understanding global millennials: summary of findings from expanded global study
DESCRIPTION
Learn more about how this impacts marketing at www.sdl.com/five-truths Millennials are an interesting generation, and with a buying power in the trillions, it is time to pay attention to them. This study (an expansion of an earlier US study) surveyed Millennials globally to understand how they operate as consumers in order to understand the Millennial mindset and to inform better marketing and business practices.TRANSCRIPT
1
Understanding Global Millennials
An SDL Customer Experience Research Report
2014
Insights Into the Global Millennial Mindset –
and what to do about it
© 2014, SDL plc
2
This is a summary of the findings from a global study of Millennials, conducted in January thru April, 2014. It
includes responses from the US, UK, Australia, Germany, Norway and The Netherlands, and is an update to the US
based study released in March 2014.
The purpose of this study is to understand how Millennials operate as consumers in order to understand the Millennial mindset and to inform better marketing and
business practices.
3
The Millennial Mindset
Global Millennials…
• Question whether you know how to market them• Touch multiple devices daily• Accept that some types of personal information will be collected• Connect with companies in social media to get discounts and freebies• Are more likely to engage with trusted brands• Discover content through social networks • Want to engage in their preferred language• Expect a fast response & instant gratification
4Understanding Global Millennials, © 2014, SDL plc
What to do about itMake sure content is consistent across all channels.Plan for the entire customer journey, not just individual interactions.
!
Millennials touch their smartphones
43 times per day
44% Expect the experience to be the sameregardless of channel
5Understanding Global Millennials, © 2014, SDL plc
Smartphones dominate and Millennials check them 43 times per day*
43 45 34 36 34 39 38Avg. # touches
In the average day, how often do you check a social media site, browse the web or use an app, make a call, or text on your smartphone?
On average, 19 out of 20 Global Millennials own a smart phone.
< 20
20 - 40
>40 - 60
>60 - 80
>80 - 100
> 100
25%
26%
28%
11%
4%
5%
Total*
32%
27%
21%
10%
4%
6%
NO
43%
25%
15%
8%
3%
6%
AU
30%
32%
21%
10%
3%
5%
UK
38%
29%
18%
8%
5%
3%
NE
33%
30%
22%
8%
4%
3%
DE
Series1 20%
24%
33%
13%
5%
6%
US
*Weighted by GDP of responding countries
If you’ve communicated through a digital channel – they saw it the day it
was delivered
6Understanding Global Millennials, © 2014, SDL plc
29%
71%
11%
89%
11%
89%
32%
68%
38%
62%
18%
82%
30%
70%
45%55%
70%
30%
67%
33%
In a typical day, 2 of 3 Millennials touch 2 different devices
67%
33%Use 2 devices daily
37%
63%
Use 3 devices daily
Use 4 devices daily
US AU DE NE
65%35%
41%
59%
57%43%
21%
79%
67%
33%
21%
79%
71%
29%
34%
66%
24%
76%
NO UKTOTAL*
*Weighted by GDP of responding countries
Two out of three Millennials use two different devices daily.
(Except the Netherlands, where it is just over half.)
• Top 2: Smartphone & Laptop
• Top 3: + PC/Desktop• Top 4: + Tablet
7Understanding Global Millennials, © 2014, SDL plc
What to do about itFocus on building trust with targeted offersBe clear about the “give-get” equation
!
7xMillennials are 7 times more likely to give personal information to a trusted brand
46% share their data if it means more relevant offers
8Understanding Global Millennials, © 2014, SDL plc
40% of Millennials can identify digital information tracked by companies
The word cloud highlights the types of information respondents are aware is being collected. Size of the word indicates the frequency of occurrence in relation to other responses.
9Understanding Global Millennials, © 2014, SDL plc
It is accepted that some types of information will be collected…but not highly accepted
More Acceptable data for companies to trackOn the whole, most big data
collected is not acceptable by consumers.
Using this data to gain advantage will not endear companies with
their target customers.
0
40
80
120
6274 77 78 80 80 82 85 86 88 92 95 102
NETSCORE
10Understanding Global Millennials, © 2014, SDL plc
The more awareness there is around data that is being tracked… the more acceptable it becomes.
Relationship is significant @ 99%
confidence
Surprisingly, phone number is not acceptable to track.
(it likely would have been prior to mobile-phone only)
More Acceptable data for companies to track
Greater transparency with customers on the types of data that companies can track makes it
more acceptable in the eyes of the
consumer.
0
40
80
120
0%
20%
40%
60%
6274 77 78 80 80 82 85 86 88 92 95 102
NETSCORE Awareness
Linear Awareness
11Understanding Global Millennials, © 2014, SDL plc
Total US AU DE NE NO UK
It should feel the same when dealing with a company w hether you're online, in a store, or on the phone
60% 64% 54% 50% 44% 28% 54%
I expect to be able to engage with a company whenever I choose and through w hichever channel I choose
58% 63% 50% 50% 30% 50% 40%
I like it w hen a company reaches out to me and it's NOT just about selling a product (i.e. w ith a holiday or birthday card)
51% 60% 39% 38% 18% 22% 40%
I w ould be more likely to provide personal information to a trusted brand - a company I have purchased from before
53% 60% 37% 41% 26% 37% 44%
The kind of companies I w ant to do business w ith are the ones that can make good offers in real-time
53% 57% 46% 48% 31% 39% 50%
I like when a company makes recommendations to me that make shopping easier for me
49% 55% 35% 40% 20% 72% 45%
It creeps me out when a company knows w hat I w ant before I've even told them
47% 54% 36% 37% 28% 39% 36%
I would be prepared to give more data to businesses if it meant they didn't w aste my time w ith offers that are not relevant
46% 54% 31% 30% 16% 37% 35%
I have absolutely no issue with companies using the data I provide them to give me a better experience
44% 52% 29% 28% 13% 23% 37%
I don't like when companies use personal data to target offers at me (i.e. w eb brow sing, search habits, etc.)
48% 51% 43% 45% 44% 37% 44%
It creeps me out when I receive offers in social media for things I have searched for recently
46% 49% 39% 38% 29% 38% 43%
If I've decided not to buy something, I don't trust companies that continue to provide offers to me
43% 46% 36% 39% 27% 39% 36%
The majority of companies don't know how to market to my generation31% 35% 24% 21% 17% 17% 28%
Percent Stated 'Agree' 7 - 9
Past experience and brand trust makes customers willing to share more personal data
The Netherlands , by exception, is not as willing to make a trade-off to provide more personal data for the sake of a better experience.
*
*Weighted by GDP of responding countries
12Understanding Global Millennials, © 2014, SDL plc
What to do about itPlace efforts on content sharing to first drive awareness, engagement and trust
!
Emails from unknown brands are likely to be
ignored
47% are “most likely” to engage if they have previously done business with you
13Understanding Global Millennials, © 2014, SDL plc
5 of 6 Millennials choose to connect with companies in social media, but they want something in return
Total
16%
26%
46%
56%
62%
I don't connect w/ companies in social media
To complain - and be heard
To get better customer service
To get free perks
To get discounts
18%
28%
45%
51%
58%
AU
29%
28%
41%
42%
50%
18%
32%
51%
47%
59%
10%
25%
44%
46%
51%
16%
34%
41%
39%
51%
US
44%
28%
38%
31%
42%
UK NE NO DE
*Weighted by GDP of responding countries
Though less pronounced
than in the US, customers
internationally predominately
connect for discounts and
freebies.
*
14Understanding Global Millennials, © 2014, SDL plc
A company you have not heard of before
A company you have heard of, but have not done business with in the past
If you were referred to a previously unknown company by a friend, how likely would you be to
do business with them?
A company you have done business with in the past
48%
76%
69%
81%
39%
57%
69%
71%
27%
59%
68%
78%
34%
60%
63%
71%
49%
71%
73%
75%
66%
83%
84%
89%
56%
77%
78%
84%
TotalUS AUDENENOUK
Purchased lists are dead… If they don’t already know you, your email is irrelevant to them
*Weighted by GDP of responding countries
Customers are the most-likely to consider your offer if you’ve done business with them in the past.
…Email campaigns from purchased lists are likely to be ignored.
*
15Understanding Global Millennials, © 2014, SDL plc
Total US AU DE NE NO UK
It should feel the same when dealing with a company w hether you're online, in a store, or on the phone
60% 64% 54% 50% 44% 28% 54%
I expect to be able to engage with a company whenever I choose and through w hichever channel I choose
58% 63% 50% 50% 30% 50% 40%
I like it w hen a company reaches out to me and it's NOT just about selling a product (i.e. w ith a holiday or birthday card)
51% 60% 39% 38% 18% 22% 40%
I w ould be more likely to provide personal information to a trusted brand - a company I have purchased from before
53% 60% 37% 41% 26% 37% 44%
The kind of companies I w ant to do business w ith are the ones that can make good offers in real-time
53% 57% 46% 48% 31% 39% 50%
I like when a company makes recommendations to me that make shopping easier for me
49% 55% 35% 40% 20% 72% 45%
It creeps me out when a company knows w hat I w ant before I've even told them
47% 54% 36% 37% 28% 39% 36%
I would be prepared to give more data to businesses if it meant they didn't w aste my time w ith offers that are not relevant
46% 54% 31% 30% 16% 37% 35%
I have absolutely no issue with companies using the data I provide them to give me a better experience
44% 52% 29% 28% 13% 23% 37%
I don't like when companies use personal data to target offers at me (i.e. w eb brow sing, search habits, etc.)
48% 51% 43% 45% 44% 37% 44%
It creeps me out when I receive offers in social media for things I have searched for recently
46% 49% 39% 38% 29% 38% 43%
If I've decided not to buy something, I don't trust companies that continue to provide offers to me
43% 46% 36% 39% 27% 39% 36%
The majority of companies don't know how to market to my generation31% 35% 24% 21% 17% 17% 28%
Percent Stated 'Agree' 7 - 9
Millennials want to do business with companies on their own terms – whenever and however they want
The Netherlands has somewhat tempered anticipations about what to expect from businesses – they are more accustomed to dealing with businesses on their time.
*Weighted by GDP of responding countries
The majority of Millennials want to engage whenever they choose and expect the same experience across channels.
*
16Understanding Global Millennials, © 2014, SDL plc
Total US AU DE NE NO UK
It should feel the same when dealing with a company w hether you're online, in a store, or on the phone
60% 64% 54% 50% 44% 28% 54%
I expect to be able to engage with a company whenever I choose and through w hichever channel I choose
58% 63% 50% 50% 30% 50% 40%
I like it w hen a company reaches out to me and it's NOT just about selling a product (i.e. w ith a holiday or birthday card)
51% 60% 39% 38% 18% 22% 40%
I w ould be more likely to provide personal information to a trusted brand - a company I have purchased from before
53% 60% 37% 41% 26% 37% 44%
The kind of companies I w ant to do business w ith are the ones that can make good offers in real-time
53% 57% 46% 48% 31% 39% 50%
I like when a company makes recommendations to me that make shopping easier for me
49% 55% 35% 40% 20% 72% 45%
It creeps me out when a company knows w hat I w ant before I've even told them
47% 54% 36% 37% 28% 39% 36%
I would be prepared to give more data to businesses if it meant they didn't w aste my time w ith offers that are not relevant
46% 54% 31% 30% 16% 37% 35%
I have absolutely no issue with companies using the data I provide them to give me a better experience
44% 52% 29% 28% 13% 23% 37%
I don't like when companies use personal data to target offers at me (i.e. w eb brow sing, search habits, etc.)
48% 51% 43% 45% 44% 37% 44%
It creeps me out when I receive offers in social media for things I have searched for recently
46% 49% 39% 38% 29% 38% 43%
If I've decided not to buy something, I don't trust companies that continue to provide offers to me
43% 46% 36% 39% 27% 39% 36%
The majority of companies don't know how to market to my generation31% 35% 24% 21% 17% 17% 28%
Percent Stated 'Agree' 7 - 9
Millennials are undecided about whether or not companies know how to market to them
*Weighted by GDP of responding countries
*
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What to do about itUse social media first to build relationships and engage
!
18Understanding Global Millennials, © 2014, SDL plc
Millennials prefer hyper-targeted content
Which streaming music source would you be most likely to listen to?
iHeartRadio
iTunes radio
Local Radio Stream
Spotify
Pandora
9%
12%
14%
21%
29%
Total*
2%
21%
22%
11%
10%
AU
24%
12%
15%
28%
5%
DE
25%
7%
12%
28%
2%
NE
19%
5%
9%
54%
3%
NO
5%
19%
24%
24%
4%
UK
hyper-targeted streaming
non-tar-geted streaming
6%
10%
11%
18%
42%
US
*Weighted by GDP of responding countries
The majority would choose hyper-targeted music
content over traditional radio streams
19Understanding Global Millennials, © 2014, SDL plc
Summly
Cir.ca
StumbleUpon
Instapaper
Tumblr
Buzzfeed
Google+
News sites
YouTube
Email recommendations
A search engine (Google, Bing, etc.)
Facebook newsfeed
2%
3%
5%
6%
7%
10%
13%
13%
17%
17%
24%
26%
35%
31%
27%
29%
49%
Total*
Series1 2%
3%
4%
7%
8%
9%
12%
16%
17%
23%
23%
24%
27%
32%
33%
33%
33%
49%
%
%
3%
4%
1%
9%
6%
10%
4%
5%
22%
32%
43%
26%
11%
20%
50%
1%
%
3%
2%
2%
10%
10%
9%
11%
6%
23%
30%
42%
22%
19%
38%
52%
%
%
2%
2%
1%
3%
7%
3%
3%
4%
21%
22%
20%
29%
17%
13%
38%
All international markets use fewer channels to discover content that the US
Social networks dominate content discoveryHow do you typically discover new and interesting things online?
UKNE NODEAUUS
%
%
3%
3%
1%
6%
11%
5%
5%
12%
25%
26%
43%
23%
23%
21%
61%
1%
1%
2%
3%
2%
3%
3%
4%
2%
3%
22%
17%
42%
37%
11%
15%
44%
*Weighted by GDP of responding countries
Social networks comprise the bulk of content discovery
Followed by other, emergent online and customizable news feed sites
And, lastly, by more traditional means. (email, search engine, other online news sites
20Understanding Global Millennials, © 2014, SDL plc
What to do about itEngage with customers in their language of preference to connect with them on a deeper level
!46% are more likely to buy in their own language
32% speak a non-English language at home in English-speaking countries
21Understanding Global Millennials, © 2014, SDL plc
A great opportunity exists to connect with customers in their language of preference to engage with them on a deeper level
What is the preferred language of your household?
NO
DE
NE
AU
UK
US
Total
63%
59%
49%
36%
35%
24%
33%
37%
41%
51%
64%
65%
76%
67%
Yes NoIn addition to English, is there another language that is spoken in your household?
1 in 4 US Millennials have another language spoken in their household…
1 in 3 in the UK and Australia have another language spoken in their household…
1 in 2 in Germany, the Netherlands, and Norway have another language spoken in their household…
Language is not tied to geography or a specific country. We are a multilingual world.
22
Understanding the Millennials, SDL plc
o Offer those that connect socially benefits not available elsewhere that are of value
o Focus on brand-building efforts
The Future of Customer Experience:5 Truths for Tomorrow’s Marketer
Campaigns are Extinct1o Create consistent, cross-channel experiences to cater to any
multiple device & optimize offers by channelo Realize that consumers see content the day it is sent
o Know your customer and deliver the hyper-targeted experience they expect if you want their attention
o Target social efforts where content is discovered most
o Connect with customers in their language of preference to engage with them on a deeper level
o Be more transparent on the types of data you track to make it more acceptable in the eyes of the consumerYour Data Trumps Big Data5
There is Only One Language4
Content Finds the Customer3
Channels are Irrelevant2
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Learn how SDL solutions can help you target Millennials:www.sdl.com/cxc
For more information on the Five Truths for
Tomorrow’s Marketer, visit: www.sdl.com/five-truths
© 2014, SDL plc
24Understanding Global Millennials, © 2014, SDL plc
Study sample frame | demographics
Ethnicity
Household Income
Employment statusTotal US AU DE NE NO UK
Full-time (30+ hours) 68% 71% 47% 61% 58% 40% 60%
Part-Time (20-29 hours) 8% 7% 19% 10% 5% 18% 14%
Self-Employed 5% 4% 3% 5% 15% 5% 3%
Not Employed 14% 12% 17% 11% 16% 14% 12%
Student 5% 4% 12% 12% 0% 21% 10%
Retired 0% 0% 1% 1% 5% 2% 0%
Total US AU DE NE NO UK< $24,999 16% 9% 13% 30% 27% 21% 28%
$25,000 - $49,999 25% 20% 22% 37% 40% 30% 41%
$50,000 - $99,999 37% 42% 37% 26% 27% 29% 25%
$100,000 - $149,999 14% 16% 18% 4% 4% 14% 5%
$150,000 + 8% 12% 9% 2% 2% 5% 2%
Total US AU DE NE NO UKCaucasian 79% 82% 61% 86% 84% 40% 68%
African American 7% 9% 2% 1% 3% 3% 4%
Asian / Pacific I slander 9% 7% 29% 5% 6% 9% 13%
Hispanic 4% 5% 1% 2% 5% 5% 2%
Native American 1% 1% 1% 2% 2% 4% 2%
Other 4% 1% 9% 7% 9% 42% 14%
Surveyed January – April 2014Total N = 1860
Education - level
Age
Total US AU DE NE NO UK18 - 24 21% 13% 35% 35% 35% 52% 34%
25 - 36 80% 88% 65% 65% 65% 48% 66%
Total US AU DE NE NO UK< High school 10% 1% 24% 38% 10% 10% 18%
High school degree 18% 12% 19% 33% 39% 45% 23%
College degree 59% 74% 36% 22% 41% 35% 41%
Graduate degree 14% 15% 21% 7% 3% 10% 18%
US = 304 64%
AU = 309 6%
DE = 309 14%
NE = 310 3%
NO = 307 2%
UK = 321 11%
Facebook Foursquare TumblrTwitter Ning FlickrPinterest Meetup StumbleUponInstagram Hi5 WordPressLinkedIn Orkut Wer-kennt-wen [DE]Myspace Badoo MeinVZ/StudyVZ [DE]Google+ MySpace Lokalisten [DE]
*Global weights applied to total rollup
All respondents active on one or more social networks in the past 30 days:
*Market data weighted by 2012 World Bank GDP data.
**Other for Norway is high, since they don’t associate with being Caucasian.
**