Monthly Archives

September 2017

Generation Z & Millennial Brand Loyalty

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Research by CrowdTwist examined the differences between Generation Z and Millennials in terms of brand loyalty. A survey was conducted with 790 North American consumers aged 18 to 37. Respondents were first asked what brand loyalty means to them. Thirty-two percent of Millennials said they consider brand loyalty to mean they would “sometimes buy a brand, but would consider other alternatives at a lower price”. Further, 30 percent considered brand loyalty to mean that they would “buy the brand regardless of price, quality, convenience or brand promise.”

A larger number of Gen Z respondents than Millennials would consider other alternatives at a lower price. Specifically, 38 percent reported that they would consider other options. A lower percentage of these respondents, 27 percent, said they would always buy the same brand—true brand loyalty.

Participants were then asked to rank the factors most important in capturing their loyalty: product, service, price, convenience/perks, ethical principles, and instance of a loyalty program. Sixty percent of Millennials and 53 percent of Gen Z’ers ranked product as first. Both generations ranked price as number 2, but Generation Z (20 percent) were more price conscious than Millennials (16 percent). Presence of a loyalty program was more important to Generation Z respondents than Millennials. Fifty percent more Gen Z’ers than Millennials ranked the presence of one as a driver of brand loyalty.

However, what is particularly interesting is actual participation in loyalty programs. More Millennials (71 percent) than Gen Z’ers (63 percent) are active in at least one loyalty program. Participation in loyalty programs was highly dependent on industry. The strongest industry with the most participants was retail—74 percent for Generation Z and 75 percent for Millennials. Grocery story loyalty programs were also popular amongst both generations. However, financial services and travel loyalty programs were more popular amongst Millennials. Media and entertainment loyalty programs were most popular with Generation Z.

 

 

Millennial Concerns About the Economy & Country

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According to research by the Economic Innovation Group (EIG), Millennials are highly concerned about the state of the economy and the direction of the country. Nearly three in ten Millennials (30 percent) felt that their local community is in a recession. In addition, a large majority (63 percent) felt that the country is on the wrong track. When considering gender, women (68 percent) were more likely to perceive the country being on the wrong track than men (57 percent). When looking at Millennial age breakdowns, the three youngest age groups were relatively consistent in believing that the country on the wrong track. Sixty-three percent of Millennials 18-21, 67 percent of Millennials 22-25, and 64 percent of Millennials 26-29 reported feeling this way. Older Millennials age 30-34 were slightly more optimistic with 58 percent reporting that they felt the country was on the wrong track.

Political affiliation does seem to impact perceived pessimism about the direction of the country. Seventy-nine percent of Republicans felt that the country is on the wrong track. Independents were less pessimistic with 67 percent reporting that they felt the country is on the wrong track. Democrats were the least pessimistic with under half (47 percent) reporting to feel this way.

The pessimism seems to hold true across racial lines. Caucasians were the most likely to feel that the country is going in the wrong direction (67 percent). However, Hispanics were not too far behind with 61 percent reporting to feel this way. African-Americans were slightly less pessimistic. A little over half (55 percent) said that the country was on the wrong track.

The vast majority of Millennials are dissatisfied with the nation’s economy. Approximately 70 percent said that the economy was only fair or poor. This perception was relatively consistent across all Millennial age breakdowns: 18-21 (70 percent), 22-25 (74 percent), 26-29 (70 percent), and 30-34 (66 percent). Education does seem to impact perceptions of the economy. Those with high school or less or some college were far more pessimistic. Seventy-four percent of those with high school or less or some college reported that the economy these days was only fair or poor. When considering those with a college degree or more, 61 percent reported that the current economy was only fair or poor.

Marketer Experiences Working with Influencers

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Research by TapInfluence examined various dimensions of influencer marketing. The researchers conducted an anonymous online questionnaire of 102 marketers that work with influencers to gain a different perspective on influencer marketing. The researchers first asked respondents why they feel that influencer marketing is important. The top reason that influencer marketing was important was that it was a “more authentic storytelling for our brand.” Secondly, respondents felt that it had “better reach to consumers.” Third, the marketers felt that it “offers a better return on investment than my other marketing channels.”  And finally, respondents felt that influencer marketing “makes our brand feel more plugged into digital communities.”

The marketers were then asked what they felt were the most effective forms of influencer marketing. The vast majority (71 percent) said that ongoing ambassadorships were the most effective. Further, 67 percent said product reviews were most effective. A little over half of the respondents said that event coverage (53 percent) and brand mentions (54 percent) were effective forms of influencer marketing.

Marketers were also asked about what types of influencers they found to be most successful. They felt that “a popular person with a significant and desirable audience” was the most successful. Second, “those who are subject matter experts regardless of follower count” were perceived as being successful. Further, “those who act as ongoing ambassadors” and “those who have a large following” tended to be most successful.

The marketers reported several challenges when it comes to working with influencers. The biggest challenge reported by 68 percent of marketers was “finding relevant influencers.” The second biggest challenge reported by 60 percent of marketers was “finding ways that help them engage their communities while satisfying executive expectations.” A third of respondents reported that “negotiating terms” (30 percent) and “overall management of 3rd party content creators” (30 percent) were significant challenges.

Influencer Marketing Engagement, Inspiration and Challenges

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Research by TapInfluence examined various dimensions of influencer marketing. The researchers conducted an anonymous online questionnaire of 1,753 influencers. Influencers were first asked what they love about their work and what keeps them continuously engaged. Seventy-two percent of influencers reported “That I am myself, honest, funny, open, willing to call it like I see it” was most important to them. Further, 64 percent said “That I provide value by addressing the things that they are interested in” was most important. Further, 59 percent of respondents reported “That I interact with them, listen, and respond online” kept them engaged.

The influencers were asked about the challenges they endure in influencer marketing. The biggest challenge was “Concern since it is new/unproven channel” which 56 percent of respondents reported being a challenge. Fifty-four percent of influencers reported “No budget assigned” as being a challenge to influencer marketing. The third biggest challenge was being “Unaware of what it [product] is” (42 percent).

Similar to challenges, respondents were asked about the biggest mistakes brands and agencies have made when working with them. The biggest mistake was “Not offering adequate compensation” reported by 72 percent of influencers. Thirty-nine percent of respondents said the “Overly restrictive content guidelines” was a big mistake by brands/agencies. A third mistake that the influencers reported was “Not providing adequate time” (32 percent). A little under a third (28 percent) said that a mistake was “Requiring too many social shares or sharing to every social channel”.

Finally, the researchers asked the respondents what inspired them to become an influencer. An overwhelming 70 percent said “To earn revenue, part-time or full time”. Fifty-eight percent of the respondents were inspired to become an influencer “To make an impact to affect change”. Forty-eight  percent reported that they wanted “To build an online audience or grow popularity”. And lastly, 37 percent of influencers wanted “To be recognized as a thought leader in the field”.

 

Millennial Views on Privacy and Security

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Research conducted by Fluent examined generational differences in views on data privacy and security. The researchers surveyed 2,960 adult U.S. residents aged 18 and older. A total of 1,769 individuals were Millennials (ages 18-34) The remaining 1,191 were non-Millennials (ages 35 and older).

The respondents were asked how concerned they were that companies will not respect their privacy in using their personal information. Thirty-seven percent of Millennials said they were very concerned about this. In addition, a quarter (25 percent) of Millennials reported being somewhat concerned that companies will not respect their privacy. Thirty-eight percent of the respondents reported being not at all concerned. A higher percentage of non-Millennials (51 percent) said they were very concerned that companies would not respect their privacy. About 23 percent reported being somewhat concerned. And finally, a little over a quarter (26 percent) said they were not concerned.

When looking specifically at Millennial age breakdowns, older Millennials appear to be concerned about companies not respecting their privacy. Specifically, 44 percent of Millennials 30-34 reported being very concerned. Further, 38 percent of Millennials 25-29 and 35 percent of Millennials 18-24 reported feeling this way.

With regards to gender, women appear to be more concerned about companies not respecting their privacy in using their personal information. Forty-three percent of women reported being very concerned. Thirty-two percent of men said they were very concerned. Further, 27 percent of women reported being somewhat concerned. A little under a quarter (24 percent) of men said they were somewhat concerned about companies not respecting their privacy.

The respondents were also asked how concerned they were that companies will fail to keep their personal information secure. Twenty-two percent of Millennials said that they were very concerned about the security of their information. Forty-two percent said they were somewhat concerned. Thirty-six percent of millennial respondents reported not being concerned at all. When considering non-Millennials, 20 percent reported being very concerned. Over half (55 percent) of the non-Millennials said they were somewhat concerned about the security of their personal information. And roughly a quarter (25 percent) said they were not concerned about this issue.

In terms of Millennial age breakdowns, younger Millennials were more concerned about companies keeping their personal information secure. A little under a quarter (24 percent) of Millennials 18-24 reported being very concerned. Slightly less (22 percent) Millennials 25-29 said they were very concerned. Only 18 percent of Millennials 30-34 reported being concerned about this issue.

In terms of gender, women are slightly more concerned about companies keeping their personal information secure. Twenty-seven percent reported being very concerned. Just under a quarter (24 percent) of men reported being very concerned. In addition. 42 percent of women reported being somewhat concerned. A little over a third (32 percent) of men said they were somewhat concerned about the security of their personal information.

Social Media Use Amongst African-Americans

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Research conducted by Nielsen examined the social media behaviors of African-Americans, non-Hispanic Whites, and the total population. They revealed that Black Millennials (age 18-34) are extensive users of digital platforms and apps to communicate with each other and the world around them. What is particularly interesting is that Black Millennials under-index in terms of percentage of leisure time spent on social networking sites (8 percent).

However, Black Millennials over-index when it comes to the actual number of hours spent. Approximately 55 percent reported spending 1+ hours per day on social networking sites. Further, 49 percent of the total Millennial population reported spending this amount of time on social networking sites. Further, 29 percent of Black Millennials reported spending 3+ hours on such sites. Twenty percent of the total Millennial population reported spending this amount of time on social media.

Older African-Americans (35+) also appear to spend more time on social media than the total population of individuals 35+ as well. Twenty-eight percent of African-Americans 35+ reported spending 1+ hours on social networking sites. Twenty-six percent of the total population 35+ spend this amount of time on social media. In addition, 10 percent of African-Americans 35+ said they spend 3+ hours on social media. Only 8 percent of the total population 35+ said they spend this amount of time on social networking sites.

The top social networking site for all groups were Facebook and YouTube. Eighty-four percent of Black Millennials had Facebook membership and 56 percent had YouTube membership. Similar numbers were found for total Millennials—85 percent were members of Facebook and 57 percent were members of YouTube. When considering African-Americans 35+, 72 percent reported having Facebook while 58 percent reported having YouTube. Finally, 80 percent of the total population 35+ said they have Facebook and 40 percent said they have YouTube.

Differences in social media membership appear when considering other platforms. Black Millennials have a stronger preference for Google+ (55 percent) and Twitter (48 percent) than their overall millennial counterparts. Millennials as a whole seem to prefer Instagram (55 percent) and Pinterest (48 percent). When considering those over the age of 35, both African-Americans (45 percent) and the total population have a strong preference for Twitter (38 percent) over other social network platforms, although African-Americans have a stronger preference. African-Americans 35+ have a stronger preference for Google+ (42 percent) than the total population 35+. The total population 35+ has a stronger preference for Pinterest (35 percent) than African-Americans 35+ (32 percent).

Top and Fast-Growing Mobile Apps Across and Between Generations

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A comScore survey examined mobile trends of respondents over the age of 13. The research revealed that the 25 most used mobile apps were dominated by the largest companies. The top of the list was dominated by Facebook and Google. Facebook and Facebook Messenger were the two most popular mobile apps followed by YouTube, Google Maps, and Google Search. The top 25 apps can best be classified as: utilities (9), social (6), entertainment (6), or retail (4).

Given that Facebook is the most used app, it boasts impressive usage statistics. The average person spends 13 hours a month on the app. In addition, the app appears on the home screens for 46 percent of smartphone users. The app accounts for 76 percent of mobile app time spent in the social networking category. It also ranks in the top 5 most used apps for five out of six smartphone users.

When considering Millennials alone, the most popular apps fall into the social or entertainment category. The most popular apps that are social in nature include: Yik Yak, Vine, Snapchat, and Timehop. The most popular entertainment apps amongst Millennials include: Playstation, Twitch, Xbox One Smartglass, SoundCloud, and YouTube Music. Other apps popular amongst this age group are Venmo, Tinder, and Airbnb.

In terms of growth, some of the fastest growing apps across all generations are those that improve existing real-world behaviors. For example, Uber and Lyft improve the process of hailing a cab. Tinder improves the dating experience. Similarly, Fitbit improves the fitness experience.

Snapchat continues to be a top app for younger age groups. When considering 18-24-year-olds, 37 percent reported that Snapchat was in their top 3 apps. Sixty-one percent said that Snapchat was in their top 5 and 86 percent said it was in their top 10. These numbers decrease for individuals 25-34. Twenty-one percent said that Snapchat was in their top 3. Further, 39 percent said it was in their top 5 and 69 percent said it was in their top 10. These numbers are even lower for individuals over the age of 35. Thirteen percent of those 35+ said that Snapchat was in their top 3 apps, while 22 percent said that it was in their top 5, and 49 percent said it was in their top 10.