Tap In To The $600 Billion Buying Power Of Millennials

Tap In To The $600 Billion Buying Power Of Millennials

  • Posted by Aaron Martens
  • On December 9, 2015
  • Comments

What do the millennials want in a loyalty program? For starters, is fun.

More than a third of them said the word that best describes their experience being a member of a favorite program is “fun.”

This “fun disparity” was revealed in a recent nationwide survey of 1,000 loyalty-program members, which found that companies have much work to do to meet consumers’ needs for exciting, useful and unique offerings.

The research report takes a deeper dive into some of the survey’s key findings, recommending important moves for an all-too-necessary industry shakeup. And figuring out how to connect with millennials – generally defined as those born between 1981 and 1997 – is critical to keeping loyalty fresh and relevant. Why? There are 80 million millennials in the United States, according to the U.S. Census – making the group bigger than any other demographic. They have $600 billion in annual buying power and, by 2020, are expected to represent 30% of total U.S. retail sales – $1.4 trillion in expected spending, according to Standard & Poor’s.

So…Fun, okay we can do that, is that it? No! They demand that it be tech-savvy: meaning, you must at a minimum have a bad ass iPhone app with mobile payment options.

Millennials also love a competitive gaming element in their loyalty programs, that includes something they can tangibly win or brag about. A leaderboard of sorts is a start.

And millennials place a premium on exclusivity. Being made to feel special prompts them to join programs. Programs that fail to make them feel special will feel it, too: When asked why they stopped using a loyalty program, one-third said they did so because it didn’t offer members-only exclusives.

One last note of advice, yes, you were once their age, but that doesn’t mean you understand their needs…tap in to the customers mind, ask them what they want.