When you consider the spending power of millennials worldwide – well over $1 trillion – it’s easy to see why retailers and brands are vying for their attention, but because this demographic has myriad digital options pulling them in different directions, attracting and retaining them is more of an art form than most realize.
As the largest demographic in history, millennials are a critical target market, but getting their attention is just the start. The real challenge is making sure they return, and regularly.
Some retailers think this is easy work. You simply set up a loyalty program and your shoppers will keep coming back. If only it were that simple! Millennials are a savvy bunch, and pride themselves on being wise to these schemes. What’s more – they know what they want, even if they don’t know exactly who can provide it.
To help shed some light on the situation and guide retailers, we’ve released a report – Retaining Millennials, which provides retailers with useful insights into the millennial shopping experience. The report also examines the specific things that keep this demographic loyal to a brand or retailer.
Here are a few of the key findings:
Millennials can be loyal, but loyalty schemes aren’t the way to engender loyalty
With so many options in online and offline retailing, many wonder if there is even a way to gain anyone’s loyalty. The good news is that, yes, there, is. In fact, 97% of millennials say there are things a retailer can do to make them loyal. But before you get too excited, loyalty schemes aren’t the way to do it. Only 32% of millennials say that loyalty incentives work. So what does?
Most often, price.
It may make difficult reading for some retailers, but it’s probably no surprise either that the most important factor in retaining millennials is price. It turns out millennials are super thrifty – 68% said price was important in keeping them loyal to a retailer, followed by speed of delivery. So if you’re not priced competitively and flexible on logistics, you’re already at a disadvantage.
Millennials are easily distracted
There are myriad distractions for mobile-minded millennial consumers which, at any moment, could steer them away from making a purchase; 66% of millennials say they have abandoned a shopping cart in the last 12 months because they have been distracted by something more interesting. But here’s the good news: with predictive analytics, you can reduce cart abandonment by presenting consumers with a relevant offer at just the right time.
For more insight and in-depth analysis of millennial shopping trends taken from 7,000 shoppers, download Retaining Millennials.