Want to hear a surprising statistic about Gen Z loyalty? Among Gen-Zers with a favourite brand, more than 50% would switch it up if another brand were cheaper or of higher quality.

30% would “revert to their ‘go to’ brand for a new product or service” when making purchases, and a whopping 62% said they would check out other options, even if they have a brand they felt loyal to.

Does this mean that Gen Z loyalty is inherently unstable? That Gen Z core values are incompatible with loyalty programs? Or does this just mean that companies need to take a different approach?

What makes Gen Z loyal?

Gen Z’s loyalty is driven by a blend of elements that deeply resonate with their ideals and ambitions. A robust brand identity, a compelling ESG (Environmental, Social, and Governance) commitment, and a sense of belonging within a community are all integral components that foster brand loyalty among these consumers.

Gen-Zers are more inclined to view their purchases in terms of who they are and what matters to them. They’re more likely to tie a brand’s real-world impact on society to their shopping decisions.

Gen Z brand loyalty depends on everything from ethical manufacturing practices to employee treatment, and from eco-friendly initiatives to sustainability.

They are also the first generation to use online sources before making a purchasing decision more than ever. They turn to social media platforms like TikTok to find inspiration, research products and also connect with their favourite brands.

Gen Z has access to more information and brands to choose from than ever before, and while this doesn’t mean that Gen Z loyalty doesn’t exist, it means that companies have to work harder to gain that favourability.

White Label Loyalty

In a landscape where brand loyalty seems as fickle as the next viral TikTok trend, understanding Gen Z’s loyalty requires a nuanced perspective. This generation seeks authenticity, social responsibility, and community connection in the brands they support. It’s not merely about the product itself but the ethos behind it – from ethical manufacturing to environmental sustainability.

Moreover, Gen Z’s digital native status means their loyalty is shaped in the online space. Social media platforms serve as both marketplace and meeting ground, where brands have the opportunity to engage, inspire, and earn loyalty through meaningful interaction.

While it’s true that Gen Z loyalty may seem less steadfast compared to previous generations, it’s not a lost cause. Rather, it’s a call for businesses to adapt their strategies, to align with the values and preferences of this dynamic demographic.

In essence, Gen Z loyalty is not a matter of ‘if’ but ‘how’ – how brands can authentically connect, resonate, and earn the enduring trust of a generation that demands more in return from the companies they choose.

Actionable tips to win over Gen Z

Be authentic: Gen Z values authenticity. Ensure your brand’s identity aligns with genuine values and actions.

Embrace social responsibility: Show commitment to ethical practices, sustainability, and social causes that matter to Gen Z.

Foster community: Engage with Gen Z on social media platforms where they spend most of their time. Create spaces for meaningful interaction and connection.

With these strategies, brands can tap into the purchasing power and influence of the younger generation, securing not just transactions but long-term relationships that thrive on shared values and mutual respect.

Achille Traore is CEO of White Label Loyalty

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