Demystifying Brand Loyalty Among Baby Boomers: Research Report

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Page 15 KEY FINDINGS The benefits and rewards of loyalty programs are key considerations that can encourage greater consumer participation. Across all age groups, consumers mostly favor discounts and coupons as benefits. According to the research, 74.2 percent of baby boomers say discounts or coupons are the most important benefit in a loyalty program, followed by cash back or credit at 69.2 percent. Despite belonging to the wealthiest generation, boomers tend to focus on quality, price, and value. Providing benefits that address these needs is essential to winning this group's attention, and ultimately, its loyalty. To resonate with this audience, brands must offer compelling discounts or valuable cash back offers. For example, brands might consider offering a 30 percent discount off sale and regular-priced items, giving boomers greater value and a bigger bang for their buck. Loyalty. Engaged. disCoUNT-/CoUPoN-MINDED Beyond discounts and cash back, 36.5 percent of baby boomers are also partial to earning free products or services as a loyalty program perk. This benefit gives participants a chance to stay involved in a program and work toward something they want. To be successful, brands should set a reasonable redemption threshold so members can easily attain the rewards. After all, nothing will detract boomers more from participating in a loyalty program than if the initiative is too complex or if it takes too long to earn points. (Read the Wavering Loyalty section for more). Baby boomers, like Gen X and millennial consumers, appear to value the ability to make donations to charitable causes as a loyalty benefit. According to the research, 31.5 percent of respondents say that making charitable donations as a loyalty program perk is most important. Despite other financial concerns, such as retirement preparedness and helping their adult children, baby boomers give the largest share of charitable donations of any generation. Allowing members to use points for charitable donations is a strategy that would resonate well with this audience and encourage ongoing participation and spend with a brand. CrowdTwist, 2015 Baby boomers are 8.3% more likely than millennials to join loyalty programs to receive cash back´┐Ż 7 7. Boomers Most Generous at Charitable Giving, AARP, Aug. 8, 2013

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