Gen Z and Millennials in UK lean on loyalty programmes amid financial pressure

Due to the ongoing cost-of-living issue, which has left consumer confidence low and inflation sharp, young UK consumers are actively seeking loyalty programs as a source of stability and value in addition to transactional benefits.

This is in line with recent findings from LoyaltyLion, a data-driven platform for engagement and loyalty that commissioned a poll of more than 2,000 UK consumers.

According to the report, 55% of UK consumers are more inclined to sign up for loyalty programs now than they were a year ago, as buying patterns are still influenced by economic uncertainty.

With 71% of Gen Z and 72% of Millennials stating that they are more inclined to join a loyalty program now than they were a year ago, the younger generations are setting the trend.

Although 84% of UK consumers say that discounts encourage them to sign up for loyalty programs, financial incentives are important, but a brand’s capacity to create a genuinely devoted following is enhanced by offering experience benefits, opportunities for emotional connection, and incentives that make customers feel appreciated.

According to seven out of ten (73%) Gen Z and Millennials, experience-based incentives such as first dibs on merchandise, invitations to private events, or chances to help design new goods encourage them to sign up.

Furthermore, more than half (53%) of respondents claim that loyalty programs now yield higher financial returns than they did in the past, demonstrating how companies are stepping up to meet customer needs. A little higher percentage, 55%, believe that the programs are providing more experiential rewards than they did previously.

Customers are searching for value anywhere they can in these uncertain times, and 78% of them are willing to fill out a profile or survey in exchange for loyalty points, indicating that they are eager to provide information if it would help them save money or get more out of their purchases.

Since convenience is crucial when money is tight, an omnichannel strategy is also essential. According to 74% of UK consumers, a consistently positive online and in-store experience is critical to them, and 69% value being able to access reward programs on their phones.