Millennials are redefining the concept of brand loyalty; in their eyes, it has changed dramatically from their parents’ version. A new MindSwarms study shows that for Millennials, brand loyalty revolves around user-centric transactional benefits that are fleeting and unemotional. Whereas their parent’s loyalty is seen to be a dynamic built on personal and emotional long-lasting relationships. Millennials say they were hugely impacted early on by online shopping, and have redefined the terms of customer loyalty to be more self-centered. Instead of developing long-lasting personal ties to stores and brands like their parents, Millennials become temporarily loyal to a brand or company as tactical decision based on convenience and rewards offered. Many explain that most of their shopping interactions are with “faceless” companies online, and that they don’t feel that they know the companies they are buying from. Given that they don’t feel much of an emotional pull to be loyal, it follows that Millennials’ loyalty is easily rescinded in favor of a company with a better rewards offer or more convenient service. Millennials said their parents’ customer loyalty developed slowly and was relatively stable over time. Like their parents, Millennials do value positive customer service interactions. But rather than in-store customer service, they are oriented toward online interactions. Millennials appreciate the ability to interact with brands online, easily research products, and get personal assistance when they need it. For companies looking to win the loyalty of Millennial shoppers, it may be valuable to ask how they can make their shopping experience (either online or in-person) as explicitly rewarding as possible.

1. Millennial Brand Loyalty:
Rewards over Relationships
A top line report on brand loyalty.
!Q2 2014
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2. Customer loyalty can have a significant impact on the
success of a brand or company. But how do young
Americans today perceive their own loyalty?
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!‣ Objective: To understand how the Millennial
generation's definition of customer loyalty differs
from that of their parents.
Research Objective
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3. Target Audience
‣ National US sample
‣ 13 states
‣ 22 cities
‣ Ages 18 - 34
‣ Even male/female ratio
‣ Mix of socio-economic
backgrounds & ethnicities
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4. Previous generations were loyal
based on the personal
relationships they established
with companies and brands.
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5. “My parents always went in to the
same grocery store, they got to
know some people there. And so
their loyalty would be based on
that.”
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Roger, 26, Tennessee
Loyalty used to be based on personal
relationships.
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6. “I think that's what the difference
is from my parents' generation.
They basically stuck with the
company through the good, bad,
the ugly. […] They would stick to
the company that they're loyal
to.”
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Chiezika, 30, California
Loyalty used to be based on personal
relationships.
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7. As the defining event of the
generation, the rise of the
Internet changed everything for
Millennials —
including shopping strategies.
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8. “My definition of customer loyalty
is different than my parents
because we have the internet to
basically get the best deals. If you
try hard enough, you can find the
best deal out there.”
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Adam, 25, Oregon
The Internet changed everything.
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9. “In our case, we shop around and
a lot of times, most things are
bought on the internet. We don't
even know who we're buying
from.”
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Aimee, 27, Florida
The Internet changed everything.
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10. “I do a lot of my shopping online,
and because of that I'm
interacting on a regular basis
with companies that have no face,
it's not about the relationship I'm
forming, it's purely about
content, it's purely about the
products that I'm receiving.”
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Haley, 22, California
The Internet changed everything.
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11. While their parents became
regulars at local stores,
Millennials diversify their
shopping and don’t expect to find
everything in one location.
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12. “In my parents’ generation, they
would go to a single store, like
Sears for example, and they
would stick with that store
because they knew they could
trust the products. Whereas now
there's a lot more competition, so
I don't think brand loyalty and
customer loyalty are as
important.”
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TJ, 25, Kentucky
Millennials diversify their shopping.
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13. “For my generation I think we
always want things tailored to us,
so we go to places that have the
best prices, or are the most
convenient, or tailor items to us -
like have the most natural
products or whatever we're
looking for.”
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Ana, 33, Texas
Millennials diversify their shopping.
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14. For Millennials, loyalty is
transactional:
they expect to receive benefits in
exchange for their loyalty.
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15. “I'm loyal to a company that can
make something that I'm happy
with, but my loyalty doesn't mean
that it spans a long amount a
time. It just means that I
appreciate the products.”
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Kendall, 20, Washington
For Millennials, loyalty is transactional.
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16. “Our expectations? We expect to
have just as good service - even
though we're not as loyal.”
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Aimee, 27, Florida
For Millennials, loyalty is transactional.
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17. “We look to see what the store can
give us in order for us to be loyal
to them and I think that our
expectations are so different
because it's easier for us to find
another store that's willing to
meet our needs.”
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Alexis, 23, North Carolina
For Millennials, loyalty is transactional.
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18. “I feel people in my generation
tend to focus on places that offer
more goods and offer free things
or rewards.”
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Zora, 22, Massachusetts
For Millennials, loyalty is transactional.
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19. “First off, the customer loyalty in
my generation really is about
quality, how much we pay for
things, and not just being loyal for
the sake of being loyal.”
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Gabriella, 34, California
For Millennials, loyalty is transactional.
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20. Conclusions & Implications
‣ Millennial consumers demand more benefits in exchange for their
loyalty. Some benefits, like free shipping and returns for products
bought online, go a long way in increasing brand loyalty.
‣ Retailer reward programs can win Millennials' loyalty for a short
time, or until a competitor offers a better program.
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‣ Millennials are less swayed than their parents by personal
relationships to brands or companies. With a diminished sense of
attachment to particular companies, this generation will readily
switch brands.
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21. ‣ Thanks to online shopping, Millenials are accustomed to having a
vast number of options at their fingertips, and they make savvy
decisions based on price, quality, and convenience.
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Conclusions & Implications
‣ Online reviews carry tremendous weight. When Millenials are
making purchase decisions, they seek out customer reviews. When
targeting Millenials, retailers must pay attention to the online
conversation about their brand.
‣ Today’s large companies feel too big for Millennials to build
relationships with. They are concerned that the level of customer
service is diminishing.
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22. To watch the video, click here.
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23. ‣ MindSwarms gathers video feedback from consumers via smartphone/
tablet (and webcam) all over the world. Fast.
‣ Consumers are screened first, then qualified respondents are invited to
record their responses (asynchronously). Consumers are paid for
participating.
‣ Responses to the study questions are viewable and shareable online, and
can be downloaded in Quicktime format for inclusion in presentations or
to create curated videos.
‣ Learn more at MindSwarms.com or blog.mindswarms.com.
‣ Contact sales@mindswarms.com for inquiries.
About MindSwarms
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24. mindswarms
Thank you.

25. Photo Attribution
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Page 1
CC-licensed Flickr Photo: American Apparel Bag by Ken Hawkins
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Page 2
CC-licensed Flickr Photo: Shop Till You Drop by Rob Holland
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Page 3
CC-licensed Flickr Photo: Re Flect by Adrian Scottow
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Page 4
CC-licensed Flickr Photo: Grocery Window by Ornello Pics
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CC-licensed Flickr Photo: Internet Chairs by Mads Bodker
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CC-licensed Flickr Photo: Specialty Store in St Augustine, FL by Maryland Route 5
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CC-licensed Flickr Photo: Gift Wrapping by Roberto Verzo
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