Study: Millennials willing to pay for rewards

Millennials are more willing to pay for rewards programs than other demographics. That is the takeaway from a new LoyaltyOne report which shows that while two-thirds of all consumers say they might pay for rewards about three-quarters of Millennials said they would pay if the rewards offered were relevant to them.

by Kristina Knight

According to new data from LoyaltyOne Millennials are more likely that other demographics to be willing to pay for rewards programs. The data shows more than three-quarters of both older (25-34 year olds) and younger (18-24 year olds) Millennials believe 'relevant rewards' programs are worth paying money for. According to the report:

• 62% of consumers say they would consider joining fee-based rewards programs, 75% of Millennials said the same
• 65% of consumers said rewards programs were 'worth paying for' if they offered relevant products, about three-quarters of Millennials said the same
• 47% of consumers say rewards from fee-based programs are better than other rewards, more than half of Millennials said the same

"These results should attract the attention of brands considering a shift to fee-based loyalty programs as marketers look for ways to create competitive differences and lock in customer spend against a backdrop of waning program effectiveness and engagement challenges," LoyaltyOne Consulting Associate Partner Lance Du Chateau said. "Brands have historically hesitated to explore new loyalty strategies because traditional programs were still novel in most spaces. However this hasn't been true for years. The perception that only a small minority shoppers will 'pay to play' is also a dated viewpoint."

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Tags: loyalty marketing, LoyaltyOne, millennial advertising, millennial marketing, target millennials