Millennials Would Invest in a Loyalty Program Membership

Millenials Loyalty Program ArticleWould people pay to join a loyalty program?

Well, the answer to that question appears to be millennials (ages 18-35), the most sought after age group among loyalty marketers.

According to a new survey from LoyaltyOne, millennials are much more open-minded than any other population segment about investing in a loyalty program membership.

Here are some key takeaways from the survey:

  • 62% of respondents said they’d consider joining a fee-based rewards program if their favorite retailer offered one.
  • Among millennials, this number rose to 75% of 18-24 year-olds and 77% of 25-34 year-olds saying they’d consider joining a fee-based rewards program.
  • 65% said customer rewards are worth paying for if relevant to their needs.
  • Millennials, again, rated this even higher with 79% of 18-24 year-olds and 76% of 25-34 year-olds saying relevant rewards are worth paying for.
  • Nearly half (47%) said rewards in fee-based programs are better than rewards in free programs
  • A significantly larger number of millennials - 61% of 18-24 year-olds and 54% of 25-34 year-olds – said fee-based rewards are better.

Earlier this month Walmart disclosed details of its new $50 per year fee-based delivery program called ‘Shipping Pass,’ which is widely viewed as a competitor challenge to Amazon Prime with its $99 per year fee. Jet.com is another emerging membership-based shopping club promising low prices at a $49.99 fee.

Here are some more takeaways from the survey:Millenails Loyalty Program Callout

Of the respondents who already participate in fee-based loyalty programs, 69% said they were enticed by free shipping, followed closely by special discounts at 67%

Women (67%) are slightly stronger than men (64%) in their belief that rewards are worth paying for

When asked which category would be most appealing if compelling benefits were available through a fee-based program, respondents ranked Grocery and Mass merchandise highest (35%), followed by Credit Card rewards (26%), Specialty Retail (13%), Travel (18%) and Restaurants (9%)

32% of 18-24 year-olds and 34% of 25-34 year-olds said they have never been offered membership in a fee-based program, versus 25% of the general population.

The survey results are based on an online survey in May 2015 of 1,005 American consumers. 

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