Millennials are a generation with an infamous reputation for being highly selective and informed on the places in which they conduct their business. When it comes to consumer brand loyalty, on the other hand, you might be surprised to learn that millennials are actually the most loyal generation. American Express did a study that revealed that, compared to 54% of the wider population, as much as 62% of millennials tend to only buy from a preferred brand. Also, 58% of millennials would not sway from their favourite brand of products no matter what, which makes loyalty cards a particularly useful tool when targeting this demographic.
Price Matters
Loyalty rewards seem to be a key driver of this notable millennial brand loyalty. Millennials are more likely than any other generation to stay loyal to a brand because of its loyalty rewards, but even then, price matters. For comparison sake, bargains and price drive the brand loyalty of the older Generation X. In fact, as much as 57% of Fortune 500 brands surveyed indicated that they will increase their loyalty program budgets in the future as a result of strong millennial brand loyalty.
When looking to capitalize on the millennial appetite for staying loyal to their preferred brands, there are a number of factors to consider:
- Custom products and offers
- Simple (intangible) use
- Frequency of rewards
Custom Products & Offers
Millennials prefer customizable products because of the fact that they’ve grown up in societies that are more diverse than previous generations. One example of achieving this goal is to start with your users’ past history and offering unlockable or exclusive programs. For instance, offering other sports-related items to a millennial sports aficionado makes them feel looked after. More importantly, it also increases the chances of them using the second offer.
Simple (Intangible) Use
Most millennials have smartphones, so it makes perfect sense to use that platform to make things simpler. Let’s face it – no one likes having to carry physical loyalty cards around, so consider integrating your loyalty rewards program into frequently used platforms like Venmo or Facebook. Another idea is to try partnering with a loyalty rewards/cashback platform like Drop and Dosh. This offers a much simpler solution for both millennials and brands.
Frequency of Rewards
Retail is continuously being reshaped by the millennials’ need for instant gratification, which is why it makes perfect sense to apply this mentality to loyalty rewards as well. Avoid asking them to accrue a certain amount for cash-back and asking them to go through a lengthy sign-up process. Streamline the process, make it simpler and easier, and focus more on frequency of rewards than on mere amount.
Thinking About Using Loyalty Cards for Your Customers? Contact Quickcards
Quickcards has been making cards for over fifteen years and supplying the biggest and best companies in Canada. The company makes everything from club membership cards, stunning business cards and unique party invitation cards to custom photo ID badges, personalized luggage tags, wallet-sized family photo and loyalty cards. Get in touch with Quickcards today and have them make you the kind of loyalty cards that will help you grow your business.
