Gen Z shoppers are set to drive a staggering estimated AUD $1.3 billion in spending during the January sales, with individuals spending an average of $261, according to new research from SAP Emarsys, the global leader in customer engagement.
With 68% of Gen Z reporting loyalty to a favourite brand they repeatedly engage with, this group presents a lucrative audience for brands that “get it right” by building meaningful connections. However, their loyalty isn’t unconditional, and brands must avoid critical missteps to stay on their radar in 2025.
Gen Z loyalty red flags
According to SAP Emarsys, pitfalls that could drive away Gen Z shoppers include:
- Treating personal data irresponsibly (32%)
- Sending excessive marketing communications (31%)
- Charging for returns (24%)
- Failing to reward long-term customers (17%)
- Failing to personalise a shopping experience (8%:)
How to win loyalty
On the flip side, Gen Z responds positively to brands that align with their values and create memorable experiences. AI leveraged personalisation, consistency, and authenticity are key to securing their loyalty:
- 42% of Gen Z show their loyalty to a brand by having the brand’s app downloaded. This signifies the importance of delivering high quality apps to keep this generation immersed and loyal in a brand
- Offering memorable experiences, like personalised services or events (26%)
- Being ‘iconic’ and relatable on social media (49%)
- Are more loyal to brands that use AI to improve their shopping experience (15%)
- Collaborating with relatable influencers and celebrities (20%)
Power of personalisation
Personalisation plays a particularly important role: 28% of Gen Z say they feel more loyal to brands that adopt a personalised approach tailored to their individual preferences.
“Personalisation empowers brands to create value for Gen Z wherever they are – on their phones, engaged, and eager for experiences that feel tailored to them,” sayd Sara Richter, CMO at SAP Emarsys.
“By understanding individual preferences and acting on them in real-time, across multiple channels, brands can create the kind of loyalty that lasts.”
