Global loyalty marketing agency, ICLP reveals what retailers need to know about the newest generation of shoppers and how they can build real loyalty with millennials. The research found that while shoppers over 30 want to build a mutual relationship with their favourite brands, millennials want brands to put them at the center of attention.
ICLP surveyed 500 UAE consumers and found that 1 in 4 millennials wanted their favourite brands to spend more time really getting to know them. 28% said that they wanted a gift or message on their Birthday, while 27% wanted them to remember their shopping, payment and delivery preferences.
This is in contrast to shoppers over 30, who cared less about retailers putting them first, and instead wanted to build a mutually beneficial relationship. ICLP’s research showed that shoppers aged 30 to 55 want their favourite brand to apologise quickly and put things right when there’s a problem (42%) and take care of any issues they have (42%). Rather than instant gratification, 52% of these older shoppers said that they wanted a relationship that grows and improves as shopper and retailer get to know each other better.
The research also revealed what factors unite all UAE shoppers. 1 in 3 shoppers from both sides of the generation divide said that they wanted to feel valued by their favourite retailer, and not just be treated like any other consumer.
As part of the research, ICLP also asked millennial shoppers what would make them spend more with their favourite retailer. The results demonstrated that:
Create stronger rewards programmes: 77% of millennials would buy more if they were rewarded better by their favourite retailer
Offer consistent and reliable products/services: 74% of millennial shoppers said that they would spend more if products were more consistent and reliable
Treat them like individuals: Of millennial shoppers, 72% said that they would spend more with a retailer if they understood their individual needs and requirements better
Millennials want respect too: 69% said that they would spend more if they were treated with more respect
Sanjit Gill, General Manager at ICLP, commented: “Look around any mall in Dubai or Abu Dhabi, and you’d be forgiven for thinking that shoppers are getting younger. Millennials are flocking to the hottest new retailers, but with ever more global brands opening outlets here in the UAE, there’s an ongoing battle to hold anyone’s attention. If brands aren’t careful and don’t build strong devoted relationships with their consumers, even seemingly loyal millennial shoppers will quickly abandon them when something new and exciting comes along.
“We’ve found that all shoppers want more from their favourite retail brands, but for millennials in particular they want to not just be rewarded for their loyalty, but also be treated like an individual. With the technology now available, retailers have no excuse not to treat all their customers as valued individuals, surprising and delighting them with rewards and special offers that they’ll love.”