How Your Loyalty Program Can Speak to Targeted Generations
Perhaps one of the most enduring marketing strategies, and one that maintains appeal across nearly all generations and demographics, is a loyalty program. Loyalty programs offer participants rewards for engagement, and it’s one of the best strategies for harnessing the power of generational marketing. Maximize your impact by understanding how different generations interact with incentive programs and how you can make yours appealing to a range of clientele.
Understand What Different Generations Want
The first step in leveraging the power of a loyalty program is understanding how different generations respond to such an offers. Researchers typically identify the following generations and age ranges as the primary groups of consumers populating the market:
- Baby Boomers: Born from 1946-1964
- Generation X: Born from 1966-1976
- Millennials: Born from 1977 to 1995
- Generation Z: Born from 1996-2011
Though different researchers’ opinions on these generations differ, all will agree that each is a unique group of people with unique wants, needs, and interests. As such, not all will respond to a loyalty program the same way. You need to adjust your customer loyalty program to suit the generation you are targeting, and in order to do so, you need to fully understand what each of these generations wants and needs.
These senior citizens are often frugal but impressively loyal to the brands they trust. Loyalty programs are incredibly appealing to them, as are interactive rewards events that offer in-person opportunities to shop and interact with brands. Baby Boomers are drawn to events that are personalized and accessible, so loyalty and rewards events hold great appeal. Baby Boomers crave rewards that recognize the value of their loyalty.
Generation X is characterized by their control over 31% of all household income earned in the United States. Members of generation X aren’t just loyal and financially stable, though—they are also characterized by being very busy people. Present members of Generation X with a loyalty program that helps them save both time and money if you want to garner their interest. Also consider the types of merchandise rewards offered in your loyalty program: many Gen Xers have families and own homes, so you can cater your program to offer these rewards to spark interest.
A whopping 80% of millennials are already enrolled in loyalty programs of some kind. This generation’s affinity for such offers can be attributed to a number of factors, but perhaps the most important is an attraction to bonuses and in-store rewards. It is also worth noting that Millennials are often cited as the most brand-loyal consumer generation, so capitalizing on an already-strong loyalty can help you establish lifelong relationships with millennial consumers who want to be rewarded for their loyalty. Millennials are easily motivated by rewards tied to loyalty, so any of these features is likely to appeal to this generation of consumers.
Generation Z is a burgeoning group of consumers who are most attracted to the idea of instant gratification. This may not bode well for loyalty programs intended to reward long-term commitment, and indeed, 70% of generation Z is reported not to view loyalty programs as a positive offer. As such, this generation isn’t necessarily interested in joining a program for rewards, but instead is drawn to interacting with brands in real life and aligning themselves with the brands that resonate most with their values. This means that tools such as social media and mobile apps are often very effective.
Creating Multigenerational Loyalty
Customer loyalty is the bread and butter of any successful company. You can’t establish a brand and develop a successful image if you don’t have a following of customers who are loyal to that brand. If you expect customers to pledge loyalty, though, it stands to reason that they should expect something in return. You can create a multigenerational loyalty program that will sustain your company and establish the relationships you need to see your brand thrive.
At Rymax, one of the first steps in developing any incentive program is to understand your audience’s demographic profile and design a program with that motivates and excites them. If you’re ready to build a loyalty program that spans generations, contact us today.