COLUMBUS, Ohio, March, 19, 2018
/PRNewswire/ -- NextGen consumers are leading the retail
industry to a new view on loyalty, according to new research by
Alliance Data's card services business, a provider of
market-leading private label, co-brand, and business credit card
programs. The newly released study, "The Rules of NextGen Loyalty,"
reveals how Gen Z and Millennials have been empowered by unique
experiences, technology, and the power of choice to engage brands
and experience loyalty in truly new ways.
"This study really unpacks the shopping and loyalty preferences
of today's youngest consumer segment," said Shannon Andrick, vice president of marketing
advancement for Alliance Data's card services business. "One-to-one
conversations with real people supported by in-depth research has
provided a unique view into the mindset of today's youngest
generations and what they expect from brand relationships. The
loyalty landscape has truly shifted from brands driving loyalty to
brands earning loyalty."
Conducted by Alliance Data's Analytics & Insights Institute,
"The Rules of NextGen Loyalty" study used a combination of
qualitative and quantitative research methods including mobile
diaries and digital app tracking to determine behaviors, follow-up
one-on-one Skype conversations to provide context, and a survey to
identify the differences, perspectives, and preferences among
younger generations. The progressive approach sheds light on the
difference between what consumers say and what they do. To create
insights that can help brands understand the market and tap into
trends based on customer behavior, the study took a close look at
what brand loyalty means to each of these segments:
- Older Millennials: Born
1982-1989
- Younger Millennials: Born 1990-1997
- Generation
Z:
Born 1998-2010
Some highlights from the report:
- Loyalty is earned. Understanding the role of and
influences on choice is more important than ever before: 63% of
younger consumers agree they have many choices of where to shop, so
a brand must show them loyalty to earn their business. Once brands
recognize the unique motivations of Gen Z and Millennials, they
have taken the critical first step in building deep brand
connectivity and earning lasting loyalty.
- Loyalty is complex. Traditionally, loyalty has been
viewed as one-dimensional. Yet, loyalty is anything but simple.
Research shows when it comes to life loyalty and brand
loyalty, a continuum emerges spanning a range from functional to
emotional. Different types of loyalty span the continuum from
traditional, mostly functional loyalty, to brand love,
emotional loyalty. Re-thinking a brand's approach to loyalty means
understanding that true loyalty requires a combination of function
and emotion.
- Loyalty is fragile. Today's younger consumers are
increasingly unforgiving. They are empowered by instant access and
greater choice to want more and "put up" with less. In fact, 76% of
younger consumers only give brands two to three chances before they
stop shopping them. One in three consumers said nothing could be
done when asked what a brand could do to win them back.
- Loyalty is multifaceted. Brands have typically viewed
loyalty through a transactional lens. But NextGen loyalty is a
combination of transaction (function) and emotion–traditional brand
loyalty and brand love loyalty. Transactions aren't the only
indicators of loyalty. Brands must understand customers' unique
needs and think differently about measuring loyalty. Some consumers
want the basics while others need more.
Alliance Data is releasing the results of its "The Rules of
NextGen Loyalty" study during this year's Shoptalk conference in
Las Vegas. To access deeper
insights into NextGen Loyalty, visit
KnowMoreSellMore.com/NextGenLoyalty.
About Alliance Data's card services business
Based in
Columbus, Ohio, Alliance Data's
card services business develops market-leading private label,
co-brand, and business credit card programs for many of the world's
most recognizable brands. Through our branded credit programs, we
help build more profitable relationships between our partners and
their cardmembers, and drive lasting loyalty.
Using the industry's most comprehensive and predictive data set,
advanced analytics, and broad-reaching capabilities, Alliance
Data's card services business has been helping partners increase
sales and provide greater value to their cardmembers since 1986. We
are proud to be part of the Alliance Data enterprise (NYSE: ADS),
an S&P 500 company headquartered in Plano, Texas. To learn more, visit
KnowMoreSellMore.com, follow us on Twitter @Know_SellMore, and
connect with us on LinkedIn at Alliance Data card services.
About Alliance Data's Analytics & Insights
Institute
Alliance Data's Analytics and Insights Institute
systemizes its more than 20 years of expertise in delivering
best-in-class data assets and resources to provide brand partners a
customized approach to growing their credit programs. Its
award-winning analysts and strategists are experts at developing a
deep understanding of a brand's customers by combining a variety of
data sets, representing 250 million consumers, to provide a
complete 360-degree customer view.
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SOURCE Alliance Data