Role of Millennials and their Impact on Reputation Management

Pascal Beucler

SVP & Chief Strategy Officer,

Global, MSLGROUP,

Publicis Groupe

PRAXIS 2016

Mumbai

23rd September, 2016

Millennials: A generation that matters

Millennials

Connected Socially conscious Tech-savvy

Entrepreneurial Experimental

Confident Progressive Purpose-driven

Millennials are a highly influential force.

Source:

1: Youbrand Inc.

2: Pew Research

And their importance is only skyrocketing.

The largest, most

diverse generation in

the world

More than half the

world’s population is

under the age of 30

More spending

power than any

other Generation

The combined global

spending power of

Millennials in 2015 was

$2.45 trillion1

Will influence the

workforce in the

future

Millennials are expected

to make up 50% of the

global workforce by 20202

John F. Brock,

CEO Coca-Cola Enterprises (CCE)

Millennials are not

just obsessed by

themselves, but

concerned by the

world, and they want

business to do more.

We saw it two years ago with our “Millennials & Business Citizenship” worldwide survey

In October and November

2015, we engaged with a

community of 270

Millennials, ahead of the

COP21 in Paris, to

understand their views on

climate change.

The circles indicate the number of responses from these countries.

Yes, Millennials expect more from business.

Particularly on Climate Change.

Millennials show strong emotions about climate change

"This was based on the 3-month long conversation we’ve had with that community of 270 Millennials on

Instagram and Twitter in the fall of 2015: with the words, images, videos they shared to express their

hopes…but mostly their fears, frustration and anger”

SadPowerlessFrustratedScared Hopeful…

It is almost unimaginable

that governments, businesses,

advocacy groups and other

influentials are still denying or

playing down the necessity

that something fundamental

needs to change in order to

deal with this global issue.

Timen,

28, Netherlands

It’s so easy to do

something – so why on

earth do politicians

and companies have

to make it so hard?

Sara,

24, Denmark

Any company that

supports more sustainable

eating habits for the

world’s population

immediately has

my support.

Allie Johnson,

19, USA

Everybody is responsible for

climate change. We can do

every little thing to change the

situation and we have to!

Companies can push

people and I think we need

leverage this to effect more

people to take action.

Shina,

25, China

[Climate change is the]

greatest threat to civilized

human culture and progress.

On the other hand, it is the

greatest potential for

innovation, collaboration

and the establishment of a

real global community.

Asger,

30, Denmark

Millennials think it is possible to mitigate the effects of climate change.

65%

Business

79%

Government

52%

Me

25%

Non-profits

66%

People

And they want businesses to play a significant role.

Source: A Chance for Change: The Tipping Point for Sustainable Business

Clearly, Millennials are looking at

the world through a shifting lens.

It’s time for businesses to catch up.

If you’re not where

Millennials expect you to

be, you’re nowhere.

http://i.huffpost.com/gen/1761507/images/o-WARREN-BUFFETT-facebook.jpg

It takes

twenty years to build

a reputation and five

minutes to ruin it. If

you think about that,

you’ll do things

differently.

-Warren Buffet

The New Boundaries of Reputation Management

Corporate & Brand Reputation is under pressure…

What’s the link

between Business

and Reputation?

How should we

address Reputational

issues vs. all

stakeholders?Why and how is the

digital revolution

changing the

game?Why is Business

Citizenship necessary

for Reputation

Management?

What’s the value

of Corporate

Reputation?

Reputation is a shield for each andevery aspect of a corporation/brand ecosystem

Protects the

company’s

equity

Strengthens

consumers’

confidence in

the company

Nurtures

key opinion

leaders’

appreciation

Helps recruit

and retain the

best talent

Plays a

growing role

in investors’

eyes

Attracts the

best partners

The evolved Reputation Complex

It’s mainly about

four essential pillars:

Purpose

Social

Openness

Employer

Value

Proposition

Corporate

Citizenship

Reputation

Complex

Purposewhat you stand for,

your raison d'être in the

business but also in

society at large

Corporate Citizenshipputting your commitment to

society and people

at the heart of your business

strategy, in close resonance

with your purpose

Employer Value Propositionthe value you create for your

staff, thus for their clients, for

the company and for each of

them individually

Social Openness

Being active on social media,

sharing rich content, creatively

engaging with your

audiences, and thus making

your voice matter

The Reputation Complex and Millennials

Performance is great; performance

with purpose is far better.

It has to be local, actionable projects,

with a measurable impact.

And they want to be involved.

Over 75% of Millennials say that they’re

looking for a company with a clear purpose,

and one which delivers on it.1

Millennials want businesses to be part of the

conversation, be vocal, be committed and

take a stand on pressing global issues

Purpose

Corporate

Citizenship

Employer

Value

Proposition

Social

Openness

Source:

1. The Future of Business Citizenship

To conclude, Millennials strongly impact reputation in

their roles as:

consumers

employees

brand

advocates

Millennialsas CONSUMERS

Millennials

4/5believe businesses can make a significant impact in addressing societal issues

Millennials have significantly changed the brand-consumer dynamic

Millennials

69%

want businessesto make it easier for consumers to

get involved in societal issues

Source: The Future of Business Citizenship

Today, Millennials have a relationship with the brands and corporations that goes beyond

the products and services on offer

Millennials want to know that the organizations and brands they endorse and are loyal

to, have principles that align with their own

Align your brand with a cause. Millennials will align with you.Who’s doing it right?

Since its inception, TOMS’ One for One has

attracted millennials from around the world

The shoemaker’s business model caters to

millennials’ desire to be active agents of social

change

How do you know the brand has really resonated

with millennials?

In the USA alone, TOMS stands higher in the

Brand Value Index than Nike.

Millennialsas EMPLOYEES

Millennials

62%

Millennials are looking for more than just a job

who feel they can talk with their manager about non-work-related issues plan to be with their organization longer 1

Millennials

77%say flexible work

hours would make the workplace

more productive for people their age 2

Source:

1: Gallup

2: Access Perks

Millennials are pushing for change in the world – and the workplace is an important aspect of it

Everything from the work culture to the employer’s stand on societal issues are key when it comes to choice of

workplace for Millennials

Millennials place more importance than any other generation on a work-life balance

…and: Engage with Millennials the way they engage with their peers.Who’s doing it right?

How have Millennials responded?

Snapchat Grubhub

Taco bell and Grubhub have both successfully used

Snapchat to hire Millennials

Reaching out to Millennials through a platform they

love and use regularly helps establish a positive

employer reputation in the minds of Millennials

Millennialsas BRAND ADVOCATES

Millennials place their trust in someone they can relate to

Millennials

89%

trust recommendations from friends and family more than claims by the brand 1

It’s no secret that Millennials don’t respond well to blatant advertising

The tech-savvy Millennial generation trusts influencers on social media when they make product referrals and reviews

Millennials value authenticity, content and the source over pure product promotion

Millennials

44%are willing to promote products or services

through social media in exchange for rewards 2

Source:

1: Kissmetrics

2: AIMIA

Partner with Millennial influencers. Influencers will partner with you.Who’s doing it right?

How have Millennials responded?

J Crew collaborated with popular YouTuber

Casey Neistat to promote their new

clothing line

The content blended in seamlessly with

Neistat’s existing storytelling style, making it

authentic and familiar for his fan following

Winning in the Reputation Economy

It’s the doing and not the talking that matters

What and how companies actually do in terms of driving change is more meaningful than why they do it

WHYWHAT >

Micro initiatives will leadto macro credibility

Broad, philosophical promises without tangible results lack credibility with this action-oriented generation

MACROMICRO >

When the time comes to talk,do it right

Move from mass communication to one on one conversation

Go VR, AR, experiential: create something they can be a part of

Collaborate with them for the development of a new product

Reach them where and how they feel most comfortable

Develop content they will want to share

Keep it real

Merci!

Pascal Beucler

SVP & Chief Strategy Officer,

Global, MSLGROUP,

Publicis Groupe