June 13, 2012, Montreal — As the largest generational cohort since the
Baby Boomers, the Millennial Generation or "Gen Y" is transforming how
companies and brands develop long-term customer loyalty.
Loyalty management firm Aimia conducted the Canadian Millennial Loyalty
Survey, comparing the attitudes of Millennial and non-Millennial
consumers in Canada, revealing how the definition of loyalty is shifting
and what businesses will need to address in order to connect with the
Millennial Generation.
The findings show that over three-quarters of Canadian Millennials (78
per cent) are more likely to choose a brand that offers a loyalty or
rewards program over a brand that does not.
"Marketers targeting the Millennial demographic will have to demonstrate
why this cohort should engage with their brand," said Rick Ferguson,
vice-president of knowledge development at Aimia. "Our survey data shows
Millennials have extremely high expectations of their brand
relationships and demand immediate gratification from reward programs.
Delivering this value will require marketers to harness the use of
technology to derive maximum efficiency from their programs."
The proliferation of social media and mobile devices is having a
profound impact on how Millennials interact with brands. Nearly half of
all Millennials surveyed (44 per cent) are willing to promote products
or brands through social media in exchange for rewards. Furthermore,
over one-quarter of Millennials (27 per cent) expressed high interest in
using a mobile device as a substitute for carrying a plastic loyalty
card versus nine per cent of non-Millennials.
"At nearly one-third of the overall population, Generation Y already
exerts a strong influence on Canadian culture, politics and commerce,"
said Ferguson. "It is important that marketers understand how to
effectively engage with Millennials and leverage their customer data to
build sustained, reciprocal and meaningful relationships that increase
profits and drive long-term enterprise value."
Other key findings from the survey include:
- 83 per cent of Millennials participate in loyalty programs, compared to 89 per cent of older Canadians
- 63 per cent of Millennials say the top reason to join a rewards
program is that it's free, versus only 37 per cent of non-Millennials
- 48 per cent of Millennials surveyed agree that they're more likely
to share personal details with a brand that offers loyalty and reward
incentives
- 18 per cent of Canadian Millennial loyalty program members are
concerned about sharing personal information with reward programs,
compared to 27 per cent of non-Millennials
Aimia commissioned Harris Interactive to conduct an online survey of
2,045 Canadian adults over the age of 19. Results of the survey, which
was conducted from July 8 to 19, were weighted to be representative of
the general population.
|
