Thought Leadership

Here's how to win your millennial customers' loyalty

Aug 17, 2018
There have been countless attempts to understand the millennial generation; and rightfully so. Asia has 1 billion millennials while emerging and developing economies are home to 86 percent of the total number of millennials worldwide. They have more or less overtaken the baby boomers in terms of purchasing power as their aggregate annual income is expected to surpass 4 trillion dollars by 2030.

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But this digital-native and purpose-driven generation is a fickle bunch—hard to read and hard to predict—which makes creating business decisions that hit the nail challenging for many industries. And as far as their brand loyalty is concerned, the numbers aren’t exactly optimistic.

A recent Deloitte Millennial Survey released last May 15, 2018 showed that millennials’ “opinions about business’ motivations and ethics, which had trended up the past two years, retreated dramatically this year, as did their sense of loyalty.” 75% of the respondents believe businesses only focus on their own agendas rather than considering the community and 62% are positive leaders have no ambition other than generate income.

This is a generation that demands more from business leaders and they definitely won’t second guess cutting ties if their demands aren’t met. But the moment you communicate with them using the language they are speaking, they will reward you with long-lasting loyalty.

Here are some tips to go about it:

Be authentic and give emotional impact

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Millennials can’t be swayed by cheap tricks and gimmicks. In fact, 90% of millennials say they crave authenticity. They support businesses that deliver their promise, protect their data, respect their privacy, and interact with them with integrity and transparency.

Similarly, they prefer to be a part of a bigger purpose and they tend to lean towards brands that give them something to believe in. Brands who share their values, champion a cause or support an advocacy create a deeper emotional connections with this audience better than brands that are more focused on selling. Patagonia, an eco-sustainable fashion brand, is winning millennials with their ethics and socially-conscious initiatives—challenging bigger retailers like Forever 21 and H&M.