Brand loyalty differs amongst millennials and GenZ but personalized experience resonates for both

Brand loyalty differs among younger generations

Brand loyalty is evolving among younger generations and is increasingly built on personalized experiences where non-traditional approaches sometimes gain the most loyalty among the young.

A survey by loyalty and engagement company Crowdtwist entitled “Generation Z v. Millennials: The Changing Landscape of Loyalty” speaks to a widening gap in brand loyalty among each generation particularly with Generation Z where 57% of those surveyed said they like to shop in a store rather than online (57%). However, GenZ and millennials respond best to loyalty programs, which is considered one of the biggest drivers of brand choice for these generations.

The survey was conducted in June 2017 of 790 North American consumers aged 18-37.

The survey suggests that brands must build personalized experiences, facilitate engagement across all channels including in-store, online, social, and mobile, and provide relevant loyalty rewards and a wide range of opportunities to earn loyalty program points, that includes playing games and writing reviews. Further, marketers should note that there is growing opportunity for non-traditional industries such as beauty and media and entertainment to adopt loyalty programs.

The survey also found that 75% of millennials and GenZ are willing to share personal information in exchange for a personalized experience and despite their youth and reputation as "less brand loyal," the majority of GenZ are already participating in at least one loyalty program. 71% of millennials are also active in at least one program.

"The survey results provide a comprehensive overview of the current loyalty climate and a view into how Generation Z could change the way brands engage with consumers in the years to come. Loyalty programs remain one of the biggest drivers of brand choice across both generations. In fact, the younger generations are driving the success of loyalty programs,” said Scott Matthews, CEO of CrowdTwist. “In order for brands to succeed in meeting the expectations of these young consumers, they must adopt a data-driven, omnichannel approach to customer loyalty."

GenZ consumers rank beauty, media and entertainment in the top five categories for loyalty programs. Further, loyalty programs provide a competitive advantage with (64%) of both GenZ and millennials drawn to a brand if there is a loyalty program or incentive. Further, almost 40% of GenZ ranked playing games as their preferred way of earning points as part of a loyalty program. GenZ are also almost 50% more likely than millennials to write a review for a brand in exchange for points.

Brands should build a strong Facebook presence to better engage millennials.

Millennials are more active on Facebook than any other social media platform, yet only a small percentage engage with brands via their Facebook accounts.

Search The Drum Jobs

Explore the best jobs in Marketing and Media industries
View all open jobs

Laurie Fullerton

Laurie Fullerton is a writer based in Boston, MA with a background in business, sports, community, medical and travel writing. She has been a newspaper editor in the Boston-area, a sports writer covering yacht racing and a community reporter. She has been reporting for The Drum since October 2015.

All by Laurie