Credit from Dan Berthiaume
Adults under 30 have a different notion of “brand loyalty” than other consumers.
A new survey of consumers age 18-29 from Swift Prepaid Solutions finds that Gen Z and younger Millennials exhibit much greater price sensitivity and much lower brand loyalty than prior generations. For example, 60% of Gen Z and young Millennial respondents are neutral when choosing between name brands and private labels.
However, price sensitivity among young adults may tilt their preference toward private labels. More than 80% of respondents indicate price is the most critical factor when making a purchase, and 50% believe name brands are much more expensive than private label brands.
Name brands may want to emphasize quality when reaching out to young adult consumers. Two-thirds (67%) of respondents who regularly choose name brands, purchase them when they want assurance the product will be up to their standards.
Both name and private label brands should also consider maximizing the value they offer Gen Z and Millennial consumers. Eighty-three percent of respondents are more loyal to brands that offer value-added rewards and surprises, while 82% are willing to spend earned rewards on special offers delivered with the reward.
Although Gen Z and Millennials are considered “digital natives,” the number one way respondents learn about brands is from friends and family, outpacing Google, social media, Amazon, retail stores and television in order. Sixty-eight percent are willing to refer name brands to a friend, and 41% would do so for an incentive.
“Brands are at a crossroad with the shifting loyalty of Generation Z and young Millennials, requiring a fresh approach to engaging this next generation of buyers,” said Rodney Mason, Swift’s chief revenue officer.
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