Engaging Gen Z via Customer Loyalty Programs
Young adults are the least likely to sign up for loyalty programs but the most-engaged members once they join.
Apr 16, 2019
NEW YORK—There is a contradiction in customer loyalty programs: 18-to-24-year-old consumers are both the least likely age group to sign up for loyalty programs and also the most emotionally engaged members once they join, indicates a new report from YouGov, a U.K.-based market research and data analytics firm.
A key finding in the report, “What Americans think of loyalty programs,” is the tremendous opportunity for brands that can capture the attention of this key demographic early and cement their position as these consumers grow older.
Although 68% of Americans age 35 and older subscribe to at least one loyalty program, less than half of 18-to-24 year-olds belong to one. Once the latter group of consumers matures past age 25, their engagement levels increase to 57% and continue to trend upwards with each age bracket, YouGov reports. Still, customer loyalty becomes more and more saturated as consumers mature, making it difficult to measure whether they are truly loyal to any one brand.
Overall, 58% percent of those subscribed to a loyalty program said they spend more with a brand. And nearly half of those who are part of a loyalty program said they are more likely to recommend a brand. Forty-two percent of program members said they feel emotionally connected to a brand when they are a part of a loyalty program—the percentage jumps to 54% among consumers age 18 to 24.
“A brand that is capable of cultivating an emotional relationship with its customers succeeds in separating itself from the rest of the pack and can continue to build on that advantage for years to come,” the YouGov report notes.
Three in 10 loyalty members fit into all of these boxes: They spend more, recommend more and feel more emotionally connected. YouGov calls these “super-loyal” members. Surprisingly, 38% of 18-24 year-olds are super-loyal—an age group that is typically difficult to engage.
For more on marketing to Gen Z, see “Generation on the Rise” in the April 2019 issue of NACS Magazine.
