by: Christopher Kane (4 min)
According to Capgemini Consulting research, 85% of Millennials, who are expected to spend more than $200 billion annually by 2017, have a negative sentiment towards loyalty programs.
That’s sending a pretty clear message: Millennials are simply not happy with the loyalty and rewards programs being offered. However, that is not to say that Millennials don’t want loyalty and reward programs.
Illustrated by the statistics above, it is clear that Millennials do not like what is being offered, but still demand brands have loyalty programs.
What exactly don’t they like about these programs?
Millennials don’t want to wait, want rewards that are useful, and don’t want to download a bunch of apps for every place they like to go. A fairly simple message that has fallen on the deaf ears of many major brands.
So, besides not waiting, useful rewards, and not having to download a bunch of apps what else would Millennials like to see in a loyalty program?
Millennials want their rewards in clear dollar terms, and not point schemes that only succeed in complicating things. They want to utilize technology, specifically, their mobile phones, simply and conveniently. Furthermore, they want a fluid experience between paying for their product/services and earning rewards and discounts. The utilization and integration of technology in loyalty programs has become a necessity rather than a novelty.
All of these statistics are illustrating one thing; an expectation for loyalty programs that is currently not being met in the market. If restaurants want to maximize their attractiveness to the Millennial crowd and reverse the current negative sentiment, they need to offer what Millennials want and provide it to them through the medium(s) they want. With fierce competition in every sector of the industry, those who recognize and provide what the market demands will thrive, while those who fail to adapt will be forgotten.