••• millennials
Despite debt, Millennials sunny on money
Over half expect to become millionaires
Millennials are optimistic about how their lives will play out after college, despite the fact that they have a collective $1 trillion in student loan, credit card and other debt hanging over their heads, according to the TD Ameritrade 2018 Millennials and Money Survey.
“Millennials are graduating at record rates and it’s great to see that like most previous generations of college students, young people are optimistic about the future. On average, survey respondents expect to land a job in their chosen field and be completely financially independent by age 25,” says JJ Kinahan, chief strategist for TD Ameritrade. “This is a financially optimistic group that’s feeling positive about the economy, the job market and their own plans. However, they will need to develop saving and investing habits that will help them reach some pretty big goals. Millennials are a generation that has vastly different attitudes and habits than previous generations. So naturally, their lives and financial milestones after college may look different as well,” says Kinahan.
According to the survey: half (53 percent) expect to become millionaires at some point; one in four said they don’t expect to get married and nearly that many (24 percent) don’t expect to own a home; nearly a third (30 percent) of Millennials don’t expect to have kids; and despite the general optimism, two in 10 said they’re never going to be able to pay off their student loans. Nearly one in five (17 percent) haven’t yet achieved financial independence from their parents; for those who have, it’s usually moving out of the family home that triggers being financially cut off.
One milestone in particular is going to need some extra attention. Millennials reported that they expect to retire at age 56 on average (Millennial men expect to retire even earlier, at age 53 on average). However, on average, they said they don’t plan to start saving for retirement until age 36, which could be more than a decade after getting their first real job. More than a quarter (28 percent) said they don’t expect to retire at any point.
Many Millennials are making strides and, overall, more rate themselves as savers than did in 2016 (70 percent versus 62 percent). Ninety-four percent of Millennials said they are saving towards a specific goal, with vacation (43 percent) and emergency fund (39 percent) being the top choices. Thirty-eight percent are saving for retirement. A quarter (25 percent) have started saving for the education of their children or grandchildren.
A 15-minute online survey was conducted with 1,519 American Millennials ages 21 to 37 by Head Solutions Group between February 21 and March 7, 2018, on behalf of TD Ameritrade Holding Corporation. The statistical margin of error for the total sample of N=1,519 American Millennials within the target group is +/- 2.5 percent. Sample was drawn from major regions in proportion to the U.S. Census.
••• technology research
Alexa, don’t do that
How much leeway do we give digital assistants?
Eighty-one percent of consumers around the world would like “electronic devices of the future” to make their lives easier. However, users have very different views on what artificial intelligence, robotics and digitalization should and shouldn’t be allowed to do, according to findings from a survey of 7,000 consumers in the U.S., Asia and Europe for electronica, a trade fair and conference. Seventy-one percent of global consumers think that electronic devices should only assist humans.
Manufacturers are working at full speed with artificial intelligence and digital networking to build on the current success of smart electronics. The concept of voice control is clearly popular: Around 60 percent of consumers worldwide are in favor of electronic devices being able to engage in dialog with humans in future – along the lines of familiar voice-activated assistants such as Siri, Alexa and Cortana. However, 17 percent of consumers all around the world strongly object to the concept of talking electronics.
There is a consensus among consumers that digital assistants shouldn’t be too human-like. In response to the question regarding how future service robots should behave, 72 percent are in favor of robots with artificial intelligence remaining clearly recognizable as machines. The strongest advocates for this are Italians (78 percent) and Americans (77 percent). However, even in Japan, which comparably has the lowest level of support, there is still a clear majority of 69 percent in favor.
A global average of 72 percent of respondents are in favor of robots using artificial intelligence to learn autonomously and respond to new situations. The same percentage would like robots to provide decision-making support, although control should never be relinquished by humans.
••• shopper insights
Personal but private
Maryland professor outlines trends in online purchasing
Retail is shifting to an online environment and entrepreneurs in both the e-commerce and brick-and-mortar spaces must know how this shift is affecting consumer expectations and loyalty in order to effectively target these individuals. As online retail gains more share at the expense of traditional brick-and-mortar retailers, entrepreneurs should be aware of the following trends in consumers’ online purchasing habits and what it means for targeting these individuals, as reported by P.K. Kannan, dean’s chair in marketing science at the Robert H. Smith School of Business at the University of Maryland.
It is a multi-device, omnichannel world now. Going online does not just mean using desktops and laptops anymore. It is anytime, anywhere connectivity afforded by tablets, smartphones and smart watches. Customers use multiple devices on their path to purchase – starting their search on mobile phones, purchasing products using tablets or laptops and interacting with their friends about their purchases using all these devices. In a multi-device, omnichannel world, a firm cannot operate a Web site optimized only for the desktop or laptop. It has to be accessible with smartphones and tablets. Firms need to provide as seamless an integration as possible for an optimal customer experience.
What does this mean for entrepreneurs? If you are going online, then optimize the experience for all devices, providing clear guidance for a seamless customer experience. Remember, if you are targeting them with an e-mail, they could open it on any device, especially on a mobile device, and your Web site should be ready for access from that device.
Customers shop around much more than before. Smartphones and mobile apps allow quick searches for products and services across different retailers and firms, so shopping becomes very easy for customers. These devices also allow retailers to target customers with attractive offers, coupons and deals while they are on the go. Researchers have found that all these conveniences have made customers heavier shoppers than ever before. Even if they are loyal to some retailers, they easily switch to competitors when inundated with attractive offers. These trends are not easy to fight but it also means retailers need to fight for a share of customers’ attention early in the purchase funnel as customers shop around.
Consumers expect personalized experiences. Devices and channels also provide more opportunities for customizing the customer experience. Collecting data on customer preferences and shopping habits and making use of their past purchase data allow retailers to tailor the experience customers have at their Web sites. Such customization can lead to increased conversions and is the best way to counter shopper promiscuity and keep customers coming back. Retailers do not need to spend thousands on marketing analytics software – systematic collection and analysis with common tools can get retailers 80 percent of the advantage that personalization can provide.
Word-of-mouth and recommendations from friends are still powerful. This is the age of social media and networks, where customers share their experiences, likes and dislikes with their friends and acquaintances online – Facebook, Twitter, Snapchat, Instagram. Retailers should have a clear social media strategy to cultivate their customer base. Retailers can harness the power of word-of-mouth to increase their reach and reduce their marketing budget on paid media by earning their reputation through customer satisfaction. This also makes retailers take a long-term view of their customer relationships and reputation rather than depend on short-term gimmicks to increase revenue.
Consumers take their privacy very seriously. Finally, as much as the online environment provides opportunities to collect data and information on customers’ preferences, likes and dislikes and to enable customization and personalized experiences, it is important to take customers’ privacy concerns seriously. Do not sell their e-mail addresses to others, do not spam them and make sure you manage their data securely.
••• travel and hospitality
NetBase report IDs most-loved travel brands
Airlines dominate the conversation
According to a report from Santa Clara, Calif., analytics firm NetBase, the top 10 most-loved travel and hospitality brands are: Marriott (1); Four Seasons Hotels and Resorts (2); Hilton, Airbnb and American Airlines (all tied for third); Royal Caribbean Cruises (4); JetBlue and Southwest Airlines (tied for fifth); United Airlines (6); Singapore Airlines and Delta Airlines (tied for seventh); Cathay Pacific Airlines (8); The Ritz-Carlton (9); and Hyatt and Qantas Airlines (tied for tenth).
The Social Media Industry Report 2018 Travel and Hospitality used the firm’s social analytics technology to examine the most popular brands across five categories: airlines, car rentals, cruise lines, hotels and travel sites. “Social media plays an extensive role in how customers feel about travel and hospitality brands and where they choose to spend their vacation time,” says Paige Leidig, NetBase CMO. “Most consumers have a limited amount of vacation time and turn to social media for recommendations.”
The most popular brands by category are: airlines – American Airlines (3) and JetBlue and Southwest (5), United Airlines (6); car rentals – Hertz Rent-a-Car (27) and Enterprise Rent-A-Car (29); cruise lines – Royal Caribbean Cruises (4) and Carnival Cruise Lines (12); hotels – Marriott (1) and Four Seasons Hotels and Resorts (2); and travel sites – Airbnb (3) and Trip Advisor (12).
The report is based on brand conversations across social networks, review sites, blogs, forums and news sites worldwide. The report examines top trends and overall performance of selected brands as discussed across several social channels.
Among additional findings from the report:
Airline brands dominated the social conversation for travel and hospitality brands this year with 58 percent of the share of voice for all brands on the list, despite only making up 25 percent of the brands researched.
Car rental brands have the lowest net sentiment and passion scores on average. This may indicate that most conversations on social media are about customer service. Car rental brands should see this as an opportunity to create messaging around exciting activities that their offerings enable.
Cruise lines had the highest net sentiment scores, on average, at 79 percent, as well as the highest passion scores. Cruise lines are generating positive conversation and it’s just a matter of how they grow their share overall travel conversation beyond the current 5 percent share of voice.
Hotels accounted for 33 percent of the top 10 brands and performed well with the second highest average net sentiment and passion measured in the report. There is an opportunity for them to start embracing more visual channels like Instagram and YouTube.
Travel sites accounted for 10 percent of the conversation measured for this report and most of their conversations take place on forums and Instagram. NetBase found that conversation themes differed between aggregators and specialty sites.
The Social Media Industry Report 2018 Travel and Hospitality is based on brand conversations across the social Web, inclusive of Twitter, Facebook, Instagram, Tumblr and millions of other sources during the one-year period from July 1, 2017 through July 1, 2018.
••• home lighting
Survey sheds light on LED knowledge
Watt and kelvin and lumen, oh my!
A survey of consumers around the world, with over 3,000 surveyed in North America, shows that there is still a considerable lack of knowledge surrounding a number of different aspects on current and future lighting technologies. The survey, conducted by Research Now on behalf of lighting products maker LEDVANCE LLC, sought to gauge consumers’ knowledge of light and lighting products, looking at what causes the greatest confusion and assessing how open and up-to-date are they with regard to future issues of lighting technology.
“With choice can also come confusion, as demonstrated by the fact that our survey discovered that a majority of Americans and Canadians, 77 percent and 69 percent, respectively, have at some time bought a lighting product for their household that was the wrong fit, shape, size and/or light temperature,” says Wolfgang Mailaender, head of marketing for the U.S. and Canada, LEDVANCE.
Even though a majority have bought the wrong lighting product that they needed, most consumers think they are better informed than they really are. Seventy-one percent of consumers in the U.S. and Canada surveyed responded that the advantages and disadvantages of different lighting technologies ranging from (smart) LEDs to classic incandescent lamps are completely or at least sufficiently clear to them.
When questioned on relevant measurement units such as the ones that have been printed on lamp or luminaire packaging for quite some time, the wheat was soon separated from the chaff. Seventy-seven percent of respondents in the United States and 80 percent in Canada were still able to correctly assign watts to energy consumption. Kelvin and lumen, on the other hand, which are important measurement units in the LED world, were only identified by about half – 58 percent in both the U.S. and Canada and 58 percent in the U.S. and 61 percent in Canada, respectively – as indications of color temperature and luminous flux.
This is a problem, according to Oliver Vogler, head of strategy and marketing at LEDVANCE. “The color temperature and its kelvin value provide information about the light color – ranging from daylight white [from 5300 K] and cool white [3300 to 5300 K] to warm white [up to 2700 K]. The luminous flux given in lumens tells you how much light the lamp gives out. So for energy-efficient LEDs, the crucial value for brightness is no longer watts but lumens,” he says.
Germany finished behind every other country when it came to identifying these measurements with only 33 percent of all respondents correctly assigning all the units. The British, French, Swedish, Americans, Canadians, Brazilians and Chinese on the other hand achieved between 40 and 50 percent. The Italians were top with 55 percent.
Which lighting technologies are consumers looking for at their local DIY store or on the Internet? LED technology – either with or without smart functions – is high on the list: 58 percent of Americans and 55 percent of Canadians look for LED and 31 percent and 26 percent look for smart LED products. Surprisingly, however, old technologies still feature prominently, with halogen selected by 19 percent of both Americans and Canadians, fluorescent selected by 26 percent of Americans and 21 percent of Canadians, and 18 percent of Americans and 16 percent of Canadians still stocking up on incandescent light bulbs.
Human-centric lighting (HCL) – or “the right light at the right time” – is a major trend in the lighting industry and there is plenty of hype surrounding it. Scientific research suggests that artificial light that closely simulates the changes in natural daylight can contribute to establishing and stabilizing human day/night biorhythms, which can help boost our sense of well-being and improve our health.
In response to the question on the biological effect of artificial light on the human body, the majority of U.S. and Canadian respondents (around 72 percent) indicated however that they either did not believe it or knew nothing about it. Nevertheless, two-thirds (66 percent) saw an advantage in using artificial light to stimulate body and spirit according to their individual needs. People are therefore generally open-minded about HCL. Sixty-two percent of the respondents, for example, indicated that the biological effects of light would have a major influence on their purchasing decisions if they knew enough about it. However, that is obviously not yet the case.
The international consumer study was conducted on behalf of LEDVANCE by Research Now at the end of 2017 and the start of 2018 in a total of nine countries – Germany, Great Britain, France, Italy, Sweden, the U.S., Canada, Brazil and China. The online survey was based on a representative cross-section of the online population in age groups from 18 to 60, with different levels of education and income and from the various regions. In the United States and Canada, over 3,000 were surveyed.