Survey: Millennials prefer supportive, fun loyalty programs

CINCINNATI — A new survey from Colloquy is highlighting some of the differences between millennial consumers and other demographics when it comes to loyalty programs. Some 34% of millennials say the word “fun” is the one that best describes their participation, compared to 26% of the general population.

But from the survey, it would seem that millennials — 63% of whom have joined a new progam in the last year — are really after a loyalty program that rewards them — whether that’s exclusive sales and offers, health and wellness, sustainability efforts or events. Sixty-three percent of the millennials surveyed said that it’s important for their rewards program to support their lifestyle preferences, higher than the 53% of Gen X respondents and 46% of baby boomers who said the same thing. 

“Millennials aren’t simply you in a time warp. Yes, you were once their age, but that doesn’t mean you understand their needs,” Colloquy Research Director Jeff Berry said. “Millennials have dramatically different ideas about consumerism and loyalty than other demographics.”

And though millennials require a new approach, that’s not to say they’re interested in being inundated with communications that don’t apply to them, or that they’re interested in backward-looking programs. Almost half (49%) of millennials ended their participation in a loyalty program after receiving irrelevant communication, versus 37% of the total population. But 27% stayed with a program that incorporated a game or social element — something that only 7% of baby boomers care about. 

Additionally, if a retailer wants their loyalty program to succeed, it might be beneficial to include a mobile payment option, which is a reason for 42% of millennials respondents to stay the course.

“Prioritize experiences over economic gains, because millennials love to try new things,” Barry said. “And gamify everything.”