Also known as Generation Z, the Centennials are a new generation of consumer who are self-aware, savvy and equipped with technology. At the age of 13-18 and born around the turn of the century, they already make up nearly a quarter of the population and by 2020, this will rise to 40%. What can brands and retailers do to better interact with these young, connected consumers?
PowerReviews conducted a survey of 1,000+ Centennials to understand where, when and how they are spending — and plan to spend — their money.
During this webinar, Theresa O’Neil, SVP of Marketing at PowerReviews, will discuss the findings of the survey, as well as practical recommendations for brands and retailers. She’ll cover:
* How Centennials browse and shop for products while in-store and online
* The factors that play a role in the purchasing decisions of Generation Z
* How Centennials use product reviews and other product information in their purchase decisions
2. PowerReviews, Inc.
Ask Questions
• #PowerReviews on Twitter
• Post them in the questions panel on the right
of your screen. We will answer at the end.
• You will receive a link to the recorded
webinar.
2
3. PowerReviews, Inc.
Speaker
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Theresa O’Neil, SVP of Marketing
Theresa is responsible for building and leading the
PowerReviews marketing team in the development and
execution of programs that increase awareness of the
PowerReviews brand and technology. Theresa brings more
than 20 years of experience developing marketing, sales
and business development strategy.
4. PowerReviews, Inc.
● Meet the Centennials
● Social media and reviews
● The shopping journey
● From browsers to buyers
● Engaging Centennials
● 4 keys to success
● Q&A
Agenda
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5. PowerReviews, Inc.
The survey
1,747 US and 1,585 UK Millennials and Centennials
Goal:
Investigate the online and in-store shopping habits
of the Centennial generation, identifying how
brands & retailers can refine their marketing plans
to best influence this demographic.
Timing:
September 2015
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How are they different than Millennials?
Source: International Bureau Times, 2015.
High expectations
for information
Average access to
three screens
Technology provides Millennials
with a wider spectrum of options,
encouraging less brand loyalty
Aged 19-34
Discoverers of
technology where
options appeared
limitless
Pioneers of
social media
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8. PowerReviews, Inc.
Who are the Centennials?
Source: International Bureau Times, 2015.
High expectations
for information -
instantly
Average access to
five screens
Equipped with tools
to seek out answers
and make informed
decisions
Aged 13-18
Born with
technology
Mobile-native
generation
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I have specific initiatives for:
● Centennials
● Millennials
● Both
● Neither
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Why should you care about Centennials?
Sources: U.S. Census Bureau, National Center for Biotechnology Information, U.S. National Library of Medicine, the Associated Press, JWT
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25% 40%
They currently
make up a quarter
of the population
By 2020, they will
make up 40% of
the population
They contribute
$44 billion in
spending power
each year
12. PowerReviews, Inc. Confidential
Source: PowerReviews Centennial Shopper Study, 2015
Social content impacts purchase decisions
But not as much as reviews
Centennial Millennial
a written review on a
retailer/brand/product website
A friend’s post on a social
media channel
10% 20% 30% 40% 50% 10% 20% 30% 40% 50%
What type of reviews
do you trust most?
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14. PowerReviews, Inc.
Research first, spend later
Source: PowerReviews Centennial Shopper Study, 2015Source: PowerReviews Centennial Shopper Study, 2015
Centennial
20% 40% 60% 80% 100%
What is most true
about you? I tend to make spontaneous,
emotionally-driven purchases
I tend to take my time with most
purchases, researching price,
product reviews, etc.
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15. PowerReviews, Inc.
Consumers are looking for reviews for...Where are they doing their product research?
5% 10% 15% 20% 25% 30% 35% 40% 45%
52%
Laptop or desktop computer
37%
Mobile phone
6%
In-store
5%
Tablet
50%
Centennials prefer to browse on a laptop or desktop computer
Source: PowerReviews Centennial Shopper Study, 2015
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95% of Centennials
search and read reviews to
validate their product choice
How do they determine quality?
By reading reviews
Half of Centennials
won’t purchase a product if
there aren’t enough reviews
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Where are they reading reviews?
Source: PowerReviews Centennial Shopper Study, 2015
Over a third want to see reviews directly on a
brand or retailer’s website
Source: PowerReviews Centennial Shopper Study, 2015
Centennial
0% 10% 20% 30% 40%
Where do you typically
search and view reviews?
On social media (Facebook,
Twitter, YouTube, etc.)
I never search or read reviews
Directly on the brand/retailer’s
website
On a 3rd party blog/website
(Amazon)
50% 60%
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“If you fail to engage with
Centennials, they have the
independence and control to
conduct their entire shopping
journey without you.”
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Key tips for engaging Centennial browsers
Emphasize quality and differentiation
Discuss the best qualities of your product, rather than exclusively low
pricing and delivery costs.
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Engage early online
Tailor your website for research purposes and purchasing.2
Bolster your online presence
Ensure your website is mobile optimized so it’s easy to view and navigate
whenever your customer is.
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Consumers are looking for reviews for...How much do Centennials value reviews?
5% 10% 15% 20% 25% 30% 35% 40% 45%
56%
Price
32%
Reviews
8%
Recognizable brand name
4%
Free shipping
Reviews are second only to price
50% 55%
Source: PowerReviews Centennial Shopper Study, 2015
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58% of Centennials want to read
reviews when they’re unfamiliar
with a brand or retailer
Reviews are imperative for new products & brands
Source: PowerReviews Centennial Shopper Study, 2015
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Instant answers or walk away
45%
of Centennials say
they won’t buy a
product if they can’
t ask a question
about it
2/3
of Centennials
prefer having their
questions
answered by
previous
customers
Source: PowerReviews Centennial Shopper Study, 2015
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Consumers will find review content
Drugstore Ulta
If you don’t have the content, Amazon does
Source: PowerReviews Centennial Shopper Study, 2015
79%
of Centennials admitted
going straight to another
retailer or to Amazon if they
couldn’t ask a question on a
brand’s product page
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Why Reviews
40%
of Centennials won’t
purchase a product if
there are no photos of
people using the
product.
Visual content is key
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Back in store?
Centennials browse online but like to purchase in-store
Centennial Millennial
browsing for product online
purchasing in-store after
browsing online
20% 40% 60% 80% 100%
How are Centennials
browsing for products?
Source: PowerReviews Centennial Shopper Study, 2015
20% 40% 60% 80% 100%
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Why are Centennials more likely to make their final
purchase in-store?
● Social activity (shopping with friends)
● Get the item immediately
● In-store/student discounts
● Purchase with cash
● Avoid shipping and return shipping fees
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Key tips to turn Centennial browsers into buyers
Highlight new products
Validate fresh-to-market products with reviews.1
Turn customers into brand ambassadors
Make it easy for them to talk, source product reviews, share product images,
and ask and answer product questions.
2
Blur the lines between online and in-store
Create marketing campaigns that recognize that Centennials will browse
online, then may buy in-store.
3
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Centennials reluctant to engage
23%
would be more
likely to leave a
review if given an
incentive
62%
haven’t written an
online review in
the past month
Source: PowerReviews Centennial Shopper Study, 2015
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When are Centennials most likely to leave reviews?
5% 10% 15% 20% 25% 30% 35% 40% 45%
37%
I was unhappy with the product
23%
I had an incentive, such as a discount on future purchases or free sample
21%
I was happy with the product
19%
I spent a lot of money on the purchase or time considering the purchase
50% 55%
When they are unhappy or encouraged
Source: PowerReviews Centennial Shopper Study, 2015
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Negative reviews have their part to play
44% of Centennials said they wouldn’t trust a product’s reviews if there
were no negative reviews present
60% of Centennials read negative reviews first.
4.2-4.5 is the average ideal star rating
Sources: PowerReviews & Northwestern University, From Reviews to Revenue Report, 2015; PowerReviews Centennial Shopper Study, 2015
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35. PowerReviews, Inc. Confidential
Key tips to keep Centennials engaged
Motivate shoppers
Offer discounts or free samples to help generate reviews and images1
Be transparent and authentic
Don’t remove negative reviews, and indicate if incentives were provided to
the review writer.
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3
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Respond
Engage with reviewers to resolve problems and build brand relationships.
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Put review content front and center
to meet the needs of Centennial shoppers
1
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Optimize your website for mobile
so Centennials can find what they’re looking for, regardless of the
device they’re using
2
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Collect Photos and Videos
as part of reviews, as Centennials like to engage with visual content
3
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Insist on Transparency and Authenticity
don’t delete reviews and indicate when a review resulted from a
promotion or free sample
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41. PowerReviews, Inc.
Ask Questions
• #PowerReviews on Twitter
• Post them in the questions panel on the right
of your screen. We will answer at the end.
• You will receive a link to the recorded
webinar.
41