One of the biggest concerns for brands regarding millennials is their lack of loyalty. However, studies show millennials are, in fact, loyal if they are treated correctly. They are 64% to be as or more loyal to brands than their parents.
So the real question is does your loyalty program engage millennials?
Who are they?
Millennials are those born from the early 1980s to the early 2000s. Today they are in their 20’s and 30’s. Right now, in Ireland, there are more than half a million people millennials. While in the US, there are roughly 80 million millennials.
Millennials are the first generation to grow up in the digital age. They are unique in many ways and require businesses to interact with them in a unique fashion. Businesses not connecting with this audience miss out on a huge portion of potential market share. By 2025, 75% of the workforce will be made up of millennials and they will account for up to 30% of total retail sales in the US alone.
How do I engage Millennials?
5 simple tips that engage millennials.
1. Have an online presence.
Although millennials still shop in brick and mortar stores. Many stating they enjoy shopping in the physical store because you can see and touch the product. That doesn’t mean brands don’t need an online presence to engage Millennials. You do! They are tech-savvy and shop online regularly. Millennials use social media and search engines to research products and services prior to buying in store. If your brand does not have an online presence it could result in you being invincible to millennials.
2. Make sure your loyalty offerings are consistent across all channels. (Omni-channel)
Millennials expect prices and promotions to be consistent in-store and online. So whether it’s Epos, the web, in-app or social media platforms make sure your customers can access the same loyalty offering on all channels. For example, you have a points system in-store make sure the customer can earn and redeem at all of your customer touchpoints or if you send customers a promotion code they can use it at each touchpoint. This will encourage positive interaction between your brand, your loyalty program and your customers.
Millennials are quite open to brands interacting with them. However, it is important these interactions are personalised. Personalisation is a higher priority for driving loyalty for millennials than any other generation “22% of consumers are happy to share data in return for a more personalised customer service or product” (Deloitte, 2015). Brands should harness customer data to enhance this personalisation and offer customers a more customised experience with their brand.
4. Get creative.
Creating an element of fun or games around your loyalty program can encourage millennials to engage with you “60% of millennials say fun in an important loyalty driver”. Having an element of fun and getting creative with your loyalty program offerings can also distinguish you from your competition. It’s a good idea to use social media campaigns to aid the fun element and continue to raise awareness. Millennials are very receptive to earning bonuses by doing some specified activity. For example, filling out a survey, writing a review or participating in a game in exchange for additional rewards, points or promotions.
5. Add a mobile aspect to your loyalty program.
Mobile applications (can be pricey) however, if your budget allows it they can create a massive opportunity for you to nourish current customer relationships and acquire new customers. Mobile apps provide another channel to engage and personalise interactions with your customers. Apps can be a more reliable loyalty identifier because people are more likely to have their phone with them during a transaction than a card or key fob, 40% of millennials prefer to use an app to identify themselves as loyalty members (software advice).
In conclusion, don’t ignore millennials! They want to engage with you but they want you to engage with them in a more personalised approach. Using an integrated loyalty system and a spark of creativity, you will be well on your way to engaging the most complex generation of consumers to date.