Gen Z Shows Little Loyalty to Loyalty Programs

Millennials more likely to be motivated by loyalty offers

Author: Monica Melton

July 26, 2017

Gen Z is only just beginning to make itself felt in the marketplace, but data suggests there are emerging differences with the millennial generation that preceded it.

A survey by Lab42 found that Gen Z interacts with brands a little differently than millennials do. For instance, US Gen Z shoppers are far less likely to be motivated by loyalty programs, according to the June 2017 study.

Nearly three in four millennials said they are influenced to purchase based on loyalty programs, compared with less than half of the Gen Z shoppers polled.

The study defined Gen Z as those ages 13 to 22, and millennials as ages 23 to 36.

Both groups were likely to be motivated by special promotions and discounts, but millennials were distinctly more likely—86% cited promotions/discounts as influential, compared with 76% of Gen Z respondents.

“Although special promotions/discounts are the most motivating influences for [Gen Z], they are significantly less important to this group than to other generations,” the study said.

Lab42’s findings are similar to other surveys indicating that coupons motivate shoppers of all ages to purchase.

More than 70% of US internet users said their purchase decisions were influenced by coupons and discounts, according to a September 2016 survey from Bazaarvoice and the CMO Council. Coupons and discounts influenced far more respondents than any other factor included in the survey.

Photo credit: Elijah Henderson on Unsplash