Think Millennials can’t be bothered with loyalty programs? The popularity of rewards programs such as Starbucks’ or Sephora’s among Millennials shows otherwise.
But how do you engender loyalty with a consumer group that has its own values and behaviors? When it comes to loyalty and consumers, one size doesn’t fit all.
Millennials have shown themselves to be partial to loyalty programs that give back to causes as well as programs that provide them with innovative experiences and exclusive, personalized offers.
And, growing up in a digital world of YouTube with those famous for being famous, it’s no surprise that online influencers also make the cut with Millennials when it comes to loyalty programs. But in a digital world that’s becoming increasingly globalized also comes a growing importance and awareness of living conditions and environmental impacts across the globe.
“The hierarchy among drivers of consumer loyalty and brand performance is changing,” states Grace Farraj, SVP, Public Development & Sustainability, Nielsen, in Nielsen’s 2015 Sustainability Imperative report. “Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. Brands that fail to take this into account will likely fall behind.”
Millennials “continue to be most willing to pay extra for sustainable offerings—almost three-out-of-four respondents in the latest findings, up from approximately half in 2014.” Also, “The rise in the percentage of respondents under 20, also known as Generation Z, who are willing to pay more was equally strong—from 55% of total respondents in 2014 to 72% in 2015.”
“Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share but build loyalty among the power-spending Millennials of tomorrow, too,” Farraj adds.
e|wmg knows loyalty
At e|wmg, we know that a well-designed loyalty strategy gives brands the power to identify, differentiate and engage their customers and best prospects and evolve them into enduring brand advocates. We offer a complete range of strategic and operational loyalty services, unencumbered by any proprietary technology platform, to determine the most appropriate loyalty strategies, initiatives and investments for your brand.
If you’re not sure if your loyalty program is doing its job, give us a call. Our proprietary Loyalty Program Optimizer provides a comprehensive analysis of your loyalty program by reviewing program strategy, technology effectiveness, core economics and metrics, partnerships and the competitive environment to ensure your program is working as it should.