The talk about Millennials as a powerful and unique cohort of consumers continues to add to the pixeldust of online content.
Are they proving to be so different in their views and behaviours than any other generational cohort that a dedicated focus on them is required?
(Just Google “Millennials and marketing” and you will find a plethora of content to help you decide).
From a loyalty program perspective, we wanted to identify any significant insights on their views (care-factor) and interaction with programs.
Here are some of the findings from the ‘for love or money 2016’ research that provided the insights:
Do you really need a loyalty program?
Do brands need a loyalty program to keep their customers loyalty?
68% of Millennials said YES (57% for all other members), indicating a healthy appetite and “care-factor” for Millennials to be rewarded by brands for their loyalty.
Location based offers using data from loyalty programs
Are you happy for your smartphone to determine your location and send you discounts or special offers based on where you are shopping?
Millennials are more willing to receive location based offers, with 37% of Millennials agreeing to this form of communications from programs (25% for all other members)
The 24 SPV ingredients of successful loyalty programs (Simple, Personal, Valuable)
Our 24 SPV ingredients to a successful program highlighted four where Millennials had significant differences in what they agreed where important features and benefits of programs:
– Experiences: Access to rewards or benefits that are focused on experiences eg travel, entertainment and event = 52% (41% for all other members)
– Benefits for interaction (not transaction): Earning rewards and benefits for sharing on social media, writing reviews, completing survey and attending events = 51% (33% for all other members)
– Gamification: Participating in loyalty games for rewards = 45% (30% for all other members)
– Opportunities to donate or redeem their points, rewards or vouchers to charities or a local community initiative = 39% (29% for all other members)
Leaving a program within the 90 day “moneymoon” period
Millenials are far more likely to leave the programs they join in the first 90 days than the rest = 30% for Millennials (19% for all other members). The main reasons for their defection are… “the rewards don’t appeal to me” and “I just forgot about it”
So whether you are a believer (or not) in Millennials as a powerful cohort of consumers, engaging them in loyalty programs needs careful consideration. That’s if you want their “care-factor” for your program to be a YES.
Have a happy loyalty day