More Money, More Programs: Millennials Notorious for Big Loyalty Spending

Many young adults have never thrown a fistful of cash in the air à la Blank Check, nor lain down on a bed made of $100 bills like Walter White in Breaking Bad, or even spoken on a money phone like Johnny Manziel.

As a whole, Millennials are known for being notoriously strapped for cash; it’s not uncommon to see a brilliant law school graduate politely asking what kind of milk you prefer in your latte. Contrary to general perception, however, data suggests that Millennials are among the most vital and active spenders, amassing $600 billion in total spending power. Coupled with a nearly ubiquitous embrace of social media connectivity, it’s no wonder brands are fighting to win over the generation through digital multichannel strategies.

According to a recent report from PunchTab, nearly 50% of Millennial women will shop twice monthly, compared to only 36% of women across other generations. Furthermore, Millennial men double non-Millennials in spending on fashion and clothing. For many Millennials, online shopping is as common as taking a shower: most do it once a day. When it comes to loyalty, 75% of women and 50% of men belong to online fashion site loyalty programs.

Millennials also differentiate themselves in the type of rewards they enjoy. When asked, 51% said they desired rewards in the form of events, products, or content. However, Millennials expect better, more personalized experiences; 20% enrolled in loyalty programs said they did not understand the program, and think the rewards were not aptly tailored on their shopping history.

For loyalty providers, this presents a great opportunity. While some say Millennials are less brand-loyal than other generations, the reality is that they merely have come to expect better-personalized experiences and non-traditional rewards. Brands that can meet those expectations will win over Millennial loyalty and see lasting success – and just maybe, throw fistfuls of cash in the air.

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