Being a millennial gave me the perfect opportunity to take ownership of this TLC Marketing research project that wanted to know more about the topical demographic group. I was surprised with the research findings that exploited the fact not many fashion retailers (targeting millennials) have a loyalty platform despite 'us' living for experiences over products and demand added value from fashion brands.
With a sample size of 100, our UK-based, survey respondents gave us great insight into what it is that motivates millennials to stick with a fashion brand and why. A loyal customer costs less to nurture than communication to acquire a new one. Even more so, millennials have potential to be customers for life and therefore their life time value makes them a very lucrative market. This research article uncovers the retention challenges faced in the fashion retailer sector and provides great opportunities for fashion brands to take the lead and set an example in fashion loyalty.
"Millennials see fashion as an opportunity to express their individuality and personality. Understanding them in this way allows marketers to plan communications and loyalty schemes more appropriately – making the relationship a personal and unique one that fits into their lifestyle.
The industry is currently full of designer collaborations, discounts and promotional codes but there is a desire from millennials for emotional added value which will lead to an increase in spend and brand loyalty.
Did you know that 78% would rather spend money on an experience than a tangible good? Material objects are less of a desire to this generation and being given the chance to seek out shareable experiences makes them feel culturally richer and more satisfied. Experiences, when packaged as rewards, incentivise millennials to buy and they’ll choose a brand offering an emotional added-value reward over a brand who isn't every time.
Millennials tend to engage more with brands who transform their story-telling into story-doing. For instance, Dr Martens and music have complemented each other since Pete Townshend became the first high profile individual to wear them in the 1960s. In doing so, he changed the course of the brands identity from functional work-wear, to a subcultural essential. In the 1990s the brand became synonymous with festival culture so, in 2015, Dr Martens brought the music to customers ears by giving £30 towards a gig ticket already purchased, or due to be purchased in the future".
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