The millennials generation, born in the eighties and nineties of the last century, is an increasingly important target group. It is the largest generation in history and greater than, for example, the baby boom generation. It is three times as large as generation X.
Loyalty is not dead
Contrary to what is usually said about this target group – "millennials only think in micro moments”, “trying to achieve brand loyalty is hopeless” – it appears from various studies that a large majority actually does a lot of repeat purchases. These numbers are even higher than those of the baby boomers and generation X. In addition, millennials make more active use of loyalty programs: they often exchange points or coupons for products or discounts. For marketers, this gives plenty of opportunities to achieve brand loyalty.
A survey published by Facebook indicates that more than three quarters of the millennials repeatedly purchase at the same company. A further analysis of these figures led to two categories: “Brand Loyalists” (37%) and “Repeat Purchasers” (40%), with the first group being loyal to a company or brand and repeatedly making purchases. The second group does not find itself loyal, but has made several purchases at the same company as well.
To the "Repeat Buyers" group, price and convenience are two important reasons to come back, while “Brand Loyalists” are much more led by emotional issues such as trust and service. To the latter group, price and convenience are minimum conditions that each brand must meet.
In addition to price and brand reputation, recommendations by friends are important reasons to try a new brand or product. Experience, engagement and reward play an important role in this. If people get disappointed (rewards are too low, savings actions too slow or a different negative experience), millennials just as easily switch to another brand, which is why interaction – preferably through mobile channels – and reputation play a crucial role.
Source: emerce.nl, loyaltyfacts.nl