A new study by SAP Emarsys found that younger generations, particularly Gen Z, are less loyal to brands than older generations like Baby Boomers. The research shows that 46% of Gen Z shoppers in the UK have abandoned a brand they were once loyal to because they became bored with it. In contrast, 74% of Baby Boomers remain loyal to brands they like.
This loyalty decreases with each younger generation, with 70% of Gen X, 68% of Millennials, and 64% of Gen Z staying loyal to preferred brands. The study also highlights the importance of innovative marketing in attracting younger consumers. Around 30% of Gen Z have tried a new brand because of its creative marketing, compared to 23% of the general population.
Additionally, 31% of Gen Z are drawn to brands that use cool content or imagery, versus 21% of other age groups.
Gen Z’s shifting brand loyalty
Sara Richter, chief marketing officer at Emarsys, emphasizes the role of personalization in building long-term customer loyalty.
It’s clear that consumers today, not just Gen Z, expect more than ‘business-as-usual’ — they want meaningful and memorable experiences,” she said. “The key to delivering that is personalization for every customer.”
The study suggests that AI could play a crucial role in boosting customer engagement. 66% of marketers agree that AI will be essential for this purpose in the coming year. Half of the marketers surveyed have already seen an increase in engagement after implementing AI-powered personalization.
To succeed in driving brand loyalty, the study recommends focusing on personalization, creating memorable experiences, leveraging mobile apps, prioritizing product quality and pricing, encouraging active engagement, enhancing customer service, and offering incentives and rewards. As the marketing landscape evolves and a new generation, Generation Alpha, enters the scene, brands must continually innovate and adapt their strategies to retain the loyalty of younger consumers. Companies that embrace new technologies like AI and create engaging personalized experiences will be best positioned to succeed in this challenging environment.
