Millennials, people between the ages of 15-34, spend about $600 billion a year. Retailers are scrambling to develop loyal relationships with this large and growing market. The Millennial generation is three times larger than Generation X, and by 2030 Millennials will outnumber non-Millennials.
Who are the Millennials? They are brand loyal and expect rewards to fit their needs and desires. Millennials promote brands online and share personal information in order to earn rewards. 80% of Millennials will choose a brand with a reward option versus a brand without one. 78% of customers will choose a credit card for its long-term benefits, but expect to be rewarded within three months of joining the program.
Millennials are also hyper-connected and very social. Millennials love customization and will personalize anything. Millennials get bored easily and prefer digital communications with simple, quick copy. More than 90% of Millennials want to manage all of their finances online.
Right now, the youngest Millennials are getting driver’s permits and the oldest are buying homes. In the upcoming years, Millennials will be going through significant life changes and retailers will have to demonstrate how their brand is relevant to the Millennials’ big-picture goals.
Millennials have big dreams and if retailers help them achieve those dreams, they can have a customer for life. In order to reach Millennials, reward them quickly, make the experience fun, and offer the opportunity for Millennials to read reviews.
How can retailers gain the loyalty the Millennials?
SOURCE: Megan DeCosta, Retail Wire, March 18, 2013