Although Gen Zers appreciate some nameplates, including Costco, more than others, overall, only 11% in the age group say brands understand them really well, a disconnect that could have implications for loyalty, according to new research from Rival Technologies.
Among the top 10 brands for Gen Z loyalty, Apple led the pack, followed by Nike. Four retailers made the list, including Costco at number three, Amazon at number six and Walmart and Uniqlo in a tie for number nine with Dove and Starbucks.
The study of Gen Z consumers across the United States and Canada, conducted by the research technology company, found that those who feel understood are roughly 9 times more likely to be faithful to a brand than those who feel misunderstood, at 45% versus 5%.
Still, the research points to a significant overall challenge for brands: widespread indifference. When asked how brand messaging makes them feel, 64.5% of participants in the study respond disengagedly, such as “I don’t care.”
When it comes to Gen Z loyalty, according to the Rival study:
- Gen Zers Can Be Loyal. About 64% of Gen Z consumers say they stick with a brand they like rather than switch based on price or try something new.
- Influencers Rank Last for Loyalty. Despite brands’ investment in creator marketing, only 9% of Gen Zers cited influencer recommendations as a driver of loyalty.
- Price, Value and Quality Come First. Price and value (82% of study participants) and product quality (80%) far outranked alignment with personal values (36%) as factors influencing Gen Z loyalty.
- U.S. Gen Z Consumers Are More Likely to Feel Understood. In the United States, Gen Z consumers were nearly three times as likely as those in Canada to say brands understand them really well, at 17% versus 6%, and about twice as likely to be unconditionally loyal.
- Negative Reactions Increase with Age. Negative reactions to brand messaging rose from 22% among 18- to 20-year-olds to 34% among 25- to 29-year-olds, but disengagement remained high across every age group.
“Brands put a lot of effort into earning Gen Z’s loyalty, but these findings show how closely loyalty is tied to whether people feel understood,” said Paula Catoira, Rival group chief marketing officer. “If you want to understand this generation, you have to engage them in ways that let them tell you what matters to them, in the moment and in their own words. Giving Gen Z more ways to share the context behind their choices can help brands get beyond assumptions and see what is actually shaping their decisions.”
