Type to search

Technology-based loyalty features key to appealing to Millennials: Nielsen

Technology & Data

Technology-based loyalty features key to appealing to Millennials: Nielsen


Technology-based loyalty program features are the key to appealing to Millennials, a new report says.

Loyalty program features are more appealing to Millennial shoppers than Baby Boomers, particularly ones focused around integrated apps and social media, Nielsen’s ‘Global Loyalty Sentiment’ survey reveals.

Loyalty programs tied-in to apps and social media in particular, Millennials rate as up to 30% more appealing than their Baby Boomer counterparts do.

Here’s the percentage of global respondents who rate the feature very or somewhat appealing:

  • Integration with third-party apps that consolidate loyalty program information: Millennials: 63%, Baby Boomers: 29%,
  • store-specific loyalty program app: Millennials: 70%, Baby Boomers: 40%,
  • points or rewards for sharing products and pages on social networks: Millennials: 72%: Baby Boomers: 40%,
  • integration with mobile payment system: Millennials: 76%: Baby Boomers: 48%,
  • tiered programs with exclusive rewards for customers in a particular level or status: Millennials: 69%, Baby Boomers: 45%,
  • points or rewards for referrals: Millennials: 72%, Baby Boomers: 51%,
  • opportunities to earn bonuses by doing some specified activity: Millennials: 81%, Baby Boomers: 65%,
  • personalised product or service recommendations: Millennials: 69%, Baby Boomers: 45%, and
  • personalised discounts or promotional offerings: Millennials: 79%, Baby Boomers: 70%.


Features that remain appealing to Millennials and Baby Boomers are ‘points or rewards for purchases made instore, on a website, or on a mobile device’ (80% and 79% respectively) and ‘the ability to choose among several types of rewards’ (81% and 75% respectively).

In Australia 57% of Australians say they would spend more money with brands offering loyalty programs.

Finding’s from Nielsen’s ‘Global Loyalty Sentiment’ survey  reveal globally, 67% of consumers agree they shop more frequently and spend more at retailers with loyalty programs.

Product discounts were the most preferred loyalty reward, with 51% of consumers including this in their top three faviourites, and therefore most likely to drive further custom, followed by:

  • Rebates or cashback, 45%,
  • free products, 33%,
  • free shipping, 32%,
  • frequent flyer points, 22%,
  • exclusive access to sales or merchandise, 15%,
  • discounted shipping, 13%,
  • higher priority service, 12%,
  • recognition as a valued customer, 12%,
  • personalised products or service experiences, 10%, and
  • charitable donation, 7%.


“In today’s market, consumers are faced with a dizzying array of retailers vying for their attention, and a retail loyalty program can be a determining factor of where they decide to shop,” says Megan Treston, director retail services at Nielsen.

Omnichannel rewards are very important to Australian shoppers, with 67% saying it’s important they be able to earn rewards regardless of whether purchases are made instore, online or on mobile devices.

“Tailoring loyalty benefits for specific consumers, and using the loyalty program engagement vehicles – be it via an app, email, or in-store interaction – all allow retailers to personalise the loyalty program so that its not just a discount vehicle,” added Treston.

Related: Roger Christie says the expectations on marketing do not align with the opportunities social media offers »



Image copyright: Elenathewise / 123RF Stock Photo

Ben Ice

Ben Ice was MarketingMag editor from August 2017 - February 2020

  • 1

You Might also Like

Leave a Comment