The millennial generation (ages 20-34) is now outnumbering their Boomer parents (ages 45+). You may be asking, 'why does this even matter?' Well, Millennials just happen to be the most loyal customers, provided that marketers know how to connect with them in ways that are effective for their personal purchasing process. Brand loyalty is built differently for Millennials than it is for the Boomer generation. If companies’ marketing efforts do not cater to Millennials, they are alienating the largest customer demographic in North America. So, why are Millennials the most loyal customers and how does a company appeal to them?
Millennials have grown up with marketing and technology, making them very tech savvy customers. Their mobile devices are central to everything that they choose to do. As a Millennial, I can certainly attest to the fact that I do just about everything on my phone; it is how I stay in touch with friends and family, connect online, share pictures and videos, update social media websites, read emails, purchase items, and so much more!
Millennials are more likely to be influenced by social recognition than the typical loyalty program member. Programs which offer ways for Millennials to be recognized by peers and social groups have higher engagement. For 33% of Millennials, the act of being recognized by their peers and/or social groups positively impacts how satisfied they are with the brands that enable this type of recognition.
I think that Target’s Cartwheel program is a great example of this. If you are not familiar with Cartwheel, their program allows consumers to receive discounts on select items, and Cartwheel allows customers to share offers with their friends. Customers receive more badges and offers when doing so.
Since Millennials are entering the high-purchase life stage, it is smart to target them with your marketing. Programs that provide Millennials with ways to share their experience and receive recognition from their peers and social groups have higher satisfaction ratings. In fact, 50% of Millennials want an opportunity to provide ideas to marketers for ways to enhance products, and they hold more trust with their peers than they place with other customer segments. Fas Mart is an example of an app that allows customers to easily give feedback based on their experience for both the application and the customers in-store experience.
Want to make Millennials loyal? Give them what they want – a way to interact with your brand or your business through their mobile devices.
To learn more about Millennials and their loyalty to brands, visit The Loyalty Marketing Report.