In a recent white paper by CrowdTwist titled “The 2015 CrowdTwist Loyalty Program Report: Demystifying Loyalty Among Millennials,” they took a look at traditional loyalty programs (i.e., points for purchase) to see how they were received among Generation Y. Since this group will soon pass baby boomers as the largest segment in the market, just about every company is looking for a way to solve this group. I think this a good and interesting read for everyone, but let me address some of the key takeaways that I found.
The first statistic that really jumped out at me was that nearly 65% of the respondents to the CrowdTwist survey were either loyal or very loyal to a particular brand, but 35% would switch to another brand if the rewards were not compelling, it took too long to accumulate or there were not enough ways to earn points. While I would argue those same factors would hold true for every generation, the percentage of those willing to switch makes it an issue that needs to be addressed. It also should be fairly easy to address, especially if you engage an incentive professional to help design your program. At QIC, we design our programs so that any of the participants who are performing the correct behaviors as designated by the client should earn enough points in the first three months to get something material from the loyalty program so they know it is real and it maintains their interest and within the first year of the program that they will tell their friends and family about. Now we have mindshare and it will be more difficult for the participant to switch to a competitor’s program.
Another statistic that jumped out at me was the 75% of Millennials would like to earn points for taking a survey. That is nearly double the percentage (38.1%) who would like to earn points for writing a review. A quiz or survey is something that should be easy to add to your program platform. It is also direct feedback from your customers on topics that are important to your company, which would make it invaluable to any company. I am pretty sure I have mentioned quizzes and surveys in just about every one of my blog posts and how few of our clients utilize them in their incentive or recognition programs. Here is another reminder how useful they can be.
In conclusion, I recommend this article for anyone who is looking to make their incentive program more successful. While Millennials are the target group of this survey, I think having compelling offering with multiple ways to be awarded where rewards can be earned fairly quickly is a good standard regardless of the customer base you are trying to motivate.