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Loyalty in the Age of Gen Z: Netflix Binges, Nike Kicks, and a New Definition of Loyalty

23/10/2024
Branding and Marketing Agency
London, UK
466
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BBD Perfect Storm's Alex Meaklim on why gen-z are here to shake things up, and their definition of loyalty is a whole new ball game

Remember when loyalty meant sticking with the same brand of cereal for a decade? Or when choosing a car brand was a decision that spanned generations? Well, buckle up, because gen-z are here to shake things up, and their definition of loyalty is a whole new ball game. Spoiler alert: It’s not about buying the same toothpaste for 30 years anymore.

Loyalty Through the Ages: A Quick (and Fun) History

Let’s take a stroll down memory lane. For Boomers, loyalty was about commitment – whether to jobs, brands, or relationships. If your dad drove a Ford, you were probably destined to own one too, and the idea of switching shampoo brands? Unthinkable!

Then came gen-x and millennials, who began to shift the loyalty narrative. Convenience, quality, and a pinch of nostalgia started to play bigger roles. Loyalty became more about sticking with your favourite coffee chain, even if they misspell your name every single time. These generations valued consistency but were open to change if something better came along.

Gen-Z: The New Definition of Loyalty

Enter gen z, the digital natives who’ve grown up with infinite choices at their fingertips. They’ve got short attention spans (thanks, TikTok!), but when they’re loyal, it’s with purpose. Gen z’s loyalty isn’t about blind allegiance; it’s about value alignment. They’re loyal to brands that resonate with their beliefs, values, and social causes.

For gen z, loyalty is fluid. They may switch interests faster than you can say 'FOMO,' but when they commit, it’s because they see themselves in the brand. It’s not just about the product anymore; it’s about the narrative behind it.

Social media and influencers play a massive role in this. A brand’s social responsibility, inclusivity, and authenticity are crucial to gaining and maintaining gen z’s loyalty. In their world, being loyal to a brand is a bit like choosing a favourite Netflix show – it better keep them entertained, engaged, and a little woke.

Brands That Are Winning Gen Z’s Loyalty

So, who’s getting it right? Here are a few brands that I think have cracked the gen z loyalty code:

  • Nike: Nike has mastered the art of tapping into social causes and using powerful storytelling to connect with gen z. Their campaigns, like the Colin Kaepernick 'Just Do It' ad, resonate because they go beyond selling trainers – they sell a movement.
  • Glossier: Glossier’s community-driven approach has won the hearts of many gen z'ers. Their strategy for customer-driven growth focuses on utilising customer feedback, social media interaction, and community engagement to fuel product development and build brand loyalty. They actively listen to their customers and incorporate their input to design products that align with their needs and preferences, making their audience feel like they’re part of the brand’s journey.
  • Patagonia: Patagonia’s commitment to environmental causes strikes a chord with gen z. They’re not just selling outdoor gear; they’re selling a commitment to saving the planet. For a generation that cares deeply about sustainability, this is a huge loyalty driver.

What these brands have in common is not just great products, but a strong narrative that aligns with gen z’s identity and values. They’re not just selling things; they’re selling ideas that gen z wants to be a part of.

The Future of Loyalty: What It Will Look Like

Looking ahead, the future of loyalty is shaping up to be more personalised, more ethical, and more experience-driven than ever before. Gen z'’s shifting loyalty patterns are already influencing brand strategies, marketing, and even product development. Brands will need to be more agile, constantly adapting to the fast-paced preferences of gen z.

But it’s not just about economics. This evolving sense of loyalty will also impact broader social movements, consumer activism, and even politics. Gen z’s loyalty is like a protest sign – bold, clear, and constantly updated for the next march. 

  • Hyper-Personalisation: As brands get better at leveraging data, loyalty programs will evolve to offer hyper-personalised experiences. Imagine a loyalty program that knows you so well it sends you a free coffee on the exact day you need it most – like after that dreaded Monday morning meeting.
  • Experience Over Product: The future of loyalty will be more about the overall brand experience than just the product itself. Brands that can offer unique, memorable experiences will win gen z’s hearts. Whether it’s through exclusive events, personalised content, or interactive brand moments, the experience will be key.
  • The Rise of Ethical Loyalty: In the future, loyalty might be more about sustainability and ethics. Brands that can prove their commitment to doing good – whether through eco-friendly practices, fair trade, or community initiatives – will be the ones that gen z sticks with. Picture a loyalty card that not only tracks your purchases but your carbon footprint too.

So, what does all this mean? Loyalty isn’t dying; it’s just changing form. For gen z, loyalty is less about sticking with the same brand out of habit and more about aligning with brands that reflect their values. It’s a more thoughtful, intentional kind of loyalty, driven by authenticity, ethics, and a desire for meaningful experiences. 

However, as an Arsenal fan, my loyalty to the Gunners is unshakeable. Come rain or shine, I’ll be cheering them on – just don’t ask me to support Spurs. Some lines of loyalty are drawn in permanent ink…

So, where does that leave us? Maybe it’s time to rethink what loyalty means to each of us. Are we holding onto old notions, or are we ready to evolve with the times? As gen z leads the charge, one thing’s for sure: the future of loyalty is going to be anything but boring.

Agency / Creative
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