WORD
ON THE
STREET
EVERYONE HAS AN OPINION, BUT WHAT DO
MILLENNIALS REALLY THINK ABOUT LOYALTY
AND REWARDS PROGRAMMES? PENNY HAW TOOK
TO THE STREETS AND ASKED A FEW MILLENNIALS
TO EXPLAIN THEMSELVES.
M
illennials currently comprise
the largest generation who will
soon hold the greatest spending
power in the world. They are
allegedly very different from
their predecessors in several
ways. Millennials are more likely to try out new
things and take risks than their risk-adverse
parents and grandparents. They like to challenge
the status quo and speak their minds if they believe
something could be better or more effective.
Because they are connected 24/7 and dependent
on technology, the millennial buying cycle is
accelerated and they are willing to spend more.
The generation is collaborative and vocal, and
this means they are constantly on the lookout for
opinions, validation and recognition from their
peers. They want instant gratification. But are they
brand loyal and, if so, what drives this? Do loyalty
and rewards programmes play a role in this?
THE SPENDING GENERATION
Owen Khoza – who recently transferred to Cape
Town from Nelspruit in Mpumalanga because of his
job with the Department of Agriculture, Forestry
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R E WA R D S & L O YA LT Y S A
and Fisheries – is a millennial in his late 20s. Loyalty
cards in his wallet include Smart Shopper, Clicks
ClubCard, WRewards and Rewards & More from
Markham. And he’s not afraid to use them.
“Older people often say that we [millennials] are
reckless and spend our money too easily,” he says.
“But I don’t agree. I am interested in ways of saving
money, and when someone tells me about their
loyalty or rewards programme, I always listen.
But I don’t always sign up. I look very carefully at
what is offered by way of reward, and whether or
not I need the products or services on offer – or, in
the case of clothing, if I like the fashion and quality
on offer. And, of course, it matters that the business
is conveniently located, and that the programme is
easy to manage.”
Khoza’s approach is in line with a recent
survey conducted by the Ipsos Group, which found
that millennials are more motivated by discounts
than by brands.
Fellow millennial, Jacques Cilliers – who is a
content manager at Johannesburg agency Engage
Joe Public – puts it this way: “Millennials don’t
necessarily care about a brands’ heritage or tradition
– unless we’re talking about political parties.
Social responsibility is a big concern for millennial
thinkers. We are also after experiences. We don’t
care about your product – it’s about what your
product enables us to do or experience that matters.”
That’s not, he continues, to say millennials don’t
respond to rewards: “Free stuff, whether it’s a
free coffee after five coffees or whatever … well,
everybody loves benefits. But the millennials I know
are loyal to brands because of a relationship they’ve
built with those brands. Often this relationship
moves quicker with the help of freebies or rewards
programmes than it would have otherwise. But
there is the risk that the trust will be broken once
millennials become accustomed to a certain level of
rewards and are then deprived of it.”
“THE MILLENIALS I KNOW ARE LOYAL TO BRANDS BECAUSE OF A RELATIONSHIP
THEY’VE BUILT WITH THOSE BRANDS. OFTEN THIS RELATIONSHIP MOVES QUICKER WITH THE HELP OF
FREEBIES OR REWARDS PROGRAMMES.”