Targeting Millennials with a Digital Loyalty Strategy

Targeting Millennials with a Digital Loyalty Strategy

Millennials are the largest segment of the population with disposable income in the US, most of Europe and the more advanced markets. This is why Millennials are the natural choice when defining a target for e-commerce, m-commerce or mobile app businesses. Mobile and online businesses compete fiercely through advertising campaigns in order to attract users from this segment. To be  more effective they should consider targeting Millennials with a digital loyalty strategy.

Who are Millennials?

Millennials (also known as Generation Y) are the generation following “Generation X”. There are no precise dates for when this cohort starts or ends; demographers and researchers typically use the early 1980s as starting birth years and the mid-1990s to early 2000s as ending birth years. The generation is generally marked by an increased use and familiarity with communications, media, and digital technologies.

Marketing towards millennials

“A whopping 84 percent of Millennials don’t trust traditional advertising (Forbes, 2016)”. This means that the traditional advertising based models tend to be less effective when targeting this segment. Millennials also tend to be quite impatient and expect some form of instant gratification. They have ubiquitous access to technology, and they know how to find information. They’re often on mobile devices, looking for answers to immediately. Millennials can easily compare prices or collect other information before making a purchase.

Developing a loyalty strategy and program can prove to be a valid tool to increase sales generated by Millennials.

Millennials and Loyalty Programs

Here is some interesting data about Millennials and Loyalty Programs:

  • “80% of Millennials find points or rewards for purchases made in-store, on a website or mobile device appealing, as well as the ability to choose among several types of rewards (81%), and opportunities to earn bonuses by doing some specified activity (81%)” (Nielson, 2016);

In fact:

  • “To save money, some Millennials (45.1%) use coupons and loyalty points” (CCG Consulting, 2016);

This means that merchants implementing loyalty programs can have a strong benefit from them:

  • Millennials are 2.2 times more willing than boomers to pay a premium for products and services if they can also earn loyalty and reward points” (Bond, 2016);


  • “33% of Millennials dislike rewards programs because there are too many cards to carry” (Vantiv, 2016);

Also, Millennials have some stronger requirements and expectations:

  • “Personalization is a higher priority for driving loyalty for Generation K (54%) and Millennials (52%), than it is for Generation X (48%) and Baby Boomers (40%)” (Rare, 2016)
  • “Fun is an important loyalty driver with 64% of Generation K listing it as a priority compared with 60% of Millennials, 55% of Generation X and 44% of Baby Boomers” (Rare, 2016).

What we should consider when targeting millennials with a digital loyalty strategy

This means that when targeting millennials with a digital loyalty strategy we need to consider that:

  • Millennials are interested in loyalty programs. These can be effective in driving their brand loyalty and increasing their sales.
  • Millennials (same as other segments) are enrolled into too many loyalty programs. It is critical to make your program relevant and rewarding for the user.
  • Millennials are more tech savvy. They have stronger expectations in terms of digital features, user experience and “connectedness”.
  • Technologies have also shaped Millennials expectations through mass-customization. Millennials more than other targets will expect a loyalty program they feel more personal and more capable of fulfilling their needs.
  • Fun is of course is another expectation. Millennials are now used to gamification. They are used to lower barriers and formalities in exchange for stronger connectedness and experiences. This means a loyalty program targeting millennials must be engaging, rewarding, social and fun. It must minimize all distances between the user and brand.

Koomalooma is the loyalty platform for targeting online and mobile millennials

How can koomalooma help targeting Millennials with a Digital Loyalty Strategy?

koomalooma is loyalty program and platform-as-a-service specifically designed for mobile and web companies. These are the reasons koomalooma is the perfect tool for targeting Millennials with a Digital Loyalty Strategy:

  • User Experience: koomalooma’s retroclaim flow allows for users to earn points and sign-up with a completely frictionless flow. Users won’t feel bother, or pushed to sign-up. They are instead motivated to earn points and sign-up. The program will never distract or interrupt them.
  • Coalition: Millennials want fewer loyalty programs, but more rewarding ones. Kooamlooma’s coalition approach allows Millennials to earn points through different merchants, making this truly relevant for them.
  • Managed Service: koomalooma is a completely managed solution. We have a fun brand millennials and other targets can relate to. We take care of the catalog, providing gifts that are truly rewarding for Millennials. For example we provide mobile operator top-ups across 400 carriers and provide over-the-air delivery. This means our members can use their points to top-up their mobile phones, and we deliver this reward within seconds via SMS.

If you want to know more about targeting millennials with a digital loyalty strategy get in touch with us.

You can register here as partner and start issuing koomalooma points now to your mobile and web users.

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