Millennials parents prove to be an appealing demographic group for retailers: they’re more highly educated than parents in other generations and are more likely to have above-average household incomes, according to an NRF report. What’s more, a majority (54%) identify as “very loyal” to the brands and retailers they shop, compared to 40% of other parents and 31% of Millennial non-parents.
While gaining Millennials’ loyalty is a complicated affair, it seems that earning the loyalty of Millennial parents will pay off for retailers.
Consider that, according to the NRF survey:
- Millennial parents (64%) are more likely than other parents (54%) and Millennial non-parents (49%) to typically shop first at a brand or retailer they’re loyal to before looking elsewhere;
- Millennial parents (52%) are also more likely than other parents (35%) and young non-parents (22%) to purchase from a brand or retailer they are loyal to even if there is a more convenient option at their disposal; and
- Half (49%) of Millennial parents will choose to buy from a brand or retailer they’re loyal to even if there’s a cheaper option available, a rate that compares favorably to other parents (30%) and Millennial non-parents (19%).
In fact, close to half (46%) of Millennials parents are loyal to at least 5 brands. It seems that parenthood may drive loyalty to a more diverse set of brands and retailers, as fewer than one-third (32%) of Millennial non-parents claim that many brand loyalties.
Millennial Parents Have High Expectations
Although young parents prove loyal to brands and display that loyalty in different ways, they don’t offer it without some expectations in return.
Indeed, 6 in 10 expect brands and retailers to listen and take action when they voice concerns. Listening to customer feedback has been previously seen as a key loyalty driver for Millennials, but the NRF research suggests that Millennial parents have higher expectations on this front than do Millennial non-parents (41%).
Millennial parents are also much more likely than others to care about what a brand stands for. Close to half (44%) claim to only shop brands and retailers that reflect their social or political values, making them twice as likely as other parents (23%) and three times as likely as Millennial non-parents (15%) to do so. Furthermore, half of Millennial parents say they always research a brand or retailer’s views on topics that matter to them, with young parents again doing so at a much higher rate than others.
Aside from these societal considerations, Millennial parents say that price and quality are the top reasons they’re loyal, with customer service next.
Failure to satisfy young parents on these counts could result in lost business: 61% of Millennial parents will shop somewhere else if they become dissatisfied, compared to just 44% of Millennial non-parents.
Other Survey Highlights
- Four in 10 Millennial parents are spending much more on experiences than they were a year ago, compared to 17% of other parents and 14% of Millennial non-parents.
- A majority (53%) of Millennial parents are interested in attending a retail event or experience, versus one-third of other parents and one-quarter of Millennials without kids.
- Some 43% of Millennial parents would rather rent products than own them, compared to 12% of Millennial non-parents.
- Millennial parents are more likely than other parents and Millennial non-parents to use mobile phones at each point of the purchase journey.
- Four in 10 Millennial parents currently have a subscription service, more than twice the share of other parents and Millennials without kids (18% each).
About the Data: The data is based on a survey conducted by Toluna Analytics among 3,002 US consumers ages 18 and older.