Why the usual loyalty tactics won't work for Gen Z

As today’s consumers, employees and future decision-makers, Gen Z is reshaping the economics of customer acquisition. There’s currently a significant transfer of discretionary spending power already underway and it’s expected to grow to $12 trillion by 2030.

Because Gen Z influence is growing, knowing how to attract their loyalty will increase the odds of creating sustainable growth. But the old playbook—mostly defined by assumptions that remained relatively stable for years—won’t translate.

As an example, at least 25% of Gen Z use at least seven different social media platforms. Based on Statista analysis, Gen Z shoppers spend an average of five hours a day on social media.

That’s a lot of marketing noise to compete with. Yet, despite that noise, Gen Z continues to convert on social platforms.

Nearly 60% are likely to complete a purchase on social platforms—making the question less about whether brands can reach them and more about whether they can earn their attention and engagement.

Ultimately, the more you try to shape Gen Z behavior in traditional ways—using email offers, purchase-based incentives and tiers—the less of it you’ll receive. Marketers can gain a competitive advantage by developing a deeper understanding of what this group values, where they spend their time, how they engage and which channels they expect brands to use to reach them.

Why Gen Z won’t follow the old loyalty playbook

Brands approach building loyalty with Gen Z consumers the same as any other generation—by simply applying the same marketing tactics to new platforms like Snapchat, TikTok or Instagram. But Gen Z didn’t grow up with the same assumptions about brands, identity and trust as older generations, so why are we expecting them to be loyal in the same way?

When it comes to how younger generations exhibit loyal behavior, how they interact with brands and what they expect, their loyalty isn’t centered around allegiance to a product or brand. This means a deeper behavioral shift is at play.

Gen Z consumers covet authenticity, community and values that resonate with their identity. That expectation also extends to how brands use AI.

As brands increasingly leverage AI generated content to scale personalization and boost engagement, they need to ensure that they’re still creating experiences that feel authentic and relevant to this demographic. Gen Z consumers can quickly recognize content that feels impersonal, and that can undermine the connection brands are trying to build.

Loyalty programs that tailor member journeys by generation can adapt to behavioral differences. Data-driven generational insight, rooted in a person-first mindset, can help you rethink the way you’re leveraging technologies, digital environments and behavioral signals to engage young shoppers.

How brands can build loyalty with Gen Z

72% of Gen Z prefer access to new and unique content, while 61% stay loyal to streaming services that consistently provide new content. This shows a key difference in how this generation interacts with brands and highlights why it can be difficult for marketers to attract their attention.

Because members of the digital-native generation move fluidly between streaming services, social media platforms and online communities, brands can’t rely on a single channel or interaction to build their loyalty. Loyalty marketers need to deliver personalized experiences wherever they engage, ensuring those interactions feel connected from one interaction to the next.

Essentially, brands need to personalize experiences, show up authentically in the moments that matter and ensure every interaction is seamless across channels.

Personalize experiences to drive engagement

For many brands, the challenge isn’t simply reaching Gen Z, it’s staying linear throughout an increasingly fragmented customer journey. True digital natives, this generation has a lower tolerance for generic messaging, disconnected journeys and experiences that aren’t highly personalized.

Gen Z individuals might see a product that piques their interest on TikTok, research it on YouTube and do further comparisons across multiple brands. When they do buy, it’s likely based on a combination of influencer trends (trust), relevance at point of sale (timing) and the validation they get across platforms (consistency).

In light of this, it's essential to deliver relevant experiences across every interaction. The right data and technology can help.

With advanced, data-driven technology, marketers gain additional insight that allows them to consistently create better experiences across channels.

Be discoverable where Gen Z spends time

Younger generations reached adulthood in the age of social media. As a result, personalization is something they intuitively understand.

Because of that, their expectations and behaviors keep changing in ways brands underestimate. Since they are aware that their online behavior dictates what they see next, they actively manage those signals—changing what the algorithm surfaces to their preferred channels.

They actively curate their feed, shaping their own experiences with recommendations fueled by peers, content creators and shifting digital communities. Brands seeking to engage Gen Z need to think beyond platforms and develop strategies that align with how they engage.

Being discoverable requires a strong data foundation. As younger audiences click on different content and switch channels, this approach will allow your messages to seamlessly adapt to their changing engagement patterns in real time.

Create a frictionless experience

Every misstep chips away at customer confidence in your brand—eroding trust and ultimately driving customers away. This is the driving principle behind experience debt: the cumulative effect of repetitive messaging and fragmented, irrelevant interactions.

When brands ignore behavioral signals, every interaction feels like a reset—and suggests you’re not using your data to find out how to engage. A good example is email.

Sending an email with "Sorry we missed you" as the subject won’t drive Gen Z engagement. Though email remains a powerful tool, younger generations won’t recognize this tactic as a follow-up.

These types of interactions create friction, leaving people thinking, "I was just there. How do you still not recognize me?" The brands that win with younger generations don't need to abandon traditional loyalty methods altogether—they need to develop an omnichannel loyalty strategy that feels responsive, connected and genuinely aware of the customer behind the member profile.

What loyalty marketers need to do differently

Brands that can reach beyond longstanding assumptions about customer loyalty, can build stronger, more meaningful customer relationships.

The first step, however, is understanding the motivations, values and behaviors that drive Gen Z consumers. To do this, you need to leverage behavioral data to guide personalization, impact discovery and create better customer experiences.

By treating data as a strategic asset, and leveraging the rich insights it provides, brands can evolve their loyalty programs. But success means embracing new ways to engage.

How to shape loyalty strategies for the next generation

What sets Gen Z audiences apart isn’t solely their desire for authentic, valuable experiences, it’s how they discover, evaluate and engage with your brand. Once you know that, you can approach earning their loyalty in the same you would with any other customer: by understanding who they are, what they value and how they make decisions.

When you build a foundation rooted in a solid data strategy, you can create meaningful interactions that resonate with every generation. With the right loyalty provider, you’re better equipped to build a consistent consumer-brand feedback loop, boost affinity with relevant experiences and create value-based connections that reinforce engagement in real-time.

Whether your consumers are on TikTok, Instagram, email or the next platform to emerge, Epsilon Loyalty provides the right data strategy, industry-recognized technology and the dedicated support you need to nurture lasting loyalty for Gen Z consumers—just as for every other.