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Millennials vs. Loyalty programs Published-Mar 17, 2017
According to Capgemini Consulting research, 85% of Millennials, who are expected to spend more than $200 billion annually by 2017, have a negative sentiment towards loyalty programs.
 
That’s sending a pretty clear message: Millennials are simply not happy with the loyalty and rewards programs being offered. However, that is not to say that Millennials don’t want loyalty and reward programs.
  • 78% of Millennials are more likely to choose a brand that offers a loyalty or rewards program over a brand that does not.
  • 68% of Millennials wouldn’t be loyal to a brand without a strong loyalty program.
  • 68% of Millennials will remain loyal to a program that offers them the most rewards.

Illustrated by the statistics above, it is clear that Millennials do not like what is being offered, but still demand brands have loyalty programs.
 
What exactly don’t they like about these programs?
  • 50% of Millennials stated they would quit a program because rewards took too long to accumulate.
  • 59% of Millennials quit restaurant loyalty programs because rewards “aren’t valuable enough”.
  • 29% of Millennials rated “too many programs to keep track of” as one of their top three things they dislike about rewards programs, as did 17% of Gen X’ers and 20% of Boomers.
 
Millennials don’t want to wait, want rewards that are useful, and don’t want to download a bunch of apps for every place they like to go. A fairly simple message that has fallen on the deaf ears of many major brands.? So, besides not waiting, useful rewards, and not having to download a bunch of apps what else would Millennials like to see in a loyalty program?
  • 48% of Millennials stated that product discounts are among their three most valued benefits, followed by rebates & cash back (41%), and free products (33%).
  • 52% of Millennials want to use their mobile devices to take advantage of loyalty programs offered by restaurants, bars and coffee shops.
  • 84% of Millennials and 80% of adults with household incomes of $60k+ are more likely to use mobile payments if loyalty rewards and discounts are automatically applied.
 
Millennials want their rewards in clear dollar terms, and not point schemes that only succeed in complicating things. They want to utilize technology, specifically, their mobile phones, simply and conveniently.
 
Furthermore, they want a fluid experience between paying for their product/services and earning rewards and discounts. The utilization and integration of technology in loyalty programs has become a necessity rather than a novelty. All of these statistics are illustrating one thing; an expectation for loyalty programs that is currently not being met in the market. If restaurants want to maximize their attractiveness to the Millennial crowd and reverse the current negative sentiment, they need to offer what Millennials want and provide it to them through the medium(s) they want. With fierce competition in every sector of the industry, those who recognize and provide what the market demands will thrive, while those who fail to adapt will be forgotten.
 
 
Sourced By: medium.com

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