Gen Z shoppers aren’t fans of loyalty programmes

Anne Freier

In mcommerce

June 5, 2018

Just 30% of Generation Z shoppers view loyalty programmes as a positive thing, according new research by marketing company Kobie Marketing. The survey of 1,000 US shoppers found that a mere 15% of Gen Z engage with three or more loyalty programmes compared with the all-ages consumer average of 41%.

Meanwhile, Generation X is the most likely to take part in loyalty promotions and programmes (62%).

It appears that there may be a need for better targeting and revised strategies to cater to younger generations when it comes to loyalty programmes.

Among the core reasons why consumers choose not to join loyalty programmes are being asked too much personal information (26%) and the process of earning points taking too long (22%).

The report also found that 90% of consumers said their favourite brands actively communicated with them.

Overall, Gen Z customers are more open to receive information from brands through online platforms (20%) compared to other generations (6%).

Meanwhile, 35% of Millennials consider price the core factor when it comes to the brands they are loyal to. Free shipping is also considered a valued strategy.

Baby Boomers (50%) and the Silent Generation (58%) would prefer less invasive technologies as part of their shopping experiences. At least 50% are less likely to purchase from a brand that uses artificial intelligence technologies.

Older generations generally prefer loyalty swipe cards and store credit as their loyalty programme formats of choice.