How to Push Gen Z Loyalty Members Past the “Moneymoon” Phase

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For some, engaging with a loyalty program can feel a bit like a romance. There's the initial spark, the exciting "honeymoon phase" where everything is new and engaging. But what happens after that initial rush fades? This is especially critical for Gen Z, a generation known for its fleeting attention and high expectations.  

As Adam Posner highlights in his For Love or Money™ report, this generation is the most likely to lose interest in loyalty programs after the first 90 days – the "moneymoon" period. But why does this happen and what strategies can combat it? Well, read on to find out! 

Understanding Gen Z and the “Moneymoon” Dip

Gen Z, born between 1997 and 2012, has a unique set of characteristics that shape their interactions with brands and loyalty programs. As digital natives who grew up with technology at their fingertips, they tend to have shorter attention spans and higher expectations than previous generations. 

They crave instant gratification and personalized experiences and quickly lose interest if a brand fails to meet their needs.

In his report, Posner highlights that given their shorter attention spans and higher expectations, they are a more promiscuous consumer group, having no issue moving from one brand to another if their needs aren’t met immediately. But why are they like this? Well, several factors contribute to this disengagement. 

1. Oversaturation: Gen Z is bombarded with loyalty programs vying for their attention. From coffee shops to clothing stores, every business has its own rewards program. This oversaturation makes it difficult for any single program to stand out or capture their long-term interest.
2. Lack of Personalization: Gen Z values authenticity and personalization. Generic rewards and irrelevant offers simply don't resonate with their desire to feel seen and understood by the brands they interact with.
3. Slow Reward Accumulation: Accustomed to instant gratification, Gen Z wants to see tangible benefits from loyalty programs quickly and easily. If earning rewards feels like a slow and arduous process, they're likely to lose interest.
4. Poor Communication: Gen Z expects brands to stay top-of-mind with engaging content, personalized messages, and relevant updates. Infrequent or uninteresting communication can make them feel undervalued and forgotten.

Understanding these nuances is crucial for businesses looking to build lasting loyalty with Gen Z. By recognizing their unique characteristics and addressing the factors that contribute to the "moneymoon dip," you can create a loyalty program that truly resonates with this influential generation.

Strategies to Keep Gen Z Engaged

To truly capture Gen Z's loyalty, you need to go beyond traditional reward systems and create an engaging and personalized experience. Here are some effective strategies:

Lapsed Customer Engagement 

By implementing smart re-engagement tactics, you can reignite their interest and bring them back into the fold.

Time-Based Triggers: Set up automated campaigns that trigger after a certain period of inactivity. For example, if a customer hasn't engaged with your program or made a purchase in 90 days, automatically send them a "We miss you!" message with a bonus reward or a special offer to entice them back.

Behavior-Based Triggers: Trigger re-engagement campaigns based on specific customer behaviors. If a customer abandons their online shopping cart, send them a reminder email with a small discount or free shipping to encourage them to complete their purchase.

Feedback and Surveys: Reach out to lapsed customers with incentivized surveys to understand why they disengaged and gather valuable feedback. Offer them a small reward for completing the survey, and use their responses to improve your loyalty program and overall customer experience.

Gamification

Gen Z loves a challenge! 57% of Gen Z respondents said they find gamification to be a helpful incentive within a loyalty program. Incorporate gamified elements that make earning rewards more interactive and fun. 

Here are a few ideas to get you inspired: 

Interactive Games: Incorporating an interactive element into your loyalty program is an easy spark of excitement. Think  "Scratch & Win" games, spin the wheel, or puzzles that encourage members to keep playing to unlock rewards (and bragging rights). 

Challenges: Create challenges that encourage specific actions, like visiting a certain number of times within a month or trying new menu items. Reward those who complete the challenge with bonus points or stamps, exclusive rewards, or early access to new products or services.

Points and Badges: Award points for various actions, like making purchases, referring friends, or engaging with your brand on social media. Allow members to "level up" as they accumulate points, unlocking new rewards and benefits at each level. Introduce badges or achievements that members can earn for completing specific tasks or reaching milestones.

Leaderboards: Tap into Gen Z's competitive spirit by incorporating leaderboards that rank members based on points or stamps earned or challenges completed. This can encourage friendly competition and motivate members to engage more with your loyalty program.

Exclusivity

Gen Z craves a sense of belonging and recognition. Tap into this by offering exclusive access to products, events, or experiences that make them feel like VIPs. This not only strengthens their bond with your brand but also creates a sense of community among your most loyal customers. Some ideas could be: 

Early Access to New Products or Collections: Give your Gen Z loyalty members a sneak peek at new arrivals or even the chance to purchase them before anyone else. This makes them feel "in the know" and valued as trendsetters.

Exclusive Events and Experiences: Host exclusive events or workshops tailored to Gen Z interests, like a meet-and-greet with a relevant influencer, a behind-the-scenes tour of your business, or a hands-on workshop related to your products or services.

Limited-Edition Products or Collaborations: Create limited-edition products or collaborate with other brands to offer exclusive merchandise available only to loyalty program members. This adds a sense of rarity and desirability to your rewards.

Surprise & Delight

Keep Gen Z on their toes with unexpected rewards and spontaneous gestures of appreciation. This could be a surprise bonus, a gift with a purchase, or early access to a new product. These unexpected delights create a sense of excitement and keep them guessing what's next.

Social Impact

Gen Z is passionate about social causes. Align your loyalty program with a cause that resonates with their values, such as sustainability or social justice. This allows them to feel good about supporting your brand while making a difference.

Examples of this could be donating to charities, rewarding eco-friendly actions, such as bringing your coffee cup or your shopping bag, offering cause-related rewards, and involving customers in social impact initiatives.

Leveraging Stamp Me to Engage Gen Z

Stamp Me offers a powerful platform to implement these strategies and push Gen Z past the "moneymoon" phase. Here's how:

Engagement Campaigns: Use Stamp Me's interactive features to gamify your loyalty program. Create exciting Scratch & Win campaigns, personalize birthday rewards with the Birthday Club, and re-engage inactive members with a Lapsed Customer campaign. 

Want to learn more about our campaigns? Download this free guide. 

Communication & Personalization: Integrate Stamp Me with your mailing platform to keep Gen Z informed and engaged with targeted emails and newsletters. Leverage loyalty data to personalize communication, making them feel valued and understood.

Surprise & Delight: Stamp Me allows you to incorporate surprise and delight elements into your program. Through Push Notifications & SMS capabilities, you can randomly surprise a single member or multiple members with a bonus stamp, friendly message or free reward; anything you can think of!

To Wrap Up

Gen Z presents unique challenges and opportunities for loyalty programs. By understanding their preferences and leveraging the right tools, you can create a rewarding experience that keeps them engaged long after the initial "moneymoon" phase. Stamp Me provides the features and flexibility to implement effective strategies and build lasting loyalty with this influential generation.

If you love these insights from Adam Posner and want to dive deeper into customer groups and preferences, contact him for a FREE copy of his amazing For Love or Money™ report.