The 5WPR 2020 Consumer Culture Report finds that Millennials set the pace for how Americans shop. MARU/Matchbox surveyed 1,001 US adults for 5WPR between November 13 and 18, 2019. Millennials are projected to spend $1.4 trillion in 2020. In the report, 82% of them will select an item the first time they see it if they like it. Word of mouth influences 93% of this group. Brands that ignore how Millennials discover and share products lose the largest spending generation.
This is the first annual edition of the report. The full 2020 Consumer Culture Report PDF covers impulse behavior, spending habits, gratification, social media, publicity and brand activism. The findings below come from that report unless another source is named.
How impulsive are consumers in 2020?
Consumers aged 18 to 34 are the most impulsive shoppers in the 5WPR 2020 Consumer Culture Report. In that group, 82% will select a product the first time they see it if they like it enough. The share falls to 80% for consumers aged 35 to 54 and 65% for those 55 and over.
Impulse comes with regret. Among 18 to 34 year olds, 70% sometimes regret purchases and 64% say they often make impulse purchases. For consumers 55 and over, 45% report regret and 36% report frequent impulse selections.
The same shoppers also know how to wait. Among consumers aged 18 to 34, 90% watch for sales on an item they want. In the same group, 84% say their favorite purchases are ones they saved for, and 80% keep a running wish list in an online cart. Only 31% of consumers 55 and over keep a cart wish list. Across every age group, 94% to 96% say getting a lot of use out of a purchase makes them feel they made a good decision.
Where do consumers splurge and where do they save?
Dining out and travel are the categories consumers most often splurge on in the 5WPR 2020 Consumer Culture Report. Consumers aged 18 to 34 put travel and experiences first, followed by dining out and electronics. Both older groups put dining out first. The report notes that consumers save on categories they see as commoditized or lacking experiential value.
| Rank | 18 to 34 splurge | 35 to 54 splurge | 55+ splurge | 18 to 34 save | 35 to 54 save | 55+ save |
|---|---|---|---|---|---|---|
| 1 | Travel and experiences | Dining out | Dining out | Health and wellness | Home goods and furniture | Clothing and fashion |
| 2 | Dining out | Snacks | Travel and experiences | Home goods and furniture | Clothing and fashion | Personal care |
| 3 | Electronics and tech | Travel and experiences | Snacks | Beauty and cosmetics | Shoes and accessories | Beauty and cosmetics |
What influences a purchase decision in 2020?
Word of mouth is the strongest influence on purchase decisions for every age group in the 5WPR 2020 Consumer Culture Report. It sways 93% of consumers aged 18 to 34 and 89% of both older groups. Online customer reviews come second, at 90% for 18 to 34 year olds and 77% for consumers 55 and over.
The gap between generations opens up on paid and social sources. Someone followed on Instagram influences 72% of consumers aged 18 to 34 but only 9% of consumers 55 and over. Celebrity endorsements influence 57% of the youngest group and 14% of the oldest. The report's average external influence score is 72% for 18 to 34 year olds, 58% for 35 to 54 year olds and 36% for consumers 55 and over.
| Influence on purchase behavior | 18 to 34 | 35 to 54 | 55+ |
|---|---|---|---|
| Word of mouth | 93% | 89% | 89% |
| Online customer reviews | 90% | 84% | 77% |
| Online ads | 75% | 64% | 39% |
| Articles and blogs | 74% | 66% | 44% |
| Someone followed on Instagram | 72% | 41% | 9% |
| Someone followed on Facebook | 67% | 48% | 22% |
| Influencers on YouTube | 64% | 49% | 19% |
| Podcast sponsorship | 58% | 39% | 8% |
| Celebrity endorsement | 57% | 40% | 14% |
Editorial coverage beats advertising for every generation. Among consumers aged 18 to 34, 40% say a story about a product in the news, a magazine or a newspaper is more impactful than traditional advertising. That figure is 36% for 35 to 54 year olds and 33% for consumers 55 and over. A feature in an influencer's post scores 37% with the youngest group but only 3% with the oldest.
Which social platforms drive selection?
Facebook is the most used social platform across every age group in the 5WPR 2020 Consumer Culture Report, but Instagram converts best. Facebook is checked daily by 77% of consumers aged 18 to 34, 68% of those 35 to 54 and 52% of those 55 and over. Instagram is checked daily by 70% of the youngest group and 9% of the oldest. TikTok reaches 28% of 18 to 34 year olds daily and 0% of consumers 55 and over.
Among consumers who say Instagram influences them, 94% have taken at least one action on the platform. In that group, 52% clicked an ad for product details and 45% looked up an item an influencer recommended. Another 36% purchased an influencer's recommendation and 35% purchased from an ad. Roughly one in three went all the way to purchase.
Almost every kind of Instagram content carries weight with this audience. A post by a friend influences 91% of those swayed by Instagram. A post by someone followed but not known personally influences 81%, a sponsored post by that person 77%, and a post by a major celebrity 75%. The report reads the narrow spread between sponsored and unsponsored posts as an opening for brands.
Is retail still part of discovery?
Physical stores remain the top place to discover new products, according to the 5WPR 2020 Consumer Culture Report. Among Millennials, 68% prefer finding new products in store to finding them online, against 54% for older age groups. Across all consumers the figure is 58%, according to the January 7, 2020 press release announcing the report.
Beauty shows the pattern in one category. Among Millennials, 38% typically discover new beauty products in store, 34% cite Instagram ads and 32% cite Facebook or YouTube ads. Social media is the top source for spotting trends among 18 to 34 year olds (57%), while mainstream media leads for consumers 55 and over (34%).
Do brand values change what consumers select?
Brand values matter to 83% of Millennials, who say it is important that the companies they select from align with their beliefs, according to the 5WPR 2020 Consumer Culture Report. That share is 73% for consumers aged 35 to 54 and 60% for those 55 and over. Two in three Millennials (65%) have boycotted a company they previously purchased from over its stance on an issue.
| Statement | 18 to 34 | 35 to 54 | 55+ |
|---|---|---|---|
| It is important that companies I select from align with my values | 83% | 73% | 60% |
| I like it when CEOs speak out on issues I care about | 76% | 66% | 55% |
| I have boycotted a company because of its stance on an issue | 65% | 59% | 51% |
| I enjoy buying products that show my social or political beliefs | 62% | 50% | 21% |
| I will pay more for a product if some proceeds go to charity | 71% | 61% | 40% |
| It is important that a brand I select has a charitable component | 67% | 52% | 30% |
Ronn Torossian, Founder and CEO of 5WPR, predicted in the press release that 2020 would bring "huge growth in cause marketing." Torossian pointed to the 71% of Millennials who will pay more when proceeds go to charity. Dara A. Busch, President of 5WPR, said the insights help the agency guide clients toward smart messaging decisions.
What should brands do with the 2020 findings?
Brands should showcase real customer use, give shoppers "now or later" options, and keep retail in the discovery plan, according to the 5WPR 2020 Consumer Culture Report. The report closes with eleven ideas. The table below pairs the main ones with the finding behind each.
| Recommendation | Finding it answers | Action for brands |
|---|---|---|
| Showcase customer reviews about usefulness | 96% say getting a lot of use signals a good decision | Feature reviews that describe how the product fits daily life |
| Tell stories about experiential value | Splurge categories are experiences, not commodities | Show the moment the product made possible, not the price |
| Offer now or later purchase paths | 80% of Millennials keep a wish list in their cart | Add payment plans, watchlists and easy returns |
| Invest in Facebook, Instagram and YouTube | These three reach every age group daily | Put content budget where all generations already are |
| Keep brick-and-mortar in the funnel | 68% of Millennials discover new products in store | Plan for in-store discovery, sharing and conversation |
| Lead with publicity over advertising | News stories beat ads for 40% of 18 to 34 year olds | Earn coverage that reads as legitimate news |
| Know your customer's purpose | 83% of Millennials want values alignment | State the brand purpose and act on it |
How was the 2020 Consumer Culture Report researched?
The 2020 Consumer Culture Report is based on an online survey of 1,001 US adults aged 18 and over. MARU/Matchbox ran the survey on behalf of 5WPR from November 13 to 18, 2019, using a nationally representative general population sample. The report groups respondents into three age bands: 18 to 34, 35 to 54, and 55 and over.
The full report includes the complete charts for every question covered above. Download the 2020 Consumer Culture Report as a PDF. Later editions and other 5W studies are collected on the 5W research hub.
CONCLUSION
The 2020 Consumer Culture Report shows a Millennial shopper who buys on sight, trusts friends and reviews over ads, discovers products in store, and expects brands to stand for something. Brands that earn word of mouth, show up on Instagram and back a cause win that shopper's selections. 5W's consumer PR practice builds those programs for beauty, food, travel, wellness and consumer technology brands. Get in touch at info@5wpr.com to brainstorm how these findings apply to your brand.
