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%