Do all types of consumers treat loyalty the same?
Many blog posts around eCommerce customer loyalty, speak about broad techniques and approaches supposedly applicable to all demographics. But, do all consumer demographics behave in the same way?
In this blog post, we’re going to look at three different demographics and consider the differences in how they approach loyalty.
What are the three consumer groups:
- Millennials: Consumers reaching adulthood around 2000.
- Generation X: Consumers who were young adults, growing up in the 1950’s
- Baby Boomers: Consumers born post-WorldWar II
What do we know about them
Being part of too many loyalty programs is an issue for millennials.
Millennials stated that one of the things they disliked most about loyalty programs was being part of too many and not being able to keep track of them all.
This is compared to 17% of generation X, and 20% of baby boomers who felt the same.
One way to combat this would be to ensure that you differentiate yourself through your loyalty program in order for consumers to remember it exists and continue to stay engaged with it.
All consumers would be more likely to spend with a brand that has a loyalty program.
All consumer types stated they would be encouraged to spend with a brand that has a loyalty program.
This mean it’s a crucial time to start a loyalty program for your business. If you’ve been losing out on sales, it might just be because a competitor has a loyalty program and you don’t.
Millennials prefer that their loyalty program to supports their lifestyle.
It’s important for millennials, especially, that the loyalty program they join supports their lifestyle preferences.
It’s not as important for generation x’s and baby boomers, but it’s still an issue for them.
This highlight the importance of knowing exactly who you’re trying to sell to in order to craft the most effective loyalty program.
Consumers aren’t concerned with checking their rewards status often
Most consumers don’t check their loyalty status daily.
It’s therefore important to keep your customers updated with their loyalty status. This doesn’t have to mean weekly emails, but after a significant change: i.e. when they’re eligible to make a claim for their points.
It’s even more important now to have a positive omnichannel experience
Many consumers have abandoned a purchase they were about to make in-store due to information they found out on their phones.
Mobile is becoming very important for both retailers and consumers. Consumers are using their phones to check whether the item they’re going to buy is cheaper elsewhere, or cheaper on your own website.
It’s therefore, important that you make sure your prices are the same on all devices and it’s important your customers know that you are the most trustworthy person to buy from, in order to not let custom slip away at the final moment.
All three consumer groups are becoming savvy and aware of what they want from a loyalty program, with millennials being the fussiest. Take time to work out which consumer group you sell to most and edit your loyalty program accordingly.