The Lacek Group as usual publishes very insightful report on Generation Z loyalty, clearly distinguishing it from Baby Boomers, Gen X and Millennials.
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GLOA digitally native generation with the world available at its fingertips, Gen Z presents new challenges for marketers. Gen Zers’ unique sense of self and motivations are redefining consumerism. They’re consciously setting higher expectations for brands with their values-first mindset, leading and rewriting culture as we know it, and using technology as an extension of their identities and lifestyle habits.
Access full report here.
The Lacek Group defines Gen Z’s loyalty type as “Innovative Loyalty” conneting predominancty to brands whose values align with theirs.
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Key Takeaways:
- For Gen Z, identity isn’t a crisis, it’s an experiment: To effectively connect with Gen Z, marketers need to craft data-informed customer engagement strategies targeted to their individual wants, needs, and desires. Keeping up with their ever-evolving personas will likely be a challenge, so requesting and incentivizing zero-party data sharing throughout the path to purchase will enable marketers to learn and apply what resonates with Gen Z in communications and campaigns.
- How does Gen Z create trends?: The “if my brand loves me, I love it back” sentiment resonates strongly among Gen Z. Marketers can cultivate that emotional connection by rewarding Gen Z consumers who share their brand experiences through user-generated content.
- Gen Z consciously drives change, without apology: Loyalty marketers need to ensure brand values come to life by delivering program constructs or communications that emphasize brand-level values or commitments. Program offerings should resonate with the emotional side of consumers. Then implement a rewards strategy with a twofold benefit: letting shoppers feel accomplished and gratified after engaging and fostering societal change.
- Social media is their primary influencer: Brands must be integrated into social media for Gen Z. Making products available directly through social platforms is an imperative because Gen Zers primarily find inspiration within these channels—and they buy fast, driven by impulsivity and instant gratification. Brands have littletime in between the awareness and purchasing stages of the purchase funnel and must use data strategically to implement relevant, buzzworthy promotions, and tools that enable them to meet these consumers in the right spot at the right time.
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Convenience is a loyalty driver: While vying for this audience’s loyalty, marketers must consider the acquisition offer carefully. Taking a twofold approach (i.e., extending an offer upon enrollment and an additional offer after the first purchase) could reduce early churn. Marketers also need to be cognizant of this generation’s pain points. They dislike the time it takes to earn rewards, don’t want rewards to expire too quickly, and are put off by too many loyalty communications from brands.
Designing loyalty programs tailored to this audience requires marketers to find a value proposition with low-threshold, flexible, and fast redemption options. For example, while still keeping an eye on profitability, brands might consider partnering with complementary brands or integrating nontransactional program rewards to accompany traditional earning structures.
Source: The Lacek Group
