New study explores Millennial attitudes towards loyalty, privacy and
technology: Gen Y skeptical of location-based offers, mobile wallet;
but will reveal personal details for fast, free and easy rewards
MONTREAL, Oct. 5, 2011 /CNW/ - Comprising more than 1.7 billion
consumers worldwide, the Millennial Generation, also known as
Generation Y, presents some profound implications for marketers as it
comes of age and takes the reins of the global consumer economy.
According to a proprietary study released today by Aimia to coincide
with its global rebranding from Groupe Aeroplan Inc., Millennial
consumers will change the way companies and brands build sustainable
To compare the attitudes and behaviours of Millennials to older
consumers, Aimia commissioned Harris Interactive to conduct an online
study of more than 6,000 consumers in Canada, the United Kingdom and
the United States.
"The Millennial generation is larger than the Baby Boom generation and
three times the size of Generation X," said Rick Ferguson, Vice
President Knowledge Development for Aimia. "Across the globe, the Baby
Boom generation is retiring, and as such it's critically important for
marketers to understand how Millennial attitudes towards technology,
data privacy and rewards will change the way brands build strong,
profitable relationships with their best customers."
The first part of this study, "Born This Way: The US Millennial Loyalty
Survey," focuses on Millennial Consumers in the US. Aimia will release
subsequent reports on UK and Canadian Millennials in October and
November 2011, respectively. The Millennial Loyalty Survey presents a
comprehensive view of customer loyalty expectations among the next
great cohort of consumer spending. Our high-level findings for all
markets include the following:
Over 75 per cent of Millennial consumers claim participation in loyalty
and reward programs.
Over 75 per cent of Millennials are more likely to choose a brand that
offers a loyalty or reward program over a brand that doesn't offer one.
In unprompted responses, Millennials rate loyalty rewards as the top
incentive they look for in exchange for sharing personal information
UK Millennials are the most eager to engage in loyalty relationships,
with nearly one-third (32 per cent) eager to join sight-unseen the
reward program of a brand to which they feel loyal, versus 22 per cent
in Canada and 19 per cent in the US.
Nearly half of Millennials are willing to promote products or brands
through social media in exchange for rewards.
Canadians are more charitably-minded when compared to the UK and US,
with nearly one-quarter (23 per cent) interested in participating in
rewards programs connected to a charity or a social cause, compared to
12 per cent in the UK and 9 per cent in the US.
Millennials in the US had the highest percentage for stating they would
be more likely to do business with a company after earning a reward (78
per cent US vs. 69 per cent Canada and 67 per cent UK).
Millennials are skeptical of the value of location-based marketing
offers delivered via smart phone, with only one in ten claiming to have
responded to such an offer.
Millennials view the option to download coupons or reward certificates
as most enticing reason to use a rewards program application on a smart
UK Millennials are most likely to respond to reward program offers on
their mobile devices (43 per cent of Millennials in the UK vs. 34 per
cent in the US and 38 per cent in Canada).
Fifty-seven per cent of US Millennials use mobile devices to perform
price comparisons before making a purchase in a store.
Using a mobile device as a substitute for carrying a plastic loyalty
card is the top requested mobile payment application for Millennials
(over one-quarter expressed interest); meanwhile, only one in ten
Millennials express interest in using a mobile device as a credit or
Millennials are significantly less concerned than non-Millennials with
data privacy and security overall. Of all named marketing channels in
the survey, loyalty and reward programs are perceived as the most
privacy-friendly by Millennials: fewer than one in five Millennial
loyalty program members are concerned about sharing personal
information with loyalty programs.
Approximately half of Millennials in each country surveyed were willing
to share personal information with brands that offer loyalty programs
(52 per cent in UK, 47 per cent in Canada and the US).
"Millennials are even more willing to participate in loyalty and reward
programs than their parents, but they expect reward programs to be
free, easy and fast," continued Ferguson. "This generation also relies
heavily on outside information to make purchase decisions—information
that is often out of the realm of control for marketers. The winners in
building sustainable brand loyalty with Millennials will be those who
break through the information overload to deliver value at the level of
the individual customer."
Part One of our three-part series on Millennial Loyalty, "Born This Way:
The US Millennial Loyalty Survey," is available upon request or by
About The Survey
Aimia commissioned Harris Interactive to conduct the online survey among
adults 19 and older in the United States, Canada and the United
Kingdom. The survey was conducted among 2,282 adults in the U.S.
between June 30 and July 14, 2011; among 2,045 adults in Canada between
July 8 and July 19, 2011; and 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.
Groupe Aeroplan Inc., doing business as 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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