Commentary

3 ways to reach Millennials

Are you capitalizing on the fact that Millennials check their phones up to 43 times a day, and nearly half think brands should offer loyalty programs and allow mobile payments through mobile? If not, now is the time to reel them in and foster loyalty that lasts.

March 22, 2017

By Gillian Jones, QikServe

Is your restaurant competing effectively when it comes to getting the most out of the 18-to-34-year-old market? Are you capitalizing on the fact they check their phones up to 43 times a day, and nearly half think brands should offer loyalty programs and allow mobile payments through mobile? If not, now is the time to reel them in and foster loyalty that lasts.

We all know it's just common sense to market using new technology, especially mobile technology, to Millennials. They're the Uber-using, social media addicted, mobile-obsessed, tech-savvy generation that demands supersonic service through any and every channel. They're also not short on cash. Millennials are expected to spend more than $200 billion annually starting from 2017 and a staggering $10 trillion in their lifetimes.

A recent study by Aimia confirmed Millennials are the most loyal customer group for restaurants and coffee shops but that loyalty is falling. According to the report, 52 percent of 18-24 year-olds said they were loyal to restaurants, down 62 percent in December 2015 and the percentage of Millennials that are part of a restaurant loyalty scheme decreased from 31 percent in December 2015 to 26 percent in March of this year.

Up to now, many operators have been guilty of missing the target when it comes to digitally delivered smart marketing for the younger generations. But don't despair – as understanding of how this group wishes to engage with brands deepens, so too the successful, long-term capture of their custom grows.

Millennial loyalty to a particular brand and participation in specific loyalty schemes may be weakening but it presents a hugely lucrative opportunity for tech-savvy brands to outmaneuver their competitors and lure them back. Loyalty isn't on the decline because Millennials aren't eating out. In fact, they're the most likely age group to plan increased spending on restaurant dining in 2016 compared to the previous year. So here you have a bunch of affluent, mobile-minded diners, whose loyalty is up for grabs, as they look to dine out even more this year than last. If you're operating a restaurant and you've never held a mobile strategy meeting, you're crazy!

The question is, how do you encourage Millennials to return to your brand time and again? Here are some quick tips to galvanize their devotion:

Go mobile. It's fair to say Millennials are on mobile all the time so it makes sense your brand should be too. Whether it's a mobile optimized website or a fully branded, native mobile application, put control of the customer journey in the palm of their hands to foster the levels of loyalty that'll see serious returns. According to Forrester, 62 percent of customers searching for a company on their devices expect a mobile friendly website and 42 percent expect an actual dedicated application. So make sure your brand is optimized for mobile.
Offer the personal touch. Capitalize on the fact that 51 percent of Millennials are happy to share personal information if it means they could get more relevant offers and discounts. The beauty of a mobile order and pay app is that you can automatically capture very detailed information about guests. Everything from what modifications they make to their orders, how they like their steak cooked, which stores they visit the most down to the table they prefer to sit at and their payment method of choice – all of this information is ready to be mined and used for lucrative smart marketing campaigns.
Deliver loyalty convenience. Some 42 percent of Millennials think brands should offer a mobile loyalty program. Once you've captured their attention, make it easy for Millennials to stick to your brand. In essence, help them help you. By moving your loyalty to mobile, you give your guests the control to manage their rewards and you open a valuable communications channel to serve those highly tailored offers your Millennials are looking for.

The time is now to embrace your digital diners across the complete demographic spectrum but perhaps pay particular attention to your Millennial market while their loyalty lasts. If your restaurant doesn't have a mobile strategy, now is a perfect time to develop one especially as almost half of all smartphone users say they couldn't live without their phones! Your guests' digital mindset will only grow, so make mobile matter and start reaping the rewards of loyalty success to stay ahead of the pack