Thirty-four percent of millennials said the word that best describes their participation in a customer reward program is “fun,” according to loyalty-marketing research, publishing and education company COLLOQUY, via its nationwide survey of 1,000 consumers. Furthermore, millennials scored 24% higher than the general population (18- to 65-year-olds and older) on the loyalty-needs-to-be-fun description.
It appears that millennials just want to have fun. And though that may sound like a Cyndi Lauper lyric, it’s really a crucial insight for loyalty marketers who want their customer rewards programs to be a smash hit with the 80-million-strong U.S. consumer segment accounted for by 18- to 34-year-olds.
In an equally revealing survey outcome, 66% of the general population said “economical” is the word that best describes their loyalty program participation, versus 56% of millennials.
The fun-versus-economical results are just two highlights from a larger set of survey findings that tell marketers millennials are a different breed when it comes to their engagement with a brand via a rewards program. Here are other survey results that set millennials apart when it comes to loyalty programs:
- 63% of millennials said they had joined a program within the past year, versus 55% of the general population.
- 25% of millennials said they joined a program in the past year because it offered access to members-only events, versus 16% of the general population.
- 40% of millennials said they joined a program for access to members-only sales, products and services, versus 33% of the general population.
- 63% of millennials said it’s important that their loyalty program participation supports lifestyle preferences such as wellness programs, sustainability efforts or a charity, versus 53% of Gen X’ers (35- to 50-year-olds) and 46% of baby boomers (51-year-olds and over).
“Millennials aren’t simply you in a time warp. Yes, you were once their age, but that doesn’t mean you understand their needs,” said Jeff Berry, research director for COLLOQUY. “Millennials have dramatically different ideas about consumerism and loyalty than other demographics."
Berry’s tip for loyalty marketers: “Prioritize experiences over economic gains, because millennials love to try new things. And gamify everything.”
In other key findings from the COLLOQUY survey, 49% of millennials stopped using a loyalty program after receiving irrelevant communications, compared to 37% of the general population; and 18% of millennials stopped participating in a program because it lacked a smartphone app, compared to 13% of the general population.
Moreover, 27% of millennials continued their participation in a loyalty program because it featured a competitive game or a social element, such as badges, leaderboards or communities. By comparison, just 7% of baby boomers stayed with a program for those reasons.
Finally, 42% of millennials continue to participate in a program because it has a mobile payment option, while just 15% of baby boomers said the same.
The survey-based revelations about U.S. millennial attitudes and preferences are part of a larger COLLOQUY report on loyalty program effectiveness. That report, Customer Loyalty in 2015 & Beyond: Are You Wasting Your Money?, which can be downloaded for free.
[Image: Getty Images/Mike Harrington]