The challenge of building brand loyalty among Gen Z

Authored by Mansi Gupta, Chief Business Officer, OpraahFx
While earlier the focus was about what a brand represents, Gen Z is especially drawn to brands that reflect their reality, help them express themselves, and foster a like-minded community. According to the 2024 Edelman Trust Barometer Special Report: Brands and Politics, globally, 84% of people report that they need to share values with a brand to engage with it. Gen Z is drawn to brands that reflect their reality, help them express themselves, and foster a like-minded community.
For Gen Z, brand positioning goes beyond selling products—it's about telling a story and creating an emotional connection. As the most active users on social media, dating apps, and e-retail platforms, Gen Z wields significant buying power and influence over brand reputation. Therefore, brands must communicate effectively and proactively share positive messages to build trust and avoid the rapid spread of negative news.
Gen Z, raised on social media, favors relatable and digestible content. Engaging them with interactive elements on platforms like YouTube, TikTok, and Instagram is key, as these are their preferred spaces. Brands that capture their attention understand their preferences and communicate in their language.
It is interesting that according to a McKinsey & Company article, the purchasing behavior of Gen Z in the US and UK demonstrates a significant shift in brand loyalty. While 30% of Gen Z said they would stick with their preferred brand for a new product or service, a notable 62% are open to exploring other options, even if they have a favorite. Furthermore, over half of those who do have a favorite brand are willing to switch if another brand offers a better price or higher quality.

Inshort, Gen Z can't be tied down.
To appeal to Gen Z, brands now need to go an extra mile and adopt strategies that resonate with this group, such as creating fun, engaging, and shareable bite-sized content.

Content Overload and Short Attention Span
It's no secret that Gen Z is constantly bombarded with content across various platforms, leading to shorter attention spans and a desire to consume more content in less time. This has forced brands to create concise, engaging, and visually appealing content that can instantly capture their interest amidst the noise. To stand out, brands need to deliver high-quality, impactful messages quickly, utilizing eye-catching visuals, snappy videos, and compelling narratives that resonate with Gen Z's preferences and lifestyle. Effective use of humor, relatability, and interactive elements can also help in grabbing and maintaining their attention.

Fast-Paced Change in Trends
Keeping up with rapidly changing trends among Gen Z is challenging for brands. The fast pace of trend shifts requires brands to stay constantly updated and agile. To maintain relevance and appeal to Gen Z, brands need to be well-versed in current trends, continuously monitor social media and cultural shifts, and adapt smartly to emerging trends. This means being flexible in their marketing strategies, experimenting with new ideas, and being quick to implement changes that resonate with Gen Z's evolving interests and preferences. Staying relevant in such a dynamic environment demands a proactive approach and a deep understanding of the Gen Z mindset.

High Expectations for Authenticity
Gen Z values authenticity and transparency from brands and can easily spot insincere or exaggerated messaging. To foster genuine connections, brands need to be honest, transparent, and true to their values, avoiding overly polished or misleading content. Especially with the recent introduction of the Self Declaration Certificate, authenticity has become even more crucial. Brands must communicate openly about their practices, stand by their commitments, and engage in meaningful interactions with their audience. By maintaining integrity and aligning with Gen Z's values, brands can build trust and loyalty in this discerning demographic.

Influence of Peer Reviews and Recommendations
Word of mouth remains a powerful tool in purchasing decisions even for Gen Z. This generation places significant trust in peer reviews, influencer recommendations, often valuing them more than traditional advertising. Brands should actively encourage and leverage positive user-generated content, reviews, and testimonials to build trust and credibility among Gen Z. By fostering a community where customers share their genuine experiences, brands can create a sense of authenticity and reliability that resonates deeply with this demographic.

Demand for Instant Gratification
Brands must ensure fast, seamless interactions and provide quick customer service responses to meet Gen Z's expectations for instant gratification. This demographic values efficiency and convenience, so brands that prioritize swift and responsive communication across digital platforms are more likely to capture and retain their attention. By leveraging technology and maintaining a proactive approach to customer service, brands can meet the high standards of Gen Z and enhance overall customer satisfaction.

Fragmented Media Consumption
Gen Z consumes content across a wide array of platforms and devices, resulting in fragmented media consumption patterns. To effectively reach and engage this audience, brands must adopt an omnichannel approach. This approach ensures consistent and cohesive messaging across all platforms where Gen Z is active. By maintaining a unified brand presence and adapting content strategies to suit different platforms, brands can maximize their visibility and engagement among this diverse and digitally-savvy demographic. This proactive approach not only enhances brand awareness but also strengthens connections with Gen Z across their preferred channels of interaction.
These are also the reasons why brands are now relying on partnering with influencers who align with Gen Z's interests and values. Brands can leverage their credibility and reach to deliver messages in an engaging and relatable manner. Social influencers play a crucial role in connecting with Gen Z's interests and values, delivering engaging, educational, and entertaining content. Influencers provide real-time insights and agility to navigate trends, helping brands stay relevant and foster lasting connections. This strategic partnership overcomes challenges of fragmented media consumption, driving brand affinity and loyalty among Gen Z.