence and spur people on to

new actions.

Sixth, experiences are the new social currency. People like to share personal sto-ries that highlight their own courage, creativity, and talent. This can be seen in theproliferation of blogs on the Internet.

Seventh, the Internet makes everyone aware of these possibilities. Adventurousand offbeat exploits are now mainstream in all media, including the Internet. Theconstant exposure to wild journeys and experiences brings everything within therealm of the possible.

Eighth, packaged adventures make it accessible. Even the most exotic kinds ofadventure are now ready-made. Organizations exist to package and streamline theexperience, whether it's kayaking among the killer whales or climbing MountEverest. From adventure travel to exciting new classes, it has never been so easyfor each person to do whatever it takes to raise his or her pulse.

To tap into this craving, create interactive test-drives so people can try out new expe-riences. A company that does this is VocationVacations, a business that gives peoplethe opportunity to experience their dream jobs while on vacation.

VocationVacations has packaged more than 200 vacations around 82 vocations, from



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pastry chef to golf pro to fashion designer to horse trainer. This allows people to expe-rience their ultimate career ambitions without having to quit their day jobs or financea new business.

Another way to raise people's pulses is to think about what you want people to feelwhen they experience your brand. Make a list of the emotions you seek to evoke, andimagine all the environments where people tend to experience those feelings.

From those emotions, you can create the kind of adventure stories that will get yourmessage across. Make a list of five things your customers like to do for adventure, andlink each one with your brand to create an adventure experience.

3. MAKE LOOSE CONNECTIONS

The Connected Generation is changing the nature of its social structures. People areincreasingly seeking close friendships and forming tightly-knit, yet non-traditionalcommunities that have been described as circles of peers or tribes.

They are moving away from traditional associations like the Elks and the Lions infavor of loose connections that more accurately reflect their interests, lifestyles, andgeneral lack of time. The new shape of social interaction demands less commitmentand is more focused on specific goals. The Connected Generation is creating looseconnections around brands, activities, and specific passions and interests.

With traditional membership organizations on the decline, people are not just buyingbrands. They are interacting with them more deeply, and informally joining them asmembers of a new type of community structure.

Let's examine seven reasons why this craving has emerged:

First, new forms of media make new social structures possible. While older gener-ations might read the newspaper or watch a morning news show while eatingbreakfast, younger generations will start the day by checking into sites such asMySpace or Friendster. Its how they feel connected and grounded for the day.

Second, real life can be stranger than fiction. The new generation hungers forunscripted access to other people's lives. Online communities let people watch thedrama of others' lives unfold.

Third, new ways are emerging for existing circles to communicate. Online commu-

nities provide a looser, more free-form way to stay involved in one another's lives.Geography no longer matters to the cohesion of a group.

Fourth, people want private space. A member of Generation X might tell a co-worker about going for drinks at a nightclub, but may be less likely to explain the30 minutes he spent chatting online about a new video game. It feels special,exclusive, and fun to keep it private.

Fifth, people need flexibility. The membership in online communities is fluid.People move in and out through the days, weeks, and months, depending on theirneeds and desires. They crave community, but value the lack of commitment. The



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sites are on 24 hours a day, and the consumer decides when to participate.

Sixth, the Internet allows for convenient centers of influence. Facebook and othervirtual communities are now the preferred venue for everything from studentcouncil campaigns to politics.

Seventh, there are no barriers. The Connected Generation has a much higher levelof trust for strangers and feels little fear about meeting people online. In fact, they

feel the layers of technology give them more control.

To leverage this craving, start by linking like-minded people with similar goals andinterests. MySpace lets users search for people by interests. Traditional businessescan use the same approach. A pet food manufacturer can use its Web site to help own-ers of various types of pets, from ferrets to hamsters to cockatiels, find each other, shareadvice, and exchange photos of their pets.

It's essential to give people the freedom to express themselves in their own way.Don't add unnecessary rules or try to stay in control of the community. Let it evolvenaturally.

Also, give people insider peeks and perks. If you create an online community aroundyour brand, give them the first opportunity to preview new products online and tosample them first-hand.

4. GIVE ME BRAND CANDY

Design has become a core competency for being in business, as the Apple iPod and theMotorola Razr phone have demonstrated. More than 50 million iPods have been sold,and the Razr met its lifetime sales projections in its first three months on the market.

Design makes people want products. It creates an emotional and physical connection.Everyday objects are being redesigned to give them more functionality and make themmore pleasing to look at and use.

Design includes not just the product itself, but the entire experience. For example,when people speak of their iPods, they aren't just talking about the music player.They're talking about the iTunes Music Store, the iTunes system, and the iPod softwarethat ties it all together.

Design-driven strategies are helping companies connect with customers at a deeper

level.

Here are seven reasons why design is so important in addressing the ConnectedGeneration:

First, design makes life easier. It makes technology more usable and intuitive. Itsimplifies products, spaces, and experiences.

Second, design is a key differentiator in a sea of choice. Design is often the onlyway to stand out in the crowd of look-alike products that jam the shelves. Loyalfans quickly spread the word.



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Third, people want to feel that they are in good hands. Nearly half of all respondentsin a study done by the Stanford Persuasive Technology Lab based the credibility ofWeb sites on their design appeal.

Fourth, good design makes a product's use transparent. Good design helps aperson immediately figure out how to use its full capacity.

Fifth, design adds beauty to everyday life. It's no longer enough to offer a good

product. Design today must create a detailed experience that feels memorable fromstart to finish.

Sixth, design helps consumers evaluate quality. It's a shorthand form of commu-nication. The fit and finish the elegance of a design sends a clear messagethat quality lies within.

Seventh, design choices shape personal identity. People define themselves in partthrough aesthetic choices and symbols. Clothes, cars, shoes, jewelry, and furniture all of these possessions communicate essentials of identity.

To take advantage of this craving for design, make sure that your organizationsleaders and decision makers actually experience the brand.

For example, an interesting thing happened recently when the chief marketing officerfor Philips Semiconductors which makes a range of audiovisual products gaveeach member of the board of directors a collection of Philips products to try out over theweekend. On Monday morning, many of Philips' leaders had to confess that they couldnot work some of their own products.

It's also important to get your team out of the office and into the homes of your users.Watching users in real-world situations sparks ideas that would never come to life ifthe designers simply sat in their cubicles.

5. SIFT THROUGH THE CLUTTER

In a world that gives consumers more choices than ever, it's becoming harder than everto decide among all the options. That's why some successful businesses are now beingbuilt around giving customers fewer choices.

Consider "roll:" bike stores. Entrepreneur Stuart Hunter founded the chain of bicycleretail shops when he tried to buy a bike and felt bewildered by all the choices he

encountered at traditional stores, which typically stock at least 100 models. In a roll:store, there are only four bike categories divided by lifestyle: road, mountain, trail, andfamily. In total, the shops carry 18 product styles, and each bike has a clear difference,such as best in class or best in value.

Hunter sifted through the best products each bicycle brand has to offer and carries thetop picks. This is a technique he learned when he worked with Circuit City, over-hauling the digital camera department and reducing the offerings from 24 cameras tosix.

The result? Circuit City reported higher sales volumes with the six carefully selected



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cameras than they had with 24. This is when Hunter first realized the power ofediting in action.

Because choices can lead to confusion and frustration, consumers rely on editorsand filters to sift through all the raw data and identify the best selections. Savvybrands are learning to build editing mechanisms into their brands, products, andWeb sites.

There are six reasons that underlie this craving for filters and editors:

First, people want a range of choices to meet their needs and match their sensibil-ities. Faced with too many possibilities, people become overwhelmed. They simplywant the best.

Second, no one has the time or know-how to undertake due diligence. Anyone cango online and research anything, from laptop computers to energy drinks. But thatcan quickly become a daunting task. Relieving customers of that burden can drivethem to your brand.

Third, the Connected Generation wants to make the right choice with confidenceand avoid expensive, time-consuming mistakes. Selecting from a trusted list of toppicks makes life simpler. Someone else has already done the time-consuming workand narrowed the options, leaving the consumer free to follow his own intuition.

Fourth, technology makes editing easier. From blogs to collaborative filtering toRSS feeds, it's simpler than ever to do the editing for the customer.

Fifth, people long for a sense of community. Editing defines a position, a point of view,and communicates a sense of style. This creates loyalty and passion. Communitiesdevelop around trusted filters.

Sixth, personal growth is built into filtered experiences. Ongoing relationshipswith filters require that the entire community take the journey together. Personaldevelopment and discovery keep the experience fresh, and ensure that editors andtheir followers evolve over time.

To apply the lessons from this consumer craving to your business, begin by takinga position. Decide who will be your target customer. At roll: bike shops, its therecreational cyclist, not the hard-core athlete who is training for an Ironmantriathlon.

Next, provide context. Hunters concept would have fallen flat if he had simply cut

290 of the 300 possible models and opened a store with only 10 bicycle models. Therehas to be context and purpose to the filtering. Roll: works because its attached to fourlifestyles: road, family, mountain, and trail. All of the bikes and accessories are cho-sen because they will help customers experience these four styles with fun, ease, andvalue.

In your own business, evaluate your offerings by asking two questions:

1. If you had to decrease your inventory by 75 percent, what criteria would you use toedit the mix, and what products and services would be left in your lineup?



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2. How could you edit and filter all of the content on your Web site so that customerscould make simpler and faster buying decisions?

6. KEEP IT UNDERGROUND

The Connected Generation has grown up saturated by marketing and advertising.

They're suspicious of ordinary "push" campaigns and crave integrated, contextualofferings that emerge from trusted friends and members of their own networks.

As Malcolm Gladwell explained in The Tipping Point, today's consumers follow "TheLaw of the Few" a select group of people discover something new, from shoes tobands to politics, and translate it in a way that becomes acceptable to the mainstream.

To understand this craving, consider the following seven insights:

First, people are sick and tired of advertising. Peer-to-peer and word of mouth arethe future. People are more interested in learning about products they've heard

about from other people than those they see on television. Second, the Connected Generation craves authentic interactions. The most effec-

tive brands simply capture what's real and authentic about the product or serviceand present it in a straight-up manner.

Third, there is power in the act of discovery. People dont want to be told whatscool. They want to feel as if they've stumbled upon your brand by themselves, andthey want to share it with their networks.

Fourth, the new consumers want to embrace roles as independent brand owners.When customers are thrilled about their experiences with your product or service,

they can become outspoken evangelists for your company.

Fifth, people want respect. The Connected Generation responds to honesty. Theywant to be treated as peers, not targets.

Sixth, the model for creating awareness has rotated 180 degrees. "Big, loud, andoften" used to be the formula for advertising success. Today it's better to quietlyseed a group of influencers and have them naturally spread the word.

Seventh, today's customers are smart and in control. Your messages will be effec-tive only if you stay true to the underground culture. Ten years ago, McDonalds

alienated the skateboarding community by using unknown athletes performingskate tricks that true enthusiasts knew were impossible. The question is no longer,"What can we sell to the consumer?" but "What can we learn from the consumerabout his or her needs, and how can we help to satisfy those needs?"

In order to thrive in the underground, you must have a great product. In today's vastmarketplace, you have to really differentiate your brand with excellent products tomaintain the high standards of the underground. You also need to care about yourcustomers' opinions and what's important to them.

To do this, get to know the most powerful underground community that uses, or could


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use, your brand. For Vespa, it was fashion leaders and designers. BMW turned tofilmmakers, and Toyota Scion targeted urban trendsetters.

Select a group that represents your brand's core. Then leave your desk and go for awalk, a drive, or a subway ride. Visit the places where your brand is used, and build aportfolio of underground spaces and communities that deserve more of your attention.

7. BUILD IT TOGETHER

There are currently 1 billion people connecting online around the world. With so manypeople conducting large portions of their lives online, they've begun to tap the power ofWeb-based networks.

The most popular sites are now based on engagement and user-driven activities, fromposting profiles on MySpace, to buying and selling on eBay, to jointly editing an ency-clopedia entry on Wikipedia. There are at least 10 million blogs read by 32 million

Americans.

People will increasingly use the Internet to connect with each other in order to buildeverything from social networks to political campaigns to shopping centers. That's whyit's important to understand six reasons behind this craving:

First, customers, technology, and broadband have evolved. The Web has advancedto the point that it's easy for people to participate in almost any effort. With today'ssavvy citizens and supercharged computers, the Net can connect millions like noother medium.

Second, the Connected Generation is comfortable with online strangers. They arenow at ease mingling with, buying products from, and even dating people they meet

online.

Third, customers have increased access to information. With this new knowl-edge, they've become co-creators and partners, not just consumers. If you don'tlet people help you build your product, they'll go somewhere where they can.

Fourth, consumers will create content without reward. From Amazon's readinglists for fourth-graders to Wikipedias entries on stem cells, online content isbeing created daily by millions of people who happily participate in the new socialeconomy without incentive.

Fifth, everyone is accountable. Consumers can easily sniff out fake blogs and prod-ucts that don't stand up to claims. They'll hold your products and your advertisingto a new standard.

Sixth, there's a new form of volunteering and community contribution. In theConnected Generation, giving opinions on a car or toaster, or reviewing a movieor hotel, is a new form of volunteerism and a recognized way to give back to thecommunity.

To take advantage of this craving, work to accommodate a varied group of consumers,from the active to the passive. Think of ways to expand the opportunities for each



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group of consumers to get more involved in your brand.

Keep in mind that customers are not interested in helping just any brand thatcomes along. The most active participants are invested in the outcome because itwill affect their lives in some tangible way. What is motivating your current brandcommunity to participate actively with your company? What can you do to increasetheir participation?

Also, what would it look like if your company developed a formal process for reach-ing out to customers and integrating their intellectual capital? Blogs, wikis, andpeer reviews provide ways for your customers to support and swap ideas about yourproducts.

Finally, think about a major challenge that your brand is facing that could benefit fromthe input and ideas of your customers. Many members of the Connected Generationare eager to solve problems for companies and for the community.

8. BRING IT TO LIFE

To reach the Connected Generation, companies can't just sell products and services.Instead, they must offer experiences in the form of brand theater. Brand theateris popping up in virtually every industry, from beverages to designer fashions, ascompanies deliver compelling and entertaining experiences.

Starbucks used brand theater to transform the act of drinking coffee into a lifestylestatement. The company elevates an everyday activity to a deeply textured experience,with exotic drink names, comfortable furniture, and thought-provoking comments onthe cups.

To understand this craving, let's examine the seven reasons that underlie it:

First, consumers have abundant choices. Customers have so much choice thatthey're starting to pick products and develop loyalty not just based on service, price,and quality, but on the entire buying experience.

Second, pioneers have raised the bar for everyone. Early leaders such as Disneyhave raised the brand experience stakes. Innovators in all industries are findingcreative ways to design compelling experiences, and customers have come to expectit.

Third, price is not the only factor. Many brands are as lean as they can get fromcost-cutting efforts. They are focusing on brand theater as a way to differentiatethemselves.

Fourth, people are turning to brands for richer emotional experiences. Brand the-ater is where goods and services intersect with emotions. Refrigerators may be aboring category. Sub-Zero infuses the category with fresh life.

Fifth, people want royal treatment and exclusive privileges. Consumers want tofeel important. They want to feel that the brand has anticipated their needs, solvedtheir problems, and attended to their every whim.



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Sixth, consumers appreciate the brands that go the extra mile. When companiesstep up the pace of innovation and stand out by creating a truly differentiatedexperience strategy, they quickly attract a loyal following.

Seventh, the Connected Generation responds to the magnetic pull of brand theater.Forum Research found that 80 percent of customers who switched suppliersexpressed satisfaction with their previous vendor. They left because they could getthe same service with exciting extras.

Brand theater takes the customer deeper into the experience. Pottery Barn is anexcellent example of how this works, with its room vignettes that encourage people topurchase an entire 10 square feet of creatively coordinated furniture and accessories.

At the Apple Genius Bar within the Apple retail store, perplexed customers can pull upa stool and talk to friendly computer experts who can solve their problems. This face-to-face support is a critical differentiator between the Apple and Windows worlds. Delland Hewlett-Packard, the dominant Windows PC manufacturers, charge $35 for tele-phone tech support after a warranty has expired. But problem solving with an in-store

Apple Genius is free.

Identify the stale categories in your customers' lives and consider how you could godeeper into the experience you are currently creating. Visit three brands in differentindustries and make note of all the ways they deliver a sense of theater. Then compareit to your own brands customer experience.

Shop your own stores, order something from your company's catalogue, or call yourbrand's customer service department. Use the fresh inspiration you've gained fromshopping in other industries to imagine five changes that will enhance your brandexperience for customers.

9. GO INWARD

Spirituality is becoming a dominant value among today's consumers. In fact, the num-ber of people in the U.S. who say they prayed to God during the previous week grew to83 percent in 2004, up from 77 percent five years earlier, according to the BarnaResearch Group.

Spirituality is particularly important to young Americans. According to a new studyconducted by UCLA's Higher Education Research Institute, four out of five college stu-dents say that they have an interest in spirituality. Three-fourths of the freshmen at

236 colleges surveyed say they are searching for meaning or purpose in life. More thanthree-quarters say they believe in God, and more than 80 percent attended religiousservices.

Entertainment and media with spiritual themes are thriving. Spirituality is thefastest growing book category in the country. Television shows about God are prolifer-ating. Christian music sales now exceed those of classical, jazz, and new age musiccombined.

More and more, the Connected Generation is embracing non-traditional spiritualityand faith-based communities for the following six reasons:



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First, many formal church-based religious organizations are designed for familiesand teenagers, not young adults. That's why the Connected Generation is turningto non-traditional gathering places and creating its own faith-based communities.

Second, faith-based offerings have a dated feel to the new generation. The tradi-tional trappings of religion don't resonate with this group. Just as they design andcontrol the rest of their lives, they want to do the same with their spirituality.

Third, this raises the possibility of less formal venues for faith-based activities.According to a recent survey, many 18-to-25-year-olds have highly informal, com-munal, or personal ways to express their faith, such as praying before meals, talk-ing with friends about religion and spirituality, and reading religious books andmagazines. This group finds spirituality in all aspects of life.

Fourth, mainstream media shies away from spiritual content. Despite the datashowing that the Connected Generation wants spirituality, traditional companiesseem to fear it. This creates a vacuum that cries out for innovation.

Fifth, people are seeking their own favorite blend. They tend to make custom

blends of multiple-faith beliefs and religious practices. Their core values are amosaic of feelings, facts, principles, and experiences. Their lifestyles represent aneclectic combination of traditional and alternative activities.

Sixth, traditional institutions' efforts to reach this generation have been more stylethan substance. Many churches that attempt to be hip wind up alienating thisgroup with light shows and loud music. The Connected Generation is looking forsomething much deeper.

The first place to begin in meeting this craving is to conduct a social and moral inven-tory of your company. What is your brand communicating through its actions andwords to the marketplace? Talk to members of your brand community to learn what

message is really being transmitted.

Begin to explore spiritual themes in your creative messaging. Examine brands thatyou feel are successful in incorporating spirituality in their message, and analyze howthey do it through emotion, storyline, and context.

Finally, envision a new product, service, or media offering that would powerfullyattract and meet the needs of today's spiritually hungry generation.

10. GIVE BACK

A new spirit of volunteerism is emerging, led by the Connected Generation, which hasdifferent ideas about how to give back. In 2004, 65 million people performed volunteerwork, according to the U.S. Bureau of Labor Statistics.

In many cases, what motivates people under 40 to give back is very different from whatinspired Baby Boomers. Today's volunteers want to give their time and talent insteadof just writing a check.

Members of Generation X are demanding more information before providing a cash



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gift. They tend to distrust large organizations. They have shifted the model towardgrass roots, hands-on, episodic volunteering.

Meanwhile, with a passion for social justice and a burning desire to make a difference,Generation Y is donating more of its time to charitable causes than perhaps any othergeneration in history.

The Connected Generation embraces organizations and missions that are close to their

hearts and that provide highly interactive ways to participate. That attitude is influ-encing their career choices and shaping how they spend their down time and vacations.For example, many college students spent their spring break helping victims ofHurricane Katrina in New Orleans.

Tapping into this craving requires an understanding of eight factors that motivate theConnected Generation to give back:

First, they want a chance to make a difference. The Connected Generation has agrowing desire to use their lives for the greater good. Globally aware and techno-logically fluent, they find new ways to make contributing more tangible and more

fun. Second, they have a heightened awareness of the world. With always-on media at

their fingertips, they can't ignore how much need exists in the world. This gener-ation is hyper-aware of everything from social justice to natural disasters. Sittingback comfortably with their material blessings is not an option.

Third, people they admire are making a difference. Giving back is more high-profile than ever. Celebrities of all sorts are putting social contributions in thespotlight.

Fourth, they see a chance to lead and to step into more skilled positions. By vol-

unteering, they can gain professional skills, enhance their rsums and prepare fornew careers.

Fifth, they are looking for meaningful adventure. This generation believes that ifyou give your time and effort in a selfless way, not only will you make a difference,but you will return from the journey changed in some important way.

Sixth, they have more free time and resources to give. By marrying and hav-ing children later in life, the Connected Generation enjoys more opportunity tovolunteer than previous generations.

Seventh, they are desperate to find meaning before transitions such as graduateschool or a new career. More and more, the Connected Generation is taking timeoff before going on to graduate school or to their first jobs. In many cases thatso-called "gap year" is spent volunteering, often in an exotic foreign locale.

Eighth, they hope to find their true calling. There's a growing hunger among thisgeneration to identify their unique role in this world and to make life-alteringcontributions. They will continue to find fresh ways to fulfill that vision.

To tap into this deep craving, identify the cause that stirs your own staff and cus-tomers. This can help you to vault ahead of the competition, especially when customers



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are willing to pay more or travel farther to a store because they feel better about theirpurchasing decision.

However, avoid being too commercial in marketing your cause. The ConnectedGeneration can immediately recognize an attempt to cash in on a worthy cause, andthey'll reject any brand that puts its own pursuit of profit ahead of the charity itsupports.

ABOUT THE AUTHOR

Lisa Johnson is an expert on consumer behavior and an acclaimed author.She is the founder and CEO of the Reach Group, an international marketingconsultancy that helps companies create more compelling brand experi-

ences for women (ReachWomen.com) and the connected generation of18-40-year-olds (ReachXandY.com).

A leading authority on marketing to women, Lisa is the co-author of thehighly acclaimed book,Dont Think Pink: What Really Makes Women Buyand How to Increase Your Share of This Crucial Market. It was featuredin Harvard Business Schools Working Knowledge, The New York TimesMagazine and on NPRsMarketplace.

HOW TO ADD THIS BOOK TO YOUR LIBRARY

To order this book, please send check or money order for $25.00, plus$3.50 shipping and handling to:

Audio-Tech Business Book Summaries

825 75th StreetWillowbrook, IL 60527

Mind Your Xs and Ys, summarized by arrangement with Free Press, a division of Simon & Schuster, Inc.,from Mind Your Xs and Ys: Satisfying the 10 Cravings of a New Generation of Consumers by LisaJohnson. Copyright 2006 by Lisa Johnson.

825 75th Street, Willowbrook, Illinois 60527

1-800-776-1910 1-630-734-0600 (fax) www.audiotech.com

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