Many brands focus on attracting Millennial customers but are finding it difficult to win over Millennial brand loyalty. Why? Millennials are savvy consumers, they can sniff out the best deals and they recognize dishonest marketing very easily. However, understanding Millennials’ interests, habits, and what they value will allow your brand to reach out and resonate with Millennials in an effective and authentic way.
What is brand loyalty and why is it important?
Brand loyalty is the tendency of consumers to continuously purchase one brand’s products over another. Building brand loyalty is incredibly important for increasing the number of repeat purchases and lifetime value.
Repeat purchases, referrals, and an increase in revenue are all ways brand loyalty can positively affect your brand. How can your brand build loyalty with its Millennial customer base? Behavioral studies show that consumers continue to buy from companies that have fostered a relationship of trust.
Millennials are passionate
Millennials place a high value on authenticity and transparency. When reaching out to Millennials, it’s important to find their passion points and values. For example, Millennials like personalized marketing: 62% of Millennials are loyal to brands that engage with them individually on social media. They are loyal to brands that make them feel appreciated.
Millennials also prize their individuality– but it’s not about segmenting them into specific groups. Instead, your brand should offer things that interest them in particular. The Millennial generation is one of the most diverse in US history. Brands that rely on a “one-size fits all” model tend to alienate Millennials rather than seduce them.
- 4 out of 5 Millennials are more likely to purchase from a company that supports a cause they care about (if the price and quality are equal).
- ¾ think more highly of a company that supports a social cause.
- 85% of Millennials make purchasing decisions and recommendations based on responsible efforts a company is making.
Brands that have a charitable component and value social issues are popular with Millennials. Toms Shoes and Warby Parker Eyewear have both adopted a “buy one, give one” model that donates a product for each purchase their customer makes. If you want to learn how to build brand loyalty, these are a couple of great brand loyalty examples to look into. Corporate social responsibility makes up a major part of brand image and Millennials pay attention to that.
Millennials value humanity
Millennials use social media to interact with brands and peers. Technology has bridged the gap between people and made communication easier. Millennials are using technology to connect with others around the world, so it’s important for brands to connect with consumers in a genuine manner. Millennials have embraced online sharing, and if they have an overwhelmingly positive or negative experience, they are very likely to share that online.
Brand loyalty statistics reveal that over 40% of Millennials spread the word about brands on social media. Millennials prize convenience, so if you are trying to get them to engage in a brand loyalty program, it’s important to make rewards easy to earn and easy to redeem. Brand loyalty research has confirmed that most Millennials won’t take the time to fill out forms or sign up with physical cards. They also tend to ignore emails since they receive so much content from online retailers. Integrating a mobile element with eye-catching push notifications or asking for simple feedback such as a star rating is much more likely to gain a response.
Millennials know what to look for in a brand, and they are accutely aware of how purchasing from that brand represents who they are as individuals. Appealing to Millennials means showing them that your brand is one that they can trust and one that is interested in the same things they are. Building brand loyalty can be challenging, but by understanding the Millennial mind and by focusing on the things that Millennials value, you can earn their loyalty and develop brand advocates for your products.