understanding the millennials: summary of findings

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

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

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

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%

Severaltimes a

day

Daily Multipletimes aweek

Once aweek

Multipletimes amonth

Once amonth 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


0%

10%

20%

30%

40%

50%

60%

70%

80%

Severaltimes a

day

Daily Multipletimes aweek

Once aweek

Multipletimes amonth

Once amonth 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


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


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


Make sure content across all

interactions is consistent and

relevant for your audience

8


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


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


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


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


…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


…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


16%

26%

46%

56%

62%

0% 20% 40% 60% 80%

I don't connect with companies insocial 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


16%

26%

46%

56%

62%

0% 20% 40% 60% 80%

I don't connect with companies insocial 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


Give them unique

discounts and free

perks through social

that they cannot get

anywhere else

15


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 youhave done business

with in the past

A company youhave heard of, but

have not donebusiness with in the

past

If you were referredto a previously

unknown companyby a friend, how

likely would you beto do business with

them?

A company youhave 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


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 youhave done business

with in the past

A company youhave heard of, but

have not donebusiness with in the

past

If you were referredto a previously

unknown companyby a friend, how

likely would you beto do business with

them?

A company youhave 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


Place efforts on brand building efforts to

drive awareness or build a referral

model on existing customer base

17


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


Millennials want to do business with companies on their own terms – whenever and however they want


Plan for the entire

customer experience,

not just individual

interactions

And 64% expect the

experience to be the

same across all

channels

19


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-targetedstreaming

non-targetedstreaming

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


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-targetedstreaming

non-targetedstreaming

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


Cater to the individual, the channels they prefer

and deliver content that meets the

hyper-targeted experiences they expect

21


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


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


Open channels in social media to

engage and target social efforts in areas

where content is discovered most

23


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


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


Engage with customers in their

language of preference to connect

with them on a deeper level

25

5 Truths for Tomorrow’s Marketer

Understanding the Millennials, SDL plc

Campaigns are Extinct 1

Your Data Trumps Big Data 5

There is Only One Language 4

Content Finds the Customer 3

Channels are Irrelevant 2

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 Extinct 1

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 Data 5

There is Only One Language 4

Content Finds the Customer 3

Channels are Irrelevant 2

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


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

understanding the millennials: summary of findings

Business