Understanding the Millennials: Summary of Findings

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Understanding the Millennials: Summary of Findings

  1. 1. Understanding the Millennials An SDL Customer Experience Research Report 2014 Insights Into the Millennial Mindset – and what to do about it © 2014, SDL plc 1
  2. 2. 2 The Millennial Mindset 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
  3. 3. 3 This is a summary of the findings from a study of US Millennials, completed in February 2014. It is the first in a series to understand how Millennials around the globe operate as consumers in order to understand the Millennial mindset and to inform better marketing and business practices.
  4. 4. 4 Understanding the Millennials, © 2014, SDL plc 2 out of 3 Millennials touch 2 different devices daily 67% 33% Use 2 devices daily 45% 55% 37% 63% Use 3 devices daily Use 4 devices daily• Smartphone usage dominates • Landlines and other non- smart phones are least used. 0% 10% 20% 30% 40% 50% 60% 70% 80% Several times a day Daily Multiple times a week Once a week Multiple times a month Once a month or less Never use Smartphone Tablet PC / Desktop Laptop Home phone (landline) Mobile phone (not a smartphone) Smartphone usage dominates Landlines and other “non-smart” phones are used least
  5. 5. 5 Understanding the Millennials, © 2014, SDL plc 0% 10% 20% 30% 40% 50% 60% 70% 80% Several times a day Daily Multiple times a week Once a week Multiple times a month Once a month or less Never use Smartphone Tablet PC / Desktop Laptop Home phone (landline) Mobile phone (not a smartphone) 2 out of 3 Millennials touch 2 different devices daily 67% 33% Use 2 devices daily 45% 55% 37% 63% Use 3 devices daily Use 4 devices daily What to do about it? Create consistent cross-channel experiences to cater to multiple devices
  6. 6. 6 Understanding the Millennials, © 2014, SDL plc Millennials touch their smartphones 45 times per day If you’ve communicated through a digital channel – they saw it the day it was delivered 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? 0% 10% 20% 30% 40% < 20 20 - 40 >40 - 60 >60 - 80 >80 - 100 > 100
  7. 7. 7 Understanding the Millennials, © 2014, SDL plc Millennials touch their smartphones 45 times per day If you’ve communicated through a digital channel – they saw it the day it was delivered 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? 0% 10% 20% 30% 40% < 20 20 - 40 >40 - 60 >60 - 80 >80 - 100 > 100 What to do about it? Make sure content across all interactions is consistent and relevant for your audience
  8. 8. 8 Understanding the Millennials, © 2014, SDL plc Millennials are well aware that their data is being collected 40% of Millennials are able to identify specific digital information collected and tracked by companies The word cloud to the left 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.
  9. 9. 9 Understanding the Millennials, © 2014, SDL plc It is accepted that some types of information will be collected…but not that accepted 78 87 90 93 93 93 95 95 97 100 101 104 114 0 20 40 60 80 100 120 NETSCORE More Acceptable data for companies to track Using certain data - like face scans, phone numbers and location - to gain advantage will not endear companies with their target customers
  10. 10. 10 Understanding the Millennials, © 2014, SDL plc The more awareness there is around data that is being tracked…the more acceptable it becomes 78 87 90 93 93 93 95 95 97 100 101 104 114 0% 10% 20% 30% 40% 50% 60% 0 20 40 60 80 100 120 NETSCORE Awareness Linear (NETSCORE) Linear (Awareness) Relationship is significant @ 99% confidence What to do about it? Be more transparent about the types of data you track to make it more acceptable AND don’t mistreat the data that consumers deem acceptable to track 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
  11. 11. 11 Understanding the Millennials, © 2014, SDL plc …And 60% are more likely to share personal data based on past experience and brand trust 54% will share more data if it means more relevant offers
  12. 12. 12 Understanding the Millennials, © 2014, SDL plc …And 60% are more likely to share personal data based on past experience and brand trust What to do about it? Focus on building trust and targeted offers to open up access to more data 54% will share more data if it means more relevant offers
  13. 13. 13 Understanding the Millennials, © 2014, SDL plc 16% 26% 46% 56% 62% 0% 20% 40% 60% 80% I don't connect with companies in social media To complain - and be heard To get better customer service To get free perks To get discounts Reasons for connecting to companies through social media 5 of 6 Millennials choose to connect with companies in social media, but they want something in return Millennials choose to connect with companies in social media to get discounts and free perks
  14. 14. 14 Understanding the Millennials, © 2014, SDL plc 16% 26% 46% 56% 62% 0% 20% 40% 60% 80% I don't connect with companies in social media To complain - and be heard To get better customer service To get free perks To get discounts Reasons for connecting to companies through social media 5 of 6 Millennials choose to connect with companies in social media, but they want something in return What to do about it? Give them unique discounts and free perks through social that they cannot get anywhere else
  15. 15. 15 Understanding the Millennials, © 2014, SDL plc Millennials are most-likely to consider your offer if you’ve done business with them in the past 4% 6% 1% 13%8% 11% 16% 21% 36% 44% 49% 35% 53% 39% 35% 31% 0% 20% 40% 60% 80% 100% 120% A company you have done business with in the past 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 not heard of before Very Likely Somewhat Likely Somewhat Unlikely Very Unlikely 1. Significantly higher than all other relationships. (90% confidence) 2. Significantly higher than a company you have not heard of before (90% confidence) Email blasted campaigns from purchased lists are likely to be ignored 1 2 2
  16. 16. 16 Understanding the Millennials, © 2014, SDL plc Millennials are most-likely to consider your offer if you’ve done business with them in the past 4% 6% 1% 13%8% 11% 16% 21% 36% 44% 49% 35% 53% 39% 35% 31% 0% 20% 40% 60% 80% 100% 120% A company you have done business with in the past 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 not heard of before Very Likely Somewhat Likely Somewhat Unlikely Very Unlikely 1. Significantly higher than all other relationships. (90% confidence) 2. Significantly higher than a company you have not heard of before (90% confidence) Email blasted campaigns from purchased lists are likely to be ignored 1 2 2 What to do about it? Place efforts on brand building efforts to drive awareness or build a referral model on existing customer base
  17. 17. 17 Understanding the Millennials, © 2014, SDL plc Millennials want to do business with companies on their own terms – whenever and however they want And 64% expect the experience to be the same across all channels
  18. 18. 18 Understanding the Millennials, © 2014, SDL plc Millennials want to do business with companies on their own terms – whenever and however they want What to do about it? Plan for the entire customer experience, not just individual interactions And 64% expect the experience to be the same across all channels
  19. 19. 19 Understanding the Millennials, © 2014, SDL plc Millennials prefer hyper-targeted content Which streaming music source would you be most likely to listen to? “It’s easy to use on all my devices” “It knows what songs I like” “I have more control over what I hear” “I can choose what music that I want to listen to” “Better options for choosing the music I like. Better grouping / learning what music I like and better suggestions for what I MIGHT like.” hyper- targeted streaming non-targeted streaming 6% 10% 11% 18% 42% 0% 10% 20% 30% 40% 50% iHeartRadio iTunes radio A local radio station stream Spotify Pandora The majority would choose hyper-targeted music content over traditional radio streams
  20. 20. 20 Understanding the Millennials, © 2014, SDL plc Millennials prefer hyper-targeted content Which streaming music source would you be most likely to listen to? “It’s easy to use on all my devices” “It knows what songs I like” “I have more control over what I hear” “I can choose what music that I want to listen to” “Better options for choosing the music I like. Better grouping / learning what music I like and better suggestions for what I MIGHT like.” hyper- targeted streaming non-targeted streaming 6% 10% 11% 18% 42% 0% 10% 20% 30% 40% 50% iHeartRadio iTunes radio A local radio station stream Spotify Pandora The majority would choose hyper-targeted music content over traditional radio streams What to do about it? Cater to the individual, the channels they prefer and deliver content that meets the hyper-targeted experiences they expect
  21. 21. 21 Understanding the Millennials, © 2014, SDL plc Millennials discover content on social networks and other customizable online news feeds 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 How do you typically discover new and interesting things online? 2% 3% 4% 7% 8% 9% 12% 16% 17% 23% 23% 24% 27% 32% 33% 33% 33% 49% 0% 10% 20% 30% 40% 50% 60% Other <specify> Summly Cir.ca StumbleUpon Flipboard Instapaper Tumblr LinkedIn Reddit Buzzfeed Pinterest Google+ News sites YouTube Email recommendations A search engine (Google, Bing,… Twitter Facebook newsfeed
  22. 22. 22 Understanding the Millennials, © 2014, SDL plc Millennials discover content on social networks and other customizable online news feeds 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. How do you typically discover new and interesting things online? 2% 3% 4% 7% 8% 9% 12% 16% 17% 23% 23% 24% 27% 32% 33% 33% 33% 49% 0% 10% 20% 30% 40% 50% 60% Other <specify> Summly Cir.ca StumbleUpon Flipboard Instapaper Tumblr LinkedIn Reddit Buzzfeed Pinterest Google+ News sites YouTube Email recommendations A search engine (Google, Bing,… Twitter Facebook newsfeed What to do about it? Open channels in social media to engage and target social efforts in areas where content is discovered most
  23. 23. 23 Understanding the Millennials, © 2014, SDL plc 1 in 4 speak another language in their household…and nearly half of them prefer that language What is the preferred language of your household? Yes, 24% No, 76% Nearly half (47%) of multilingual homes prefer a language other than English In addition to English, is there another language that is spoken in your household? 6% 1% 1% 1% 1% 3% 6% 6% 19% 53% 0% 10% 20% 30% 40% 50% 60% Other <specify> Japanese Korean Polish Russian Tagalog Chinese German Spanish English
  24. 24. 24 Understanding the Millennials, © 2014, SDL plc 1 in 4 speak another language in their household…and nearly half of them prefer that language What is the preferred language of your household? Yes, 24% No, 76% Nearly half (47%) of multilingual homes prefer a language other than English In addition to English, is there another language that is spoken in your household? 6% 1% 1% 1% 1% 3% 6% 6% 19% 53% 0% 10% 20% 30% 40% 50% 60% Other <specify> Japanese Korean Polish Russian Tagalog Chinese German Spanish English What to do about it? Engage with customers in their language of preference to connect with them on a deeper level
  25. 25. 25 5 Truths for Tomorrow’s Marketer Understanding the Millennials, SDL plc Campaigns are Extinct1 Your Data Trumps Big Data5 There is Only One Language4 Content Finds the Customer3 Channels are Irrelevant2
  26. 26. 26 o Offer those that connect socially benefits not available elsewhere that are of value o Focus on brand-building efforts 5 Truths for Tomorrow’s Marketer Understanding the Millennials, SDL plc Campaigns are Extinct1 o Create consistent, cross-channel experiences to cater to any multiple device & optimize offers by channel o 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 consumer Your Data Trumps Big Data5 There is Only One Language4 Content Finds the Customer3 Channels are Irrelevant2
  27. 27. Learn how SDL Campaigns solutions can help you target Millennials: www.sdl.com/cxc/campaigns For more information on the first of Five Truths for Tomorrow’s Marketer, visit www.sdl.com/5truths-campaigns © 2014, SDL plc 27
  28. 28. 28 Understanding the Millennials, © 2014, SDL plc Study sample frame | demographics 300 completes. (304). *** Study fielded Jan 23, 2014 – Feb 7, 2014 Education - level Ethnicity Household Income Employment status Male 47% Female 53% Gender Age 18- 24 13% 25- 36 88% Sample source: SDL’s The Voice of a Generation Millennial community
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