What loyalty means to millennials vs. gen z

A CrowdTwist survey looks at the attitudes of both demos and how to build a successful program.
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Is loyalty built on price, product, service or brand principles? And how does the meaning differ between millennials and generation z?

Loyalty program provider CrowdTwist’s new report reveals some of the differences in how the two generations (“millennials” defined as those born between 1980 and 1994 and “generation z” born after) define and express their brand loyalty.

Almost 30% of millennials see brand loyalty as something almost absolute, saying they would “buy the brand regardless of price, quality, convenience or brand promise.”

Slightly more millennials (32%) define loyalty as sometimes buying a brand while considering “others at a lower price.”

Gen z respondents, however, showed a gap with their older cohorts, with 38% subscribing to the more flexible idea of loyalty versus 27% expressing true brand loyalty, the report said.

When asked to rank the factors that drive loyalty, both groups put product first (60% of millennials and 53% of gen z) and price second (16% and 20%).

Data Generosity
The survey revealed both groups are generous about sharing their data: roughly three-quarters in both sets said they would be willing to share personal information with a brand in exchange for a more personalized experience. More than half (50% of millennials and 60% of gen z) said they were likely to connect their social media accounts to a loyalty program.

Millennials are very active in brand loyalty programs, with 71% of respondents saying they belong to at least one, compared to 63% for gen z. Retail was the top category in both demos, followed by grocery and restaurants. But while financial services and travel were other top categories for millennials, media/entertainment and beauty performed better among gen z.

Amazon Prime was the top loyalty program among millennials surveyed, and number three for gen z respondents. Starbucks was tops for the younger generation, and third for millennials.

Saving money and a discounted first purchase were listed as the top reasons for joining programs across demos. Both groups also ranked member-only coupons/discounts and perks such as free shipping and samples as the most valuable components of a program.

The voluntary online survey conducted in June used an even distribution sample of 790 North American consumers aged 18 to 37. The report is available for free online.

Photo by Kendyle Nelsen on Unsplash