Study: Young Consumers Are Demanding Loyalty from Brands

found that consumer loyalty to brands falls within a range of characteristics, from functional to emotional, and said that a brand rethinking its approach to loyalty requires understanding that true loyalty comes from a combination of factors within the spectrum.

For all three age groups surveyed, trustworthiness, honesty and reliability are at the core of loyalty in general. But when it comes to brand loyalty, there are a number of other factors coming into play.

For millennials, it’s also based on rewards, quality, discounts, reliability and coupons, among other things. For Gen Z, brand loyalty is described by the terms quality, reliability, discounts, and rewards.

Other notable aspects popped up for all groups like helpfulness, free shipping and convenience.

3. Loyalty is fragile.

Younger consumers expect great service and a great experience across all channels, and if those expectations aren’t met, they won’t hesitate to take action and voice their opinion.

In fact, 76 percent of younger consumers only give brands two to three chances before they stop shopping with them. One in three consumers, meanwhile, said nothing could be done for a brand to win them back.

Alliance Data said that to keep these consumers happy, “remember that beyond price and quality, (they) expect good service and a great experience.”

Not surprisingly, the demographics surveyed are also heavily influenced by social media. Thirty-five percent keep up with the brands they like on social media. 34 percent of Gen Z members, 29 percent of younger millennials and 26 percent of older millennials said they are influenced by bloggers and YouTubers on what to purchase.

This means they’re also more likely to be influenced by reviews and posts about a brand, and also to express their pleasure (or displeasure) over an experience.

4. Loyalty is multifaceted.

Transactions and sales should no longer be the only measure of loyalty, since it is now a combination of both function and emotion.  

Once more emotional elements are introduced by a brand—like shopping options that make consumers’ lives easier, offering exclusive products, or even factors like making personal recommendations or showing they are socially responsible—it then moves past traditional brand loyalty and into aspirational territory.  

Alliance Data said brands need to understand customers’ unique needs and think differently about measuring loyalty, understanding some customers only require basic service elements, while others need more. 

Being able to measure young consumers’ loyalty and how they’re prioritizing certain values can help differentiate consumers to better target and earn their business.