Why is brand loyalty important? For any business, large or small, customers matter. One of the main goals for many it to ensure customers continually come back for product or service. That’s why building brand loyalty is of the upmost importance. While there are hurdles to get any age group to become brand loyal, Millennials can be a complicated group to convince to commit. Here are some tips on how to increase brand loyalty among the age demographic.
Get to Know Millennials
Compared to Baby Boomers, you may have the perception that Millennials go rogue on brands. While they are more likely to experiment with different businesses, Millennials actually want to be brand loyal. In fact, they’re 1.75x more likely than Boomers to say they’d like to be brand-loyal. So what’s stopping them?
One factor is income. It may come as no surprise that as household income increases, so does the likelihood of loyalty. In a survey by Facebook IQ, people surveyed who report a household income of $150,000 or more are 32% more likely to be loyal than those who report a household income of under $35,000.
A higher income brings flexibility in choices. With more money, you have the ability to pick companies that match your values, meet your needs, and deliver on promises. If you don’t have a lot of wiggle room in the budget, you may need to shop around for desirable sales and cost effective options more often.
Vertical markets, or “verticals,” are business niches where vendors serve a specific audience and their set of needs. When we look into specific verticals, we can see some variations among Millennials. Furthermore, in some verticals Millennials are just as likely to be brand loyalists as Baby Boomers.
Looking into verticals where experience and price play a bigger role, we lose loyalty among the age group. For example, this can include airlines and hotels. Here are more barriers Millennials face when making the decision to stay loyal within different verticals.