Gen Z Customer Loyalty

Part
01
of one
Part
01

Gen Z Customer Loyalty

Key Takeaways

Introduction

In order to better understand Gen Z customer loyalty, below we've provided details on several factors that drive customer loyalty among this demographic, as well as an overview of what brand loyalty means as a whole to Gen Z. As factors driving customer loyalty specific to beauty and self care product were limited, we've provided a more general overview of what drives loyalty as a whole, selecting factors that would be relevant to those industries.

Overview: Meaning of Brand Loyalty to Gen Z

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


For this research on Gen Z customer loyalty, we leveraged the most reputable sources of information that were available in the public domain, including marketing journals, reputable business media outlets, and other experts in consumer and marketing trends. When data was limited specific to beauty and self care product, we supplemented that information with a more general overview of what drives loyalty as a whole for Gen Z, selecting specific factors that would be relevant to those industries.

Dive deeper

Only the project owner can select the next research path.
Need related research? Let's launch your next project!
Sources
Sources