Gen Z are big fans of loyalty. Our whitepaper undertaken in January 2020 in association with YouGov found that just under half (49.1%) of men aged 18-24 are members of a loyalty programme compared to 56.7% of women. This is far below the national average of 76%.
Gen Z are very keen on loyalty but we need to figure out how to engage them. We attended Voxburner’s digital conference “Youth Marketing Strategy Online London” to capture new insight on how to engage this audience.
Learning one: Offer genuine help during tough times
During Covid-19 we have seen many loyalty programmes step up. Programmes have changed their T&Cs so members don’t miss out. Simple things like changing voucher durations make a difference to how members feel.
However, there are programmes who stand out more. Programmes like Accor Live Limitless are helping to find a vaccine through their partnership with Institut Pasteur.
Programmes need to go further, especially to engage Gen Z. Think about how your loyalty programme could be dynamic enough to help young people.
Learning two: Help them resolve their conflict between ethics and value
The conflict Gen Z have between making ethical choices, and value choices was a broad theme throughout. They want to do the right thing, but can’t afford it.
So, what can programmes do? The answer is simple. Invest to offer them high value, ethical rewards. VOXI Drop (recently won the Loyalty Redefined Award at the Loyalty Magazine Awards) have included 15% off ASOS, along with a prize draw to win one of 20 x £50 vouchers providing them with rewards they really want.
Learning three: Talk with them, not down to them
I attended a fascinating panel discussion “What’s in a word. Brand engagement in the age of #BLM”. The panel discussed systematic racism in Britain.
As Loyalty Marketers, do we genuinely do this enough? Brands need to do more than just donate, brands need to educate. Gen Z want brands to engage with them on this important subject, but make sure you get it right “55% say that if you get it wrong, they will consider not purchasing with you again.”
Learning four: Digital culture just got even bigger
Ed Vaizey, the Former Minister for Technology advised “If you want to reach young people, the best way to do it is through culture”.
In the past, tickets to live events were expensive, hard to get and inaccessible to many members, the rise of digital means that we can offer high quality virtual experiences more than ever. The opportunities to innovate the digital experiences themselves are vast — from backstage meet and greets, to hanging out with your mates.
Youth Summit provided a fantastic overview of Gen Z, including what we need to know, what we need to think about and, a wealth of new data and insights to engage this critical audience in loyalty.
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