Retaining customers is difficult! But with a great loyalty marketing plan you can win over millennials without a doubt.
But are millennials loyal? and what’s the best way to reach them?
Below we’ve explained the best practices when it comes to retaining your millennial brand following.
Are Millennials Loyal To Brands?
Recent studies have proved that Millennials are more willing to switch brand allegiance than Generation X and Baby Boomers. It’s been reported that they are happy to switch brands to redeem rewards or save money. This makes sense as the majority of millennials entered the jobs market in 2008 around the time of the global financial crisis. As an audience as a whole they are willing to move in order to make savings, which is an opportunity for a brand looking to build a following or retain their current customers.
What are the Benefits of Loyalty Marketing?
Loyalty programmes are being used in every niche market these days and that’s because they’re great for business. Marketers know that loyalty marketing is the best way to simultaneously retain customers and acquire new clients whilst keeping everyone happy.
Techniques vary widely between businesses but having a marketing plan built around customer loyalty you can’t go wrong. Loyalty marketing is a system that can have several benefits and here are just a few of them.
- Loyalty Builds Relationships With Existing Customers
Create strong relationships with your customers by rewarding them every time they buy your product or services.
- Loyalty Increases Sales
Providing incentives for your customers when they buy from you draws them in and encourages them to keep coming back to your business.
- Loyalty attracts new customers
Building a loyal base of customers with a robust loyalty system is a great marketing tactic and can actually attract new customers into the fold.
How to target Millennials in your Loyalty Marketing Plan
As you can see there are a lot of great benefits that you can reap from implementing a loyalty marketing scheme. Although millennials are known to be somewhat penny-pinching you can use this to your advantage when designing a Pathwwway Panama loyalty programme.
Monetary value is not the only thing millennials care about however, there are certain trends and tactics that a lot of successful brands are using. If you want to build a following among the millennial generation take a look below at some of our marketing tips.
- Utilise Technology
The lines between digital and analogue are blurring, and millennials are at the forefront embracing this change.
With these seismic shifts happening it’s important that brands pay attention. New technology is defiantly impacting people’s buying habits as well as brand loyalty so it’s imperative that businesses understand the changes that are happening.
When looking at loyalty points programmes in particular technology has a huge influence on whether or not millennials will sign up. Many studies have shown that over 50% of millennials want to be involved with brand loyalty schemes through an app rather than a traditional loyalty card.
Another study found that 62% of millennials are more loyal to brands that engage directly with them on social media. This direct contact with a brand is building a personal connection and loyalty in the customer.
Your brand needs to use technology and new communication touch points if you want to earn brand loyalty and keep customers engaged long term.
- Utilise Social Proof
No matter your brands’ purpose or proposition social proof is what keeps millennials excited about your product and brand.
The easiest way to gain this social proof is within social media, platforms like Instagram and Snapchat. It’s reported that young adults use these apps for up to an hour every day so utilizing these channels can give your brand exposure but not just with paid and sponsored posts!
Social media is the new word-of-mouth distribution channel. Brands can go viral on social media by generating customer engagements and leveraging the power of social proof.
- Be Authentic
Millennials can spot advertising and inauthentic sales copy from a mile away. The pull that advertising once had for Gen X’ers and Baby Boomers isn’t nearly as effective on Millennials.
What businesses are finding that works with the younger generations is delivering authentic and quality experiences.
This means that every time a customer has an interaction with your brand, you need to show them that they are at the heart of your business. Whether that’s online, over the phone or in-store attention to detail during your customer’s experience is what will bring millennials back for more.
- Utilise Social Causes
Socially responsible causes and charities are the next loyalty marketing strategy on our list.
Studies around the world are finding that the majority of millennials want socially conscious benefits from brands they support. This can be anything from charitable giving, sustainable processes or one-of-a-kind rewards.
Millennials are very switched on when it comes to global concerns and aren’t willing to support businesses with bad practices or unethical manufacturing processes. One recent study found that up to 40% of millennials research a company’s sustainability efforts before making a purchase.
There are many different ways you can use this knowledge in your business but you should make sure that any charitable activity is carefully reported on as millennials want transparency when it comes to giving.
- Status Based Rewards
Millennials are willing to get closer to a brand than any previous consumer generation. They’ll follow you on social media, read your blog, watch your youtube videos, sign up for your newsletter and anything else you can throw at them.
When your customers are engaged with your brand so deeply through every channel it’s apparent that your audience wants to be recognized. After all giving you space in their online world is the next best thing to buying from you.
Loyalty marketing needs to value not just a customers spend. If you take monetary rewards out of the question there are two things that consumers values more than discounts. The first is their status at the company and second is experiential rewards that strengthen their VIP feeling.
Your Pathwwway Panama customer loyalty programmes include status-based rewards, Customers start on a base level and earn their way to the top. Once a customer reaches the highest level experiential rewards with higher value can be won.
Depending on your business these experiential rewards in your loyalty marketing plan could be anything from VIP treatment to concert tickets, the key with these is to make your customer feel they have exclusivity because of their status they’ve earned.