Millennials are More Loyal to Gas Discounts than Brands
Millennials are more willing than Baby Boomers or Generation X consumers to switch retailers (78%) or brands (55%) to earn fuel savings, according to a new study, “The Roads to Rewards: What Drives Millennial Loyalty?”
The survey, which was conducted by Ipsos eNation on behalf of Excentus, a company specializing in fuel rewards programs, showed that:
- Millennials check their reward status using mobile apps (33%), smartphones and tablets (27%) or wearable devices (7%).
- 13% of Millennials check their rewards status daily, compared to 10% of Generation Xers or 7% of Baby Boomers.
- While only 19% of Generation X consumers and 13% of Baby Boomers are enthusiastic about loyalty rewards, 26% of Millennials are.
- Millennials are more likely to join a fuel savings reward program based on the recommendation of someone they know.
- 26% of Millennials will link their reward-earning opportunities to a credit card, compared to 10% of Generation X consumers and 8% of Baby Boomers.
- Millennials also expect a larger variety of rewards, including retailer/brand coupons (26%), fuel savings rewards (25%) and instant cash register discounts (23%).
To capture the Millennial market, which represents 25% of the U.S. population and more than $200 billion in annual spending, Excentus recommends using loyalty programs that feature mobile technology and embrace peer recommendations.
“Raised on the Internet and coming of professional age in the midst of a national recession, the Millennial generation is intimately aware of prices and pressures on their budgets, and they present retailers with unique challenges and equally clear opportunities,” says Brandon Logsdon, President and CEO of Excentus. “A loyalty program that’s built on technology, everyday savings and a variety of meaningful, everyday rewards-earning options for Millennials can be the key foundational factors that cement rewards-based relationships, increased spending, return visits and lifetime brand loyalty.”
The survey was conducted between July 10 and July 13, 2016 with 1,016 consumers in the United States.