Will Millennials reward retailers for one-on-one attention?

According to a survey from LoyaltyOne, 84 percent of Millennials (age 18-29) said that being able to redeem rewards/loyalty program points for a session or consultation with a chef or nutritionist would motivate them to shop more with that grocer.

Millennials’ interest skewed even higher than the 69 percent of the general population also open to an expert session from a grocer.

The research further found that Millennials’ interest around in-store sessions and consultations isn’t limited to grocery shopping:

  • Seventy-nine percent of Millennials surveyed said a session with a stylist as a loyalty program benefit would entice them to shop more at a clothing store.
  • Seventy-seven percent said a session with a technician or software expert would spur them to shop more at an electronics dealer.
  • Sixty-eight percent said a session with a makeup artist would prompt them to shop more with a cosmetics retailer.
  • Sixty-nine percent said a session with a plumber or electrician would motivate them to shop more with a home improvement or renovation store.

Across age groups, the survey found that more women, 72 percent, were motivated by a chef or nutritionist session, versus men, 64 percent. Women were also more motivated by a session with a plumber or electrician while men were slightly more motivated by a session with a technician or software expert.

The question about being able to redeem rewards/loyalty program points for expert sessions or consultations was part of a survey of 1,034 U.S. consumers conducted in September.

BrainTrust

Discussion Questions

Do the potential benefits of offering expert sessions as a loyalty reward likely offset any implementation challenges? Does it make sense that Millennials would be particularly open to expert sessions or consultations as a loyalty program incentive?

Poll

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Gib Bassett
Gib Bassett
9 years ago

I think customer experience is the new competitive battleground for CPG and retail. It’s less about product attributes and special deals, than it is about a differentiated experience before, during and following the shopping trip. Millennials may be leading this trend, but I suspect most shoppers of any age will be drawn to experiences when you consider that many products are commodity or near-commodity. A brand message tied to a product or store banner may just not be sufficient to differentiate. Retail and CPG need to get past the implementation challenges and figure out ways to scale these efforts if they hope to survive the coming years, in my humble opinion.

Bob Phibbs
Bob Phibbs
9 years ago

I’d be interested in knowing exactly the wording of this survey, like so many others. Seems to come out of nowhere as a high answer. For example, if they asked, “Would you rather have a discount or a session with a consultant/chef?” I imagine the answers would differ greatly, no matter what the age.

Dan Raftery
Dan Raftery
9 years ago

Yes this makes sense. It supports other findings about this age group’s preferences. It will work for retailers if the experiences they offer fit within the story they tell.

Richard J. George, Ph.D.
Richard J. George, Ph.D.
9 years ago

The concept of customer rewards beyond free or discounted merchandise is a very attractive option that is long overdue. The key is for retailers to identify what problems they would have permission to solve from their various target markets, in this case the Millennials. Once a list is identified the questions of capabilities, costs, execution, etc., can be addressed.

Millennials are the Google generation. They seek quick and easy responses to their questions. Their demand for immediate and convenient solutions may run counter to attending expert sessions. However, the concept of retailer-sponsored videos of expert sessions on a retailer’s website or even posted on YouTube may be a viable alternative.

Tom Redd
Tom Redd
9 years ago

This makes logical sense. Millennials know lots of stuff in small amounts and are used to being guided and served. This point, 69 percent said a session with a plumber or electrician would motivate them to shop more with a home improvement or renovation store, makes lots of sense. When I visit my local DIY I find myself helping at least two Millennial shoppers just get to the right aisle to help them find the parts needed to repair their rental or owned home. Some of them I advise on how to solve their problem.

Millennials are seen as the huge market for retailers. The trick is if you want their business then drive a strong assortment and have product in stock. They—like old people—want the right products in the right place at the right times, no matter the channel.

Last, experts for Millennials are just force tools to make them pay attention vs. stare at their iPhones and do texting.

Zel Bianco
Zel Bianco
9 years ago

I think offering expert sessions as a loyalty reward encourages Millennials to shop more with the company their session is associated with. It seems to me that if Millennials believe their shopping will lead to a great deal, they will be more likely to shop at that retailer. Millennials are attracted to rewards from spending money and are open to receiving consultations and sessions. Of course, research should be done to see what Millennials would be interested in as rewards. For an example, offering a free consultation with a stylist after purchasing a certain amount at a clothing retailer would appeal to young women and they would feel encouraged to buy products at that retailer because they know they will get a free session out of it.

Offering these reward sessions is a good strategic plan for retailers as their business will increase since customers will remain loyal to their company when purchasing products in the hopes of receiving those rewards. Another aspect to consider, however, is the amount of points needed to redeem the reward. If it’s too high, customers might feel that it’s not worth it. But if it’s too low, it won’t help their business or compensate for the expenses of the reward. Research needs to be done to determine the right amount of points for a reward, based on what Millennials can normally spend.

Don Uselmann
Don Uselmann
9 years ago

In the luxury arena both make-up artists and stylists are plentiful. While currently there is an expectation that their consultation will result in an immediate sale and fear on the part of the consultee that they will be pressured into buying something, as a loyalty reward perhaps the short-term expectations on both sides could be mitigated and such activities would occur with a broader range of customers building additional loyalty.

You can pay a financial planners to prepare and provide a formal plan that you can walk away with and it would seem that professional sales associates could provide a formal wardrobe plan (as well as make-up and skin treatment) for the customer, one that they could fulfill anywhere giving it added value to the customer. Some risk that they won’t buy from the provider, but the relationship that could be developed along the way would be a loyalty builder. Some seeds of good ideas here and I think not just for Millennials.

Jason Goldberg
Jason Goldberg
9 years ago

I’m all for richer personalized shopping experiences, and loyalty programs that go beyond points for discounts. However, this survey does not give us any insight about the value of this particular tactic. It’s the latest in a long line of shopper marketing surveys that “ask” consumers to state a declared preference, instead of “observing” an actual preference.

Declared preferences also picked whale oil lamps over light bulbs and buggy whips over automobiles. What we need are revealed preferences that come from seeing what actual shoppers do when confronted with options. The problem is that revealed preference studies are more expensive, and it’s just easier to send a survey to 1000 people, publish a meaningless declared preferences study and get a news story.

Tim Cote
Tim Cote
9 years ago

Millennials talk service but buy price. Other surveys and shopper insights have shown they are always looking for a deal. These sessions will be rejected unless they comes with deep discount coupons at the end of the session. Somehow I think this idea would devolve into a timeshare sales pitch, or at least be perceived as such.

Shep Hyken
Shep Hyken
9 years ago

Millennial consumers want to be wanted/needed and feel included. They like one-to-one experiences. Get a Millennial to join a program that makes them feel rewarded for their business and loyalty, and you’ve hit the wanted and included needs. If the consumer feels there is value to the offer of consultations and “expert sessions,” they will further appreciate you. The key is there has to be value. That’s for any customer of any generation.

Karen S. Herman
Karen S. Herman
9 years ago

I’m not surprised by this research, as Millennials are digital natives, constantly connected to technology and trained in the practice of multitasking. A deeper shopping experience with a one-on-one session or expert consultation is an excellent way to indulge these behaviors and build a loyalty rewards program.

This reality transcends just Millennials and applies to many other demographics, including digital immigrants. Many are rapid adapters and just as adept at integrating technology and multitasking in their daily lives.

From my perspective, the retail landscape is become a playground for shoppers and adding value, through one-on-one sessions or expert consultations, will become a necessity, not a luxury.

Ralph Jacobson
Ralph Jacobson
9 years ago

Here’s the challenge I have with blanket statements and surveys involving Millennials: “Millennials” are not all the same. This is amongst the most diverse group of individuals since we started calling the Baby Boomers “Baby Boomers.” If you search the web, you will find inconsistencies in age definitions, regional definitions and lifestyle characteristics of this group. I have seen articles stating that Millennials can be of any age, as long as they are “tech savvy.” Crazy.

Could a personal touch as described in this article make a difference to consumers? Absolutely! I think this is one of the last potential differentiators left.

Lee Kent
Lee Kent
9 years ago

We must remember that Millennials grew up with Google and they are accustomed to having information at their fingertips. They want to know what makes one product potentially better than the next and not just on price.

The fact that they would be influenced by having access to expert advice is just that but in the flesh. Does it have to be part of a loyalty program? Come on retailers, let’s start thinking “experience” and how to buy the customer’s currency (i.e. the steps in the shopping journey) and they might just buy your currency (i.e. your products and services).

And that’s my 2 cents!

Kenneth Leung
Kenneth Leung
9 years ago

We are turning into an experience economy where the experience is worth more than the physical product. By providing service as opposed discount, retailers are adding value to the customer engagement and building relationship as opposed to trying to trigger repeat purchases. Certainly makes more sense even if the correlation to next purchase is less immediate without that coupon redemption code.

Cathy Hotka
Cathy Hotka
9 years ago

When it comes to loyalty programs at supermarkets, most of them are nothing more than “discounts” on artificially high prices. Adding more interesting benefits could be a winner. And Millennials are all about authenticity….