We can identify several groups amongst today’s consumers. Some customers are highly motivated to be very active in the loyalty programme, whilst others are resistant to any marketing activities and remain passive consumers. Regular observations of consumer behaviour show that some users consistently collect and redeem their points for rewards, whilst others do so only occasionally. There are many such differences. The key to understanding these differences and identifying customers’ needs – so that promotional activities achieve their intended results – lies in recognising the distinctions between different generational groups. Current consumer trends are changing at a rapid pace, which is why every brand should keep a close eye on customers’ current expectations. More and more of us consider ourselves to be individualists; however, we can divide consumer groups by generation, thereby grouping together, as it were, the worldviews, behaviours and attitudes of individual groups of end consumers. This will enable us to gain an in-depth understanding of customer requirements and tailor our sales offering accordingly.
Generation Z
Generation Z is the youngest group of consumers, born between 1996 and the present day. Modern technologies are part and parcel of their daily lives. A world without the internet or innovative solutions is alien to them. This group of consumers spends most of their day online, making new friends and carrying out numerous purchases. Privacy is a priority for them, and they are reluctant to share their sensitive data. It is therefore worth ensuring that it is the user who decides what personal data to share when joining a loyalty programme. Generation Z consumers see themselves as individualists and value the ability to personalise not only the offers but also the communication. Current data shows that as many as around 80% of users are willing to join a company’s loyalty programme if it is involved in charitable or environmental initiatives.
Millennials
This group comprises consumers born between 1977 and 1995. Millennials are regarded as one of the most influential customer groups, primarily because of their sheer numbers, but also because of their high level of purchasing awareness. They look for exceptional deals that will enable them to save a significant portion of their money. Their purchasing decisions are mainly based on the opinions of other users or on information available online. They constantly keep up with the latest technological developments and value innovative solutions introduced into loyalty programmes. They are also keen to share their opinions on specific products, which is why brands should take this into account and utilise it in their loyalty programmes. Customers also attach great importance to the possibility of feedback between programme members, as well as between the consumer and the company itself. In addition to technology, issues such as convenience and the ability to personalise available offers are important to them.
Generation X
This is a group of users born between 1965 and 1976. It is believed that this segment of customers is underestimated and overlooked in the current market. Statistically speaking, Generation X is one of the smallest consumer groups, yet it is precisely these consumers who have the greatest financial resources at their disposal. The main problem for this group of consumers is a constant lack of time, which is why they appreciate simple and convenient solutions that do not require a great deal of involvement or effort on their part. Designers of loyalty programmes for this target group should therefore ensure that the programme is straightforward and easy to use.
Recent research shows that members of Generation X are keen to look for offers that will benefit not only themselves but also their loved ones. It has also been noted that this particular group of consumers is the most likely and most frequent user of gift vouchers that can be redeemed in high-street shops.
Baby Boomers
This generation includes people born between 1946 and 1964. This group of consumers associates loyalty schemes with discounts, vouchers or collecting points for purchases. Although they are aware of technological progress and the automation of many features in membership schemes, they remain loyal to the simplest solutions. The introduction of innovative solutions will not strengthen their bond with the brand, as for Baby Boomers, building a closer relationship with a company is purely transactional. The latest research shows that as many as 70% of consumers in this generation prefer rewards in the form of vouchers or personalised discounts. They are significantly less interested in physical or virtual rewards. Customer service is very important to this group of consumers. It is worth ensuring that it is of the highest standard, as more than half of users are likely to leave a loyalty programme if it is not up to scratch.
