GT Nexus has recently published a study focused on the loyalty of the millennial. Done in November 2016 the survey has been done with a sample of 533 adults between 18 and 34 years old.

1- Reasons not to choose the preferred brand

The results show that 72% of the 18-34 years old have Not chosen their preferred brand during their last purchases over the last 12 months. This is 17% more than the results for UK and Germany. The first quick conclusion could be that the first barrier is the price (not even presented in the results!!!) and that they simply cannot afford their preferred brand. However, the reasons for not choosing it are more diverse:

29% claim that the preferred brand meets product quality issues.

21% found availability issues

17% the “bad” reputation of the brand regarding social relations

17% low environmental engagement

Surprisingly, the least common reasons highlighted by the GT Nexus are linked to digital performance and social media:

8% not an attractive website

6% not mobile app

6% no visibility on social media.

The conclusion presented of these results is that digital performance has much less impact than the excellence in the operation itself. However, this looks rather like a shortcut as both sides are in fact very much linked. If no stock is available there is no point in having a fancy website. On the other side, if there is full availability, a bad website (or no way to check it online) could lead to a longer delay to change the consumer perception.

2- The loyalty to the brand by product types

When asking for which categories the millennial are less loyal to their brands the results are not very surprising:

45% are not loyal to a brand for food and beverage

43% textile (clothes and shoes)

On the other hand, there is a quite high claimed loyalty for furniture (22%) and cars (13%), even if in this last category the target group did not, on average, have the opportunity to purchase too many items.

Conclusion

Even if the company ordering the survey is clearly steering the conclusions (again not a word on the price perception nor on the quality perceived and impact of the marketing) their conclusion about the importance of efficient operation and raising social and environmental responsibilities are confirming a lot of other surveys and now widely admitted by retailers.

millenials

 

Advertisements