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Millennials demand simple loyalty programs accessible via mobile
The extent to which UK retailers are losing out on a loyal, valuable customer base by failing make their loyalty schemes appeal to Millennials is revealed in new research from Eagle Eye Solutions and YouGov.
Millennials, today's largest demographic, have higher expectations than most and demand a targeted approach from retailers. Retailers that do not provide personalized, targeted loyalty programs, that are accessible via mobile, could be losing valuable customers, according to the research.
"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," says Tim Mason, CEO of Eagle Eye. "Their loyalty has to be earned, not taken for granted."
Excessive, irrelevant and non-targeted communications from retailers is one of the best ways to put off Millennials and the most common reason they abandoned loyalty programs. Nearly 4 in 10 (38%) abandoned loyalty programs due to large numbers of non-targeted email messages.
Furthermore, nearly half (47%) of Millennials said it was important that a loyalty program be accessible via mobile, compared to 37% across all age groups and just 16% of those aged 55 and over. Among older Millennials (25-34 year-olds) 59% stated that it was important for a loyalty scheme to offer a digital option.
The research also reveals that the types of rewards customers prefer vary with age. While a points-based system was the most popular among all age ranges, this option resonated most strongly with 45-54 year olds, with 60% stating this was their preferred type of scheme.
According to the report, 'Reload Your Loyalty: Do you even know your customers?', although points-based systems were also the most popular schemes among Millennials (51%) stamp cards were more popular with 18-24 year olds compared to other age groups. Stamp cards were almost equally as popular with Millennials, as vouchers for money off their next purchase (13% vs.14% respectively). This age group's relative preference for the stamp card may suggest younger Millennials favor a simple system based on frequency of visits rather than the amount spent, indicative of their reduced spending power compared to older age groups.
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