Brand loyalty has always been a key part of marketing, with companies working hard to build long-term relationships with customers. Traditionally, loyalty comes from things like brand recognition, product quality, brand image, and customer experience.
However, with Generation Z (ages 13-28), this is changing. Unlike past generations, they don’t stick to brands out of habit. Instead, they choose brands based on experience, convenience, personal values, and price – on their own terms.
At Platform One, we studied the older cohort of Gen Z (ages 22-28) who make their own buying decisions. This is the first in a three-part series exploring Gen Z’s values, attitudes, and behaviours as consumers – what drives their choices and how brands can keep up.
Does that mean brand loyalty is dead?
The short answer is no – but it has transformed.
Unlike generations before them, Gen Z don’t develop deep-rooted brand attachments. Instead, their loyalty is conditional and contingent upon a brand’s ability to provide continuous and personalized value – highlighting the role of situational and experiential loyalty,
Gen Z customers are hence more likely to exhibit loyalty based on dynamic, real-time interactions rather than historical relationships like their parents may have shown.
So, what is shaping Gen Z’s consumer behaviour?
1. Experience over brand loyalty: Gen Z are not afraid to ditch a brand if they find a better option. Their decision-making process is fast and fluid.
For example, subscription services like Spotify hold onto Gen Z not because of loyalty, but because of continuous value and personalization.
What this means for brands:
- If another company offers a better user experience, more personalisation, or faster service, Gen Z will switch without hesitation.
- They aren’t just looking for a product; they’re looking for a seamless, engaging experience that makes their life easier.
- Drivers for brand stickiness need to be constantly reviewed with a lens of the ‘experience’ and value they offer.
2. Purpose matters – But so does price: Gen Z are known for caring about ethics, sustainability, and social impact – but that doesn’t mean they are willing to pay a premium for it.
For example, fast fashion brands like SHEIN continue to thrive despite sustainability concerns because they offer affordable and trendy options.
What this means for brands:
- While sustainability and corporate responsibility matter, affordability is still the deciding factor.
- Brands must balance purpose with practicality – offering ethically produced, high-quality products at a fair price.
- Brands need to shoulder greater effort and responsibility – become drivers of purposeful change, instead of being silent supporters on the sidelines.
3. Fast or Feast mentality – Instant gratification wins: Gen Z doesn’t browse endlessly. They research, decide, and purchase quickly, often driven by real-time reviews, social media, and convenience.
TikTok’s viral ‘TikTok Made Me Buy It’ trend shows how Gen Z make seemingly impulse purchases based on social proof and seamless buying experiences.
What this means for brands:
- Speed matters – Long checkout processes or slow delivery will lose them.
- Decision fatigue is real – Too many choices overwhelm them. Simple, clear product recommendations and AI-driven personalisation are essential.
How can brands win over Gen Z?
If traditional brand loyalty is fading, what can companies do to keep Gen Z coming back?
1. Hyper-personalisation is non-negotiable: Gen Z expect brands to understand their preferences, behaviours, and needs. AI-powered recommendations, customised product offerings, and tailored experiences are the new standard.
2. Make transactions effortless: Gen Z are digitally native and expect frictionless experiences. Slow websites, complicated checkouts, or poor mobile experiences? Instant dealbreakers.
3. Build a community, not just a customer base: Gen Z trust people more than brands. They rely on peer recommendations, influencers, and real-world experiences. Brands need to create a sense of belonging to stay relevant.
The bottom line: loyalty isn’t dead – it’s just different