Millennial moms represent approximately 1 in every 5 mothers, and accounted for almost 90 percent of the 1.5 million new mothers in 2017. This market segment is made up of nine million women, and is one that brands simply can’t afford to overlook or misunderstand.

CrowdTwist recently conducted research into the similarities and differences in how different generations engage with brands and prefer to shop, what makes them brand loyal, and their attitudes towards loyalty programs.

We invited 1,054 consumers from across the United States to participate in an online survey. We filtered out responses from mothers aged between 24 and 38. Of this subset, we found that 78% of millennial moms have a household income of less than $99,000. 60% are married, 7% are co-habitating with a partner, and 14% are single and have never been married. 70% describe themselves as family focused.

Based on their survey responses, we were also able to learn more about the ways brands can better engage this group. We also invited Pam Spier, Head of Client Delivery at Lenati, a marketing and sales strategy consulting firm that works with Millennial-mom focused brands such as DSW and Nordstrom, to contribute insight on the tactics that resonate with this consumer group. Here are our recommendations.

Great perks and low costs drive brand loyalty

Our research finds that 60% of Millennial moms enjoy searching for a bargain. 71% shop with a brand because they have great perks like free shipping, and 69% choose brands because their products are fairly priced. Pam Spier affirms how important it is for brands to deliver economic value to this group. “The spectrum of loyalty ranges from transactional loyalty to emotional loyalty. While many brands are creating loyalty experiences to cater towards emotional loyalty, for millennial moms, it’s important to maintain strong transactional benefits as well.”

Brands with loyalty programs stand out from the competition

Loyalty program participation in this segment is high. 76% of millennial moms are members of at least one program. They are also active in these programs – we found that 76% of these millennial moms redeem rewards at least once a quarter. Critically, 71% of the Millennial moms we surveyed said that they could be persuaded to choose one brand over another if they had a loyalty program. Brands targeting this segment would benefit from investing in a loyalty program to acquire and ensure repeat business from the millennial mom consumer.

Loyalty program benefits should focus on cost savings and convenience

We found that millennial moms primarily want to save money in exchange for their membership.85% said saving money was the most valuable component of a loyalty program. 90% want discounts and cash back rewards and 80% want free products. Free delivery is the loyalty program perk they value most, followed by special member prices. Pam Spier adds that in addition to providing benefits that lower costs for millennial moms, loyalty can also be earned by offering flexible and convenient shopping benefits. “An example of transactional loyalty is free delivery. Wanting to keep costs low, perks like free shipping, free tailoring of clothes, and anytime returns build loyalty with millennial moms.”

Reward program members for referrals

This segment of consumers is likely to advocate for brands that win their loyalty. Our research found that 75% of millennial moms are likely to refer their friends and family. Brands should build in engagement activities within their loyalty program and maximize the opportunity to bring in new customers by including a “refer-a-friend” or “write a review” point earning activities to incentivize these behaviors.

Make the program fun and easy to participate in

Getting millennial moms into a loyalty program is half of the battle, brands also need to ensure they encourage them to stay active. Our research finds that the number one reason Millennial moms abandon programs is because it takes too long to earn points. By offering a wide range of point-earning activities, brands can provide ample opportunity for millennial moms to quickly advance their way towards redemption. Our research indicates that millennial moms are most interested in completing activities such as surveys, playing a game, and visiting a company website as part of a loyalty program.

Pam Spier adds that “Working with retail clients, we’ve seen the importance of ensuring that members can earn enough points to get that first reward quickly and get hooked. Brands should test and learn their way into the right combination of incentives between points earned from in-store spending and points earned from digital/social engagement to maximize reward redemption for Millennial moms.”

Make a greater investment in personalization

Our research finds that 54% of millennials are willing to share information with brands in exchange for a personalized experience. However, brands aren’t delivering on personalized experiences: only 42% of millennial moms have purchased an item that was recommended to them by a brand. Loyalty programs offer a valuable way for brands to make one-to-one connections with their members. By leveraging customer data captured in a multichannel loyalty solution, brands can segment consumers based on preferences, behaviors and interests and target them with personalized, relevant and meaningful promotions, and products and services.

In order for brands to successfully market to millennial moms, they must be conscious of what drives their decisions to purchase from brand over another. Brands catering to this market will also benefit immensely from implementing a rewards programs that can drive brand engagement, and collect and apply customer data to forge one-to-one relationships with these high valuable, highly profitable consumers.  Download our research report “Gen Z, Millennials, And Beyond” for a more in-depth look at generational trends.

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