The Millennials - key target group of modern loyalty programs
The Y generation is the most active consumer group. Already, the Millennials impact the development of trade considerably, and their influence will only be stronger in the future. This proves that the communication strategy of each brand should be focused on this particular group. Their attitude differs a lot from the other generations’ one but they may turn out to be loyal for a very long time.
The Millennials are people born between 1980 and 2000. At present, there are about 11 million of them in Poland, which constitutes a quarter of the total population. It is a group with a very different attitude and outlook as compared with previous generations - baby boomers and the X generation. The Millennials are distinguished primarily by self-confidence and high self-esteem, but also by criticism, high expectations and a need for self-fulfillment - which replaced the need for accumulating possessions. In addition, one need to mention resourcefulness, entrepreneurship and instant adaptability to new situations. People from the Y generation are not patient, they want to realize their intentions immediately, which is of great importance for building relationships with them.
Generation of technology
It should be emphasized that the Y generation, living in times of technical development, is a vast group in which some differences are visible. In contrast to the people born in the 1980s, those from the 90s grew up surrounded by technology that completely shaped their lifestyle. However, all the Millennials are able to use technologies in an efficient way and operate on the internet. The most important thing for them, which they always carry with them, is a smartphone (80% use it) which serves as a communication and shopping channel for them. 70% of them have various types of mobile applications (as a prerequisite), and over 20% collect loyalty points that way. 71% use social media, and 46% do it as often as even several times a day. For 95% access to the network provides easier contact with friends, and 80% use the internet to search for product and brand reviews before making a purchase. 33% uses promotional coupons on the web. Overall, 48% of Millennials stay online all the time.
The Millennials doing shopping
The report "E-commerce in Poland 2015" carried out by Gemius shows that the Millennials constitute 1/3 of all e-consumers. Not only do they spend most, but also they make purchases most often, whereas in their case the distinction between online and offline channels is blurred. While checking the offer, making a purchase or participating in a loyalty program, the Millennials use online stores as often as regular ones. (Link to another page). At the same time, they are very aware of the choices they make, relying on the brand whose offer suits their individual preferences best. It turns out that 60% of the Millennials select products of brands that match their personality, and 40% are willing to pay more for products of the brand that reflects their lifestyle and values.
The Millennials are demanding consumers who do not make a purchase decision under the influence of advertising, but their experience instead. They do not perceive a brand through the prism of its tradition, but the values associated with it. Building relationships with them should therefore be based on the personalization of the offer and around a common idea. In this situation the Millennials are more likely to share their data with brands (41%) than representatives of other generations and are also more willing to join loyalty programs (44%). At the same time, when being dissatisfied they demonstrate a greater tendency to express a negative opinion about a brand and its products (33%).