Generic loyalty programs are doing more harm than good for businesses looking to attract, and hold on to, Millennials as their customer base. This is according to a new report by UK SaaS company Eagle Eye Solutions. The company says Millennials are doing things differently than the older generations, and failing to understand this consumer group might lead to the loss of a significant group of spenders.
By 'differently', the company means two things: personalisation, and mobility. First and foremost, Millennials want personalised loyalty programs. Generic ones simply won't cut it anymore. This is also the number one reason why this consumer group abandons loyalty programs in the first place. The second most important element is mobility. Millennials want personalised loyalty programs delivered straight into their pockets, and anything less than that will not suffice.
“Millennials expect communication that is tailored to their current location, context and intention and they know that when they sign up for a loyalty program they are participating in a two-way deal: their data in exchange for value and relevant content,” commented Tim Mason, CEO of Eagle Eye.
“Their loyalty has to be earned, not taken for granted.”
“The desire for mobile and digital schemes is clear, and will only grow as millennial spending patterns become the norm and Generation Z comes of age,” Tim Mason continues.
“It is high time retailers, brands and restaurants embraced the world of digital. If this is what the millennial market wants today, it will be what the entire market expects tomorrow”. The whitepaper, ‘Reload your loyalty: Do you even know your consumers?’ is based on a poll of 2183 consumers, and is available here.
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