Millennials as Buyers - Quad · 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

A Quad Infographic Study

Millennials as Buyers

2

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

3

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

4

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

5

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

™

6

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

7

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

8

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%


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%

9


Where Millennials Prefer to Get Coupons & Offers

11%Magazine Ads 26% Mobile

Text

37%Direct Mail

In-Store Display

20%


Catalogs

11%

67%

STORE

41%In Stores

20%Printed Ad Inserts & Circulars 42%

Prefer Paper Grocery Coupons

35%Internet Ads

44% Email

10

COUPONS MILLENNIALS REDEEMED – PAST 30 DAYS

VISITED STORE TRIGGERED BY AD MEDIUM – PAST 30 DAYS


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

Email

Social

Mobile

BOOMERS

MILLENNIALS

44%

37%

23%36%

11%26%

9%18%


16%

19%

11

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

12

MILLENNIALS & DIGITAL


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

13

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

14

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 &

Print

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

contact us at [email protected]

See how we can help:

Documents

Millennials as Buyers - Quad · 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