Research suggests that millennials have been the most negatively affected by the recent economic downturn. However, despite their reduced financial security, millennials remain a valuable demographic and businesses should prioritise this group when devising consumer loyalty initiatives.
Millennials, or young people between the ages of 17 and 29, are more likely to invest in the latest technologies such as cars and smartphones, placing these ahead of long-term investments like mortgages. Many prefer to rent their homes instead of buying them.
Millennials have developed highly sophisticated measures to cope with the many choices available to them through a myriad of channels, which continue to grow. They can be fiercely loyal to a brand, but this loyalty must first be won through a complex mix of positive messages, good customer experience, and product quality. In a recent survey, almost 60 per cent of millennials claimed to be always or nearly always loyal to brands they currently invest in, with almost 50 per cent citing product quality as the most important factor affecting purchase decisions, even surpassing price. This appears to be the case for the majority of markets, from coffee shops to mobile phone providers.
For companies that are looking to build customer loyalty among millennials, the focus should be very firmly placed upon making the customer experience positive through great customer interaction and high-quality goods. Those looking to set up within the food industry should ensure equipment is of a good standard, such as that available through food machinery auctioneers like Clarke Fussells food machinery brokers, with a view to producing and serving only the very best products.
Millennials also expect more in terms of corporate social responsibility. The same survey revealed that 75 per cent consider it important or very important for businesses to give back to society as opposed to being solely driven by profits.
The benefit of having a customer base consisting largely of millennials is the ease at which they are willing and able to share a positive experience with friends and colleagues online via social media. These channels also present the opportunity for organisations to enhance customer engagement levels. In fact, some 62 per cent of millennials see online engagement through channels such as Facebook and Instagram as a way to strengthen their brand loyalty.