Given the fact that Millennials are such a crucial segment for brands, marketers want as much insight on this group as possible. Omni-channel loyalty and engagement platform PunchTab recently released a new study on Millennial purchase behavior among fashion brands and retailers.
More than 1,200 Millennials participated in the study, which reveals the key buying drivers that guide them from consideration to purchase, their perception of brand loyalty programs, and the most popular loyalty programs among the age group.
For example, 63% of Millennials would join a consumer loyalty program if given incentives; 51% prefer store loyalty programs that cover multiple brands, and top programs differ by gender.
Here are some key takeaways regarding marketing to Millennials:
- 60% of Millennial women learn about fashion brands from direct contact with others wearing the brand or word-of-mouth. The number is slightly lower for Millennial Men (49%)
- 34% of Millennial women and 29% of Millennial men read online articles to learn about new brands
- 20% of Millennial women and 10% of Millennial men learn about brands via social channels
What’s more, PunchTab’s study revealed a significant shift in brand and retailer perception by Millennials, once they become aware of the brand. As they begin to seek product information, nearly 80% of Millennials turn to online shopping sites first, followed by friends and family (70%), and brand websites (58%). The top methods for Millennials to share recommendations about fashion brands include friends and family (62%), Facebook (45%), online shopping sites (35%), and Pinterest (18%).
The study shows that 63% of Millennials would join a consumer loyalty program if given incentives. If those incentives were taken away, only 35% of Millennials would join a loyalty program.
Here are some more takeaways from the study:
- 74% of Millennial women are currently members of one of more fashion-related loyalty programs, while only 52% of Millennial men are members
- 53% of Millennials would follow a store or brand on Twitter if incentives were given. Without incentives, the number drops to 19%
- 60% of Millennials would answer polls and surveys if given incentives and only 29% would do so without them
- 51% of Millennials rated exclusive access to events and products as the most desirable type of experience rewards
The study shows the most popular loyalty programs for Millennials, which points to differences between genders. For Millennial men, the most popular loyalty programs include Kohl’s (27%), Dick’s Sporting Goods (23%), Target (22%), and Macy’s (16%). The top loyalty programs for Millennial women include Victoria’s Secret (33%), Kohl’s (24%), Target (23%), American Eagle (21%), and Gap brands (21%).
“Marketing to Millennials is a complex endeavor,” Angela Sanfilippo, CMO of PunchTab, said in a release. “PunchTab’s data shows what many have suspected−growing Millennial apathy toward traditional marketing and a distrust of brands is creating a new challenge for marketers looking to engage this powerful demographic. What we’re finding, however, is that Millennials continue to embrace incentives and loyalty programs, as long as they’re tailored to their lifestyle and interests and offer rewards for actions in a timely manner. As a digitally savvy group that wields more than $600 billion in spending power each year, understanding how to tap into the Millennial market and their purchase triggers is a must.”