Fashion retailers targeting millennials operate in a competitive and challenging trading environment. Rails are filled with discounts and promotional codes, with choice of colour, size and style and spilling from every corner. Yet, there is still a lack of customer loyalty when it comes to fashion. Millenials will always have their favourite brands. But if you are offering no more than a funky style, what is stopping customers from buying the product elsewhere or looking for an alternative?
We uncovered the retention challenges brands are currently facing by surveying 100 UK millennials, investigating what it is that motivates them to stick with a fashion brand.
Millennials see fashion as an opportunity to express their individuality and personality. Understanding them in this way allows marketers to plan communications and loyalty schemes more appropriately, making the relationship a personal and unique one that fits into their lifestyle.
We discovered that millennials desire emotional added value. Offering this will lead to an increase in spend and brand loyalty. Did you know that 78% would rather spend money on an experience than a tangible good? Material objects are less of a desire to this generation and being given the chance to seek out shareable experiences makes them feel culturally richer and more satisfied. Experiences, when packaged as rewards, incentivise millennials to buy; they’ll choose a brand offering an emotional added value reward over a brand who isn’t, every time.
Millennials tend to engage more with brands who transform their story-telling into story-doing. For instance, Dr Martens and music have complemented each other since Pete Townshend became the first high profile individual to wear them in the 1960s. In doing so, he changed the course of the brand’s identity from functional work-wear to a subcultural essential. In the 1990s the brand became…