19 Jul 5 Biggest Factors Affecting Millennial Brand Loyalty
Brand Loyalty. You can’t make it very far into your marketing campaign before you have to address the issue of what makes your customers tick. What makes them hold tight to your product and swear off all others? What makes them truly loyal to a brand and company?
Brand loyalty isn’t just a cherry on top of a great marketing sundae; it is the sundae. When you have extremely loyal customers, they’ll shout your praises and do your marketing for you. They’ll provide valuable feedback on ways to improve without threatening to leave. They’ll be an advocate for your brand and introduce new customers. And they will stay with you for life. On the other hand, when your customers are not loyal, you’ll have to spend even more money on marketing to attract an ever changing market.
As the millennial generation grows, it’s essential that marketers understand what makes them loyal. Currently, the millennial generation represents the largest generation ever, and they account for the majority of the market. Interestingly, and fortunately for brands that know how to capitalize on it, Millennials are also the most brand loyal generation ever. But what makes them loyal is not the same as what made their parents or grandparents loyal. In fact, this market is so original about their interests and concerns that a marketing plan targeting boomers will likely cause millennials to jump ship. So, what makes millennials loyal to a brand?
These are five of the biggest factors.
Availability: Millennials were all born during the digital boom, so they are used to being able to purchase anything they want online with easy navigation and quick delivery. If these needs are not met, or if there is any other reason why the product is likely to be unavailable frequently, 44% of Millennials will switch brands.
Authenticity: In a study by Elite Daily, only 1% of millennials said they were interested in or affected by advertising. Millennials simply don’t care what a brand has to say about itself. What they do care about is how authentic a brand seems in every interaction. From customer service calls to online marketing, millennials are looking for brands that put the customer at the heart of the brand and that don’t put on a face to sell their product. As a marketer, this means you need to determine what your brand stands for, and then never compromise.
Ethics: Millennials have high product standards. While previous generations may have been willing to turn a blind eye on employee treatment or negative business practices, millennials will not. In fact, thirty-two percent of millennials would turn on a brand if it didn’t treat or pay its workers fairly, and twenty-seven percent would switch brands if the product were not environmentally friendly.
Quality: Everything is available online, and there is always another option for whatever product millennials want to buy. Because everything is easily accessible, there is no reason to settle for something of mediocre quality. A full 49% of millennials say they would not remain loyal to a brand with a subpar product, even if it were cheaper than alternatives.
Social Proof: Millennials are online. They’re on social media; they’re reviewing products on comparison websites; they’re scouring websites and educating themselves regularly. One reason why millennials are the most brand loyal has to do with social proof, and it’s the fifth factor affecting their brand loyalty. If millennials can see that their friends are happy with a brand, they’re likely to try it out and then stick with it.
Millennials are an interesting buying group. They care about how their products are made, where they are sourced, and what they represent. They care about quality and ease of purchase, and they are unwilling to compromise. Add into this the fact that millennials are pretty price elastic, and you can see why it’s so important to get your marketing right if you want to make a significant impact.
For more information about how millennials buy, or for help creating a marketing plan to attract millennials, contact Modern Promos.