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What Wins Gen Z Over in Loyalty Programs

While brand loyalty isn’t guaranteed from young adults, it can be earned through the right rewards…

Written and Edited by the YPulse Editorial Team
KEY TAKEAWAYS
  • While young consumers aren’t fully committed to most brands, rewards programs can build brand affinity (if done right)
  • Getting something for free is the number one perk young adults find appealing in loyalty and rewards programs
  • Discounts and coupons are key, as they help these already cash-strapped young consumers stretch their money
YPulse has said many times before that most young consumers consider themselves “loyal-ish” to brands—they’re not fully committed, but they’re not indifferent either. But in that middle ground, brands do still have a chance to win them over. One of the most effective ways to do that is through loyalty and reward programs. YPulse’s Brand Loyalty report shows 62% of 13-39-year-olds currently belong to a rewards or loyalty program. And these programs actually influence how they shop: 76% of young people say they’ve tried new products because of reward programs, and 68% say they’re more likely to shop with a brand that has one. But that also means the stakes are high; not all rewards hit the mark, and young people aren’t afraid to walk away when they don’t.   There’s plenty of examples of Gen Z changing up on a brand because of rewards. Just a few weeks ago, Starbucks rolled out changes to its long-running rewards program, introducing a tiered system meant to offer more flexibility. Instead, it...

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