Please enter your username or the email address associated with the account so we can help you reset your password.
This research was commissioned to understand the attitudes of millennials toward loyalty and rewards programs and what activities motivate them to remain engaged with a brand. This report is the first of a three-part research series. The findings reinforce the fact that millennials are a diverse group, and brands must provide relevant and dynamic ways to earn the loyalty of this highly sought after demographic. This group is focused on saving money and receiving special rewards and member-only benefits as part of a loyalty program.
When it comes to participation in loyalty programs, 67.9 percent of millennials say they don’t earn points for engaging with a brand (e.g., tweeting, posting comments or reviews, opening and clicking emails, checking-in, etc.). Yet, nearly 60 percent (59.5 percent) say they want to earn points for their engagement in a loyalty program. Millennials are 18.6 percent more apt than baby boomers to want to earn points for engaging in a loyalty program. The report found that nearly 45 percent (44.8 percent) would equally favor earning points for visiting a website and/or watching a video, and 43.3 percent would like to earn points for opening and reading emails from a brand. This gives brands the opportunity to educate consumers about their products and services and expose them to things they might not normally encounter.
The report also found that nearly 65 percent (64.5 percent) of respondents are quite loyal or extremely loyal to their favorite brands. However, 36.6 percent of those surveyed say they would be willing to switch to another brand. Reasons cited in the survey include that the rewards in the loyalty program aren’t compelling or relevant, it takes too long for points to accumulate, and/ or the brand doesn’t provide participants with enough ways to earn points.
It is recommended that brands:
• Expand loyalty rewards to include more experiential benefits, rather than focus strictly on cash rewards
• Get personal with brand offerings that meet the individual needs of millennials based on purchase history and behavior, rather than send blanket offers to all
• Be socially conscious and support causes or initiatives that are relevant to the brand philosophy that consumers can back
• Embrace the notion of instant gratification to recognize members for their loyalty and keep them engaging with the brand
• Offer numerous ways for consumers to earn points to drive action and entice members to return to the brand