Skip links

Loyalty & Millennials: are rewards really the answer?


Loyalty & Millennials: are rewards really the answer?

Millennial customer loyalty


Identifying the problem


Throughout our playbook we have used the terms ‘loyalty programme’ and ‘loyalty scheme’ given that these terms are what the majority of today’s marketers will identify with. However, the reality is that no programme alone will ensure loyalty. These programmes exist to reward and while they are designed to engender loyalty, they will only have a chance of working as part of a well-constructed brand relationship programme. In order to achieve true loyalty, the two must work in unison.


Where did it go wrong?

Although there is no definitive answer, most sources say that it costs between four and ten times more to acquire a new customer than it does to keep an existing one. So why are companies prioritising attracting new customers over keeping their existing customer base satisfied? Loyalty schemes in one form or another have existed for hundreds of years – some people can probably even recall the ‘Green Shield’ stamps! Once upon a time, these schemes served their purpose by delivering real value and driving repeat custom. However, in the current marketplace, where customers are overwhelmed by choice and expect immediate gratification, they have stagnated. With more than 90% of companies currently employing some form of customer engagement or loyalty programme, how can you make sure yours stands out for the right reasons?


Too one-dimensional

Most loyalty schemes revolve around the same one-dimensional premise of spend for discount; everyone already knows what they’re getting and it’s simply not exciting anymore. This is evident with most brands achieving less than 50% active participation and reward redemption and with 58% of loyalty accounts becoming inactive within the first year of sign up. Although the reasons for this lack of engagement vary, the key reasons for negative sentiment surrounding loyalty programmes have been confirmed as lack of reward relevance (around 85%) and flexibility and value (44%). One way to tackle this lack of engagement is by offering immediate rewards; redemption rates for real-time rewards can run as high as 70% to 80%, a figure that drops in half when offered two hours later. This need for immediacy becomes more of a pressing issue when targeting young people, most of which agree that they are impatient and 50% have quit a programme because rewards took too long to accrue.


Lack of accessibility

A step in the right direction for loyalty programmes is increasing the accessibility of these rewards – the amount of times I go to buy a coffee only to realise afterwards that I had a stamp card in my purse which would have got me one step closer to that elusive free coffee… but no, it was buried in my wallet behind a plethora of other loyalty cards. If only it was on my phone, with the glorious ease at which I can search for apps or through my digital wallet, maybe then I would have remembered to use it! And this isn’t just me by a long shot; research conducted by YouGov shows that 41% of millennials want to be able to redeem points using their smartphone and the same percentage want to be able to monitor their points with a digital wallet. These options not only make it more difficult to forget about the existence of your loyalty programme but can also help to ensure relevance, in turn leading to higher brand engagement which is a leading factor in driving loyalty.


Customers expect more

Customer loyalty is now rooted in more than simply reward, people expect to be engaged with relevant content, at the right time, through the right channels. The alternative is disengagement, which is not an attractive prospect when highly engaged consumers make 90% more frequent purchases, spend 60% more in each transaction and are five times more likely to choose the brand in the future. The main problem with relying solely on conventional loyalty programmes to connect with consumers is that they reinforce a purely transactional relationship, fostering a fickle connection between consumers and retailers. What needs to be understood is that loyalty is actually an emotional relationship, not a synonym for repeat purchases.


Get your copy of our customer loyalty playbook here:

millennials customer loyalty


  1. Post comment

    I’ve been surfing online more than 2 hours today, yet I
    never found any interesting article like yours. It is pretty worth enough for me.
    In my opinion, if all webmasters and bloggers made good content as you
    did, the internet will be a lot more useful than ever before.

  2. Post comment

    Woah! I’m really digging the template/theme of this website.
    It’s simple, yet effective. A lot of times it’s tough to get that “perfect balance” between user friendliness and visual appeal.
    I must say you have done a superb job with this.

    Also, the blog loads very quick for me on Opera.
    Superb Blog!

  3. Post comment

    Предлагаем приобрести кассеты gillette power

    Optovka Net приглашает к сотрудничеству покупателей и продавцов продукции Gillette. Мы продаём станки Жилет высокого качества по самым низким ценам специально для вас! Gillette это лидер продаж в Европе и Америке, а также отличная идея для начала нового бизнеса. Максимально возможные скидки! Отличная возможность заказать станок для бритья Gillette Mach3 Turbo, кассеты для микроимпульсных станков Gillette Power, Лезвие Gillette Mach3, а также любой другой продукт линейки Gillette Mach3 по специальной цене! Мак Турбо это классика на рынке товаров для бритья, а классика всегда пользуется спросом! Только у нас! Бритвы Джилет Фьюжен и их модификации Gillette Fusion Power и Gillette Fusion Proglide выполнены в современном стиле. Настоящей находкой разработчиков стало триммер-лезвие Fusion. Самое время покупать наборы со скидкой! Наборы Gillette Venus, Gillette Sensitive, Gillette Sensor Excel, Gillette Slalom – это всегда актуальный подарок. В набор Gillette VENUS входят: бритва, станок Gillette venus, кассеты. Опытный клиент предпочтёт купить бритвенный станок известной зарекомендовавшей себя фирмы. Исследования показали, что большим спросом у конечных потребителей пользуется бритвенный станок Gillette sensor excel, купить который стало ещё проще через форму на нашем сайте. Всегда в наличии популярные одноразовые станки Gillette. Одноразовые бритвенные станки Gillette blue, Gillette blue 3, Gillette 2, хорошо продаются в любое время года. Каждому клиенту гарантируется индивидуальный подход. Быстрое оформление заказа. Мы поручаем доставку только самым надёжным компаниям. Сделав заказ через сайт, вы получаете максимальную выгоду, оригинальную качественную продукцию, надёжные гарантии. Оформите заявку через форму на сайте для регистрации заказа и наслаждайтесь ростом вашего бизнеса!

  4. Post comment

    I have been surfing on-line more than three hours lately,
    but I never found any interesting article like yours. It
    is lovely worth sufficient for me. Personally, if all website owners and bloggers made
    good content material as you did, the net shall be a lot more helpful than ever before.

  5. Post comment

    Howdy! I’m at work browsing your blog from my new iphone!

    Just wanted to say I love reading your blog and look forward to all your posts!
    Carry on the great work!

  6. Post comment

    It’s the best time to make a few plans for the future and it is time to be happy.
    I’ve learn this submit and if I may I want to suggest you few attention-grabbing
    things or tips. Maybe you can write subsequent articles referring to this article.
    I wish to learn more things about it!

  7. Post comment

    Its like you learn my thoughts! You seem to know so much about this, like you wrote the e
    book in it or something. I feel that you simply could do with some % to force the message
    home a bit, however instead of that, that is magnificent blog.
    A great read. I will certainly be back.

  8. Post comment

    I’ll immediately grasp your rss as I can not in finding your e-mail subscription link or newsletter service.
    Do you have any? Kindly let me recognize in order that I may just subscribe.

  9. Post comment

    It’s perfect time to make a few plans for the longer term and
    it’s time to be happy. I’ve learn this submit and if I may just I desire to suggest you some interesting things
    or suggestions. Perhaps you could write subsequent articles regarding this article.

    I desire to learn more things approximately it!

  10. Post comment

    It is appropriate time to make a few plans for the future and it
    is time to be happy. I have learn this post and if I may just I want to recommend you some attention-grabbing issues or
    tips. Maybe you could write next articles regarding this article.

    I desire to learn even more issues approximately it!

  11. Post comment

    I’ll immediately take hold of your rss as I can’t to find your e-mail subscription hyperlink or newsletter service.

    Do you have any? Please let me recognize so that I may
    just subscribe. Thanks.

  12. Post comment

    One other important aspect is that if you are a mature person, travel insurance regarding pensioners is something you need to really think about. The more aged you are, greater at risk you are for making something terrible happen to you while in foreign countries. If you are not really covered by a number of comprehensive insurance coverage, you could have several serious troubles. Thanks for expressing your ideas on this website.

  13. Post comment

    Hey there! I’ve been following your web site for a
    long time now and finally got the courage
    to go ahead and give you a shout out from Lubbock Tx!
    Just wanted to tell you keep up the fantastic job!

  14. Post comment

    I will immediately take hold of your rss as I can’t find your email subscription link or newsletter service.

    Do you have any? Please allow me realize in order that I
    may subscribe. Thanks.

  15. Post comment

    It’s perfect time to make some plans for the longer term and it’s time to be happy.
    I have read this submit and if I could I want to recommend you few interesting issues
    or suggestions. Maybe you can write subsequent articles referring to this article.
    I want to read even more things about it!


Join the Discussion