- Generation Z and millennials highly prioritize personalized brand experiences, according to a study from loyalty program firm CrowdTwist. Seventy-five percent of the age groups said they're willing to share personal information in exchange for a customized digital experience.
- Sixty-three percent of Gen Z participate in at least one loyalty program, whereas 71% of millennials do. The majority (64%) of both age groups could be persuaded to shop with a brand if they have a loyalty program, per the study. For Gen Z, 40% reported playing games as the preferred way of earning loyalty points, and they're almost 50% more likely that millennials to write a product review in exchange for points.
- Despite being digital natives, 57% of Gen Z prefer shopping in stores over online, a percentage slightly higher than that of millennials.
Millennials and Gen Z are high-value audiences for marketers even though they often wield less spending power than older age brackets. Despite Gen Z's reputation for being less brand loyal than other age groups, nearly one-third of the young consumer segment participate in at least one loyalty program, signaling to brands the continued importance of these programs. However, marketers should consider specific behaviors of this cohort when it comes to how they participate, such as their preference for playing games or writing product reviews in exchange for brand loyalty points, which differs from millennials and other previous age groups.
One commonality between the two demographics uncovered by the CrowdTwist study is the willingness to share personal information if it means receiving a more personalized digital experience. This signals a growing opportunity for marketers as data technology improves and younger demographics grow their financial power and introduce newer shopping behaviors into the mix.
The ability to connect with Gen Z on a more personal level has the added benefit of drawing in a consumer base that is willing to pay more for luxury brands — a shift from their millennial counterparts who prefer discounters. Per a recent study by the IBM Institute of Business Value and the National Retail Federation, Gen Z is also eager to interact with brands outside the storefront.
Brands looking to build relationships with the young generation would do well to reach them on mobile and social media, as the generation converts twice as much as any other generation on mobile, and the majority (80%) are influenced by social media when making purchase decisions.