5 Tips to Raise Your Millennial Retention Rate

Retention rate is an important statistic for marketers. The retention rate of a company is the percentage of customers that you keep relative to the number you had at the start of your fiscal term.  Many brands and companies struggle to connect with their Millennial customers for lack of strategy and knowledge of the market segment. These 5 tips can help keep those Millennials loyal to your brand, boosting your retention rate overall.

1. Form Relationships

Millennials care about brands that prioritize them, their needs, and their interests. They expect high quality experiences and examine every aspect of a brand. Popularity is not as important as a brand’s authenticity and transparency. Your brand can set itself apart by customizing their experience while providing fast service.

Another great way to build a community of brand loyalists is through user generated content. Integrating UGC from real customers, partnering with brand ambassadors, and posting reviews and photos on your site and social media boosts engagement and retention rate. Personalized interaction shows your Millennial customers — and potential customers — that your brand values them.

2. Make Shopping Quick and Simple

Millennials are accustomed to having rapid, simple access to information on their smartphones, which 92% of Americans between 18 and 35 own. Retention rate goes down the longer your content takes to load, so be sure to optimize your content for mobile access.

Over half of customers are likely to completely abandon a purchase if they can’t easily find the information they need. Make the steps to purchase simple and smooth and make FAQs accessible and easy to find.

Ease of experience is absolutely critical. To further explore the staggering impact customer experience has on your business, check out this Jitbit blog to unpack the ways it burns your bottom line.

3. Don’t Harass Them

Despite wanting a personal touch, Millennials also want to be left alone. Digitally native consumers have had years of online experience and self-service options. They don’t always want or need human “gatekeepers”–who can often make things slow or inefficient. Be available to provide customer service when it is wanted, but don’t  hold their hand every step of the way.

After they make a purchase, don’t flood their inboxes with emails or beg them for reviews. If Millennials like a product and care about a brand, they will share and post in their own time. One quick way to drop retention rate is to bombard them with impersonal mass emails or hound them on social media.

4. Know Their Values

Over 50% of Millennial consumers purchase products from companies that support causes they value. They are concerned with political and ethical issues and look for authenticity in companies asking for their purchasing power. Millennial consumers care more about a company’s social values than previous generations and are more likely to spend money with a company whose values mirror theirs.

Sharing your brand’s mission and vision not only demonstrates your brand’s story and personality, but also is more likely to emotionally resonate with your Millennial customers. Out of 7,000 consumers who have strong relationships with a brand, 64% primarily based their loyalty on shared values.

5. Speak Their Language to Boost Retention Rate

Millennials have specific ways of communicating and speaking — especially online. They tend to be more informal and are used to quick communication from texting and social media. Millennials recognize when someone is trying to sell to them and are suspicious of openly branded or scripted interactions.

Make sure your online content and the content in your direct marketing communication fits their style of speaking, but don’t try to overdo the virtual speak. Being genuine and authentic goes a long way in forming a bond with your Millennial customers.

In a Millennial Nutshell

Marketers often struggle to retain their Millennial customers because they don’t know the values and priorities of their audience. Prioritizing genuine interaction, providing simple and smooth online transactions, and knowing when to step back are important strategic moves that will boost your retention rate. Building customer loyalty through transparency and authenticity will make Millennials more likely to stick with your brand and share it with others.

Hey Millennials! Let us know how we did! Anything else you appreciate (or not so much)? Share your thoughts in the comment section below!