Loyalty Points, Now for Brands

True digital natives, Gen Z is rewriting the rules of brand loyalty by preferring brands that reflect their self-image and the need for better experiences

- By GUNJAN DANDOTIYA & KIRAN MAHASUAR

FOR DECADES, BRAND LOYALTY was rooted in familiarity, trust and consistent quality. Families bought the same shampoo or ketchup for generations, driven by tradition, trust and limited alternatives. But loyalty today is no longer inherited. It's shifting every day, especially among Gen Z and the emerging Gen Alpha, who are rewriting the rules of consumption.

Born into a digital-first world, these cohorts are digitally native, having grown up with the internet, smartphones and social media as integral parts of their daily lives, forcing brands to adapt or perish. For these young consumers, brand history matters less than relevance. This shift is beyond the short attention spans; it’s more about values, technology, and experiences. For brands, the cost of being slow to adapt or inauthentic is simple: Brand switching. Therefore, the brand must delve deep into understanding the underlying forces behind this shift.

REDEFINING LOYALTY THROUGH VALUES AND IDENTITY

Unlike older generations, whose loyalty was shaped by tradition and trust, Gen Z treats loyalty as a reflection of values, identity and relevance. With over 377 million members in India, they already drive nearly half of all consumption, and their spending power is projected to hit $2 trillion by 2035. Globally, Gen Z’s influence will reach $12 trillion by 2030, making it the most powerful consumer cohort in history.