millennials as buyers · you can thank millennials for spawning terms like “multi-channel” and...
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A Quad Infographic Study
Millennials as Buyers
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OVERVIEWAhh, Millennials. That magical unicorn of a shopper targeted by virtually everyone, yet so elusive to marketing messages and dollars. Hey, there’s good reason for their emergence as the darlings of the marketing world—Millennials far outnumber other generations like Boomers in both population & labor numbers. But as the most diverse generation in ethnicity, income, age range, marital & family status, cultural & economic relevance, and spending potential—ever—reaching Millennials involves much more than estimated discretionary income & spending power. The first question marketers need to address is which Millennial are they targeting to know what makes them tick. This pictorial study will guide you through key behavioral aspects, buying and media preferences of a generation that demands the attention of serious marketers everywhere.
• Largest population group at 83.1 Million, surpassing Boomers by 7.7 Million in 20151
• Largest labor force at 53.5 Million, surpassing Gen X @ 52.7M and Boomers @ 44.6M2
• Growing spending power of $1.4 Trillion in 20151
• Most educated generation at 61% vs. 46% of total adults having attended college3
• Most diverse generation – 41% Caucasian, nearly a quarter Hispanic, 14% African American and 5% Asian4
• Millennial parents rely more upon various media to find coupons and savings than nonparents.
• 71% of Millennials pay attention to direct mail.
• 67% of Millennial parents pay attention to inserts.
Source 1: U.S. Census Bureau; Source 2: Pew Research; Source 3: Decennial Census & Community Survey Source; Source 4: Nielsen
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Blame everything on Millennials, because you can. It’s their fault, right? Or maybe it’s their contribution. They are the most disruptive, non-conformist, game-changing, self-expressing, individualistic generation of influence on American society of all time. Blame them or bless them, but for sure go mobile or go bust to reach this generation.
MILLENNIALS
The Greatest Digital & Mobile Disruptor In History
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Millennials – A Snapshot
1982 – 2004
83.1 MILLION (Age 18-35 in 2017)
61%SINGLE
41% u r b a n41% suburban
Source: Quad Customer Focus® 2016 Research Study
65% NO children
45% COLLEGE GRADS
or working on a degree
59% Lived In Same Home
for 1-4 Years
54% KIDS AGES 5↓
29%$75K+ Income
69% employed 44%
RENTONLY
36%OWN
HOMES
34% Caucasian23% Hispanic23% African
American15% Asian/Pacific
Islander2% Native
AmericanMOST DIVERSE GENERATION
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This is the ultimate buyer that your hard-working multichannel, omnichannel marketing dollars will have the most influence on. So get it right, or get ignored!
MILLENNIALS
The Most Disruptive Buyer You Can't Ignore
™
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72% of AllDiscretionary Income for Experiences
Will Inherit $30 Trillion in Next 30 yrs
Source: U.S. Census Bureau
Source 1: Quad Customer Focus® Research Study; Source 2: eMarketer
$1.4 TrillionMillennials dine at restaurants or buy take-out 5 times a week Source: Bankrate.com
Millennials spend 11% more on food outside the home than BoomersSource: The Food Institute
Millennials spend 44% of their food dollars on eating out, roughly $3,000 a year S Source: The Food Institute
Millennials Estimated Spending Power =
KEY ASPECTS OF MILLENNIAL BUYING
Source: http://business.time.com/2013/02/13/boomers-never-got-their-30-trillion-inheritance-will-millennials/
91% Own Smartphones (Compared to 64% of Millennials)1
MILLENNIALS – The Most Disruptive Buyer You Can't Ignore
Source: The Harris Group
67% of Millennials Prefer to Shop Digitally vs. 33% In-Store2
38% of Millennials Purchased via Mobile Device in Past 30 Days1
55% of Millennials Turn to Internet First to Shop1
36% Visited Store per Email1
26% Visited Store per Social Media1
40% of Millennials Use Multiple Sources (Print & Digital) to Find Coupons/Offers1
49% Enjoy Using Loyalty Cards1
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BOOMERS
They want coupons! While they prefer to receive coupons by email (44%), they are more likely to open email by mobile (43%); but most likely to redeem coupons received by direct mail (38%).Source: Customer Focus 2016
MILLENNIALS
The Catch-Me Couponers
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56%
Ad In
sert
s &
Circ
ular
s
69%
Dire
ct M
ail
TV A
ds
51%
Cata
logs
45%
Mag
azin
e Ad
s
39%
Radi
o Ad
s
33%
Inte
rnet
Ads
44%Em
ail S
olic
itatio
ns
41%M
obile
Tex
ts
48%
Ad In
sert
s &
Circ
ular
s
48%
Emai
l Sol
icita
tions
Mob
ile T
exts
Inte
rnet
Ads
Radi
o Ad
s
Cata
logs
Dire
ct M
ail
59%
55%
25%26%
33%
MILLENNIALS – The Catch-Me Couponers
Advertising Millennials Love Advertising Millennials Ignore
56%
Source: Quad Customer Focus® 2016 Research Study
MILLENNIALS PREFERRED PURCHASE CHANNELS
Note: ages 20–35; Source: CouponFollow "The Millennial Shopping Report.", June 14, 2017
Desktop/Laptop Mobile Phone
67%
In-Store
Mag
azin
e Ad
s
38%
TV A
ds
40%
31% 16%
STORE
53%
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Source: Quad Customer Focus® 2016 Research Study
Where Millennials Prefer to Get Coupons & Offers
11%Magazine Ads 26% Mobile
Text
37%Direct Mail
In-Store Display
20%
MILLENNIALS – The Catch-Me Couponers
Catalogs
11%
67%
STORE
41%In Stores
20%Printed Ad Inserts & Circulars 42%
Prefer Paper Grocery Coupons
35%Internet Ads
44% Email
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COUPONS MILLENNIALS REDEEMED – PAST 30 DAYS
VISITED STORE TRIGGERED BY AD MEDIUM – PAST 30 DAYS
Source: Quad Customer Focus® 2016 Research Study
PRINT COUPONS39%
Ad Insert from Newspaper
20%
Ad Insert in Mailbox
38%
DIRECT MAIL
Newspaper Ad11% 22% Mobile App
19% Mobile Text
20%Email Printout
38%
15%WEBSITE
PRINTOUT
Ad Insert
Direct Mail
Social
Mobile
BOOMERS
MILLENNIALS
44%
37%
23%36%
11%26%
9%18%
MILLENNIALS – The Catch-Me Couponers
16%
19%
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You can thank Millennials for spawning terms like “multi-channel” and “omnichannel.” From checking current events on Flipboard to getting free shipping on TP from Amazon Prime to scanning to win a glamping trip in Montana, they are definitely digital animals. But if you plan to market to them, don’t be fooled into thinking they only speak digital. A personalized mix of mobile, DM and email is your best shot at connecting.
MILLENNIALS
Born With A Silver Device In Their Hands
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MILLENNIALS & DIGITAL
Source: Quad Customer Focus® 2016 Research Study
56% Ignore Internet Ads
44% Want Email Coupons (most preferred method)
29% Enable Ad Blocking Software
22% Used Mobile App Coupon (past 30 days)
22% Used Mobile App Coupon (past 30 days)
32% Scanned QR Code to Access Website
10% Made Purchase w/QR Code
MILLENNIALS – Born With A Silver Device In Their Hands
Own Smartphones
89%
Made a Payment Using Near Field Communication (NFC)
enabled Smartphones
11% Own Tablets
58%
MILLENNIALS DEVICES
Digital ad spend is forecast to grow over the next few years, tapering as the market matures. However, consider that Boomers prefer PC to mobile shopping for most industries.
TRENDINGDIGITAL ON THE RISE
Source: eMarketer
2015
$59+ BILLION
IN DIGITAL ADS
50%+ OF DIGITAL
ADS =MOBILE
2019
$103+ BILLION IN
DIGITAL ADS
75% OF DIGITAL
ADS =MOBILE
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Struggling with student loan debt, a tightened job market, and economic recession, Millennial parents rely more on advertised offers and coupons than nonparents to support a growing family.
MILLENNIAL PARENTS VS. NONPARENTS
Millennial Parents More Reliant On Advertised Offers
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MILLENNIALS
Although they share some similarities, identifying the differences is key to engaging Millennials.
A Comparison
AGE 18-34in 2016
AGE 52-70in 2016
83.1 MILLION Population
75.4 MILLION Population
38%Mobile Purchase
in Past 30 Days
COUPONSUse Digital &
MOBILE More Likely
to Text2
Average # of Credit Cards3
1.57
EMAILMore Likely to Access by PC/Laptop
23% Mobile Purchase in Past 30 Days
64%Own Smartphone
Average # of Credit Cards3
2.66
COUPONSPreferts to Print
MOBILEMore Likely to Talk2
EMAIL More Likely to
Access by Mobile
Source 1: U.S. Bureau of Labor Statistics , 2015; Source 2: eMarketer; Source 3: Experian; Source (unless otherwise noted): Quad Customer Focus® 2014 & 2015 Research Studies
MILLENNIALS – Millennial Parents More Reliant On Advertised Offers
BOOMERS
$2.6TRILLION Est. Spending Power1
$1.4TRILLION
Est. Spending Power1
89%Own Smartphone
CUSTOMER FOCUS RESEARCH METHODOLOGY.Quad Customer Focus® is a quantitative annual study of 2,500 adults, a solid representative sample of demographic U.S. Census estimates. The research study provides current and historical views on singular and integrated media usage, as well as win-ning marketing strategies across numerous industry segments. The study reveals consumer shopping habits and media preferences by a number of different demographic elements. The data can be viewed using various cross tabulation methods, including combi-nations of demographic variables to create custom customer profiles. Additionally, the study tracks the media usage and shopping behaviors of shoppers at 40 of the Top 200 Retail brands.
Two-thirds of the participants are contacted by telephone. A random digit dial method of telephone interviewing is used. This meth-od ensures that a representative sample of the market will be interviewed. The phone numbers are computer generated randomly, based on all working prefixes in the area specified. This sample includes both listed and unlisted households, but deletes business numbers. Researchers are exempt from the Do Not Call List and so those households are contacted as well.
Interviewers attempt four callbacks on different days and times to ensure each randomly selected household is more likely to be contacted. Interviews are conducted 7 days a week, Monday-Friday from 5-9 p.m. and on weekends from 12 noon-5 p.m. This is done to avoid getting too many retirees, homemakers, unemployed and students in the mix; and also insure the study includes high income and white collar workers.
Households that do not have a landline are also contacted via email or by cell phone and directed to an online survey, which makes up about a third of the study participants.
Also, after each night of interviewing, the results are reviewed against Claritas data for annual age, income, ethnic background and population distribution figures, to ensure our data matches the demographics of the survey area just called.
The study has been conducted annually since 2001, and has been expanded and modified to reflect the growing number of media channels used to engage consumers today. The study has been conducted by Marshall Marketing, the leading provider of quantitative and qualitative research for the media industry since 1985. The company is based in Pittsburgh, with offices in Charlotte, Knoxville, Orlando, Raleigh, Seattle & Spokane. They study over 100 markets annually, conducting 75,000 interviews each year. Media clients include: TV and radio stations, cable, circular and direct mail printers. Industry verticals they provide custom research for include: financial institutions, auto dealers, furniture stores, hospitals, restaurants, grocery stores and others.
MILLENNIALS – A Quad Infographic Study
© 2017 Quad/Graphics, Inc. All rights reserved. | 08.17
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