Everything you need to know about Gen Z loyalty

Episode 3 June 06, 2024 00:08:05
Everything you need to know about Gen Z loyalty
Loyalty Discussions with White Label Loyalty
Everything you need to know about Gen Z loyalty

Jun 06 2024 | 00:08:05

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Show Notes

Discover the key drivers of Gen Z loyalty, their unique preferences, and effective strategies to engage and retain this influential generation.

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Episode Transcript

[00:00:01] Welcome to this episode of loyalty discussions where we're going to tell you everything you need to know about Gen Z loyalty. [00:00:10] Gen Z is becoming a significant part of the consumer market and businesses need to adapt their marketing strategies to effectively reach this new generation. [00:00:19] Gen Z already accounts for 40% of the global consumer population and their spending power has reached over $360 billion, making them a hugely important consumer group for businesses to target. [00:00:36] But Gen Z consumers act differently and have different expectations than other generations. [00:00:44] Want to hear a mind blowing statistics about Gen Z loyalty? [00:00:48] Among Gen Z'ers with a favourite brand, more than 50% would switch it up. If another brand were cheaper or of higher quality, 30% would revert to their go to brand for a new product or service, and a whopping 62% said that they would check out other options even if they have a favourite brand. [00:01:09] Does this mean that Gen Z loyalty is inherently unstable? [00:01:14] That Gen Z core values are incompatible with loyalty programs? Or does this mean that companies need to switch their strategy? When it comes to building loyalty in this new generation, Gen Z loyalty presents a unique challenge for brands. Despite having favourite brands, over 50% of Gen Z'ers would switch to a cheaper or higher quality option. [00:01:40] This raises questions about the stability of Gen Z loyalty and the effectiveness of traditional retention methods. [00:01:49] Let's have a look at the factors that drive Gen Z loyalty. [00:01:54] The loyalty of this generation is influenced by several key factors. [00:02:00] First, remember that Gen Z are true digital natives. [00:02:05] Unlike previous generations, Gen Z grew up with online shopping as the norm. This digital accessibility has shaped their purchasing behaviour and reduced their brand loyalty. [00:02:19] To appeal to Gen Z, brands must prioritize a robust digital presence. [00:02:25] Secondly, this new generation tends to do extensive research before making a purchase. [00:02:32] Gen Z relies heavily on online sources, particularly social media, for inspiration and product research before they make a purchasing decision. [00:02:43] This emphasises the importance of brands being present across various online platforms, especially social media such as Instagram and TikTok, to reach their target audience effectively. [00:02:57] And finally, Gen Z are the first generation that are highly influenced by values. Gen Z tend to take a value based approach when shopping, which means they prioritize brands that align with their values. They really consider a brand's impact on society, including ethical manufacturing practices, the treatment of employees and environmental sustainability. [00:03:26] Brands must demonstrate their commitment to these values if they want to create loyalty among Gen Z consumers. So how do you build loyalty with Gen Z? [00:03:37] To effectively build loyalty with the younger generations, brands must take a multifaceted approach. [00:03:44] First, liquidity programs must be tailored, offer tangible benefits such as free delivery, discounts and instant access to products or services. [00:03:56] Gen Z values convenience and instant gratification, making perks like free returns or fast delivery really essential for their loyalty. Gamification is also a feature that really resonates with this audience. [00:04:12] Incorporating gamification elements into a loyalty program can enhance the user engagement challenges, rewards and interactive features. Encourage active participation and collaboration among Gen Z consumers. [00:04:29] And dont forget about social engagement. Gen Z is highly active on most social media platforms, making social engagement a crucial aspect of building loyalty. [00:04:41] Brands should encourage users to refer friends, share content and advocate for a brand on social media channels. [00:04:50] You must also consider the omnichannel experience that you provide. [00:04:55] Members of the Gen Z generation are omnichannel shoppers, expecting a seamless experience across online and offline channels. [00:05:04] Brands must ensure consistency and accessibility across all touch points, including physical stores, websites and mobile apps. [00:05:17] And finally, supporting sustainability initiatives and aligning with Gen Zs values can enhance brand loyalty. [00:05:26] Gen Z expects brands to take responsibility for their environmental impact and support the causes that resonate with their values. [00:05:35] This could look like demonstrating your corporate responsibility or supporting social causes. [00:05:41] For example, you might want to offer a reward option where you donate to charity on behalf of your customers. [00:05:49] By incorporating these social values into your loyalty program, brands can enhance their appeal to Gen Z consumers and create lasting relationships. So while Gen Z loyalty may appear less stable compared to previous generations, it's still achievable with the right strategies. [00:06:08] Brands must prioritize personalisation, social engagement and company values to attract and retain Gen Z consumers. Think about how you can demonstrate your commitment to social and environmental causes. [00:06:24] Gen Z cares deeply about issues like sustainability, diversity and social responsibility. [00:06:31] Brands that show a genuine dedication to positively impacting the world are more likely to resonate with this generation. Also prioritize transparency and authenticity. [00:06:44] Gen Z values honesty and will thoroughly research a brand to uncover its true values and practices. [00:06:51] So make sure you're being transparent about your operations, sourcing and impact on the world always leverage social media and online communities as digital natives, Gen Z spend significant time on social media. Brands should have an active presence on platforms like Instagram, TikTok or Twitch. Create engaging content and foster a sense of community. [00:07:15] Provide a seamless omnichannel experience. [00:07:19] Gen Z expects a cohesive experience across a brand's online and offline touchpoints, so brands must ensure that their digital and physical offerings are well synchronized. [00:07:31] In summary, to effectively appeal to Gen Z, businesses must align with their values and create a customer experience that prioritize the preferences of this influential consumer group thanks for listening to this episode of loyalty discussions where weve explored what you need to know about Gen Z loyalty. [00:07:53] Head to our website if you'd like to learn more about customer loyalty, or feel free to get in contact with one of our loyalty experts to discuss your loyalty journey.

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