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To find out more and download our infographic and whitepaper - http://www.sdl.com/campaign/marketing/WP/Future-of-CX-Five-Truths-for-Tomorrows-Marketers-White-Paper.html
Citation preview
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
Understanding the Millennials, © 2014, SDL plc
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
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
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
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
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
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
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
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
Understanding the Millennials, © 2014, SDL plc
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
Understanding the Millennials, © 2014, SDL plc
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
What to do about it?
Give them unique
discounts and free
perks through social
that they cannot get
anywhere else
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 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
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 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
What to do about it?
Place efforts on brand building efforts to
drive awareness or build a referral
model on existing customer base
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
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
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-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
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-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
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
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
Instapaper
Tumblr
Buzzfeed
Google+
News sites
YouTube
Email recommendations
A search engine (Google, Bing,…
Facebook newsfeed
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
Instapaper
Tumblr
Buzzfeed
Google+
News sites
YouTube
Email recommendations
A search engine (Google, Bing,…
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
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
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
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
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