This is a complimentary article from YPulse Daily Intelligence. Get your first month for $1.

💡 For Gen Z, brand loyalty isn’t about sticking to just one brand, especially when cost is a factor

💡 They’re seeking out unique keepsakes, like The Central Park Polaroid guy and art vending machines, that offer one-of-a-kind finds

💡Sample and estate sales are becoming weekend rituals for young people, with some attending just to turn shopping into a social experience

Recent reports suggest brand loyalty is declining, but YPulse’s Brand Loyalty report tells a more nuanced story. The majority of Gen Z consumers still see themselves as loyal to some extent: 79% of 13-17-year-olds and 77% of 18-24-year-olds agree, “I consider myself loyal to one or more brands.” But Gen Z’s idea of brand loyalty isn’t the same as it was to older gens. When we ask them to define their level of commitment (if they’re not loyal, very loyal, or “loyal-ish”), 60% of 13-17-year-olds and 57% of 18-24-year-olds consider themselves “loyal-ish” to certain brands—not completely committed, but not indifferent either. Growing up with online shopping, endless product choices, and constant marketing noise has made them harder to impress and even harder to convert into loyal customers. So, if Gen Z is redefining what brand loyalty means, what exactly does it look like in their eyes? 

The key is understanding Gen Z’s version of loyalty; how “sticking by a brand” and also being willing to try another coexist. In YPulse’s 2016 Loyal-ish report, our data showed that Gen Z is open to staying loyal to brands they genuinely like, but are open to exploring other options—a quality that still holds true today. Before committing to a brand, they’re scrolling through social media, comparing products, and making sure they get the best possible price.  

In our most recent Brand Loyalty report, we ask 13-24-year-olds what they think brand loyalty means to them, even if they’re not loyal to a brand themselves. Our data shows the way they practice brand loyalty does in fact align with their definition of loyalty overall:  

The majority of Gen Z don’t think brand loyalty means sticking to just one brand     

YPulse’s Brand Loyalty report shows the top way teens (46%) and young adults (29%) describe brand loyalty is “always buying from that brand and never trying a competitor.” However, that doesn’t mean they’re only loyal to one brand. In fact, YPulse data shows nearly the same number of young adults (28% of 18-24-year-olds) think brand loyalty simply means buying from a brand as often they can, just as long as they’re able to. The reality is Gen Z’s ability to stay loyal isn’t always within their control. Whether it’s financial limits or the search for better quality, various circumstances sometimes lead them to explore other options. (Teens just may not have gotten to this point of needing to compromise yet.) But that doesn’t mean their sense of loyalty disappears, they’re just realistic about when they need to switch brands.  

To them, brand loyalty means having an affinity for a brand even if they use others 

Like we said earlier, Gen Z’s idea of brand loyalty is flexible—hence why many describe themselves as being “loyal-ish.” Even when they feel connected to a brand, they don’t see trying other options as a betrayal. YPulse’s Brand Loyalty report reveals 16% of 13-17-year-olds and 26% of 18-24-year-olds define brand loyalty as “loving a brand even if you purchase other brands instead.” And 12% of teens and 16% of young adults say loyalty means “buying that brand for now but being open to trying others.”  

They may stick with a fave brand out of habit or appreciation, but if another brand offers better (or cheaper!), they’ll make the switch without hesitation. YPulse data shows 79% of 13-17-year-olds and 65% of 18-24-year-olds agree, “I’ll continue to buy the same brand until someone makes something better.” This is especially true for luxury products. Many young consumers admire certain designer labels, but are quick to pick up more affordable dupes when the original product is too expensive. But like we’ve said before in YPulse’s Dupe Mindset report, brands across industries (and price ranges) can participate in duping themselves to keep up with competition. Consider offering a wider range of price points—or if you’re high-end brand, exploring resale options—to keep Gen Z loyalists in your corner. 

They’ll be more loyal to brands that are innovative, but affordable    

Price is the biggest driver of loyalty for Gen Z—the top reason they would be more loyal to brands is if they “have the lowest prices.” And when we asked what would make them stop buying from a brand they purchase from over and over again, their top response is “if they increased their prices.” It makes sense for a gen dealing with rising costs, student debt, and a shaky job market all at once, meaning they have no choice but be financially conscious. But that doesn’t mean quality doesn’t matter. When Gen Z is asked why they buy from brands over and over again, “great product quality” lands right at the top, followed closely by “good value for the price.”  

YPulse data also shows Gen Z consumers would be more loyal to a brand that “continually improves their products.” YPulse has said before how innovation is key to keeping Gen Z’s loyalty: our Innovative Brands report shows innovation is central to attracting this gen whether you’re new to their lives or a legacy brand they’ve always known. Their norm is for product updates to be constant, so if another brand offers something newer or more exciting, they’ll switch, even if it means leaving a long-time fave behind.