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 1

2. 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.

3. 3 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

4. 4 Understanding Global Millennials, © 2014, SDL plc What to do about it Make 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 same regardless of channel

5. 5 Understanding Global Millennials, © 2014, SDL plc Smartphones dominate and Millennials check them 43 times per day* 43453436343938 Avg. # 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. *Weighted by GDP of responding countries If you’ve communicated through a digital channel – they saw it the day it was delivered

6. 6 Understanding Global Millennials, © 2014, SDL plc In a typical day, 2 of 3 Millennials touch 2 different devices Use 2 devices daily Use 3 devices daily Use 4 devices daily USAUDENENOUK TOTAL* *Weighted by GDP of responding countries 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

7. 7 Understanding Global Millennials, © 2014, SDL plc What to do about it Focus on building trust with targeted offers Be clear about the “give-get” equation ! 7x Millennials are 7 times more likely to give personal information to a trusted brand 46% share their data if it means more relevant offers

8. 8 Understanding Global Millennials, © 2014, SDL plc 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.

9. 9 Understanding Global Millennials, © 2014, SDL plc It is accepted that some types of information will be collected…but not highly accepted More Acceptable data for companies to track On 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.

10. 10 Understanding Global Millennials, © 2014, SDL plc 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. Linear Awareness

11. 11 Understanding Global Millennials, © 2014, SDL plc 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. * *Weighted by GDP of responding countries

12. 12 Understanding Global Millennials, © 2014, SDL plc What to do about it Place 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

13. 13 Understanding Global Millennials, © 2014, SDL plc 5 of 6 Millennials choose to connect with companies in social media, but they want something in return Total AUUKNE NO DE *Weighted by GDP of responding countries Though less pronounced than in the US, customers internationally predominately connect for discounts and freebies. *

14. 14 Understanding Global Millennials, © 2014, SDL plc Purchased lists are dead… If they don’t already know you, your email is irrelevant to them *Weighted by GDP of responding countries 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. *

15. 15 Understanding Global Millennials, © 2014, SDL plc 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. *Weighted by GDP of responding countries The majority of Millennials want to engage whenever they choose and expect the same experience across channels. *

16. 16 Understanding Global Millennials, © 2014, SDL plc Millennials are undecided about whether or not companies know how to market to them *Weighted by GDP of responding countries *

17. 17 What to do about it Use social media first to build relationships and engage !

18. 18 Understanding Global Millennials, © 2014, SDL plc Millennials prefer hyper-targeted content Which streaming music source would you be most likely to listen to? *Weighted by GDP of responding countries The majority would choose hyper-targeted music content over traditional radio streams

19. 19 Understanding Global Millennials, © 2014, SDL plc All international markets use fewer channels to discover content that the US Social networks dominate content discovery How do you typically discover new and interesting things online? UKNENO DE AU US *Weighted by GDP of responding countries 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

20. 20 Understanding Global Millennials, © 2014, SDL plc What to do about it Engage 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

21. 21 Understanding Global Millennials, © 2014, SDL plc 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? In 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.

22. 22 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 Understanding the Millennials, SDL plc Campaigns are Extinct 1 o Create consistent, cross-channel experiences to cater to any multiple device & optimize offers by channel o 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 consumer Your Data Trumps Big Data 5 There is Only One Language 4 Content Finds the Customer 3 Channels are Irrelevant 2

23. 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 23

24. 24 Understanding Global Millennials, © 2014, SDL plc Study sample frame | demographics Ethnicity Household Income Employment status Surveyed January – April 2014 Total N = 1860 Education - level Age Facebook FoursquareTumblr TwitterNing Flickr PinterestMeetupStumbleUpon InstagramHi5WordPress LinkedInOrkutWer-kennt-wen [DE] MyspaceBadooMeinVZ/StudyVZ [DE] Google+MySpaceLokalisten [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. **