Individuals who fall into the category of millennials are those born between 1980 and the early 2000s. Today, the oldest of millennials are knocking on the door of 40 years of age and have been around long enough to develop patterns of behavior in areas such as loyalty to brands and products.
Brand and/or product loyalty is an important topic of study to both the consumer and the retailer. Take for instance the issue of brand loyalty as it relates to interesting data about millennials and their credit cards. In a survey conducted in February 2017, by LowestRates.ca, it was founded that of those surveyed, Canadian millennials are “most likely to stick with a single bank.” The reasons range from convenience of housing all financial products under one roof, to lack of knowledge and for the youngest of millennials, relying on parental direction.
This research quite pointedly tells banks and other entities, “the sooner the better” when marketing to millennials. On the other hand, it may suggest to millennials they could be forgoing cheaper rates and incentives by choosing convenience rather than researching a variety possibilities.
Why should consumer and retailer care about the participation of millennials in our world of economics and brand relationships? In his 2015 article 10 New Findings About the Millennial Consumer Dan Schawbel noted, “There are eighty million millennials in America alone and they represent about a fourth of the entire population, with $200 billion in annual buying power.”
If the analysis drawn from the afore mentioned research is– millennials are loyal to brands and products, the question “why?” remains.
Let’s address the influence of social media. Never before has social media played such a monumental role in marketing for a generation as it has for millennials. Facebook, Instagram, YouTube, Twitter and Pinterest, just to name a few are all major playing fields for companies to connect with potential loyal consumers. One has only to log into their account to be bombarded flashy ads, sales, coupons, incentives and testimonials from varying companies.
If you didn’t know, yes- “there is an app for that!” The easier and quicker a company can get their products to the fingertips of consumer’s, the more likely attaining a loyal customer becomes. Remember the idea of convenience? Apps via laptops, tablets and smart phones have aided in quick access, connecting consumers to immediate service strengthening the bond between customer and provider.
Another finding as to why millennials are loyal although their options are endless, is the idea of “social proof.” According to study, Millennials Are the Most Brand-Loyal Generation, social proof is “the psychological concept that humans naturally look toward those around them to help make decisions.” Much like old fashion word of mouth for the baby boomer generation, social proof allows for networking on social media sites, and as the sphere of influence expands, so does the number of loyal customers for companies.
Why millennials are loyal can be summed up in the idea that convenience and recommendations from trusted sources, trump the possible frustration and probable disappointments of researching and trying other companies. It seems millennials are content with the idea of not fixing what isn’t broken. Ease for them equals loyalty for business.
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