Check out our posts on how brands have fostered strong customer loyalty.

Loyalty Through a Millennial Lens, Part 2

Welcome to the second installment of the Loyalty Through a Millennial Lens video series in partnership with The Wise Marketer.  

This week, Evan Snively speaks with seasoned loyalty expert, Bill Hanifin. In this video, Evan expands on his favorite brands and whether or not any of these brands have a loyalty program. While none of the brands have a traditional loyalty program, Evan’s Spotify Premium membership provides him with an elevated listening experience. Spotify generates custom playlists for Evan each week, and some of them are nostalgic, or throwbacks to previous times in his life. This allows Spotify to create an emotional connection with Evan. Spotify Premium is a good example of how well-executed data personalization can become a loyalty program. 

Spotify Premium is exhibiting both aspects of Inertia & True loyalty to keep Evan engaged in the program. For more information on the four types of loyalty, click here. 

Finally, Evan shares what turns him off from participating in a loyalty program: 

1. When the employees don’t know how the program works. 

If the employees don’t care about their employer’s loyalty program, why should consumers? Employees are key in executing the brand’s loyalty experience. 

2. When it’s not clear how to master the program. 

When the consumer has little influence on how they perform in the program, it can be a turn-off. If the rule structure is difficult to follow, and the element of excitement is always something random, the program will fail to change the consumers’ behavior. 

For the full video, watch below: 

What are your major loyalty program turn-offs? Share in the comments below! 

What Does a Loyal Customer Really Look Like? (Podcast)

Have you ever wondered how banks and credit card companies can attract new customers and grow their purchasing relationship? To attract, engage, and retain those best customers, we have spent decades helping banks and financial institutions grow customer loyalty and create strong relationships with their customers. VP of Loyalty Strategy, Barry Kirk shares his experience and expertise on the Payments Journal podcast, hosted by Editor-in-chief, Ryan McEndarfer. The podcast covers different loyalty topics and how they specifically apply to the banking and credit card space.

Listen to the full podcast on Payments Journal or access the full transcript here. By listening, you will hear about: 

  • The correlation between brand loyalty and reward spending habits 
  • Insights about customers point saving and spending habits 
  • Which incentives customers actually prefer 
  • Tips for financial institutions and card companies that want to better connect with their loyalty program customers 
  • How companies can work to change customers from mercenary loyalty to cult loyalty 

To listen to the podcast on Payments Journal, click here. 

PODCAST: How to Build Brand Loyalty Today and Tomorrow

Consumers are human beings first. This is important to keep in mind when you think about building customer loyalty.

On the surface, that can be easy to remember, but you’d be surprised how easy it is for people to forget that. So many businesses today are in this downward spiral of reducing customers to a statistic or entries in a database. As marketers, we often think of consumers in segments and there are good reasons for doing that, however – it’s critical to remember at the end of the day, you are dealing with human beings – and you have to understand what makes them tick in order to influence them. And that’s what marketing is all about.

The shift over the last year or two to the focus of AI over big data has been very helpful in solving the problem of dehumanizing consumers. Big data was sort of a useless term – it didn’t really tell us anything. Artificial intelligence is essentially a way to move beyond thinking of consumers in terms of numbers and humanize it into the experience.

Maritz Loyalty’s VP of Loyalty Strategy, Barry Kirk, was recently featured on the On Brand Podcast: How to Build Brand Loyalty Today and Tomorrow with host Nick Westergaard. In this episode, Barry expands on the recent shift to Artificial intelligence, as well as:

  • How loyalty is today
  • The modern forms of brand loyalty
  • The impact of neuroscience on marketing
  • Tips on how to focus your own customer loyalty program

Click here to listen to the full podcast!

Two Reasons HENRYs are the Most Important Subset of Millennials

Before we get into the reasons why HENRYs are the most important subset of millennials, you might be asking yourself what millennial HENRYs are and why you should care.

It’s safe to say most people are familiar with the millennial generation, as they have been a hot topic for the past 10 years. The intensity of interest in them is growing as their purchasing power increases, soon to surpass that of the Baby Boomers. Tons of articles are published every day about how to engage with millennials, or how to incorporate them into your marketing strategy. Many companies have identified a need to connect with the millennial generation. A handful have defined an actual strategy around targeting and engaging them (seen a Diet Coke ad lately?).

The intensity comes from a reasonable place — a desire to tap into a segment of the American population with both a high disposable income and a lifetime value to a brand that could span decades. But there’s a problem — targeting a loosely defined group of 80 million people doesn’t exactly classify as a marketing strategy. The truth is — from top to bottom — millennials are the most diverse generation of economic significance in the US today. So we need to stop treating them all the same.

Within the diverse mix of college co-eds and minivan driving parents the secret to effectively leveraging this generation of consumers can be found by targeting one specific group known as the HENRYs. If you want to develop a successful marketing strategy, or develop a strong loyalty strategy, millennials are not your target. Millennial HENRYs are your target.

HENRY stands for High Earner Not Rich Yet. A HENRY is defined as: a household under 55 years old with an annual income between $100K and $250K, but that has not amassed investable assets of $1M. And while demographics for the term HENRY technically span 3 generations, the Millennial HENRYs are where brands need to focus for two core reasons:

1. They have a significantly higher budget for discretionary spending than Gen X or Baby Boomer HENRYs.

2. Young HENRYs are the most likely to become the brand’s most valuable customers both in terms of money spent & influence given over their lifetimes

So, how do you engage with this segment of consumers? What are their spending habits like? Download our white paper: Millennials are Not Your Target to learn more and gain strategies for engaging with this group.