Gen Z comprises 40% of the global consumer population and represents a major shopping force, wielding over $360 billion in spending power. However, their loyalty is often questioned, with 62% admitting to exploring other options even if they have a favorite brand. This highlights the need for brands to develop sophisticated and engaging loyalty strategies. In this article, we’ll show how Antavo’s Global Customer Loyalty Report 2025 sheds light on the crucial topic of Gen Z loyalty and how brands can effectively engage this influential demographic.
If you are looking for the source of these information, check out our wildly popular global customer loyalty report 2025.
Mobile Apps and Gamification: Engaging Gen Z On-the-Go
One key takeaway from the report is Gen Z’s strong preference for mobile apps. A significant 65% prefer using apps to interact with loyalty programs, surpassing the global average. This underscores the importance of investing in sleek, fast, and user-friendly mobile apps that offer a seamless experience. Gamification is another crucial element, as on-the-go gaming trends resonate strongly with this demographic. Brands should consider incorporating gamified experiences and utilize push notifications wisely, focusing on timely and personalized messages.
KFC’s Rewards Arcade serves as an excellent example of successful gamification. By introducing an instant-win mechanic within their app, KFC encourages repeat visits and increases customer engagement. This strategy led to a 53% increase in app downloads. The program also allows for holistic customer data collection, providing valuable insights into consumer behavior.
Beyond Discounts: Understanding Gen Z Loyalty Drivers
While discounts are often seen as a primary loyalty driver, Gen Z is less motivated by them compared to other generations. Only 57% are motivated by discounts, while 35% prefer free shipping and 27% value early access. This suggests that brands should focus on experiences and emotional loyalty rather than solely relying on price cuts. Early access can be leveraged effectively by making Gen Z feel “in-the-know.”
Gen Z’s tendency to experiment with multiple loyalty programs is another significant finding. A substantial 43% participate in 1-3 programs, and 10% are part of 7-10 programs, the highest percentage compared to other age groups. This indicates that brands need to offer compelling reasons for Gen Z to remain engaged within their loyalty programs.
Benefit Cosmetics’ Benefit Loves program exemplifies a heart-based loyalty structure that resonates with Gen Z. Members earn “hearts” for spending and other actions, which can be redeemed for beauty-related rewards. The program also focuses on “World beautification” by offering exclusive content and services, fostering emotional loyalty beyond transactional rewards. Notably, 80% of the engagement comes from members aged 20-30, indicating its effectiveness with the Gen Z demographic.
Leveraging AI and Points Pooling: Tech-Savvy Loyalty for Gen Z
As a tech-savvy generation, Gen Z is highly interested in AI-driven loyalty programs. This presents an opportunity for brands to leverage AI to personalize experiences and enhance engagement. However, it’s essential to remember that Gen Z’s needs are not entirely different from other generations. They seek instant gratification, authenticity, and seamless experiences. A single glitch can lead them to abandon a brand.
One hidden opportunity lies in offering points pooling. A significant 78% of Gen Z buyers prefer brands that allow points pooling, making this a potentially key feature for winning them over. In conclusion, engaging Gen Z requires a multifaceted approach that combines technology, gamification, personalized experiences, and emotional connection. By understanding their preferences and priorities, marketers can create effective loyalty programs that resonate with this powerful consumer segment.
Conclusion
In conclusion, capturing Gen Z’s loyalty requires a strategic blend of technology, gamification, and personalized experiences that go beyond traditional discounts. But if you succeed, you can guarantee the loyalty of a demographic that will soon dominate the buying market.
Want to start a conversation about launching your loyalty program? Contact our experts by booking a demo to see our platform’s capabilities or by sending us an RFP.
Also, don’t forget to download our Global Customer Loyalty Report 2025.
Zsuzsa is the Chief Strategy Officer and Co-founder of Antavo. She has experienced Antavo grow from a startup into a market-leading, global scaleup for loyalty program technology, serving global brands and retailers. She was named Personality of the Year at the 2024 International Loyalty Awards, and listed by Forbes as one of Europe’s top 100 female founders in tech, Zsuzsa is a former journalist recognized by the European Commission.
