Acumen Insights

Millennials Say Some Rewards Are Worth Paying For

By November 11, 2015 No Comments

A LoyaltyOne nationwide survey revealed Millennials ages 18-35 are significantly more receptive than the general population to fee-based loyalty programs. Sixty-two percent overall said they would consider joining a fee-based rewards program if their favorite retailer offered one. This was higher among Millennials with 75 percent of 18-24 year olds and 77 percent of 25-34 year olds saying they would consider fee-based reward programs. Rewards “relevant to your needs” are worth paying for said 65 percent overall, but again Millennials were more likely to agree (79 percent of 18-24 year-olds and 76 percent of 25-34 year-olds). Nearly half said rewards in fee-based programs are better than rewards in free programs but Millennials felt more strongly–61 percent of 18-24 year-olds and 54 percent of 25-34 year-olds.

Millennials disenchantment with current loyalty programs may explain their stronger acceptance of fee-based rewards; 57 percent for 18-24 year-olds and 52 percent for 25-34 year-olds said “all reward programs seem alike” compared to 49 percent of the overall population.