Millennials are the customer group most likely to respond to reward schemes, according to research released by marketing company, Aimia. The study found that nearly one-third of 18-24 year olds (31%) participate in a coffee shop or restaurant loyalty scheme, making this the most loyal consumer age bracket in the UK.
The study of 2,011 respondents revealed that 62% of the Millennial consumer group - typically categorised by those born between 1982-2004 - were particularly loyal to coffee shops and restaurants. An article published by bighospitality.com reported the most popular loyalty schemes amongst this group were found to be sandwich specialists Subway (58%), coffee shop Costa (54%) and chicken restaurant Nando's (46%). Coffee chains Cafe Nero (35%) and Starbucks (26%) also featured high on the list.
This research indicates that hospitality operators may want to consider offering loyalty rewards and special offers designed to attract the Millennial group. Furthermore, it was reported that almost half of Millennials (48%) were content to share their details with organisations should tailored discounts and personalised offers be sent their way in return, which in turn encourages repeat visits to claim the rewards. This willingness to share information in return for offers means the Millennial demographic is also an excellent potential source of online feedback for operators seeking consumer insights.
Jan-Pieter Lips, president of international coalitions at Aimia commented on the findings: "Millennials are a key market segment for restaurants. Our research shows they are willing to share their information with restaurants in return for offers and rewards which are tailored to their preferences and habits."
"Given Millennial behaviours around brand loyalty... those brands that can capture and strengthen relationships with Millennials will position themselves favourably for expected increased consumer spending in 2016."
However, Jan-Pieter also highlighted the importance of engaging the tech-smart older generation, a group consistently over-looked in favour of lucrative Millennial spenders. Research by QikServe found that the over 65 consumer group spend more on hotels and restaurants than any other age bracket in the UK, with the 'grey pound' accounting for £320bn per annum.
