67 % of millennials changed brands in the last year according to a survey by YouGovnd and supply chain commerce cloud provider GT Nexus. Although this clear lack of brand loyalty among 18-34 year olds is intriguing, the truly stunning finding of this study is the cause of their disloyalty.
Factors that Drive Millennials’ Brand Disloyalty
The four major factors that caused millennials to turn on their favorite brands in the past year are related to operations, logistics and supply chain management. With the four major factors being:
- Product quality
- Availability issues
- Working conditions
What are the key stats from the millennial research?
- The lack of a strong social media presence (9 percent), the lack of a mobile app (7 percent) or the lack of a cool website (7 percent) don’t compel millennials to turn on their favorite brands.
- Thirty-two percent of respondents would turn on a brand if it doesn’t treat or pay its workers fairly.
- Twenty-seven percent would switch brands if the product isn’t environmentally friendly.
- US millennials care about how their favorite brands are made. Thirty-two percent of respondents would turn on a brand if it doesn’t treat or pay its workers fairly. Twenty-seven percent would switch brands if the product isn’t environmentally friendly.
- Respondents cite quality problems (49 percent) and issues with product availability (44 percent) as the two biggest reasons for switching from one of their favorite brands to another.
Is a new loyalty approach needed when looking at millennials?
This information is a game changer because it goes against the popular belief, that consumer-facing marketing factors, such as a mobile and social media presence are the driving factors of millennial loyalty. This newly painted picture of the millennials as a demographic changes the way that marketers need to approach this age group.
Millennials have often been referred as digital natives. But according to the study, social media presence, mobile, and websites when compared with behind the scenes issues have very little impact on millennial brand loyalty. According to Guy Courtin, Vice President of Industry and Solutions Strategy at GT Nexus, “In recent years, manufacturers and retailers have paid a lot of attention to consumer-facing marketing factors like websites, apps, and social media to attract and keep millennials loyal to their brands.” With this new found information, the way that companies invest may shift drastically says Courtin because now not only is a company’s ability to ship and deliver their products vital on a functionality level but it also has a direct line to the health of the brand.
What does this mean for retailers?
The data discovered from this survey is a very clear message from millennials about their values and expectations of companies that they purchase from and is a warning that manufacturers and retailers should recognize and strive for fair, transparent and environmentally friendly supply chains.
Source: GT Nexus
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Filed under: Brand Loyalty