“Loyalty drives traffic and sales”
From a retailer’s standpoint, customer loyalty is the ultimate goal. Every ad, every promotion, and every image shown to consumers is intended to lure them in and keep them there.
To encourage consumer retention, marketers and retailers are putting an emphasis on the use of their favorite method (and one that millennials are more than happy to be a part of): loyalty programs.
From Starbucks, to Panera Bread, Barnes & Noble, Urban Outfitters, and Ulta Beauty, brands in all areas of retail have caught on to this revenue-driving tool, and are trying to make the most of it.
The key goal is to have customers become return customers.
But many brands are struggling to meet the new standards set by millennials and younger consumers.
Unlike baby-boomers, these consumers want a relationship and personalization over monetary benefits.
I’m the person who walks into Starbucks and knows the baristas by name. I go there for the coffee, not just because I like the taste, but because I love the experience, community, and atmosphere of each store. I love ordering an Americano, finding a seat at a long table, and passing the afternoon doing work while listening to the soothing coffee shop songs. The sound of chatter and laughter blends with the background music set at the perfect volume. The constant in and out of people adds to the vibe of the place. Sitting in Starbucks and taking a sip of coffee gives me that warm, fuzzy feeling of sitting in the original location in Seattle on a cold, rainy day.
Millennials value experiences.
We would rather do than have. Therefore, we want our rewards programs to reflect that.
Sephora does this by offering free beauty classes and access to exclusive beauty events. These are great ways to get consumers to interact with the products Sephora is selling in stores, while also allowing them the opportunity to engage with others to create memorable and enjoyable experiences.
Khol’s took another (and much more unique) approach to create experiential rewards for their Yes2You rewards members. One rewards member was selected to be the model of Lauren Conrad’s new clothing line! That’s something I’ve always dreamed of doing.
There are so many creative opportunities retailers can take to increase engagement with their consumers, who are more than open to all that retailers have to offer.
To learn more about how millennials are influencing the retail world, pre-order my book, Talk Beauty to Me: How Marketers Can Speak the Language of Beauty to the Next Generation, here.
