Research published today by Aimia, Nectar parent company, reveals more about British 19-29 year olds' relationships with brands and offers key insights for marketers
London, UK, 15th November 2011 – Members of “Generation Y” are willing to go the extra mile in engaging with and promoting brands they like, as long as they are rewarded for their efforts, according to research released today to coincide with the start of the Loyalty World conference in London.
The white paper "BORN THIS WAY: The UK Millennial Loyalty Survey", published by Aimia, the parent company of the Nectar loyalty programme, shows that over half of 19-29 year olds in the UK (58%) are willing to promote products or brands through social media in exchange for rewards. Nearly three-quarters (74%) of this age group are more likely to choose a brand that offers a loyalty or reward programme over a brand that doesn’t offer one. In addition, participants in the research study rated loyalty rewards as the top incentive they look for in exchange for sharing personal information with marketers.
Embracing new technology
The research has also revealed the extent to which younger consumers are leading the way when it comes to adoption of new technologies, such as mobile. Over one-quarter of Millennials (27%) are interested in using a mobile device as a substitute for carrying a plastic loyalty card. Similarly, UK members of Generation Y are significantly more likely than older consumers to engage with brands and companies through smart phone applications with 42% saying they do so regularly.
Whilst young consumers are sharing more data with brands, they are also becoming increasingly demanding about what they should receive in return for information and when. Indeed, Generation Y participants in loyalty programmes expect instant gratification from the schemes in which they participate, much more so than non Generation Y participants – just under half (48%) expect to see rewards within a month, compared to a third (32%) of older participants.
How is this affecting attitudes to privacy?
Privacy remains an important consideration when 19-29 year olds make decisions about how to interact with brands. 19-29 year olds in the UK have a greater level of awareness and concern around these issues compared to their counterparts of the same age in the US and Canada. However, loyalty and reward schemes are perceived as the most privacy-friendly of the named marketing channels by Generation Y in the UK: only 19% are concerned about sharing personal information with loyalty programme providers and over half (58%) of Generation Y who were surveyed agreed that they’re more likely to share personal details with a brand that offers loyalty and reward incentives.
Rick Ferguson, Vice President Knowledge Development for Aimia said:
"The central question that loyalty marketers will need to answer for this consumer group is not “How” or “What,” but rather, “Why?” Why should a Millennial consumer raise their hand and ask to be identified through your loyalty or reward initiative? Why should they download your iPhone app? Why should they respond to your location-based offer? What’s in it for them?"
David Johnston, President and CEO, Aimia, Europe, Middle East and Africa, said:
“Our research highlights the potential risks of assuming that young people will automatically interact with companies and products if brands use modern technology. Of course, many 19-29 year olds are increasingly savvy about the benefits they receive from new technologies such as mobile and location-based apps, but brands must prove the relevance and benefit of what they’re offering if they want to have an engaged and loyal customer base."
The full report is available on request.
For more information, please contact:
Joanna Kwiatkowska/Jake Richards
020 7839 4321
07754 500 589
Notes to editors
About the survey
Aimia commissioned Harris Interactive to conduct this online survey among adults 19 and older in the United States, Canada and the United Kingdom. This survey was conducted among 2,113 adults in the United Kingdom between June 30 and July 19, 2011. Figures were weighted to be representative of the general population in each country.
Aimia, is a global leader in loyalty management. Aimia?s unique capabilities include proven expertise in delivering proprietary loyalty services, launching and managing coalition loyalty programs, creating value through loyalty analytics and driving innovation in the emerging digital and mobile spaces. Aimia owns and operates Aeroplan, Canada?s premier coalition loyalty program and Nectar, the United Kingdom?s largest coalition loyalty program. In addition, Aimia has majority equity positions in Air Miles Middle East and Nectar Italia as well as a minority position in Club Premier, Mexico?s leading coalition loyalty program.
Aimia is a Canadian public company listed on the Toronto Stock Exchange (TSX: AER (currently) and changing to TSX:AIM effective October 7, 2011) and has over 3,800 employees in more than 20 countries around the world. For more information about Aimia, please visit www.aimia.com.
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