This article is brought to you by support from ZipLine, a NACS member.
PORTLAND, Maine – Millennials are fast becoming the largest socio-economic group in the United States, with their purchases forecast to encompass 30% of all retail sales, according to Business Insider. “These consumers are debt-averse and don’t really like credit cards. They overwhelmingly prefer debit or cash for their purchases, and they’ll shop where they can easily use these forms of payment,” said Kristen Bailey, chief customer officer for ZipLine, a mobile private label debit and loyalty solutions provider for retailers.
Retailers who meet the needs of this well-educated, tech-savvy and socially connected group will be well-positioned to capture this market. A study commissioned by Bankrate and compiled by Princeton Survey Research Associates International shows that as many as 63% of millennials don’t even carry credit cards. Given this high percentage, merchants have an opportunity to connect with the demographic through private-label debit programs, either with a branded debit card or a mobile app linked to a customer’s bank account. Through these programs, powered by ZipLine, the majority of millennial shoppers (67%) opt to pay with mobile, and 66% are more likely to shop at a retailer with a rewards program.
“When a millennial is gratified by a brand or retailer, that consumer can have a powerful impact on the brand,” Bailey pointed out. “Millennials are also highly influenced by experience—they are looking to be wowed and to have an awesome and unique experience.” Retailers who develop rewards programs based on customers’ specific buying habits will capture the loyalty of millennials.
“Millennials like being rewarded based on their shopping habits—they see this as a highly personalized connection from the retailer to them,” Bailey said. These consumers expect quick, simple and delightful purchasing experiences that meet their unique needs and will shop where they find them. Programs that seamlessly combine private label debit, and rewards, deliver on that expectation.