In today’s consumer landscape, where countless options are readily available, brand loyalty has become a challenging feat to achieve. As consumers are presented with an abundance of choices, their loyalty towards specific brands has witnessed a decline over time.
However, it is essential to acknowledge that loyalty patterns can vary significantly based on the generation individuals belong to.
In this blog post, we delve into the factors that drive customer loyalty specifically among millennials to understand what motivates this influential demographic.
Who are the millennials and what does their brand loyalty look like?
Millennials, also known as Generation Y (Gen Y), were born between the early 1980s and mid-1990s (from 1981- 1996). They were the first generation to grow up with rapid technological advancements, shaped by the internet. Examples of famous millennials include Taylor Swift and Scarlett Johansson.
Millennials use technology a lot to connect with many people, more often, and in real-time. They use social media platforms more than older generations, and they have much bigger networks and influence.
Millennials are also really good at giving feedback to companies. They like to share their opinions with marketing and strategy professionals, and this helps the companies become more valuable and preferred by millennials.
“Millennials are a very open generation, and a great resource for brands, as co-creation is second nature for them,” says Jacqueline Anderson, director of product development at J.D.
Millennials and loyalty
According to Oliver (1999), a brand-loyal person remains committed to a brand regardless of what competitors do or how the environment changes. However, this doesn’t apply to customer loyalty in millennials.
When it comes to millennials brand loyalty, they are known for frequently changing their buying habits and not being very loyal to specific brands. Unlike other generations, they tend to care a lot about material possessions, are knowledgeable about technology, follow trends, pay attention to brands, use fashion to express themselves, and have a lot of money to spend.
Millennials are particularly influenced by product packaging, such as colors and shapes, and they can recognize around 200 logos.
Their changing buying habits and flexible interests depend on various factors, but the main one is their familiarity with technology. They grew up with the internet and often use it to research and buy products. They are also known for being environmentally conscious and caring about social responsibility.
Research has shown that millennials’ personalities are connected to a brand’s personality. They tend to be loyal to brands that have strong ethos or values.
A study by Daymon Worldwide found that when it comes to brand loyalty, only 29% of millennials usually stick to the same brand, compared to 35% of Generation X.
Although millennials join loyalty programs more often, they don’t actively engage with them. This suggests that they prefer exploring different options and seeking new experiences.
What can brands do to boost customer loyalty in millennials?
There are 1.8 billion millennials in the world, so you can’t just not care about them.
Millennials may seem difficult to understand, but at the heart of the psychology of millennials’ brand loyalty, they are actually practical and can’t be easily influenced when it comes to their buying habits.
This is a good sign for the brand who knows its game for real.
If your intention towards customers lies right, you only have to spend some extra effort on marketing and you will receive a good response from millennials.
Here are a few ways that brands can use to increase millennials brand loyalty:
1. Focus on authenticity
This means that brands should be genuine in their values and purpose.
Millennials value transparency and honesty, so brands that are authentic in their communication and actions are more likely to gain millennial loyalty.
Instead of using gimmicks or false claims, brands should strive to build a genuine connection with millennials by being open, honest, and relatable.
Millennials lead busy lives and often prioritize convenience in their purchasing decisions.
Brands can increase millennials brand loyalty by making their products or services easily accessible and hassle-free.
This could involve offering online shopping options, providing fast and efficient customer service, and creating user-friendly interfaces or mobile apps. By prioritizing convenience, brands can cater to millennials’ needs and make it easier for them to engage with the brand.
Brands can offer convenience by setting up subscription and membership models based on who they’re addressing, their consistent requirements and the overall value they can offer in addition to convenience.
3. Strong brand personality
A brand personality refers to the set of human characteristics associated with a brand. Millennials are more likely to connect with brands that have a distinct personality that resonates with them.
This could involve developing a unique tone of voice in marketing materials, incorporating humor or wit, and creating a consistent brand identity across different platforms. By establishing a strong brand personality, brands can create a deeper emotional connection with millennials and foster millennials brand loyalty.
4. Strong ethos
Ethos refers to the guiding beliefs or values of a brand. Millennials are known for being socially conscious and environmentally aware, so brands that align with their values are more likely to gain millennials brand loyalty.
By demonstrating a strong commitment to ethical practices, sustainability, and social responsibility, brands can show millennials that they share common values. This can be achieved through initiatives like using eco-friendly materials, supporting charitable causes, or adopting fair trade practices.
5. Provide trends consistently with quality
Millennials tend to be early adopters of new trends and expect brands to keep up with their preferences. However, it’s not enough for brands to simply follow trends; they must also provide consistent quality.
This means delivering products or services that meet or exceed expectations consistently, even as trends change. Brands should strive to offer innovative and up-to-date offerings while maintaining a high level of quality to build trust and gain millennials brand loyalty.
6. Engagement strategies
Brands must use various engagement strategies to gain millennials brand loyalty, who are their target audience. This can include interactive campaigns, contests, surveys, or quizzes that encourage millennials to actively participate and share their opinions.
By involving millennials in the brand’s activities, companies can create a sense of belonging and build a stronger connection with them.
7. Have a strong presence on social media
Millennials are highly active on social media platforms like Facebook, Instagram, Twitter, and TikTok. To increase millennials’ brand loyalty, companies need to establish a strong presence on these platforms or even enable social commerce to offer ease of product discovery and shopping.
They can regularly post interesting and relevant content, respond to comments and messages, and create engaging campaigns specifically tailored for social media. This helps the brand stay on top of millennials’ minds and allows for easy communication and interaction.
Millennials value personalized experiences and want to feel like brands understand their individual needs and preferences. 79% of millennials show a strong preference for personalization.
Companies can leverage data and technology to tailor their marketing efforts and offer personalized recommendations, offers, or messages to millennials.
By customizing their interactions, brands can make millennials feel special and build a stronger emotional connection, leading to increased millennials brand loyalty.
9. Focus on mobile
Millennials are often glued to their smartphones, so brands need to optimize their digital presence for mobile devices. While 98% of millennials possess a smartphone or other mobile device, 73% of Generation Y customers utilize their smartphones for online shopping.
This means one way to gain millennials brand loyalty is that websites, apps, and other online platforms must be mobile-friendly and provide a seamless user experience.
Brands can also leverage mobile apps, push notifications, or SMS marketing to reach millennials directly on their devices and provide them with relevant updates, exclusive offers, or personalized content.
10. Use visual content
Visual content, such as images, videos, or infographics, is highly engaging for millennials. Brands can leverage this by incorporating visual elements into their marketing strategies.
They can create visually appealing social media posts, video advertisements, or visual storytelling campaigns that capture millennials’ attention and communicate the brand’s message effectively.
By using compelling visuals, brands can stand out from the competition and leave a lasting impression on millennials, fostering millennials brand loyalty.
11. Display reviews
Brands can increase millennials brand loyalty by prominently displaying customer reviews and testimonials. Millennials often rely on reviews and feedback from others before making purchasing decisions. By showcasing positive reviews and ratings, brands can build trust and credibility, making millennials more likely to choose their products or services.
12. Show the true value of the product
Millennials appreciate transparency and want to understand the value they will receive from a product or service. Brands can effectively increase millennials brand loyalty by clearly communicating the unique features, benefits, and advantages of their offerings.
This can be done through product demonstrations, detailed descriptions, or comparisons with competitors, enabling millennials to make informed choices.
13. Stress on influencer marketing campaigns
Half of millennials trust product recommendations coming from influencers, while the level of trust decreases to 38% when it comes to product recommendations from celebrities.
Brands can partner with influencers to create engaging and authentic content that promotes their products or services. As millennials trust the opinions and recommendations of influencers they follow, leveraging influencer marketing can help increase millennials brand loyalty.
14. Incorporate UGC into your strategy
Brands can encourage millennials to create and share UGC related to their products or experiences.
Millennials value authenticity and trust the opinions and experiences of their peers more than traditional advertising. UGC provides an authentic and genuine perspective on your brand, as it comes directly from real customers.
This not only provides social proof but also allows millennials to actively engage with the brand, fostering a sense of ownership and millennials brand loyalty.
15. Highlight money-saving opportunities
Millennials are often conscious of their finances and appreciate opportunities to save money.
Brands can increase millennials brand loyalty by highlighting special offers, discounts, loyalty programs, or rewards that cater specifically to millennials.
“Millennial shoppers are more heavily influenced by a range of money-saving opportunities versus the population as a whole,” according to the SymphonyIRI report, which found that more than half of Millennials are influenced by shopper loyalty dis- counts as well as traditional coupons.
By providing cost-effective options, brands can demonstrate their understanding of millennials’ needs and preferences, encouraging repeat purchases and millennials brand loyalty.
16. Set up a structured loyalty program
Millennials are attracted to brands that offer tangible rewards and incentives for their loyalty. Implementing a structured loyalty program can be an effective way to increase millennials brand loyalty.
By providing exclusive discounts, special offers, or access to unique experiences, you can create a sense of exclusivity and value for millennials.
Incorporating gamification elements, such as point systems or levels, can add an element of fun and engagement. A well-designed loyalty program not only encourages repeat purchases but also enhances the overall brand experience, fostering a deeper connection with millennials and increasing millennials brand loyalty.
Recommended read: How to get more customer loyalty program sign-ups?
Building loyalty requires significant effort and an understanding of customers’ needs and preferences. From implementing the right loyalty program to encouraging customers to embrace it, brands must invest in strategies that foster loyalty.
That’s exactly why we at Appstle are building a suite of apps that target different preferences of buyers at different stages in their customer journey.
From giving brands the ability to set up subscription models for convenience, membership models for exclusivity and loyalty programs for customer retention, Appstle has the best Shopify apps ready for you.