SDL, Understanding Global Millennials, August 2014

Report
Understanding
Global
Millennials
An SDL Customer
Experience Research
Report
2014
Insights Into the Global
Millennial Mindset –
and what to do about it
1
© 2014, SDL plc
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.
2
The Millennial Mindset
Global Millennials…
•
•
•
•
•
•
•
•
3
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
Millennials touch their smartphones
43 times per day
44%
Expect the experience to be the same
regardless of channel
What to do about it
!
Make sure content is consistent across all channels.
Plan for the entire customer journey, not just individual interactions.
4
Understanding Global Millennials, © 2014, SDL plc
Smartphones dominate and Millennials check them
43 times per day*
If you’ve communicated through a
digital channel – they saw it the day it
was delivered
On average, 19 out of 20 Global Millennials own a smart phone.
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?
Avg. #
touches
45
43
US
Total*
> 100
5%
6%
>80 - 100
4%
5%
>60 - 80
>40 - 60
34
11%
AU
20 - 40
26%
< 20
25%
DE
6%
33%
24%
20%
43%
NO
38
UK
5%
6%
3%
4%
10%
10%
18%
22%
25%
NE
8%
8%
15%
39
5%
4%
8%
34
3%
3%
3%
13%
28%
36
30%
33%
*Weighted by GDP of responding countries
5
Understanding Global Millennials, © 2014, SDL plc
21%
21%
29%
38%
27%
32%
32%
30%
In a typical day, 2 of 3 Millennials touch 2 different devices
Use 2
devices
daily
33%
33%
67%
Use 3
devices
38%
daily
62%
30%
67%
70%
45%
55%
35
%
57%
59
%
41
%
79%
30%
70%
TOTAL*
63
%
18%
37
%
US
AU
34%
66%
79%
24%
DE
76%
89%
89%
NE
NO
*Weighted by GDP of responding countries
6
Understanding Global Millennials, © 2014, SDL plc
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
11%
29%
71%
82%
71%
21%
11%
Use 4
devices
daily
29%
67%
21%
32%
68%
33%
43%
65
%
UK
7x
46%
Millennials are 7 times more likely to
give personal information to a
trusted brand
share their data if it means more relevant offers
What to do about it
Focus on building trust with targeted offers
Be clear about the “give-get” equation
7
Understanding Global Millennials, © 2014, SDL plc
!
40% of Millennials can identify digital
information tracked by companies
8
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.
Understanding 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 track
120
100
80
60
40
20
0
62
74
77
78
80
80
82
85
86
88
92
95
102
On 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.
NETSCORE
9
Understanding Global Millennials, © 2014, SDL plc
The more awareness there is around data that is being
tracked… the more acceptable it becomes.
More Acceptable data for companies to track
120
100
80
60
40
20
0
62
74
Surprisingly, phone number
is not acceptable to track.
(it likely would have been prior
to mobile-phone only)
77
78
80
80
82
NETSCORE
85
86
Awareness
88
92
95
Linear Awareness
10
Understanding Global Millennials, © 2014, SDL plc
102
60%
50%
40%
30%
20%
10%
0%
Greater
transparency with
customers on the
types of data that
companies can
track makes it
more acceptable
in the eyes of the
consumer.
Relationship is
significant @ 99%
confidence
Past experience and brand trust makes customers willing
to share more personal data
Total *
US
AU
DE
NE
NO
UK
Percent Stated 'Agree' 7 - 9
It should feel the sam e w hen dealing w ith a com pany w hether
you're online, in a store, or on the phone
I expect to be able to engage w ith a com pany w henever I choose
and through w hichever channel I choose
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)
I w ould be m ore likely to provide personal inform ation to a trusted
brand - a company I have purchased from before
The kind of companies I w ant to do business w ith are the ones that can
m ake good offers in real-tim e
I like w hen a com pany m akes recom m endations to me that make
shopping easier for me
It creeps m e out w hen a com pany know s w hat I w ant before I've
even told them
I w ould be prepared to give m ore data to businesses if it meant they
didn't w aste my time w ith offers that are not relevant
I have absolutely no issue w ith com panies using the data I provide
them to give me a better experience
I don't like w hen com panies use personal data to target offers at me
(i.e. w eb brow sing, search habits, etc.)
It creeps m e out w hen I receive offers in social m edia for things I
have searched for recently
If I've decided not to buy something, I don't trust com panies that
continue to provide offers to m e
The majority of com panies don't know how to m arket to my generation
60%
64%
54%
50%
44%
28%
54%
58%
63%
50%
50%
30%
50%
40%
51%
60%
39%
38%
18%
22%
40%
53%
60%
37%
41%
26%
37%
44%
53%
57%
46%
48%
31%
39%
50%
49%
55%
35%
40%
20%
72%
45%
47%
54%
36%
37%
28%
39%
36%
46%
54%
31%
30%
16%
37%
35%
44%
52%
29%
28%
13%
23%
37%
48%
51%
43%
45%
44%
37%
44%
46%
49%
39%
38%
29%
38%
43%
43%
46%
36%
39%
27%
39%
36%
31%
35%
24%
21%
17%
17%
28%
11
*Weighted by GDP of responding countries
Understanding Global Millennials, © 2014, SDL plc
The Netherlands , by
exception, is not as
willing to make a tradeoff to provide more
personal data for the
sake of a better
experience.
Emails from unknown brands are likely to be
ignored
47%
are “most likely” to engage if they have
previously done business with you
What to do about it
Place efforts on content sharing to first drive
awareness, engagement and trust
12
Understanding Global Millennials, © 2014, SDL plc
!
5 of 6 Millennials choose to connect with companies in
social media, but they want something in return
US
Total *
To get
discounts
I don't
connect
w/
compan…
34%
28%
18%
56%
41%
45%
16%
NE
62%
39%
51%
To get
better
customer
service
To
complain and be
heard
51%
58%
To get
free perks
UK
46%
26%
16%
NO
42%
51%
31%
38%
28%
25%
44%
AU
DE
10%
59%
50%
46%
42%
44%
41%
28%
29%
*Weighted by GDP of responding countries
13
Understanding Global Millennials, © 2014, SDL plc
47%
51%
32%
18%
Though less
pronounced
than in the US,
customers
internationally
predominately
connect for
discounts and
freebies.
Purchased lists are dead… If they don’t already know you,
your email is irrelevant to them
84%
89%
75%
71%
78%
71%
81%
A company you have done
business with in the past
78%
84%
73%
If you were referred to a previously
unknown company by a friend,
how likely would you be to do
business with them?
63%
68%
69%
69%
A company you have heard of, but
have not done business with in the
past
60%
59%
57%
56%
A company you have not heard of
before
49%
77%
83%
71%
76%
66%
34%
27%
39%
48%
0%
Total *
US
AU
DE
NE
NO
UK
20% 40% 60% 80% 100%
*Weighted by GDP of responding countries
14
Understanding Global Millennials, © 2014, SDL plc
Customers are the mostlikely to consider your offer
if you’ve done business
with them in the past.
…Email campaigns from
purchased lists are likely to
be ignored.
Millennials want to do business with companies on their
own terms – whenever and however they want
Total *
US
AU
DE
NE
NO
UK
Percent Stated 'Agree' 7 - 9
It should feel the sam e w hen dealing w ith a com pany w hether
you're online, in a store, or on the phone
I expect to be able to engage w ith a com pany w henever I choose
and through w hichever channel I choose
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)
I w ould be m ore likely to provide personal inform ation to a trusted
brand - a company I have purchased from before
The kind of companies I w ant to do business w ith are the ones that can
m ake good offers in real-tim e
I like w hen a com pany m akes recom m endations to me that make
shopping easier for me
It creeps m e out w hen a com pany know s w hat I w ant before I've
even told them
I w ould be prepared to give m ore data to businesses if it meant they
didn't w aste my time w ith offers that are not relevant
I have absolutely no issue w ith com panies using the data I provide
them to give me a better experience
I don't like w hen com panies use personal data to target offers at me
(i.e. w eb brow sing, search habits, etc.)
It creeps m e out w hen I receive offers in social m edia for things I
have searched for recently
If I've decided not to buy something, I don't trust com panies that
continue to provide offers to m e
The majority of com panies don't know how to m arket to my generation
60%
64%
54%
50%
44%
28%
54%
58%
63%
50%
50%
30%
50%
40%
51%
60%
39%
38%
18%
22%
40%
53%
60%
37%
41%
26%
37%
44%
53%
57%
46%
48%
31%
39%
50%
49%
55%
35%
40%
20%
72%
45%
47%
54%
36%
37%
28%
39%
36%
46%
54%
31%
30%
16%
37%
35%
44%
52%
29%
28%
13%
23%
37%
48%
51%
43%
45%
44%
37%
44%
46%
49%
39%
38%
29%
38%
43%
43%
46%
36%
39%
27%
39%
36%
31%
35%
24%
21%
17%
17%
28%
*Weighted by GDP of responding countries
15
Understanding Global Millennials, © 2014, SDL plc
The majority of
Millennials want to
engage whenever
they choose and
expect the same
experience across
channels.
The Netherlands has somewhat
tempered anticipations about
what to expect from businesses
– they are more accustomed to
dealing with businesses on their
time.
Millennials are undecided about whether or not
companies know how to market to them
Total *
US
AU
DE
NE
NO
UK
Percent Stated 'Agree' 7 - 9
It should feel the sam e w hen dealing w ith a com pany w hether
you're online, in a store, or on the phone
I expect to be able to engage w ith a com pany w henever I choose
and through w hichever channel I choose
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)
I w ould be m ore likely to provide personal inform ation to a trusted
brand - a company I have purchased from before
The kind of companies I w ant to do business w ith are the ones that can
m ake good offers in real-tim e
I like w hen a com pany m akes recom m endations to me that make
shopping easier for me
It creeps m e out w hen a com pany know s w hat I w ant before I've
even told them
I w ould be prepared to give m ore data to businesses if it meant they
didn't w aste my time w ith offers that are not relevant
I have absolutely no issue w ith com panies using the data I provide
them to give me a better experience
I don't like w hen com panies use personal data to target offers at me
(i.e. w eb brow sing, search habits, etc.)
It creeps m e out w hen I receive offers in social m edia for things I
have searched for recently
If I've decided not to buy something, I don't trust com panies that
continue to provide offers to m e
The majority of com panies don't know how to m arket to my generation
16
60%
64%
54%
50%
44%
28%
54%
58%
63%
50%
50%
30%
50%
40%
51%
60%
39%
38%
18%
22%
40%
53%
60%
37%
41%
26%
37%
44%
53%
57%
46%
48%
31%
39%
50%
49%
55%
35%
40%
20%
72%
45%
47%
54%
36%
37%
28%
39%
36%
46%
54%
31%
30%
16%
37%
35%
44%
52%
29%
28%
13%
23%
37%
48%
51%
43%
45%
44%
37%
44%
46%
49%
39%
38%
29%
38%
43%
43%
46%
36%
39%
27%
39%
36%
31%
35%
24%
21%
17%
17%
28%
*Weighted by GDP of responding countries
Understanding Global Millennials, © 2014, SDL plc
What to do about it
Use social media first to build relationships and engage
17
!
Millennials prefer hyper-targeted content
The majority would choose
hyper-targeted music
content over traditional radio
streams
Which streaming music source would you be most likely to listen to?
hypertargeted
streaming
nontargeted
streaming
Total*
US
Pandora
29%
Spotify
Local Radio
Stream
iTunes radio
iHeartRadio
12%
9%
10%
42%
21%
14%
AU
5%
22%
10%
21%
15%
24%
54%
9%
7%
24%
UK
4%
28%
12%
12%
NO
3%
28%
11%
2%
NE
2%
11%
18%
6%
DE
24%
5%
25%
*Weighted by GDP of responding countries
18
Understanding Global Millennials, © 2014, SDL plc
19%
19%
5%
Social networks dominate content discovery
How do you typically discover new and interesting things online?
Facebook…
Twitter
A search…
27%
Email…
31%
YouTube
26%
Google+
23%
33%
23%
26%
24%
25%
Pinterest
17%
Buzzfeed
17%
12%
23%
LinkedIn
Tumblr
Instapaper
Flipboard
StumbleU…
13%
22%
4%
5%
3%
43%
2%
3%
4%
3%
3%
2%
1%
3%
2%
2%
2%
1%
%
1%
%
10%
6%
3%
10%
9%
AU
DE
NE
2%
2%
4%
3%
3%
%
%
1%
NO
UK
19
*Weighted by GDP of responding countries
And, lastly, by more traditional
means. (email, search engine,
other online news sites
1%
%
US
Followed by other, emergent
online and customizable news
feed sites
9%
10%
7%
3%
2%
11%
4%
3%
%
6%
5%
1%
%
23%
22%
3%
Social networks comprise the
bulk of content discovery
30%
32%
4%
6%
7%
6%
2%
Total*
8%
42%
21%
3%
9%
7%
Summly
11%
12%
10%
3%
5%
16%
13%
Cir.ca
5%
17%
22%
26%
22%
17%
24%
19%
20%
42%
38%
11%
29%
37%
27%
23%
Reddit
11%
52%
20%
17%
43%
32%
35%
News sites
33%
50%
13%
15%
21%
33%
29%
38%
44%
61%
49%
49%
Understanding Global Millennials, © 2014, SDL plc
All international markets use fewer
channels to discover content that
the US
32%
46%
speak a non-English language at
home in English-speaking countries
are more likely to buy in their own language
What to do about it
Engage with customers in their language of preference
to connect with them on a deeper level
20
Understanding 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
In addition to English, is there another language that is spoken in your household?
Yes
Total
US
UK
AU
NE
DE
NO
33%
No
1 in 4 US Millennials have another
language spoken in their
household…
67%
24%
76%
35%
65%
36%
64%
49%
1 in 3 in the UK and Australia have
another language spoken in their
household…
51%
59%
41%
63%
1 in 2 in Germany, the Netherlands, and
Norway have another language
spoken in their household…
37%
Language is not tied to geography or a specific country. We are a multilingual world.
21
What is the preferred language of your household?
Understanding Global Millennials, © 2014, SDL plc
The Future of Customer Experience:
5 Truths for Tomorrow’s Marketer
1
2
3
Campaigns are Extinct
Channels are Irrelevant
Content Finds the Customer
4
There is Only One Language
5
Your Data Trumps Big Data
o Offer those that connect socially benefits not available
elsewhere that are of value
o Focus on brand-building efforts
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
22
Understanding the Millennials, SDL plc
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
23
© 2014, SDL plc
Study sample frame | demographics
Employment status
Surveyed January – April 2014
Total N = 1860
Total
Full-time (30+ hours)
*Global weights applied to All respondents active on one or more social
total rollup
networks in the past 30 days:
US = 304
64%
Facebook Foursquare
Tumblr
Twitter
Ning
Flickr
AU = 309
6%
Pinterest Meetup
StumbleUpon
DE = 309
14%
Instagram Hi5
WordPress
NE = 310
3%
LinkedIn
Orkut
Wer-kennt-wen [DE]
NO = 307
2%
Myspace Badoo
MeinVZ/StudyVZ [DE]
Google+
MySpace
Lokalisten [DE]
UK = 321
11%
Education - level
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%
C ollege degree
59%
74%
36%
22%
41%
35%
41%
Graduate degree
14%
15%
21%
7%
3%
10%
18%
Age
Total
18 - 24
25 - 36
US
AU
DE
NE
NO
UK
21%
13%
35%
35%
35%
52%
34%
80%
88%
65%
65%
65%
48%
66%
US
AU
DE
NE
UK
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%
14%
12%
17%
11%
16%
14%
12%
Student
5%
4%
12%
12%
0%
21%
10%
Retired
0%
0%
1%
1%
5%
2%
0%
Not Employed
Household Income
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%
8%
12%
9%
2%
2%
5%
2%
$150,000 +
Ethnicity
Total
C aucasian
US
AU
DE
NE
NO
82%
61%
86%
African American
7%
9%
2%
1%
3%
3%
4%
Asian / Pacific Islander
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%
**Other for Norway is high, since they don’t associate with being Caucasian.
Understanding Global Millennials, © 2014, SDL plc
84% **
UK
79%
24
*Market data weighted by 2012 World Bank GDP data.
NO
68%
40%
68%

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