Honors Theses

Date of Award

2016

Document Type

Undergraduate Thesis

Department

Integrated Marketing Communication

First Advisor

Christina Sparks

Relational Format

Dissertation/Thesis

Abstract

The purpose of this study is to examine the most effective techniques businesses use to attract and retain loyalty program memberships targeted to the Millennial demographic group. The methodology used to reach insights around this topic includes secondary and primary research that aided in the understanding of the effectiveness of communication strategies used to appeal to Millennial consumers. Initially, the researcher conducted secondary research by consulting books and surveys written by industry professionals as well as scholarly articles. Next, the researcher designed two electronic surveys. One survey had 63 anonymous respondents and the other survey had 119 anonymous respondents, all within the Millennial demographic group. The respondent groups were made up of young adults between the ages of 18 and 34. The surveys focused on defining the term loyalty marketing through the words of Millennials. Survey respondents were asked questions centered around how they interact with loyalty programs, what incentives drive them to purchase more and how their loyalty is reflected in their purchases. To further stimulate discussion and garner insights, in-depth interviews and a focus group were conducted. During the interviews and focus group, Millennial participants were asked to elaborate upon their likes and dislikes of loyalty programs. The researcher also conducted interviews with three marketing industry professionals to learn more about what makes loyalty work as well as what are the most effective incentive drivers for consumers. The interviews were with the Director of Marketing at The Coca-Cola Company, the Global Loyalty Account Director at Ogilvy & Mather, a major marketing and public relations agency, and the Assistant Athletic Director of Marketing for The University of Mississippi. Additionally, the researcher enrolled in several loyalty programs over the course of the study to monitor the marketing messaging communicated to Millennials. It was concluded that if businesses successfully enroll and then continually engage Millennials through a two-way, interactive relationship, Millennials will progress through a four-point loyalty member life cycle that develops from acquisition to engagement to retention and finally, advocacy. After compiling the insights from the above research strategies, a marketing campaign for a hypothetical loyalty program was created and included in the end of this study.

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