understanding global millennials: summary of findings from expanded global study

1

Understanding Global Millennials

An SDL Customer Experience Research Report

2014

Insights Into the Global Millennial Mindset –

and what to do about it

© 2014, SDL plc

2

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.

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The Millennial Mindset

Global 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

4Understanding Global Millennials, © 2014, SDL plc

What to do about itMake sure content is consistent across all channels.Plan for the entire customer journey, not just individual interactions.

!

Millennials touch their smartphones

43 times per day

44% Expect the experience to be the sameregardless of channel


Smartphones dominate and Millennials check them 43 times per day*

43 45 34 36 34 39 38Avg. # touches

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?

On average, 19 out of 20 Global Millennials own a smart phone.

< 20

20 - 40

>40 - 60

>60 - 80

>80 - 100

> 100

25%

26%

28%

11%

4%

5%

Total*

32%

27%

21%

10%

4%

6%

NO

43%

25%

15%

8%

3%

6%

AU

30%

32%

21%

10%

3%

5%

UK

38%

29%

18%

8%

5%

3%

NE

33%

30%

22%

8%

4%

3%

DE

Series1 20%

24%

33%

13%

5%

6%

US

*Weighted by GDP of responding countries

If you’ve communicated through a digital channel – they saw it the day it

was delivered


29%

71%

11%

89%

11%

89%

32%

68%

38%

62%

18%

82%

30%

70%

45%55%

70%

30%

67%

33%

In a typical day, 2 of 3 Millennials touch 2 different devices

67%

33%Use 2 devices daily

37%

63%

Use 3 devices daily

Use 4 devices daily

US AU DE NE

65%35%

41%

59%

57%43%

21%

79%

67%

33%

21%

79%

71%

29%

34%

66%

24%

76%

NO UKTOTAL*


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


What to do about itFocus on building trust with targeted offersBe clear about the “give-get” equation

!

7xMillennials are 7 times more likely to give personal information to a trusted brand

46% share their data if it means more relevant offers


40% of Millennials can identify digital information tracked by companies

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.


It is accepted that some types of information will be collected…but not highly accepted

More Acceptable data for companies to trackOn 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.

0

40

80

120

6274 77 78 80 80 82 85 86 88 92 95 102

NETSCORE


The more awareness there is around data that is being tracked… the more acceptable it becomes.

Relationship is significant @ 99%

confidence

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

Greater transparency with customers on the types of data that companies can track makes it

more acceptable in the eyes of the

consumer.

0

40

80

120

0%

20%

40%

60%

6274 77 78 80 80 82 85 86 88 92 95 102

NETSCORE Awareness

Linear Awareness


Total US AU DE NE NO UK

It should feel the same when dealing with a company w hether you're online, in a store, or on the phone

60% 64% 54% 50% 44% 28% 54%

I expect to be able to engage with a company whenever I choose and through w hichever channel I choose

58% 63% 50% 50% 30% 50% 40%

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)

51% 60% 39% 38% 18% 22% 40%

I w ould be more likely to provide personal information to a trusted brand - a company I have purchased from before

53% 60% 37% 41% 26% 37% 44%

The kind of companies I w ant to do business w ith are the ones that can make good offers in real-time

53% 57% 46% 48% 31% 39% 50%

I like when a company makes recommendations to me that make shopping easier for me

49% 55% 35% 40% 20% 72% 45%

It creeps me out when a company knows w hat I w ant before I've even told them

47% 54% 36% 37% 28% 39% 36%

I would be prepared to give more data to businesses if it meant they didn't w aste my time w ith offers that are not relevant

46% 54% 31% 30% 16% 37% 35%

I have absolutely no issue with companies using the data I provide them to give me a better experience

44% 52% 29% 28% 13% 23% 37%

I don't like when companies use personal data to target offers at me (i.e. w eb brow sing, search habits, etc.)

48% 51% 43% 45% 44% 37% 44%

It creeps me out when I receive offers in social media for things I have searched for recently

46% 49% 39% 38% 29% 38% 43%

If I've decided not to buy something, I don't trust companies that continue to provide offers to me

43% 46% 36% 39% 27% 39% 36%

The majority of companies don't know how to market to my generation31% 35% 24% 21% 17% 17% 28%

Percent Stated 'Agree' 7 - 9

Past experience and brand trust makes customers willing to share more personal data

The Netherlands , by exception, is not as willing to make a trade-off to provide more personal data for the sake of a better experience.

*



What to do about itPlace efforts on content sharing to first drive awareness, engagement and trust

!

Emails from unknown brands are likely to be

ignored

47% are “most likely” to engage if they have previously done business with you


5 of 6 Millennials choose to connect with companies in social media, but they want something in return

Total

16%

26%

46%

56%

62%

I don't connect w/ companies in social media

To complain - and be heard

To get better customer service

To get free perks

To get discounts

18%

28%

45%

51%

58%

AU

29%

28%

41%

42%

50%

18%

32%

51%

47%

59%

10%

25%

44%

46%

51%

16%

34%

41%

39%

51%

US

44%

28%

38%

31%

42%

UK NE NO DE


Though less pronounced

than in the US, customers

internationally predominately

connect for discounts and

freebies.

*


A company you have not heard of before

A company you have heard of, but have not done business with in the past

If you were referred to a previously unknown company by a friend, how likely would you be to

do business with them?

A company you have done business with in the past

48%

76%

69%

81%

39%

57%

69%

71%

27%

59%

68%

78%

34%

60%

63%

71%

49%

71%

73%

75%

66%

83%

84%

89%

56%

77%

78%

84%

TotalUS AUDENENOUK

Purchased lists are dead… If they don’t already know you, your email is irrelevant to them


Customers are the most-likely to consider your offer if you’ve done business with them in the past.

…Email campaigns from purchased lists are likely to be ignored.

*




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%



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

The Netherlands has somewhat tempered anticipations about what to expect from businesses – they are more accustomed to dealing with businesses on their time.


The majority of Millennials want to engage whenever they choose and expect the same experience across channels.

*




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%



Millennials are undecided about whether or not companies know how to market to them


*

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What to do about itUse social media first to build relationships and engage

!


Millennials prefer hyper-targeted content

Which streaming music source would you be most likely to listen to?

iHeartRadio

iTunes radio

Local Radio Stream

Spotify

Pandora

9%

12%

14%

21%

29%

Total*

2%

21%

22%

11%

10%

AU

24%

12%

15%

28%

5%

DE

25%

7%

12%

28%

2%

NE

19%

5%

9%

54%

3%

NO

5%

19%

24%

24%

4%

UK

hyper-targeted streaming

non-tar-geted streaming

6%

10%

11%

18%

42%

US


The majority would choose hyper-targeted music

content over traditional radio streams


Summly

Cir.ca

StumbleUpon

Flipboard

Instapaper

Tumblr

LinkedIn

Reddit

Buzzfeed

Pinterest

Google+

News sites

YouTube

Email recommendations

A search engine (Google, Bing, etc.)

Twitter

Facebook newsfeed

2%

3%

5%

6%

7%

10%

13%

13%

17%

17%

24%

26%

35%

31%

27%

29%

49%

Total*

Series1 2%

3%

4%

7%

8%

9%

12%

16%

17%

23%

23%

24%

27%

32%

33%

33%

33%

49%

%

%

3%

4%

1%

9%

6%

10%

4%

5%

22%

32%

43%

26%

11%

20%

50%

1%

%

3%

2%

2%

10%

10%

9%

11%

6%

23%

30%

42%

22%

19%

38%

52%

%

%

2%

2%

1%

3%

7%

3%

3%

4%

21%

22%

20%

29%

17%

13%

38%

All international markets use fewer channels to discover content that the US

Social networks dominate content discoveryHow do you typically discover new and interesting things online?

UKNE NODEAUUS

%

%

3%

3%

1%

6%

11%

5%

5%

12%

25%

26%

43%

23%

23%

21%

61%

1%

1%

2%

3%

2%

3%

3%

4%

2%

3%

22%

17%

42%

37%

11%

15%

44%


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


What to do about itEngage with customers in their language of preference to connect with them on a deeper level

!46% are more likely to buy in their own language

32% speak a non-English language at home in English-speaking countries


A great opportunity exists to connect with customers in their language of preference to engage with them on a deeper level

What is the preferred language of your household?

NO

DE

NE

AU

UK

US

Total

63%

59%

49%

36%

35%

24%

33%

37%

41%

51%

64%

65%

76%

67%

Yes NoIn addition to English, is there another language that is spoken in your household?

1 in 4 US Millennials have another language spoken in their household…

1 in 3 in the UK and Australia have another language spoken in their household…

1 in 2 in Germany, the Netherlands, and Norway have another language spoken in their household…

Language is not tied to geography or a specific country. We are a multilingual world.

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Understanding the Millennials, SDL plc

o Offer those that connect socially benefits not available elsewhere that are of value

o Focus on brand-building efforts

The Future of Customer Experience:5 Truths for Tomorrow’s Marketer

Campaigns are Extinct1o Create consistent, cross-channel experiences to cater to any

multiple device & optimize offers by channelo 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 consumerYour Data Trumps Big Data5

There is Only One Language4

Content Finds the Customer3

Channels are Irrelevant2

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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

© 2014, SDL plc


Study sample frame | demographics

Ethnicity

Household Income

Employment statusTotal US AU DE NE NO UK

Full-time (30+ hours) 68% 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%

Not Employed 14% 12% 17% 11% 16% 14% 12%

Student 5% 4% 12% 12% 0% 21% 10%

Retired 0% 0% 1% 1% 5% 2% 0%

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%

$150,000 + 8% 12% 9% 2% 2% 5% 2%

Total US AU DE NE NO UKCaucasian 79% 82% 61% 86% 84% 40% 68%

African American 7% 9% 2% 1% 3% 3% 4%

Asian / Pacific I slander 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%

Surveyed January – April 2014Total N = 1860

Education - level

Age

Total US AU DE NE NO UK18 - 24 21% 13% 35% 35% 35% 52% 34%

25 - 36 80% 88% 65% 65% 65% 48% 66%

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%

College degree 59% 74% 36% 22% 41% 35% 41%

Graduate degree 14% 15% 21% 7% 3% 10% 18%

US = 304 64%

AU = 309 6%

DE = 309 14%

NE = 310 3%

NO = 307 2%

UK = 321 11%

Facebook Foursquare TumblrTwitter Ning FlickrPinterest Meetup StumbleUponInstagram Hi5 WordPressLinkedIn Orkut Wer-kennt-wen [DE]Myspace Badoo MeinVZ/StudyVZ [DE]Google+ MySpace Lokalisten [DE]

*Global weights applied to total rollup

All respondents active on one or more social networks in the past 30 days:

*Market data weighted by 2012 World Bank GDP data.

**Other for Norway is high, since they don’t associate with being Caucasian.

**

understanding global millennials: summary of findings from expanded global study

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