With the enormous buying power that the millennial generation represents, businesses are clamoring for their dollars and loyalty. However, creating the right formula to attract and retain this generation of shoppers has proven to be tricky.

Highlighting our latest consumer research that focused on consumer attitudes toward loyalty programs, Theresa McEndree, VP of Marketing at Blackhawk Network, offered Payments Journal some insights for retailers trying to appeal to younger generations. There has been a lot of discussion on the staying power of loyalty programs as consumers’ shopping habits evolve. Yet our research indicates that the blueprint for success can be found in loyalty program rewards.

For brands looking to tailor loyalty programs to younger generations, McEndree urges them to keep in mind that:

Millennials love loyalty programs.

Millennials have been around loyalty programs their entire lives and expect to be rewarded for their loyalty. Overall, millennials belong to more loyalty programs than other generations and are also more active in them. We found that millennials belong to an average of 6.5 loyalty programs and are active in an average of 4.2.

Cards top the “most wanted” rewards list.

Millennials have an inherent familiarity and trust of gift and prepaid cards. They also appreciate the flexibility and choice that these rewards offer. Our research found that 82 percent of millennials would be interested in redeeming loyalty points for a gift card or prepaid reward card. It also found that millennials are more likely to redeem loyalty points for a prepaid card than any other generation.

Digital rewards are preferred.

With the enormous buying power that the millennial generation represents, businesses are clamoring for their dollars and loyalty. However, creating the right formula to attract and retain this generation of shoppers has proven to be tricky.

It’s not surprising that millennials prefer digital reward options. Our research found that 65 percent of millennials prefer digital rewards to physical when asked to choose between the two.

Modern reward options have not only kept up with consumer trends, but appear to be thriving among younger generations.