Paytronix Systems, Inc., a leading provider of reward program solutions to restaurants and retailers, today published "Marketing to Millennials," a free white paper sharing insights on the buying and loyalty habits of this highly sought-after demographic.
Results of a Patronix-commissioned Tufts University survey of more than 500 Millennials, primarily between 18 and 24 years of age, were analyzed for the “Marketing to Millennials” white paper. The study focuses on how the demographic interacts with restaurant reward programs.
Here are some key takeaways of the study:
- Millennials are replacing the shrinking spending of boomers. Millennials eat at fine-dining restaurants three times more frequently than members of other generations do.
- Loyalty goes viral with Millennials. Millennials are 23% more likely to refer a friend to your reward program than boomers are.
- Convenience is key. Millennials dislike printing coupons or going outside of their normal routines to interact with your brand. Scanning emails, redeeming rewards from accounts or using a mobile device are preferred methods.
- Don’t clutter their social feeds! 60% of Millennials rank email as their preference for receiving information pertaining to reward programs.
“The tech-savvy millennial generation wants to interact with restaurants and they’re eager to engage with your loyalty program. We went right to the source surveying Millennials for direct insight on how best to reach them—looking at what types of rewards they like and how they want to receive messages and communications from their favorite brands,” said Michelle Tempesta, head of product at Paytronix. “Millennials are more digitally connected than any previous generation, making mobile solutions and digital marketing more important than ever, and we focused this study to help restaurants optimize their mobile strategies and loyalty programs to understand how best to reach, and influence Millennials.”
The study explores the implications that smartphone use has for connecting with Millennials and winning them as lifelong customers. One Paytronix client was able to double the number of Millennials who joined its loyalty program by adding a mobile app. Digital marketing is more important than ever and the clear choice for reaching Millennials. Using mobile to connect is critical, since the demographic uses smartphones as an extension of themselves.
While the demographic loves their mobile devices, text message is not their most preferred method of communication with restaurant loyalty programs. Email communication is most preferred, but not on a daily basis. Highly relevant, timely messages are preferred over daily communications.
Not unlike the generations that came before them, Millennials like free product. 64% of Millennials who participated in the study ranked free product as the preferred reward, followed by receiving a dollar amount off.
To download a copy of the report, visit http://www.paytronix.com/media/3540773/Millennial_whitepaper_Final.pdf.