What different customers really want from your loyalty program ?

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Millennials and Baby boomers

What different customers really want from your loyalty program ?

We often discuss loyalty programs as a great source for customer data.
However, you only receive these insights after you launch your customer loyalty program.
However, if you’re in the early stages of loyalty strategy creation and you’re wondering what aspects of a loyalty program appeal to the different audiences.
Look no further, we examine millennials and baby boomer generation to highlight their preferences regarding loyalty programs.
After all, businesses can no longer take a “one size fits all” approach to their loyalty programs because preferences and habits are so varied across countries and across consumer groups with countries.

Firstly, if you are not familiar with the generation definitions, here is a description of both.
Millennials: refers to the generation, born from 1980 to 2004 brought up using digital technology and mass media; the children of Baby Boomers
Baby Boomers:
Baby boomer is a term referring to a person who was born between 1946 and 1964. The baby boomer generation represents nearly 20% of the American public.
What you need to know!
1. Millennials value non-monetary benefits more highly than baby boomers.
“15 % of Millennials say higher priority service such as VIP customer service is one of the top benefits to a loyalty program”.
2. Millennials value donations to charity, and service experiences 3 times more than Baby Boomers.
3. Baby Boomers appreciate value and rank product discounts and cash rebates as their most valued reward types.
4. Omni-channel experience is very important to all ages. Members want to engage across a range of digital channels as well as at the checkout in store.
5. An online presence is important to both generations as “55% of Millennials use search engines to learn about products” while “52% of Baby Boomers compare products, prices and features online”.
6. Personalised discounts are favoured by millennials but only marginally compared to Baby Boomers.
7. Tiered programs with exclusive rewards for customers at a certain level or status are most appealing to Millennials. While Baby Boomers prefer Reward flexibility such as the ability to choose between several types of rewards.
8. Social media integration with a loyalty program is particularly inviting to Millennials, for instance, the ability to earn points or rewards for sharing products and pages on social media networks.

We can conclude that each generation has different expectations for a business’s loyalty program.
However, there are some crossovers such as the appreciation for an Omni-channel experience, an online presence and personalised promotions.
It’s not surprising that the millennial generation is more appreciative of social media integration in conjunction with a loyalty program.
Despite, similarities between the generations it is still important for businesses to avoid a “one size fits all” approach to your strategy in order to truly engage with the different target audiences.

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