Research Indicates Personalization, Omnichannel Engagement And Loyalty Programs Are Valuable To Young Consumers.
CrowdTwist, an industry-leading provider of multichannel loyalty and engagement solutions, released a new research report titled “Generation Z vs. Millennials: The Changing Landscape of Loyalty”. CrowdTwist conducted research into the similarities and differences between Generation Z and Millennials in their attitudes towards brand loyalty and engagement. The research explores how they engage with brands, their shopping habits, their brand loyalty and the loyalty programs they are active in.
The results indicate that in order to encourage loyalty among younger generations, 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. Marketers should note that there is growing opportunity for non-traditional industries such as beauty and media and entertainment to adopt loyalty programs.
Key findings include:
- 57% of Generation Z prefer shopping in-store: Despite being digital natives, Generation Z prefer to shop in-store rather than online, and a slightly larger percentage of them compared to Millennials prefer to do so.
- 75% of Millennials and Generation Z are willing to share personal information in exchange for a personalized experience: Customized experiences are important to Millennials and Generation Z, so much so that the majority of participants surveyed are willing to provide brands with additional personal data.
- 63% of Generation Z are active in at least one loyalty program: Despite their youth and reputation as “less brand loyal,” the majority of Generation Z are already participating in at least one loyalty program. 71% of Millennials are also active in at least one program.
- Generation Z consumers rank beauty and media & entertainment in the top 5 categories for loyalty programs. It is worth noting that beauty ranks #5 with Millennials.
- Loyalty programs provide a competitive advantage: The majority (64%) of both Generation Z and Millennials could be persuaded to shop with a brand if they have a loyalty program.
- Almost 40% of Generation Z ranked playing games as their preferred way of earning points as part of a loyalty program. Generation Z 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.
Scott Matthews, CEO of CrowdTwist remarks, “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. 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.”