Meet the Centennials: Connecting with the Next Generation of Shoppers

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Meet the Centennials: Connecting with the Next Generation of Shoppers

PowerReviews, Inc.

Ask Questions• #PowerReviews on Twitter

• Post them in the questions panel on the right

of your screen. We will answer at the end.

• You will receive a link to the recorded

webinar.

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PowerReviews, Inc.

Speaker

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Theresa O’Neil, SVP of Marketing

Theresa is responsible for building and leading the PowerReviews marketing team in the development and execution of programs that increase awareness of the PowerReviews brand and technology. Theresa brings more than 20 years of experience developing marketing, sales and business development strategy.

PowerReviews, Inc.

● Meet the Centennials

● Social media and reviews

● The shopping journey

● From browsers to buyers

● Engaging Centennials

● 4 keys to success

● Q&A

Agenda

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PowerReviews, Inc.

The survey1,747 US and 1,585 UK Millennials and Centennials

Goal:Investigate the online and in-store shopping habits of the Centennial generation, identifying how brands & retailers can refine their marketing plans to best influence this demographic.

Timing:September 2015

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Meet the Centennials

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How are they different than Millennials?

Source: International Bureau Times, 2015.

High expectations for information

Average access to three screens

Technology provides Millennials with a wider spectrum of options, encouraging less brand loyalty

Aged 19-34

Discoverers of technology where options appeared

limitless

Pioneers ofsocial media

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Who are the Centennials?

Source: International Bureau Times, 2015.

High expectations for information - instantly

Average access to five screens

Equipped with tools to seek out answers and make informed decisions

Aged 13-18

Born with technology

Mobile-native generation

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I have specific initiatives for: ● Centennials● Millennials● Both● Neither

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Why should you care about Centennials?

Sources: U.S. Census Bureau, National Center for Biotechnology Information, U.S. National Library of Medicine, the Associated Press, JWT

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25% 40%

They currently make up a quarter of the population

By 2020, they will make up 40% of the population

They contribute $44 billion in

spending power each year

PowerReviews, Inc.

Reviews as Social Content


Source: PowerReviews Centennial Shopper Study, 2015

Social content impacts purchase decisionsBut not as much as reviews

Centennial Millennial

a written review on a retailer/brand/product website

A friend’s post on a social media channel

10% 20% 30% 40% 50% 10% 20% 30% 40% 50%

What type of reviewsdo you trust most?

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Starting the Shopping Journey

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Research first, spend later

Source: PowerReviews Centennial Shopper Study, 2015Source: PowerReviews Centennial Shopper Study, 2015Centennial

20% 40% 60% 80% 100%

What is most true about you? I tend to make spontaneous,

emotionally-driven purchases

I tend to take my time with most purchases, researching price, product reviews, etc.

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Consumers are looking for reviews for...Where are they doing their product research?

5% 10% 15% 20% 25% 30% 35% 40% 45%

52%

Laptop or desktop computer

37%

Mobile phone

6%

In-store

5%

Tablet

50%

Centennials prefer to browse on a laptop or desktop computer



Why Reviews

70% of Centennials say that

quality is more important to them than price.

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95% of Centennials search and read reviews to validate their product choice

How do they determine quality?By reading reviews

Half of Centennials won’t purchase a product if there aren’t enough reviews

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Where are they reading reviews?


Over a third want to see reviews directly on a brand or retailer’s website

Source: PowerReviews Centennial Shopper Study, 2015Centennial

0% 10% 20% 30% 40%

Where do you typically search and view reviews?

On social media (Facebook, Twitter, YouTube, etc.)

I never search or read reviews

Directly on the brand/retailer’s website

On a 3rd party blog/website (Amazon)

50% 60%

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“If you fail to engage with Centennials, they have the

independence and control to conduct their entire shopping

journey without you.”


Key tips for engaging Centennial browsers

Emphasize quality and differentiationDiscuss the best qualities of your product, rather than exclusively low pricing and delivery costs.

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Engage early online Tailor your website for research purposes and purchasing.2

Bolster your online presenceEnsure your website is mobile optimized so it’s easy to view and navigate whenever your customer is.

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Converting Centennial Browsers to Buyers

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Consumers are looking for reviews for...How much do Centennials value reviews?

5% 10% 15% 20% 25% 30% 35% 40% 45%

56%

Price

32%

Reviews

8%

Recognizable brand name

4%

Free shipping

Reviews are second only to price

50% 55%


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58% of Centennials want to read reviews when they’re unfamiliar

with a brand or retailer

Reviews are imperative for new products & brands


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Instant answers or walk away

45%of Centennials say they won’t buy a

product if they can’t ask a question

about it2/3

of Centennials prefer having their

questions answered by

previous customers



Consumers will find review content

Drugstore Ulta

If you don’t have the content, Amazon does


79% of Centennials admitted going straight to another

retailer or to Amazon if they couldn’t ask a question on a

brand’s product page


Why Reviews

40% of Centennials won’t purchase a product if there are no photos of

people using the product.

Visual content is key

PowerReviews, Inc.

Back in store?

Centennials browse online but like to purchase in-store

Centennial Millennial

browsing for product online

purchasing in-store after browsing online

20% 40% 60% 80% 100%

How are Centennials browsing for products?


20% 40% 60% 80% 100%

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Why are Centennials more likely to make their final purchase in-store?

● Social activity (shopping with friends)● Get the item immediately ● In-store/student discounts● Purchase with cash● Avoid shipping and return shipping fees


Key tips to turn Centennial browsers into buyers

Highlight new productsValidate fresh-to-market products with reviews.1

Turn customers into brand ambassadorsMake it easy for them to talk, source product reviews, share product images, and ask and answer product questions.

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Blur the lines between online and in-storeCreate marketing campaigns that recognize that Centennials will browse online, then may buy in-store.

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Getting Centennials Engaged

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Centennials reluctant to engage

23%would be more likely to leave a

review if given an incentive

62% haven’t written an online review in the past month


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When are Centennials most likely to leave reviews?

5% 10% 15% 20% 25% 30% 35% 40% 45%

37%

I was unhappy with the product

23%

I had an incentive, such as a discount on future purchases or free sample

21%

I was happy with the product

19%

I spent a lot of money on the purchase or time considering the purchase

50% 55%

When they are unhappy or encouraged


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Negative reviews have their part to play

44% of Centennials said they wouldn’t trust a product’s reviews if there were no negative reviews present

60% of Centennials read negative reviews first.

4.2-4.5 is the average ideal star rating

Sources: PowerReviews & Northwestern University, From Reviews to Revenue Report, 2015; PowerReviews Centennial Shopper Study, 2015

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Does your organization respond to negative reviews?

● Yes● No


Key tips to keep Centennials engaged

Motivate shoppersOffer discounts or free samples to help generate reviews and images1

Be transparent and authenticDon’t remove negative reviews, and indicate if incentives were provided to the review writer.

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3

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RespondEngage with reviewers to resolve problems and build brand relationships.

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What can you do now?

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Put review content front and centerto meet the needs of Centennial shoppers1

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Optimize your website for mobileso Centennials can find what they’re looking for, regardless of the device they’re using

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Collect Photos and Videosas part of reviews, as Centennials like to engage with visual content3

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Insist on Transparency and Authenticity don’t delete reviews and indicate when a review resulted from a promotion or free sample

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Ask Questions• #PowerReviews on Twitter

• Post them in the questions panel on the right

of your screen. We will answer at the end.

• You will receive a link to the recorded

webinar.

41

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Questions?

PowerReviews, Inc.

www.PowerReviews.com/genz

PowerReviews, Inc.

Thank you.

www.powerreviews.comwww.powerreviews.com/blog

Meet the Centennials: Connecting with the Next Generation of Shoppers

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Transcript of Meet the Centennials: Connecting with the Next Generation of Shoppers