Despite the difficult economic climate, purpose overrides product pricing as the motivating factor for Gen Z and Millennial customers to become loyal customers, says American Express.
New data from American Express indicates that loyalty is considerably more price motivated in their parents’ generation. The study, which involved 2,000 UK consumers, looked into what motivates consumers to stick with a brand and how businesses may compete in the market today.
The study found that 33 per cent of people between the ages of 18 and 34 (the Gen Z and Millennial group) indicated they are more loyal to firms with a good corporate reputation and values that are similar to their own. Additionally, this set of customers is most likely to contribute the loyalty programme points or rewards they have earned to good organisations.
This revealed a clear ‘loyalty divide,’ as the vast majority (86 per cent) of people over the age of 55 cited an alluring price as a loyalty factor. Customers in Gen Z and Millennials are the least likely to think that pricing influences loyalty (49 per cent).
Baby Boomers are less tolerant of subpar customer service than younger generations, with nearly two-thirds (63 per cent) of buyers over 55 saying that a bad in-store experience would make them less loyal.
Dan Edelman, Vice President and UK General Manager, Merchant Services at American Express, commented, “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.”
