Key Takeaways

• Many Gen Z consumers note that they switch companies when a brand doesn't align with their values. 

• Beauty brands can build loyalty with their Gen Z audience by looking "inward at their own corporate values and mission".
• Gen Z consumers prefer to see real people in their brand's marketing content.

Introduction

Overview: Meaning of Brand Loyalty to Gen Z

• Gen Z is notably the most brand loyal generation. 
• Specifically, Gen Z associates the concept of loyalty with brand loyalty programs that provide rewards or other clear incentives.
•  75% of Gen Z surveyed self-identified as brand loyal.
• Nine out of ten surveyed buy the same beauty products at least 50% of the time.

Ethos

• The most commonly reported driver of brand loyalty among Gen Z is the values and ethos of the company or brand.
• Specifically, Gen Z feels it essential to buy products from companies that share their political and social beliefs. 
• In fact, many Gen Z consumers note that they switch companies when they don't align with their values.
•  Two commonly cited factors of ethical importance were well-sourced quality products and how a company treats their employees.
• As an environmentally conscious group, Gen Z were also likely to be more loyal to brands that offered natural or organic products.
• In fact, 86% of Gen Z consumers note that sustainability is an influence in what they purchase even when it isn't their primary reason for purchase.
•  75% of Gen Z and millennials surveyed prefer brands that offset environmental impact.
• Beauty brands can build loyalty with their Gen Z audience by looking "inward at their own corporate values and mission".

Lifestyle Image Alignment

• In addition to aligning with the values of their customers, loyalty is also built among Gen Z consumers via aligning with their lifestyle and image. 
• Gen Z are especially prone to favor and be loyal to brands that reflect them personally.
•  75% surveyed say social media presence impact loyalty to a brand.
• Because Gen Z frequently document the products they buy, its noted that brands and purchases are an expression of their lifestyle.  
• Gen Z consumers prefer to see real people in their brand's marketing content.
• They also tend to lose interest and decline in loyalty if the brand's Instagram doesn't appeal or feel relatable.

Reward Based Loyalty Programs

• Gen Z are especially likely to be attracted to and participate in formal loyalty programs. 
• The age group is most willing to fill in surveys and provide feedback and re-engage with brands online.
• However, as a tech savvy age group, they do have considerations when providing details to loyalty programs; security of their data, how their information is being used, and reputation of the company they provide information to.
• Brands who provide achievable rewards in their loyalty programs most appeal to Gen Zs.
• It's noted that of the 76% of Gen Z customers most loyal to brands, they find it hard to leave a company when they have a relationship via a loyalty program.
• Beauty brands can create loyalty within Gen Z by investing in a rewards based loyalty program that utilizes technology such as a mobile app.

Pricing

• A survey of Gen Z consumers notes that their primary motivator of where to shop is price. 
• Above all, even within brands they are loyal to, Gen Z looks to save money. 
• As a generation that remembers their parents going through the recession, they are "fiscally pragmatic and practical with their money" and most loyal to brands that offer value.
• Another survey found that 60% of Gen Z determines favorite brands by price per item.
• They are also likely to be impacted by loyalty programs with price reductions or discounts, as the generation doesn't want to pay full price for anything.

Research Strategy