No demographic is as attractive for businesses to encourage brand loyalty as U.S. millennials are. This generation, born between 1981 and 2000, have no shortage of articles and studies focusing on who they are and what they want. What do they want in a marriage and do they want kids? Where are they living and do they rent or own? What are their careers, hobbies, favorite Netflix show? All these questions have been exhausted and the business world is still trying to figure these ‘generation Z’ key players out.
It is no wonder why today’s companies are trying tirelessly to engage millennials and earn their loyalty as consumers. They are the biggest generation since the baby boomers with spendable income and no clear brand loyalty. But how do you motivate such a diverse and unique generation of customers? There are several factors to consider including who they are as consumers, what motivates them, and how to transform that motivation into a tangible incentive, like a promotional offer or gift card.
Millennials as Consumers
According to a recent report from the Boston Consulting Group, little has been written specifically addressing US millennials solely as consumers. Now that this generation is sprinting towards its most active years as customers, it is important for your company to understand not only what drives and motivates them, but who they are as consumers in general.
To provide some perspective on this, here are a few key statistics regarding who millennials are when it comes to brands in general.
- Millennials are greatly influenced by their social networks, both real-life peer and online.
- The criteria millennials use to evaluate brands is distinctive from previous generations.
- Millennials have a serious focus on companies that are reasonable with pricing and are active CSR (corporate social responsibility) players.
- Millennials are open about their expectations for brand to listen to them and are willing to implement change.
This is quite a simplified list of who millennials are as consumers but it speaks to the overall themes that they want a company that gives them value while also having values of their own.
To really paint the picture of what motivates millennials, it is also key to understand what engages them with companies. Here are some more statistics highlighting key elements of millennials and what prompts them to be loyal.
- Personalization is a higher priority for millennials and a driving force behind engagement.
- 40% of generation Z rely on mobile apps to track and redeem their rewards and love the ability to use them instantly to redeem incentives.
- The more rewards you offer, the more loyal millennials are since 68% say will remain loyal to a program that offers consistent and the most incentives.
- If you are a company with no incentive program or promotional strategies, think again: 78% of millennials would choose a brand that offers rewards over a brand that doesn’t and 63% would join a loyalty program if offered a consumer incentive.
- If your company is craving digital ambassadors, try promotions as 36% of millennials said they have shared or would share digital content in exchange for a promotion.
What does this say about how to motivate millennials? Quite a lot, since it is clear that incentives are hugely favored by this group. If your company does not offer gift cards or other promotional incentives, it is time to start that discussion.
Incentives Millennials Respond To
Millennials are influenced by their peers and love free rewards. So how should your company incentivize itself to acquire this generation? Take what you know about them as a group and what you know about them as consumers. Then add in what call to action you have and what would be an attractive incentive, like a gift card.
Millennials love to travel and value experiences, so a travel gift card would be a great way to incentivize them. Similarly, if your millennial audience skews towards a certain gender, you can always opt to try different brand shopping gift cards to motivate them. The best way to see what works is to test it and learn from the results.
Promotional consumer incentives are a huge driving force behind millennial consumer behavior. Whether you choose one type or a variety of incentives to add to your company’s marketing strategy, there is little doubt it will attract and engage this audience. Contact Mpell Promotions to find out more!