As the first generation of true digital natives, Gen Z (ages 13–28) is reshaping what customer loyalty means. They don’t just expect programs to reward transactions; they want experiences that reflect their values, identities, and communities. Brands can no longer rely on one-size-fits-all tactics as Gen Z demands personalization, authenticity, and instant gratification. Loyalty360 spoke with Supplier Members from across the customer loyalty community to explore how brands can meet these rising expectations.
Contributors
- Alexis Kvamme, Account Director, Capillary Technologies
- Amber Meakin, Vice President of Customer Success, Capillary Technologies
- Ahaan Pandit, Associate Director, Capillary Technologies
- Donovan Wydner, Director of Client Success, Capillary Technologies
- Lauren Sutherland, Associate Director, Strategy, Phaedon
- Katie Berndt, Vice President, Strategy, Research & Insights, Phaedon
- Jennifer Kunz, Director of Consulting, Kobie
- Ellen Green, VP Loyalty, Bounteous
- Mladen Vladic, Head of Products and Services, FIS Loyalty
Authenticity, Transparency, and Values at the Core
For Gen Z, loyalty is not about transactions alone—it’s about trust, identity, and alignment with personal values. This generation has grown up surrounded by information, choice, and digital access, making them more discerning and less forgiving of brands that fail to deliver on their promises.
“The most important shift brands need to make for Gen Z is to ensure their programs are leading with transparency, authenticity, and personalization at every touchpoint,” says Alexis Kvamme, Account Director at Capillary Technologies.
That sense of authenticity extends beyond messaging into how rewards are structured and delivered. Mladen Vladic, Head of Products and Services
at FIS Loyalty,
agrees with Kvamme, noting that loyalty strategies should “align rewards with causes Gen Z cares about (like sustainability or social impact) and prove those commitments are real.” He adds that authenticity must be balanced with immediacy: “At the same time, programs must cater to Gen Z’s desire for instant gratification – delivering rewards in real time and making it effortless to earn and redeem points via mobile devices.”
The expectation is clear: Gen Z knows brands have access to their data, and they demand that it be used responsibly to create experiences that feel personal and participatory. One-size-fits-all programs no longer resonate; instead, loyalty must reflect individual values and preferences.
As Lauren Sutherland, Associate Director of Strategy, Research & Insights at Phaedon, explains, “To appeal to Gen Z’s values and expectations, brands should evolve their loyalty strategies to offer brand experiences that empower self-expression and connection.”
Taken together, these perspectives highlight a generational shift: where previous loyalty programs operated primarily on brand terms, today’s consumers expect agency, choice, and alignment with what matters most to them. Authenticity is no longer optional—it is the foundation for building meaningful and lasting loyalty with Gen Z.
Channels That Drive Connection
For Gen Z, loyalty is mobile-first and social-driven. This generation lives in a constant scroll cycle, discovering brands, validating choices, and engaging with communities through their phones. Loyalty programs that fail to meet them on their preferred platforms risk becoming invisible.
Amber Meakin, Vice President of Customer Success at Capillary Technologies highlights the importance of omnichannel engagement, reminding brands that while digital is at the core, consistency across in-person and online touchpoints is key to keeping Gen Z engaged. “Successful programs should combine digital rewards and communication with in-person engagement.”
Ahaan Pandit, Associate Director at Capillary Technologies, points to the dominance of social: “Gen Z responds best to programs delivered through mobile-first platforms like apps and social media. Channels such as Instagram, TikTok, and even WhatsApp allow brands to build authentic, real-time interactions that feel native to Gen Z’s digital habits.” This means loyalty isn’t just a backend program, it’s part of the same cultural conversation happening on the platforms where Gen Z spends most of their time.
Jennifer Kunz, Director of Consulting at Kobie, agrees, emphasizing the power of social as a credibility builder: “Social is loyalty’s new launchpad – TikTok and Instagram aren’t just distractions; they’re where brand love is built.”
Meakin adds, “A strong example comes from Chili’s. They leaned into the virality of the Cheese Stick cheese-pull TikToks and their customizable Triple Dipper appetizer to not only increase their loyalty membership but boost traffic and sales.
At the same time, Gen Z’s expectations go beyond surface-level mobile access. Sutherland notes, “Mobile-first is essential, but it goes beyond just having an app. Gen Z expects on-demand access to a brand’s loyalty program (and products) across channels, including voice interfaces, visual search capabilities, and AI-powered functions. They want technology that anticipates their needs and offers experiential enhancement, without calling attention to itself.” In other words, technology should empower convenience and personalization without adding friction.
That need for immediacy is echoed by Ellen Green, VP of Loyalty at Bounteous, who captures it succinctly: “If it’s not on their phone, it doesn’t exist. Gen Z isn’t digital-first—they’re digital-only.”
Together, these insights point to a clear reality: mobile and social platforms aren’t just channels for Gen Z—they’re the backbone of connection. Brands that build loyalty into the digital spaces where this generation already lives, learns, and socializes will earn attention, trust, and long-term engagement.
Personalization as Partnership
For Gen Z, personalization isn’t about algorithms guessing their next purchase—it’s about co-creating the brand experience. This generation has been raised in an environment where everything from playlists to shopping feeds is customized, so loyalty programs must deliver that same sense of individual recognition and relevance.
Vladic adds, “One-size-fits-all rewards don’t impress Gen Z. This generation has grown up with highly personalized digital experiences – their Netflix knows what they like, their Spotify lists are custom-made – and they expect the same personal touch from their financial institutions.”
That expectation of relevance means brands must shift from surface-level personalization to approaches that feel intentional and authentic. Katie Berndt, VP of Strategy, Research & Insights at Phaedon, notes, “Gen Z looks for personalization that feels seamless and authentic, rather than calculated. They are willing to share their data—when they see clear value in return, so zero-party data is the gold standard here. Leverage the data Gen Z members proactively share through surveys or profile updates to meaningfully create and personalize experiences that feel like partnerships.”
Personalization isn’t just about efficiency, it’s about identity. Kunz offers an example: “A great example of personalization tactics that resonate with Gen Z is Gatorade - they let fans personalize bottles, unlock exclusive content, and earn identity-driven rewards. It works because Gen Z doesn’t just buy products – they're looking curate versions of themselves. Loyalty needs to reflect that level of individuality.”
The lesson? For Gen Z, personalization is an act of empowerment. Brands must design programs that allow self-expression and identity-building, not just transactional incentives. Done right, personalization becomes a partnership—an ongoing dialogue where the customer feels seen, heard, and valued.
From Transactions to Experiences
Experiences are quickly becoming Gen Z’s loyalty currency. For this generation, rewards aren’t about accumulating points or redeeming coupons—they’re about creating moments that feel meaningful, memorable, and shareable.
As Kunz notes, “This group wants experiences, not just stuff—68% of Gen Z would rather go to a concert than own another hoodie.” This preference signals a fundamental shift: material perks alone aren’t enough to earn long-term loyalty.
To meet this expectation, brands are leaning into gamification and playful engagement strategies that blend rewards with entertainment. Vladic adds, “Gamification is one approach we’ve seen excite this demographic – turning the loyalty journey into a game with challenges, badges, or friendly competitions. For example, a banking app might feature weekly quests (‘use your card at three different grocery stores for a bonus’) which tap into Gen Z’s competitive and playful side, making earning rewards feel like leveling up in a game.”
The same principle applies across industries—fun, interactive experiences that drive a sense of achievement resonate deeply. Sutherland adds, “Brands should be fun – make it a game, not a grind. Games, challenges, and sweepstakes that feel fun and engaging like Dutch Bros’ milestones, digital stickers and celebrations recognize and reward members in the right way.”
Together, these insights highlight a key truth: Gen Z loyalty is fueled by experiences that are interactive, shareable, and emotionally rewarding. By shifting from transactional incentives to playful, purpose-driven engagement, brands can transform loyalty from a program into a lifestyle.
A Different Approach
Gen Z’s relationship with loyalty looks fundamentally different than that of previous generations. While older cohorts grew up with punch cards, plastic membership tags, and programs designed primarily around discounts, Gen Z’s expectations have been shaped by a digital-first world where everything is instantaneous, personalized, and accessible through their phones.
Donovan Wydner, Director of Client Success at Capillary Technologies, states, “Gen Z is the first digital native generation. They were born after the ‘internet boom’ and have experienced most, if not all, of their life with mobile phones and social media, meaning they are always connected. Unlike past generations where loyalty programs utilized print direct mail stickers, key fobs, plastic program cards with barcodes, Gen Z requires brands to be completely digitally integrated and accessible especially on platforms like TikTok, Instagram, and YouTube.”
That constant connectivity means Gen Z approaches loyalty with a greater sense of agency and expectation. They want brands to not only deliver convenience and access, but also emotional depth and opportunities for self-expression. Berndt adds, “loyalty programs should be designed around emotional connection alongside traditional benefits. Create flexibility that allows Gen Z members to personalize their own experiences, embrace collaborative features that enable peer sharing, and ensure your program can evolve with their changing life stages.”
This perspective reflects a broader shift from transactional loyalty to relational loyalty. For Gen Z, it’s not enough for a brand to provide rewards, they must also represent values and experiences that feel authentic and worth belonging to. As Kunz emphasizes, “This generation expects brands to show up with purpose, personality, and perks that feel worth it.”
Taken together, these insights reveal that Gen Z isn’t rejecting loyalty programs outright, they’re redefining what loyalty should look like. Brands that adjust by embedding purpose, personalization, and digital-native experiences into their strategies will be best positioned to earn their long-term trust.
Conclusion: Loyalty as Identity and Community
Gen Z’s loyalty isn’t about accumulation, it’s about access, authenticity, and belonging. They expect programs to anticipate needs, reflect values, and deliver both digital and real-world experiences. Unlike past generations who often viewed loyalty as a way to save money or earn perks over time, Gen Z sees it as an extension of their identity and a channel for meaningful engagement with the brands they choose to support.
The brands that thrive will be those that move beyond points, embracing loyalty as a platform for identity, self-expression, and community. This requires designing experiences that feel exclusive, creating opportunities for members to showcase who they are, and cultivating spaces where peer influence and cultural relevance come to life.
For this generation, loyalty isn’t a program, it’s a partnership. It’s about reciprocity: when Gen Z shares their data, time, or advocacy, they expect brands to return that investment with experiences and benefits that feel personalized and purposeful.
Jennifer Kunz sums it up: “This generation doesn’t want more points. They want more purpose, more access, and they want it to feel like your program was made just for them.”