the millennial shopper: more social and educated than ever before
TRANSCRIPT
The Millennial ShopperMore social and educated than ever before.
Yes, they carry more debt, but they are also making more money. Some of them still may be living under their parent’s roof, but that doesn’t mean they aren’t spending. In fact, the opposite is true. They are living and spending in the now – from luxurious shopping to food and travel, it is all about rich experiences.
Not only do Gen Y shoppers earn and spend more than previous generations, they are also the fi rst generation to have grown up through the information age, and their shopping habits are refl ective. The Millennial is a social and informed shopper, with an evolved purchase journey.
Many people believe Millennials aren’t brand loyal but that’s not the case. It just takes more work to earn their loyalty. Generation Y challenges brands to offer both exceptional quality, price and authentic, positive brand experiences.
IntroductionRob Henderson
President and CEOyconic Millennials represent about one third
of the Canadian population and have tremendous consumer power.
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Table of Contents
[1] Setting the Stage: Millennial Income, Debt & Spending
[2] Millennial: The Social, Informed Shopper
[3] So what?
[4] What does this mean for brands?
[5] About yconic
[6] Survey Methodology
Millennials are 30% of the Canadian Population 9.5 Million People
$237B Estimated Income1
21% Of All Income Earned in Canada2
Sources: 1 and 2: Statistics Canada, July 2012
Millennials have more money, but more debt.
Income, Medium Household Net Worth and Debt(000 for Income/Net Worth & Percent of Debt )
Percentage of Households with Debt
82%
33.9
28.7
34.7
52.0
84%
Individual IncomeHH Net Worth
Early 2010s
Source: CBC, “Millennials have more spending power
than parents did, but also have more debt”,
May 15, 2014
Adjusted for Inflation Individual Income:
2011 vs. 30 years agoHousehold Net Worth:
2012 vs. 1984
Early 80s
But they don’t believe in saving for a rainy day…It’s all about experiences now!
% increase in spending 2009 - 2011
Luxury Fashion 33%
74%
102%
Travel
Fine Dining
Source: American Express Business Insights Canada,
2012
Millennial: The Social, Informed Shopper
The Traditional Purchase Journey….
What does it look like for Millennials?
DiscoveryPhase
Pre-PurchasePhase
Purchase Dynamic
Post- Purchase Behaviour
Discovery Phase
It’s equal parts ‘real life’ and digital
How do Millennials learn about new products or services?
DiscoveryPhase
Initially, Millennials are introduced to new products or services in ‘real life’, with 3 of the top 6 methods occurring in a face-to-face, physical interaction, but digital plays a key role.
62% from their friends, in person
55% during an in-store experience
46% through social media post from their network
43% from their family, in person
35% from advertisements, online or on TV
33% from brands on social media
DiscoveryPhase
yconic Consumer Survey, June 2015
Pre-Purchase Phase
Millennials are notorious for seeking out information, making them the most educated consumers. Most know exactly what they want to buy before even walking into a store.
Millennials have not only grown up in a world with consumer-generated content, they themselves have created this world.
Once interest is piqued, research begins.
Pre-Purchase Phase
The Goal? To educate by comparing and contrasting.
75% compare prices of several products
75% read customer reviews
65% compare the quality of several products
60% look at a brand’s website
yconic Consumer Survey, June 2015
want to ensure quality AND competitive pricing.
need to ensure they get exactly what they want.
want to see if others had a positive experience.
Why conduct research?To gain confi dence in the purchase.
80%
67%
61%
Pre-Purchase Phase
yconic Consumer Survey, June 2015
Even though a sale will drive a Millennial closer to a purchase, a recommendation or positive review has equal weight.
Factors that drive Millennials closer to a purchase:
Pre-Purchase Phase
69% stated when a product or service is on sale or discounted
67% stated a recommendation or positive review
59% stated they’re more likely to purchase a product or service if it is an exclusive offer
yconic Consumer Survey, June 2015
Digital brand properties are most influential in the decision making process.
Top two channels of influence are:
48% Retail Store’s Website
45% Brand’s Website
Direct Brand Property
Social PlatformsSecondary channels of influence are:
42% Forums & Customer Reviews
25% YouTube
24% Facebook
15% Instagram
16% Blogs
14% Pinterest
Pre-Purchase Phase
yconic Consumer Survey, June 2015
Research Tools: PC first, smartphone second.
Unlike generations that have preceded them, Millennials can and will compare, contrast, read reviews, and check ratings, any time and anywhere the moment strikes them.
95%69%
21%
Pre-Purchase Phase
yconic Consumer Survey, June 2015
YESI have used a smartphone while shopping.
Main reason:To educate on purchase.
Actions Performed on a Smartphone while Shopping
Compare prices
Read reviews
Check for discounts
Find the nearest store location
Look at competitive products/services
Compare features
Message friends/family for advice or opinion
64%
61%
56%
54%
46%
41%
37%
Smartphone usage while shopping…
Pre-Purchase Phase 56%
yconic Consumer Survey, June 2015
Purchase Dynamic
Past 3 Months: Made a purchase…
While in-store purchases remain the norm for Millennials, online shopping is becoming common place.
Millennials reveal sizable point of sale via digital devices.
Purchase Dynamic
93%In a Store
67%On a personal
computer
24%On a mobile device
yconic Consumer Survey, June 2015
Payment Methods Used in Past 3 Months
Cash
Debit Card
Credit Card
E-Transfer
PayPal
Visa Checkout
93%
84%
77%
33%
27%
12%
Traditional payment methods still reign, with newer methods emerging.
Purchase Dynamic
yconic Consumer Survey, June 2015
Post-Purchase Behaviour
After a purchase it can go one of two ways…
Post- Purchase Behaviour
After a positive experience…
82% will TELL a friend or family member.
34% will BUY the same item for a friend or family member.
15% will POST a comment or image on their own social media profile, tagging the brand.
Post- Purchase Behaviour
yconic Consumer Survey, June 2015
After a negative experience…
76% will TELL a friend or family member.
49% will vow NEVER TO BUY the product or service again.
14% POST a negative comment or image on their own social media, tagging the brand.
Post- Purchase Behaviour
yconic Consumer Survey, June 2015
So What?
Millennials: The Social, Informed Shoppers
Seamlessness across resources and toolsThey have increased access to information and social circles and will leverage many resources to validate a purchase decision. It happens where and when they want information, and before, during and after a purchase is made. Mobile devices allow for seamless touch-points with friends, family and the brand itself.
Balancing act of quality and priceWhile a Millennial’s budget may navigate a purchase, it does not dictate it. They want good value and good quality when deciding on a product or service. It’s not a perfect science, but several resources drive them and help them with this decision.
Experience matters. Millennials are vocal
Millennials use their voice to share both positive or negative experiences. Word of Mouth has long been a powerful tool leveraged by this generation. However, future buying patterns and whether they embrace or reject a brand is a fundamental outcome to how Millennials experience a brand.
The Purchase Journey…Is NOT linear, nor of equal weight.
DiscoveryPhase
Pre-PurchasePhase
Purchase Dynamic
Post- Purchase Behaviour
The Purchase JourneyEach phase plays different roles. This is a representation of how Millennials move the purchase journey, to a non-linear and imbalanced path.
Discovery Phase Post-Purchase Behaviour
Pre-Purchase Phase
Purchase Dynamic
Introduction to a brand. Online and offl ine.
In-depth research phase, many on mobile to the last minute. Length of time in this phase naturally varies by category, e.g. auto vs. beauty.
After the purchase, an experience can lead to more discovery opportunities.
Point of Sale. The way in which the transaction is completed. In-store or online.
Tell, Buy, Post ORTell, Never Buy, Post
What does this mean for brands?
Discovery PhasePost-Purchase Behaviour
Pre-Purchase Phase
Purchase Dynamic
Infl uence and aid positive Word of Mouth.
Provide relevant and timely information to aid decision making. Know the need state and facilitate with information.
Ensure cross-platform and device purchase functionality.
Be attentive. Consider how to facilitate an experience
after the purchase. Embrace a “customer fi rst” mentality.
After the purchase, an experience can lead to more discovery opportunities.
About yconic
yconic is the leader in understanding and building meaningful relationships with students and young adults. Our social platform, yconic.com, makes life easier and less stressful for students pursuing higher education. It is the largest student help platform in Canada with over 825,000 active members, access to over $170M in financial opportunities to help fund their education, and peer-to-peer support.
yconic is also a thought leader on Gen Y, Z and student behaviour because of the key insights we are able to obtain through our platforms, including Canada’s largest youth-focused consumer insights panel, with over 550,000 young Canadians participating in online market research.
yconic partners with select brands, institutions, educators, and their agencies who share our values and want to better understand, hire, and authentically build loyalty with our youth and student audience. For more information, please visit yconic.com/corporate
If your organization values youth and wants to develop a long-term, meaningful relationship that will result in true ROI then we should chat.
Follow yconic on LinkedIn and Twitter for more youth insights.
Survey MethodologyThe survey was conducted online with 630 English-speaking Canadians aged 19 to 34 randomly selected from yconic’s proprietary online research panel. The survey wascompleted from June 2-15, 2015. Our credibility interval based on a non-probability sample is +/- 3.9%, 19 times out of 20.