Gen Z and millennials shrug off inflation woes to buy ethical goods
Gen Z and millennial shoppers are shrugging off inflationary woes and continuing to prioritise a retailer’s reputation when choosing where to spend.
Some 33 per cent of 18-34-year-olds said they are more loyal to brands with a ‘positive corporate reputation’ and ‘values’ that align with their own, compared to just one in seven shoppers aged over 55, a new study by American Express shows.
Coined ‘purposeful shopping’ Gen Z and millennial shoppers also are the most likely group to donate their points or cashback earned from loyalty programmes to charitable causes.
“Building a loyal customer base is the holy grail for any retail brand, but the current economic environment means that’s tougher than ever as shoppers prioritise and flex their spending,” Dan Edelman, vice president and UK general manager of merchant services at American Express, said.
It appears that younger generations are also less likely to be put off by poor customer service, with just 29 per cent of Gen Z and millennial shoppers claiming a poor in-store experience would make them less loyal.
This is in stark contrast to 63 per cent of older generations.
In the wake of soaring living costs, the number of both younger and older generations using loyalty schemes for the first time to help save money has grown, rising 64 per cent and 54 per cent respectively.
Shoppers in both of these groups are signed up to an average of four loyalty schemes, the data revealed.
“In the current environment, it’s natural for people to feel uncertainty meaning an increased desire to control their life, including where they spend money,” Kate Nightingale, consumer psychologist and chief behavioural officer of agency Humanising Brands, said.
“Consumers are seeking reassurance from retailers, and want services that make their lives easier, while also feeling valued by the brands they choose to support. It’s clear that alongside price, both purpose and authenticity are important factors that build trust and support long-term loyalty.”