How do Generations Shape Customer Loyalty? Insights into Changing Preferences and Approaches
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Every generation – Gen Z, Gen Y (Millennials), Gen X, Baby Boomers, and Silent Generation – has different preferences. Each of them brings unique expectations to their relationships with brands, from reward programs to digital-first engagement strategies. To build lasting customer relationships, in times of increasing competition, understanding needs of every generation and the principles of generational marketing is a key.
Signing up vs. staying loyal: what drives real engagement?
To provide insight into each generation's view on loyalty programs, it is helpful to show their participation levels. On average, Gen Xers are members of 10 loyalty programs, while mature adults belong to only 6, both figures falling below the global average and fewer than Zillennials and mid-career adults, who each typically belong to about 12 programs. Mature and established adults’ preferences for fewer programs underscore their selective nature, prioritizing quality over quantity in their affiliations as well as exhibiting strong loyalty to brands that deliver tangible benefits and cater to their specific needs.
On the positive side of (hyper)personalization, of course, is the ability to create customized, tailored experiences for customers based on customer data, which create more value and lead to higher customer loyalty than standardized customer experiences. However, to ensure that personalization is not perceived as intrusive, companies must always be aware of possible data protection concerns and proactively. In this regard, customers appreciate transparency and control over what happens to their data.
Dr. Lena Steinhoff, Chair of Marketing and Digital Transformation at the University of Paderborn
9 most surprising cross-generational findings
Through the implementation of generational marketing strategies, marketers can connect more effectively with their target audiences, increasing customer loyalty and sales. Understanding and acknowledging the values of each generation is essential to tailor marketing efforts that resonate with each group’s preferences and behaviors.
1. Positive approach to unconventional loyalty across generations
Both Gen Xers and mature adults showed significant membership in unconventional loyalty programs. This indicates that niche programs resonate with older demographics as much as younger ones, who are typically associated with experimental choices.
2. Trust and social proof decline with age
The importance of recommendations—whether from friends, family, or online reviews—steeply declines with age. While Zillennials are heavily influenced by social proof (55% say word-of-mouth is critical), only 47% of older Baby Boomers and the young Silent Generation and 38% of Gen Xers value this factor. Reviews are also far less important to older generations. Mature adults, in particular, rely on firsthand experience to evaluate brands, demonstrating a strong preference for self-verified decision-making.
3. Sustainability: varying engagement
While all generations recognize the importance of sustainability, their level of commitment differs. Zillennials and mid-career adults are more likely to stay loyal to or switch to sustainable brands, whereas mature adults show a gap between values and action—56% consider sustainability important, but only 32% make purchasing decisions based on it. Additionally, with just 36% willing to pay a premium for sustainable products, older customers may be influenced by practical constraints or skepticism.
If I have to guess what customers expect in 2025, I would say seamless omnichannel experiences, personalized rewards, and exclusive access to unique experiences will be key. Brands must demonstrate a strong commitment to social responsibility and sustainability. Gen Z will love it!
Bijou Daniel, Head of Product - Loyalty and Operations at Alshaya Group
4. Personalization as appealing feature only for younger generations
Personalization is key to modern loyalty programs but becomes less appealing with age. While Zillennials and mid-career adults appreciate tailored offers, older generations, particularly mature adults, show less enthusiasm.
5. Growing resentment against dynamic pricing
Dynamic pricing evokes mixed feelings among all generations (mature adults being the most reluctant), what proves a growing discomfort with algorithms determining pricing, particularly among those who value predictability and fairness.
6. Declining enthusiasm for exclusive offers with age
Exclusive member-only events and VIP products are a key motivator for Zillennials, but interest wanes with age, suggesting that loyalty programs targeting older customers should focus on accessible, everyday benefits rather than aspirational perks.
7. Preferred communication channels vary across generations
E-mail is the most preferred communication channel across all generations, while phone calls are the least favored.
If you identify customers who like WhatsApp and send messages via that channel, the probability that the consumer will read it and respond is higher compared to responding to the same message sent via email or text message. In general, you have to identify which communication channels are preferred by your customers and use them.
Łukasz Dubiel, Loyalty Solutions Consulting Director at Comarch
8. Instant gratification essential for all
Despite varying preferences, instant rewards have universal appeal, reflecting a shared expectation for loyalty programs to deliver value in real time.
9. Crypto and tech features with minor interest across generations
Across all generations, interest in cryptocurrency-based rewards, voice-activated features, and smartwatch integration remains low, with even Zillennials (the group closest to technology) showing only lukewarm interest (under 20%).
Want to gain more data on loyalty trends?
This article presents only a glimpse of the information and data presented in the report Customer Loyalty Predictions 2025 and Beyond: Report on AI, Privacy, and Sustainability. To understand even better current trends and shifts in customer expectations, as well as their preferences, and behaviors, get the report here.
