The Matter More Project by MWWPR

WHAT MATTERS MOST TO AMERICANS:

ALIGNING YOUR BRAND WITH LIFE PRIORITIES THE MATTER MORE PROJECT

“ When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion.” – Dale Carnegie

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WHAT DO U.S. CONSUMERS VALUE THE MOST, AND WHY SHOULD WE CARE? For brands, companies, marketers and communicators, success today requires more than just knowing who our audience is. We need to understand what they value and prioritize; the key to connecting emotionally with our consumers. The idea of emotion is powerful; it is the glue that turns connections, users and customers into ambassadors, advocates and friends. As marketers, we have more data today than ever before. We have unprecedented information about our customers, from how many are gay versus heterosexual to who voted for whom. We also have unprecedented data on what they do and who they do it with. The data that informs our media channel decisions is readily available as well: we know when Pinterest is preferable to Houzz, and so on. Yet our core communications research problem is not access to or lack of data. Rather, it is that our data does not inform how we can create those emotional connections with consumers. Unfortunately, emotions are not rational bits of information that can be easily captured when a credit card is swiped or a Facebook like is acquired.

So what is the answer? When push comes to shove, it is our priorities that have emotional relevance. With the goal of delivering meaningful intelligence to marketers, business leaders and policy makers, MWW conducted the largest-known proprietary study evaluating what matters most to adult consumers in the U.S. â&#x20AC;&#x201C; what they value at the core. In this introductory paper, we explore the relative importance of different priorities across various customer segments, and we also highlight which priorities are most favored. We help your communications matter more to your customers.

METHODOLOGY MWW conducted an online survey of nearly 10,000 adults across the U.S. in spring 2014. Fielded by Critical Mix, the survey was distributed to segments mirroring the overall population of the U.S., with appropriate weighting by age, gender, geography, income and other standard demographic factors. The survey was designed to assess the relative importance that individuals place on 48 distinct priorities encompassing nearly every aspect of adult life—work, technology, travel, health, family, and so on. The questions were presented in 24 trade-off scenarios, randomized for each respondent using the MaxDiff methodology. MWW applied statistical analysis and highlighted the specific priorities that are most important within certain customer segments and examined the priorities which rated highest. The margin of sampling error for the total sample is plus or minus 1% at the 95% confidence level. The priorities were derived from all of “Reiss’s 16 motives1” or basic desires: acceptance, family, competition, curiosity, food, honor, idealism, independence, influence, order, physical exercise, romance, saving, social contact, status and tranquility. These motives are defined by Ohio State University Professor Steven Reiss in his book, “Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities.” In this book, Dr. Reiss describes his theory of 16 Basic Intrinsic Motivations: That humans are motivated by intrinsic psychological drives, and that these drives are ends in themselves. The combinations of these 16 motivations describe the variability of human personality. These 16 motivations are irreducible, in that any other described drive or motivation can be expressed by the fundamental 16.

1. Reiss, Steven. “Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities.” August 2002.

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48 PRIORITIES IN RANK ORDER 0

SPENDING TIME WITH YOUR FAMILY BEING TRUE TO YOURSELF FEELING SAFE AND SECURE STANDING UP FOR WHAT YOU BELIEVE IN FEELING LOVED HAVING A SENSE OF PURPOSE BEING RELIABLE FEELING A SENSE OF BELONGING IN YOUR DAILY LIFE BEING SELF-RELIANT HELPING OTHERS HAVING A PARTNER (SPOUSE, SIGNIFICANT OTHER) ACTING ETHICALLY SAVING FOR THE FUTURE AVOIDING STRESS MAINTAINING AN EVEN WORK/LIFE BALANCE MAINTAINING A HEALTHY DIET PRACTICING YOUR RELIGIOUS FAITH KEEPING PHYSICALLY FIT LIVING IN A JUST SOCIETY BEING TOLERANT TRUSTING OTHERS BEING RESPECTED BY YOUR PEERS TIME FOR PLAY AND FUN LIVING BY A BUDGET KEEPING THINGS IN ORDER BEING LOYAL TO CULTURAL TRADITIONS & TRADITIONAL PRIORITIES CHALLENGING YOURSELF AS A CRITICAL THINKER HAVING AN ACTIVE SEX LIFE BEING CREATIVE ENJOYING GOOD FOOD MAKING A LOT OF MONEY PLAYING BY THE RULES MAINTAINING MY PRIVACY AVOIDING UNNECESSARY RISKS BEING CURIOUS HAVING ROUTINES TO LIVE BY BEING PART OF A COMMUNITY HAVING YOUR ACHIEVEMENTS RECOGNIZED BEING IN-THE-KNOW BEING A LEADER HAVING HIGH AESTHETIC STANDARDS STAYING AT THE FOREFRONT OF TECHNOLOGY COMPETING TO BE THE BEST HAVING A LARGE AND ACTIVE SOCIAL NETWORK BEING POLITICALLY ACTIVE STANDING OUT FROM THE CROWD BEING FASHIONABLE BEING A TRENDSETTER 6

WHAT REALLY MATTERS In our first study, we identified customer segments and industries containing priorities that differentiated themselves versus the average consumer and thus will be the most useful for marketers. Within each we provide both demographic and priorities data that will best enable marketers to build effective communications strategies that foster deep emotional connections, customer experiences and relationships. CUSTOMER SEGMENTS MILLENNIALS

GEN-X

BOOMERS

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A CLOSER LOOK AT PRIORITIES AMONG CUSTOMER SEGMENTS SIMILARITIES AND DIFFERENCES Generation is one of the most common factors that marketers use to segment audiences. We compared which priorities were deemed most and least important across Millennials, Gen-X and Boomers. MILLENNIALS

GEN-X

BOOMERS

WHAT MATTERS MOST

1. Spending time with your family

1. Being true to yourself

2. Being true to yourself

3. Feeling loved

3. Feeling safe and secure

4. Feeling safe and secure

4. S tanding up for what you believe in

5. Standing up for what you believe in

2. S pending time with your family 3. S tanding up for what you believe in 4. Feeling safe and secure

5. Feeling loved

5. Having a sense of purpose

WHAT MATTERS LEAST

1. Being fashionable

1. Being politically active

1. Standing out from the crowd

2. Being a trendsetter

2. Standing out from the crowd

2. B eing fashionable

3. Being politically active

3. Being fashionable

3. B eing a trendsetter

4. Standing out from the crowd

4. Being a trendsetter

4. Being politically active

5. Having a large and active social network

5. H aving a large and active social network

5. Staying at the forefront of technology

WHAT MILLENNIALS PRIORITIZE HIGHER THAN THEIR PARENTS

6x 4x 4x 3x 2.7x

STANDING OUT FROM THE CROWD

BEING FASHIONABLE

BEING A TRENDSETTER

While there are tremendous similarities in priorities across generations as a result of cultural norms, it is the differences that communicators should leverage to maximize their target’s perception of relevance. For example, Millennials are the only demographic for which “saving for the future” is a top priority. This is reflective of the group’s aspirations as well as their knowledge that retirement is no longer something that can be assumed. Millennials also show a major difference in those priorities that matter least to them; they consider playing by the rules to be among their least important priorities. While this may seem to indicate a lack of respect or selfishness, it is important to consider that Millennials have come of age in the era of reality TV and Internet billionaires. To them, being referred to as a “disrupter” is a compliment, and those who adhere to the rules get left behind. Meanwhile, those making the rules seem to be those who get ahead.

COMPETING TO BE THE BEST

STAYING AT THE FOREFRONT OF TECHNOLOGY

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“While there are tremendous similarities in priorities across generations as a result of cultural norms, it is the differences that communicators should leverage to maximize their target’s perception of relevance.”

It’s interesting to note that both the least and most important priorities of Millennials, Gen-X and Boomers are virtually the same, just in a different order. For Boomers, who are now nearing their golden years, having a sense of purpose ranks significantly higher as a priority than it does for Gen-X and Millennials. While these variances begin to suggest approaches that may be more effective for each group, we also looked at the relative weight of priorities in each group. This tells us not just what matters more and less, but how much more or less it matters. These differences in priority reveal another level at which communicators can adjust messaging to increase relevance and appeal to each particular segment.

MILLENNIALS A STRONG DRIVE FOR INFLUENCE, WITH LESS CONCERN FOR OBEYING RULES When looking at the relative weight given to priorities, Millennials placed a much higher emphasis on those that reflect the desire to be an influencer and rise above the rest of the population. In order to pursue these priorities, the group places considerably less importance on more community-related priorities. MILLENNIALS IN THE WORKPLACE

Millennials are also an important segment for business leaders. Today 45 million are employed2, and by 2025, they will make up 75% of the U.S. workforce. For employers looking to recruit and retain the best Millennial talent, look to these priorities as guidelines by which to treat individuals in this group – both during the hiring process and throughout their careers. • Build a workplace culture with opportunities to take on leadership roles • Promote a fair work/life balance • Recognize well-performing employees through monetary and non-monetary rewards

HIGH PRIORITY* • Maintaining an even work/life balance • Making a lot of money • Having achievements recognized • Being a leader

MARKETING INSIGHT & OPPORTUNITY

On the surface, one could surmise from this data that Millennials are selfish, with disregard for society as a whole; however, one must view these findings in the context of their relative inexperience with many things in life as well as the culture in which they have grown up. Much like the Baby Boomer generation did before them, they have an optimistic world view and believe they can reshape the future on their terms. For marketers, messages should be relevant to Millennials’ aspirations; for example, position your product or service as one that will inspire the admiration of others and promote ideas that connote independence and/or uniqueness.

LOW PRIORITY* • Playing by the rules • Being tolerant • Acting ethically

In addition, Millennials value and prioritize more things than other generations, including priorities that may appear to be at odds; for example, they prioritize both self-reliance and helping others. Millennials’ eclectic collection of priorities requires that marketers branch out beyond a black and white point of view, keeping in mind that Millennials see many “colors” in terms of their priorities.

2. Forbes. “The Business of Doing Good: How Millennials Are Changing the Corporate Sector.” June 18, 2014. * Relative to other generations 11

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In regard to the negatively-correlating priorities for Millennials, such as the lack of priority for tolerance, rules and ethics, these can actually prove helpful to marketers in crafting messages that are disruptive in a good way. Millennials value products and services that they see as distinct and rising above the rest of the pack, and that are created based on a “breaking the mold” type of business model. Warby Parker is one example of a brand doing just that: the company disrupted the eyewear industry by forging its own path and changing the way people feel about something (buying eyeglasses) enough to change their purchasing habits. In an industry historically prevalent with mark-ups, Warby Parker challenged the pricing model, all while pushing forth their social mission of donating a pair of eyeglasses for each pair purchased. The business grew 500% in their first year, with sales mainly driven by word of mouth.3 And the Millennial response to the brand has been resoundingly strong.

“For marketers, messages should be relevant to Millennials’ aspirations; for example, position your product or service as one that will inspire the admiration of others and promote ideas that connote independence and/or uniqueness.”

TOP TAKEAWAYS 1. Millennials have a wider variety of high priorities than other generations 2. They prioritize both self-reliance and helping others 3. Messages should be relevant to Millennials’ aspirations 4. Promote ideas that connote independence, uniqueness and that inspire the admiration of others 5. Be disruptive in a good way

3. Inc. “How Warby Parker Grew So Fast: 3 Reasons.” March 7, 2012.

GENERATION-X CONTEMPLATING THE FUTURE WITH BALANCE AND PRAGMATISM Born between 1964 and 1981, Generation X (Gen-X) is the bridge generation between the Millennials and Baby Boomers. In comparison to Millennials and Boomers, the priorities deemed most important by this group reflect a pragmatic and balanced generation that has been heavily influenced by the Boomer generation. This is the “MTV generation,” which saw the emergence of everything from music videos and video games to hip-hop, the Internet and AIDS. Studies show this is a highly educated group; active, balanced, and familyoriented, with a high tendency for volunteerism. Unlike their parents, who challenged leaders with an intent to replace them, Gen-X is more likely to work toward long-term systematic change through economic, media and consumer actions. Their world view is based on the need to combat corruption, and a search for human dignity and individual freedom. Now approaching middle age, this group is starting to contemplate their futures while still trying to enjoy today.

MARKETING INSIGHT & OPPORTUNITY

Marketers should not discount the pragmatism of Gen-X combined with their desire to help others. The materialistic, disenfranchised slacker stereotype associated with this generation does not seem to hold. This is a group that prioritizes a sense of belonging and acting ethically over more selfish notions of being a leader and having one’s accomplishments recognized. Thus, messages tailored with a “me first” angle or suggesting radical shifts will be met with suspicion. Rather, messages that ring true to Gen-X as authentic, even altruistic, such as social good campaigns, will be much better received. Similarly, focus messaging around the idea of individual freedom, particularly regarding work/life balance and the importance of making time for fun and enjoyment, but be cognizant of the fact that for Gen-X, individual freedom does not come at the expense of caring for others or behaving ethically.

HIGH PRIORITY* • Maintaining an even work/life balance • Time for play and fun • Living by a budget

LOW PRIORITY* • Practicing your religious faith • Trusting others • Having high aesthetic standards

* Relative to other generations

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“This is a group that prioritizes a sense of belonging and acting ethically over more selfish notions of being a leader and having one’s accomplishments recognized.”

TOP TAKEAWAYS 1. Gen-X is fiercely pragmatic yet cares about helping others 2. Work/life balance is very important 3. Behaving ethically trumps being recognized for their accomplishments 4. Messages should connect as authentic 5. Social good campaigns play to Gen-X’s altruistic leanings

BOOMERS THE ANTI-MILLENNIALS Baby Boomers are the largest generation in U.S. history. Born between 1946 and 1964, this demographic makes up approximately 25% of the total U.S. population.4 Still controlling a majority of consumer spending power, Boomers will continue to be an important part of the economy and a vital demographic with which organizations want to connect. HIGH PRIORITY

• Living in a just society • Being tolerant • Being loyal to cultural traditions and traditional priorities • Playing by the rules

LOW PRIORITY* • Maintaining an even work/life balance • Having an active sex life • Making a lot of money

While Gen-X is a generation influenced by their elders and influencing their juniors, the results of our Matter More survey reveal that Boomers are essentially the Anti-Millennials, valuing the exact same things the Millennials de-emphasize. These priorities largely pertain to functioning as a peaceful society. There is also more preference among Boomers for what might be considered traditional values. The survey also revealed that Boomers place higher importance on fewer priorities, meaning their top priorities are strongly so. This is another area where they can be called the Anti-Millennials, who placed high importance across many more priorities.

MARKETING INSIGHT & OPPORTUNITY

For marketers, this means there are fewer priorities that will be relevant and appeal to Boomers, increasing the chance for authentic, emotional connections, but at the same time requiring a more targeted approach. Boomers have a loyalty to tradition and traditional brands, meaning the very same messages that might turn off Millennials as “old-fashioned and boring” will resonate with Boomers. In turn, brands or messages viewed as too “outside the box” or tailored for the “in crowd” may not attract Boomers, as they are not a group that easily gravitates toward the latest trends. Baby Boomers also value playing it safe and following the rules, so an organization that’s trying to reach this group should do the same.

4. CNN. “Baby Boomer Generation Fast Facts.” November 6, 2013. * Relative to other generations 15

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Additionally, this is not a generation that wants to go at it alone. Boomers have a greater tendency to be humanitarian, with their strong belief in fairness and living in a just society. Rather than asking “what’s in it for me?,” Boomers are more likely to care about the greater good and ask, “what is best for society?” Thus, marketers would do well to focus messaging around helping Boomers better support their families and communities, and tying this messaging to traditions that Boomers hold dear.

“...there are fewer priorities that will be relevant and appeal to Boomers, increasing the chance for authentic, emotional connections, but at the same time requiring a more targeted approach.” TOP TAKEAWAYS 1. Boomers hold fewer priorities dear, requiring a targeted approach 2. They don’t gravitate toward the latest trends 3. Loyalty and tradition rank high 4. Messaging should align with Boomers’ desire to play it safe and follow the rules 5. The greater good is more important than going at it alone

CONCLUSION WHAT MATTERS MOST The similarities we found among such a vast array of adults demonstrate that we as Americans share a set of core priorities that are deeply ingrained and culturally driven. The failure to respect these priorities can cause considerable backlash. Yet we have also identified interesting differences among groups in what they consider most important, such as Boomers favoring the very priorities that matter least to Millennials. These indicators allow us as marketers a window into how we can achieve a stronger emotional connection and achieve greater relevance. When push comes to shove, when instinct overrides rational argument, when, in the silence of our thoughts, safe from the pressures of our peers, we decide, it is our priorities that have emotional resonance. By figuring out what really matters to consumers, we can Matter More™. In the coming months, MWW’s Matter More™ Project will delve more deeply into how emotionally-driven consumer priorities correlate with specific behavioral actions such as affinity, product consideration, or purchase of a product or brand. We will also examine the priorities that are most likely to elicit a desired behavioral response. We hope the results of our study help you to Matter More™ to consumers.

“When push comes to shove, when instinct overrides rational argument, when, in the silence of our thoughts, safe from the pressures of our peers, we decide, it is our priorities that have emotional resonance. By figuring out what really matters to consumers, we can Matter More™.”

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For more information about how our research can benefit your brand, please contact us.

David Herrick Chief Operating Officer dherrick@mww.com

Jess Seilheimer Chief Strategy Officer jseilheimer@mww.com

MWW

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