It's not easy to earn brand loyalty from Generation X, the set of consumers sandwiched between two larger groups -- Millennials and baby boomers, per a report scheduled for release this week. They may go to the brands Web site and search for products, but getting them to buy takes much more finesse.
The 2015 CrowdTwist Loyalty Program Report study, conducted in June 2015, analyzes the attitudes of Generation X consumers, which the study defines as being born between 1965 and 1980, and how they view loyalty programs. It explores consumer attitudes about loyalty programs and the ways in which they drive behavior and engagement.
This smaller group of consumers -- Gen Xers -- is just slightly less loyal to their favorite brands, compared with millennials. While extreme loyalty by Gen Xers at 14.9% remains difficult to come by, 34.7% are quite loyal, 34.2% moderately loyal, 10.2% are slightly loyal, and 6% not loyal at all.
Brand loyalists do not typically purchase a substitute brand, while Gen Xers are reluctant to switch brands. Only 4.7% are extremely willing compared with 9.9% who are quite willing; 43.4 who are moderately willing; 32.3% who are slightly willing; and 9.7%, not at all willing.
The study notes that marketers should pay attention to this generation's willingness to pay more for products and services, but it's not as easy to gain their loyalty.
Gen Xers, at 65.3%, say the top reason for dropping out of a loyalty program is the rewards are not compelling or relevant; and 55.3% say it takes too long for points to accumulate. Some 49.9% of respondents say there aren't enough ways to earn points, compared with 44.4% say the program is to complicated, and 26.6% said they don't find the programs exciting
Similar to Millenials, Gen Xers participate in loyalty programs as a means to save money, earn cash back or credit, and/or receive free products or services. These consumers are slightly more apt to want to save money in loyalty programs at 88.6%, compare with millennials at 83.3%. When it comes to engagement, 72% of Gen Xers say that they don't earn points for engaging with a brand such as tweeting, posting comments, checking-in, but 56.1% of Gen Xers are willing earn points for engaging in a loyalty program.