As the January sales approach, Gen Z is set to unleash a staggering £2.5 billion in spending, making them one of the most lucrative consumer groups for brands to engage.
However, new research from SAP Emarsys reveals that brands must navigate a complex landscape of expectations to win over these influential shoppers. With individual spending averaging £171, the stakes are high for brands that fail to meet Gen Z’s demands.
While 68% of Gen Z shoppers report loyalty to brands they frequently interact with, this allegiance is far from guaranteed. A series of critical missteps could easily send them into the arms of competitors. Key concerns include irresponsible handling of personal data, cited by 27% of respondents, along with excessive marketing communications, return charges, and a lack of personalised shopping experiences.
Still, the potential for brands to thrive is significant if they embrace the right strategies. Gen Z prefers brands that resonate with their values and create memorable experiences. Notably, 43% of respondents demonstrate loyalty by downloading a brand’s app. Additionally, 27% value unique experiences like personalised services or events, while 22% express loyalty to brands that leverage AI to enhance their shopping experiences.
Tailored approach
Personalisation is a key driver for Gen Z loyalty, with 26% stating they feel more connected to brands that tailor their offerings to individual preferences. Brands looking to capitalise on this trend can take inspiration from PUMA’s successful partnership with SAP Emarsys.
By using AI-driven insights, PUMA has created personalised customer journeys that bridge direct-to-consumer platforms and in-store experiences. Their innovative use of TikTok shoppable videos has made shopping seamless for younger audiences, allowing them to engage without disrupting their browsing experience.