Despite claims that brand loyalty is dead among millennials, new research from Accenture finds that the majority (67 per cent) will in fact spend more with the brands they love compared to older shoppers, and 38 per cent expect to increase spending with these brands over the next year.
But earning and maintaining loyalty from younger consumers remains a challenge. 70 per cent regularly keep an eye out for better deals, and one in four (25 per cent) have stopped doing business with a consumer goods company in the past year, preferring to switch to a competitor brand.
The analysis comes from Accenture Strategy’s latest Global Consumer Pulse Research, which surveyed over 25,000 consumers across 33 countries. The study explored the loyalty relationships between consumers and brands operating in the consumer goods industry.
Rules of engagement for millennials
The research shows millennials can be more demanding than any other group, with one in four (28 per cent) believing that what makes them loyal today is different than 3 years ago, compared to 17 per cent of baby boomers.
They expect the same consistent and personalised engagement regardless of the channel or device they use. In addition, millennials were nearly 60 per cent more likely than baby boomers to want the opportunity to personalise their purchases to create something unique or bespoke (54 per cent vs. 34 per cent).
Millennials are also less likely than older shoppers to use customer support, with 34 per cent saying they never let a company know when there is an issue, which makes it harder for companies to respond.
When they do, millennials will seek in-store customer service support from consumer goods companies in the first instance (28 per cent), followed by online information from the company’s website (25 per cent) and ththird-partynline sources (25 per cent).
Looking specifically at the Consumer Goods Industry
When looking for information about products to buy, the majority turn to online channels due to convenience (52 per cent), speed (51 per cent), and often because they find the best price (47 per cent).
Today, 59 per cent of millennials feel loyal to the consumer goods companies they do business with, and another 67 per cent would happily recommend them to family and friends. Furthermore, 73 per cent feel satisfied with the service they receive.
According to millennials, consumer goods companies get it right by offering a wide range of product and service options (75 per cent), making it easy to do business with them (73 per cent), and delivering high quality products and services (72 per cent).
How does this differ for the Hotel & Lodging industry
Millennials have a higher propensity to switch hotel providers and have different channel preferences when it comes to booking hotel arrangements than other demographic groups.
Results show that more millennials (23 per cent) have switched to another hotel provider compared to 10 per cent for non-millennials. Sixty three per cent of millennials have used a mobile device to book hotel room compared to 35 per cent of non-millennials.