How to create a loyalty program for Gen Z shoppers

Guides & Tips
August 28, 2023

Need to keep your Gen Z customers coming back to your eCommerce store? The easiest way to turn these elusive shoppers into repeat purchasers is through a loyalty program. But the traditional tactics might not work as well for this generation as it does for us Millennials, no cap. Let's take a look at 3 easy ways to make your Gen Z loyalty programs slap.

Know how Gen Z thinks to inform your rewards

The most important thing you need to understand about Gen Z is that they've had the internet and social media their whole lives. With that, they don't just want; they require instant gratification. You need to make sure you're offering rewards they can earn and use right away.

You also need to make sure your loyalty program is social media friendly. That means it's at the center of your social media strategy, not just that you can share codes on Twitter.  

Finally, remember that Gen Z is all about brand squad. Your loyalty program needs to reflect who you are and be authentic to your brand's values. Gen Z smells corporate B.S. a mile away, so make sure if you're an eco-friendly brand, your rewards include trees being planted, not a sticker.  

3 ways to build a Gen Z loyalty programs that works

Here are three real examples that you can use for your rewards program to connect with Gen Z shoppers and build loyalty instead of relying solely on impulse buys:

Put social media at the center of your strategy

In a recent study by Morning Consult, the average Gen Zer spends over four hours a day on social media. Knowing that this is where they are entertained, engage with friends, and share their identity is key to really knowing this audience. As you're building your loyalty program for Gen Z buyers, make sure that social is at the center of your rewards program, not an afterthought.

  • 90% of shoppers buy from brands they follow on social, so reward for following your accounts.
  • Make the referral rewards compelling so they're incentivized to share with their followers.
  • Gen Z trusts UGC reviews 73% more than any other type. Prioritize it! Give double rewards when they post a product review on their page. Then take that review, make a social ad out of it, and post it on your PDP. One clean, trust building, purchase funnel, all from your loyalty program.

Gen Z consumers are twice as likely to purchase a product based on referrals or suggestions from friends compared to older generations. Know they talk to each other on social, and make it easy for them to talk about your brand and products.

Prioritize sustainability and social good

A study by Forrester found that 51% of Gen Z buyers will ensure that a brand’s corporate social responsibility aligns with their own before they make a purchase. So if you want your rewards program to be an effective retention tool for Gen Z shoppers, make sure your rewards are reflective of the good work you're doing in the world. Offer rewards that give back to the community you serve, not just to the buyers!

One of the worlds largest DTC shoe retailers, TOMS, became popular because they donate a pair of shoes to a child in need with every purchase. Seeing the brand loyalty they built because shoppers aligned with their values, they applied the same tactic to their loyalty program. Instead of just earning rewards for yourself, you can earn more for children in need! 

Personalize the experience with the things THEY care about

Use the real data from your Gen Z shoppers to tailor offers and rewards specifically for them. Whether it's a discount for their favorite restaurant or a free gift tailored to their interests, making your loyalty program personal will make customers feel more connected to your brand and encourage them to keep coming back.

Sephora's Beauty Insider Loyalty Program offers members personalized rewards based on their past purchases. Customers can join the service for free and earn points with every purchase they make, which they can then redeem for exclusive discounts, free samples, and more.

Create a custom Gen Z loyalty program today

If you want winning Gen Z loyalty programs, you need a platform you can customize to their wants, not just the standard options. Rivo loyalty and rewards is the only customer retention platform that's completely customizable for Shopify sellers. Offer unique rewards, customize when you give, and even how your loyalty program looks and acts. You have to think outside the box to win over Gen Z, and your loyalty program better reflect that. Setup a time to talk to a loyalty & rewards expert today at Rivo.