Research by CrowdTwist examined the differences between Generation Z and Millennials in terms of brand loyalty. A survey was conducted with 790 North American consumers aged 18 to 37. Respondents were first asked what brand loyalty means to them. Thirty-two percent of Millennials said they consider brand loyalty to mean they would “sometimes buy a brand, but would consider other alternatives at a lower price”. Further, 30 percent considered brand loyalty to mean that they would “buy the brand regardless of price, quality, convenience or brand promise.”
A larger number of Gen Z respondents than Millennials would consider other alternatives at a lower price. Specifically, 38 percent reported that they would consider other options. A lower percentage of these respondents, 27 percent, said they would always buy the same brand—true brand loyalty.
Participants were then asked to rank the factors most important in capturing their loyalty: product, service, price, convenience/perks, ethical principles, and instance of a loyalty program. Sixty percent of Millennials and 53 percent of Gen Z’ers ranked product as first. Both generations ranked price as number 2, but Generation Z (20 percent) were more price conscious than Millennials (16 percent). Presence of a loyalty program was more important to Generation Z respondents than Millennials. Fifty percent more Gen Z’ers than Millennials ranked the presence of one as a driver of brand loyalty.
However, what is particularly interesting is actual participation in loyalty programs. More Millennials (71 percent) than Gen Z’ers (63 percent) are active in at least one loyalty program. Participation in loyalty programs was highly dependent on industry. The strongest industry with the most participants was retail—74 percent for Generation Z and 75 percent for Millennials. Grocery story loyalty programs were also popular amongst both generations. However, financial services and travel loyalty programs were more popular amongst Millennials. Media and entertainment loyalty programs were most popular with Generation Z.