Millennials are Australia's most loyal consumers new research from Zendesk reveals.
According to the Zendesk Customer Experience Trends Report 2020, nine out of 10 18-24 year olds indicated that they like purchasing from their favourite brands, while four out of five stated they would go out of their way to buy from these brands.
Depite being loyal to brands, millennials are also the most ruthless when it comes to leaving brands after a bad experience.
58% of respondents indicated that they would switch to a competing brand after one bad experience, while 91% would leave after multiple bad experiences.
The report also indicates that Australia's customer satisfaction level is at its lowest in five years according to Zendesk's benchmark data.
The data suggests that only three hours separates a good customer experience from a bad one. If a retailer responds with a first reply within two hours that is considered good service, whereas a response time of five hours or more is considered bad service.
To build brand loyalty amongst consumers, the research states that customer experience (CX) is the key ingredient with approximately 75% of respondents identifying this as the driving factor to build loyalty, with 91% of millennnials prioritising this ahead of price and product/service offering.
Zendesk customer experience strategist Malcolm Koh said that retailers have an oppoprtunity to capitalise on technologies to improve the brand experience.
"Millennials have historically received a bad rap when it comes to purchasing behaviour, however our data shows that they are simply misunderstood, and so companies need to look at engaging with millennials differently to how they would other customer groups.
"From moving to channels millennials prefer to use like Facebook and Twitter, to using forms of communication that feel more conversational such as messaging, companies have an exciting opportunity to build a loyal and high-value customer base, as well as nurture long-term brand advocates.
"Providing a great customer experience is the best way to attract and retain them. Conversely, failing to keep them happy will see you lose those fans more quickly than any other demographic," he said.
To appeal to the millennial demographic, Koh added that authenticity is a driving factor in retaining the millennial customer.
"Millennials’ expectations are pretty clear; they want brands to treat them as people, not just a transaction.
"For brands, this means personalising your communications, ensuring they are seamless and engaging, and are available on the channels that your customers prefer.
"A consistent, authentic customer experience is now a key driver to your long-term success as a business," he said.