Lazy, narcissistic, tech obsessed, job-jumping, entitled trophy kids – any guesses as to what I’m describing? If you guessed the millennial generation you would be correct. After reading a few recent studies you might as well add “shopping obsessed” to the description of a millennial. According to a study done by BCG, the millennial generation spends $1.3 trillion (yes, you read correctly, TRILLION) annually and they also engage more extensively with brands, expecting a two-way marketing relationship.
In retail, customer lifetime value is extremely important and can be the company’s largest asset. Once a customer is hooked on your product or company, it is very likely they will continue to purchase from those brands in the future as well. Since the millennial generation is 35 and under, they are still in a place where marketers are fighting to get their lifetime of brand loyalty. Retailers are constantly using commercials, promotions and discounts to get the attention of the younger generations.
It’s pretty obvious that younger generations especially, do not enjoy being marketed to. They are quick to fast forward advertisements and immediately delete emails that promote new products. Clearly there is a struggle for retailers to reach these consumers but earning customer lifetime value is worth it to continue trying. Here’s three companies that are doing a great job of working towards customer lifetime value with the millennial generation.
Forever 21:
Forever 21 sells fashionable clothing and accessories that are extremely affordable for everyone. While Forever 21 currently has over 400 stores, thanks to their digital marketing efforts their website sees around 3.6 million unique visitors. In order to drive traffic to their website, Forever 21 utilizes social media to its full extent. With 8.8 million likes on Facebook, 1.38 million followers on twitter, 2.7 million followers on Instagram their products are prominently displayed all over the internet. Users are not afraid to share, re-tweet, regram or pin the items they see on these social media sites, ultimately creating viral fashion content. Another way Forever 21 attracts customers is through email discounts that are sent out weekly. Using these online discounts is even easier than ever since Forever 21 has adopted an omni-channel approach by selling their products in-store, online and on mobile apps available for Android and iPhone.
Hot Topic:
Hot Topic focuses on selling apparel, gifts, accessories and music items for men and women who reflect a passion for music and pop culture. If you ever want a shirt from a popular new movie, book or tv show, Hot Topic should always be your first place to look. With over 600 locations, 40% of Hot Topic’s revenue comes from the sales of their licensed t-shirts. Hot Topic often negotiates exclusive licensing agreements with movies, bands and other artists. Another way they attract customers is through their military discount in-store. Offering a military discount is always a great way for companies to give back to those who have served. Plus 94% of present and past military personnel state that they notice when companies are “military-friendly” and have a positive impression of those companies.
Buckle:
Buckle is an upscale retailer that sells trendy clothing, accessories and shoes. Currently Buckle has over 300 stores around the United States. In order to gain their customer lifetime value, Buckle emphasizes superior customer service and emphasizes personalized attention with sales associates who are always willing to help you find the product you are looking for. They offer services such as free alterations, free gift-wrapping and layaways. Like Hot Topic, Buckle also offers a military discount. One great feature of their military discount is that it is accessible online through a verification system. It allows Buckle to not only protect their offer from fraud but is also a simple, risk-free and cost effective way for Buckle to support our troops.
Overall, Forever 21, Hot Topic and Buckle are doing a great job fighting for their customer lifetime value. Connecting with your customer base, whether it be through social media or in stores, is very important and one attribute all these stores have. Offering discounts is also important, especially exclusive discounts for students or military. Exclusive discounts not only make people happy, but also help create loyalty to your company. People like companies that are willing to honor their service in the military or the fact that you’re a broke college student that likes a good deal.
How does your company gain lifetime customer value? If your company is looking for a way to provide exclusive offers and discounts to segments of your customer base, contact SheerID!