Older shoppers prioritise price while Gen Z and millennials see sustainability factors as more important, reports American Express.
One third (33%) of 18-34-year-olds (which include the Gen Z and millennial age segment) said they are more loyal to brands with a positive corporate reputation and values which align with their own. This compares to just one in seven shoppers aged over 55.
An attractive price tag Is cited as a loyalty driver for the vast majority (86%) of those aged over 55. By contrast, Gen Z and millennial shoppers are the least likely generational group to consider price as a loyalty driver (49%).
This echoes other Amex research reporting younger cohorts are drawn towards ‘lifestyle brands’ that align with life choices and preferences. In other words, shopping sustainably. This factor is also driving a surge in cardmembers within this younger demographic.
As further evidence of their commitment to purposeful shopping, Gen Z and millennial shoppers are also the most likely group to donate their points or cashback earned from loyalty programmes to charitable causes.
The older generation are revealed to be less tolerant of poor customer service too. Almost two thirds (63%) of shoppers aged over 55 confirm a poor in-store experience would make them less loyal. This compares to under one third (29%) of younger shoppers.
Brits are signed up to on average of four different loyalty schemes
Dan Edelman, Vice President and UK General Manager, Merchant Services at American Express, said: “Building a loyal customer base is the holy grail for any retail brand. But the current economic environment means that’s tougher than ever as shoppers prioritise and flex their spending. Our research reveals a stark divide among different generations. This means retailers need a range of strategies across price, purpose and service to keep customers coming back and spending.”
The research did reveal some common ground between younger and older generations. A similar proportion of 18-34-year-olds and over 55’s (64% and 54% respectively) said cost of living pressures meant they are now considering using a loyalty scheme for the first time to help save money. Shoppers in both of these groups are signed up to an average of four loyalty schemes.
