Gen Z shoppers are set to drive a staggering £2.5 billion in spending during the January sales, with individuals spending an average of £171, according to new research from SAP Emarsys, the global leader in customer engagement. However, brands that fail to meet this highly influential generation’s expectations risk missing out on their loyalty – and their wallets – in 2025.
The research uncovers the top “red flags” that cause Gen Z to head to competitors, as well as the “green flags” brands must adopt to win their hearts and their business.
With 68% of Gen Z reporting loyalty to a favourite brand they repeatedly engage with, this group presents a lucrative audience for brands that “get it right” by building meaningful connections. However, their loyalty isn’t unconditional, and brands must avoid critical missteps to stay on their radar in 2025.
Gen Z red flags — How to lose loyalty:
SAP Emarsys’ research reveals top loyalty “red flag” pitfalls that could drive away Gen Z shoppers:
- 27%: Treating personal data irresponsibly
- 27%: Sending excessive marketing communications
- 26%: Charging for returns
- 18%: Failing to reward long-term customers
- 14%: Failing to personalise a shopping experience
Gen Z green flags — How to win loyalty:
On the flip side, Gen Z responds positively to brands that align with their values and create memorable experiences. AI-leveraged personalisation, consistency, and authenticity are key to securing their loyalty:
- 43%: Of Gen Z show their loyalty to a brand by having the brand’s app downloaded. This signifies the importance of delivering high-quality apps to keep this generation immersed and loyal in a brand
- 27%: Offering memorable experiences, like personalised services or events
- 23%: Being ‘iconic’ and relatable on social media
- 22%: Are more loyal to brands that use AI to improve their shopping experience
- 17%: Collaborating with relatable influencers and celebrities
Personalisation plays a particularly important role — 26% of Gen Z say they feel more loyal to brands that adopt a personalised approach tailored to their individual preferences.
Sara Richter, CMO at SAP Emarsys, explains, “Personalisation empowers brands to create value for Gen Z wherever they are—on their phones, engaged, and eager for experiences that feel tailored to them. By understanding individual preferences and acting on them in real-time, across multiple channels, brands can create the kind of loyalty that lasts.”
For consumer goods brands, personalisation isn’t just a buzzword — predictive AI makes personalised offers in real time — and is a proven way to turn Gen Z shoppers into loyal customers. With SAP Emarsys’ customer engagement platform, brands can deliver tailored recommendations, exclusive offers, and the best experience across every channel.
With Gen Z poised to drive £2.5 billion in spending during the January sales alone, consumer goods brands have an enormous opportunity to capture their loyalty and boost long-term growth. By focusing on avoiding red flags, delivering green flags, and leveraging personalisation, brands can position themselves as the go-to choice for this powerful demographic.
