The Gen Z Loyalty Paradox: Why Brands Struggle to Engage the Most Valuable Generation

In a recent survey conducted by Loyalty360, brand marketers shared valuable insights into how they are approaching Gen Z and the evolving role this generation plays in customer loyalty strategies. The findings reveal a significant disconnect: while Gen Z represents one of the most valuable consumer segments, many brands are still struggling to effectively engage them. Challenges related to data collection, privacy concerns, and limited visibility into this audience are forcing organizations to rely on assumptions and indirect insights rather than direct understanding.  

The research highlights several key areas shaping Gen Z loyalty, including the importance of simplicity, pricing, and relevance, as well as the growing tension between traditional points-based rewards and the types of benefits Gen Z actually values. Marketers also point to personalization as a critical driver of engagement, though many acknowledge ongoing challenges in delivering it at scale due to fragmented data and technology constraints. Additionally, the findings emphasize the role of mobile experiences, influencers, and direct digital channels in shaping how Gen Z interacts with loyalty programs.  

Download the full report to access insights on: 

• The current challenges brands face in attracting and activating Gen Z loyalty members 

• The gap between perceived and actual value in loyalty programs 

• The shift away from traditional points models toward more immediate, relevant benefits 

• The role of personalization—and the barriers to executing it effectively 

• The channels and experiences that most influence Gen Z engagement 

Click the green button to download the full report.