Study: Technophile Millennials eager to interact in digital domain

When Joe Millennial, age 22, walks into a Carl’s Jr., the first thing he may reach for is his smartphone.


Initially, he checks in using his Happy Star Rewards app. If this is his first or fourth visit, he can spin the Wheel of Awesome that appears on his phone, giving him the opportunity to instantly win free food, a coupon or other prizes.


While he waits in line, he can use his smartphone to compare calories between a turkey burger and bacon cheeseburger. He can check out the Carl’s Jr. Facebook page or watch the chain’s commercials featuring hot models eating burgers.


This obviously is just a fictional scenario. But it’s one that illustrates how a particular restaurant company is reaching a key demographic: the prized Millennial customer.


Many foodservice operators, in fact, are zeroing in on the potentially profitable Millennial phenomenon by tailoring marketing strategies to the generation’s distinctive social behavior, interest in health, somewhat unconventional dining habits and, most notably, intense love affair with technology.


Definitions of what makes a Millennial vary, but generally it is thought to include those born between 1977 and 2000, or consumers between the ages of 11 and 34. A growing body of research indicates that Millennials have specific habits and interests, and understanding how they differ from younger and older consumers can help restaurant brands better reach them.


And if there is one characteristic that stands out, it’s the love Millennials have for technology, specifically their smartphones, Facebook and Yelp.


So maintains a report called “American Millennials: Deciphering the Enigma Generation,” sponsored by advertising and marketing agency Barkley US, consumer researcher Service Management Group and The Boston Consulting Group. The study, scheduled to be presented at a conference called Share. Like. Buy. in San Francisco Sept. 22, is based on a survey of 3,896 Millennials between the ages of 16 and 34.


The results, said Jeff Fromm, senior vice president of sales, marketing and innovation at Barkley, offer insight into the Millennial generation, including their preference for snacking, living healthful lifestyles and socializing in restaurants.


Digital natives


Perhaps most important, however, is the study’s look at the use of technology among Millennials, who are described as “digital natives,” more likely than other age groups to adopt new technologies and connect via social media.


One thing that stands out, said Fromm, is that Millennials don’t appear to be growing out of their devotion to social media.


“Their use of technology is not a life-stage issue,” Fromm said. “It’s part of their experience. It’s part of their value equation.”


Millennials are early adopters of new technologies, so it’s important for restaurant companies to keep up with what’s new and emerging, Fromm said. The Millennial generation is more likely than older generations to use most types of electronic entertainment devices, from Xbox and MP3 players to e-readers and tablets.


Smartphones are the mobile device of choice for Millennials, though, with close to 60 percent of those surveyed using an iPhone, Blackberry, Android or something similar, compared with just over 30 percent of those 35 and older, according to the survey. 


Restaurant marketers would do well to think about customizing their digital menu strategy specifically for smartphones in ways that engage guests with the brand before, during and after their visit, Fromm said. That could mean something as simple as making sure your restaurant website is accessible with a smartphone. Sites that use Flash technology, for example, don’t always work on mobile devices.


QR codes, or bar codes that can be scanned with a smartphone, offer another relatively untapped opportunity for restaurant operators to engage Millennials, he said. Fromm pointed to Livestrong Sporting Park in Kansas City, Mo., a stadium with QR codes on the seat backs that visitors can scan to get more information about the team they’re watching or earn affinity points.


‘Like’ Facebook


More than half of Millennials surveyed, or 52.8 percent, said they like checking out brands on social-media sites like Facebook and Twitter, while only 36.2 percent of non-Millennials do. Just over 33 percent of Millennials said they like a brand more when that brand uses social media, compared with only 17.4 percent of the older comparison group.


However, just because Millennials interact with brands via social media, it doesn’t mean they always have a positive experience.


According to the survey, 30.5 percent of Millennials and 24.7 percent of older consumers said they find brand sites on Facebook and Twitter “annoying.”


“Millennials like to engage with their preferred brands with social media because it’s part of their DNA. But the other facet of that is how they’re choosing to engage,” Fromm said.


“If you’re doing it the right way, it’s a big win. If you’re doing it the wrong way, it’s an annoyance,” he said. “Using social media just to try to sell them something isn’t necessarily the best approach.”


Within the world of social media, all of those surveyed showed a preference for Facebook, with more than 95 percent of respondents saying they used the site.


While on Facebook, Millennials were more likely than non-Millennials to “like” or interact with brands on a weekly basis. Nearly 15 percent of Millennials said they “like” brands on Facebook three to six times per week, for example, while fewer than 10 percent of non-Millennials “like” brands on Facebook that often.


Millennials also prefer to both generate and consume Web content, the survey found. More than 25 percent of Millennials said they have their own blog, compared with fewer than 10 percent of older consumers. Sixty percent of Millennials said they upload content to the Web — twice the number of non-Millennials. And 60 percent of Millennials said they rate products and services on the Web, compared with less than 50 percent of non-Millennials.


Yelp, in particular, has penetrated the Millennial market, with 32 percent saying they use it at least occasionally, while only 11 percent of non-Millennials said they use Yelp.


“This means that restaurants must pay special attention to their profiles on review sites, for example, so that they fare well in the digital decision and information-gathering battleground,” said Fromm. But, he warned, “Don’t try to exert control when you don’t have the ability to control the message.” 

Contact Lisa Jennings at lisa.jennings@penton.com.

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