Most Millennials Say “Yes” to Fee-Based Loyalty
Business Solutions Companies spend countless hours and dollars trying to figure out what millennials want. Here’s an insight backed up by some serious numbers.
Millennials are way more willing to pay a fee to join a customer-loyalty program than any other age group.
In fact, a recent survey of 1,005 U.S. consumers by LoyaltyOne found that a great majority of people in this coveted demographic of 18 to 34-year-olds say customer rewards are worth paying for if they’re relevant to their needs.
By the numbers
Among 18 to 25-year-olds, 75 percent say they’d join a fee-based rewards program if their favorite retailer offered one; among 25 to 34-year-olds, 77 percent were willing. That compares to 62 percent of overall respondents.
Meanwhile, 47 percent of respondents said rewards in fee-based programs are better than those in free programs. But among 18 to 24-year-olds, 61 percent found them to be better, and 54 percent of those 25 to 34 thought so.
Who’s acting on it?
Fee-based loyalty programs are attracting attention as two major competitors emerge to take on the popular Amazon Prime, which offers members free shipping and other perks for $99 per month. Walmart announced plans to unveil a fee-based Shipping Pass, at $50 per year, and Jet.com launched its member-based program in late July, charging $49.99 per year and promising a dynamic pricing structure.
The survey also revealed that 69 percent of respondents who already participate in a fee-based loyalty program said they were enticed by free shipping, while 67 percent were drawn by special discounts.
Also, there was one finding that might hold tons of potential: 32 percent of 18 to 24-year-olds and 34 percent of 25 to 34-year-olds say they have never been offered membership in a fee-based program, compared to 25 percent of the general population.
Now that’s what they call leaving money on the table.