Customer loyalty is considered by industry professionals to be somewhat of a conundrum. Are customers the ones who should remain loyal to companies or should the companies remain loyal to their customers? Whatever the answer may be, one thing is perfectly clear: customer loyalty and customer service are slowly pushing towards becoming the next trend in marketing, which comes as a no surprise once you consider that competition is only a single click away.
This is especially true when it comes to millennials, as they represent the largest group when it comes to brand loyalty these days. Marketers are constantly trying to communicate brand values using authenticity and conciseness across various touch points. Considering just how costly it has become to find new customers both offline and online, businesses are now starting to invest even more time and resources into trying to maximize the lifetime value for their customers.
A happy customer is a returning customer and as such, goes far beyond creating additional revenue for the company. In fact, happy, and more importantly, loyal customers are becoming the cheapest and single most effective means of advertising.
Why are millennials so loyal?
Unlike the previous generations who had to spend time getting used to various technological advances, millennials are constantly being slammed with various tech-oriented innovations. In an ever-changing environment, the only constant thing they can expect from companies is value. And one of the best ways to present value to customers and millennials, in particular, is to associate that value with a large emotional impact.
Whether it’s a bar of soap or the latest and greatest in smartphone innovations, brands who have loyal customers are slowly but surely creating a connection between brand value and the emotional impact it has on their customers. By openly sharing their values, companies are allowing customers living by the same values to express themselves using that specific brand. Not to mention that this results in an excellent word-of-mouth marketing for brands, as millennials are often the ones who are most outspoken about their life choices, including brand preference.
It’s all about social media
Regardless of brand’s particular proposition for their customers, whether it’s efficiency or entertainment, social proof is what will keep millennials interested and excited about your particular line of products and services. Forget banners and static ads, as even the most engaging content won’t keep the millennials attention for long and they’ll be clicking away mere seconds after seeing your content. The only way you can beat this short attention span curse is via social media platforms. They not only keep the users occupied, but also provide them with proof coming from their peers. And no one uses social media the way millennials do.
What drives millennial loyalty?
Just like with any other market, millennial loyalty is largely driven by good prices, affinity for a specific brand and a reliable delivery system. Furthermore, various loyalty programs used in retail also have a rather large impact on millennials’ loyalty, as most of the shoppers, including millennials, now expect brands to showcase their gratitude towards their customers by sending various coupons and offering discounts for their products and services. There’s an increasing trend in Australia, where large companies have begun using eftpos gift cards to reward their loyal customers.
It all boils down to building loyalty by improving online reputation and rewarding loyal behavior. Millennials respond extremely well to any relevant offer and promotion, and brands can use that knowledge to provide them with personalized purchasing options that are tailored to their individual interests. This is where various algorithms and AIs come into play, as they allow companies to target their customers, both potential and loyal ones to extreme levels. The more personal the message – the greater the chances that millennials will respond to it by completing the purchase.
As you can see, Millennials are the next big target audience. This comes as no surprise, once you consider that by the end of the decade, more than half of all workforce will be the millennials themselves. Provide them with convenient ordering, as well as delivery options that could easily fit their busy lifestyles, engage them on social medi, and you’ll have yourself a loyal customer base that will further engage and promote your brand, bringing even more customers your way.
However, keep in mind that this does require leveraging the already existing and any future technological advancements in you favor and using all the necessary platforms to actually reach them and convey your brand values.