Turning Loyalty Members into Brand Advocates

Gen Z is redefining what loyalty means. It’s not about points and perks anymore. A recent Marketing Dive report reveals that membership in loyalty programs still matters, but only when it feels real, communal, and human. Programs that feel impersonal quickly lose traction — almost one-third of Gen Z and millennial respondents have abandoned a loyalty program for that very reason.

From Punch Cards to Peer Circles: What the Data Tells Us

Gale’s “From Transaction to Connection: The Future of Loyalty Programs” report highlights key shifts in Gen Z expectations:

• 75% of Gen Z respondents say that engaging with other members in a loyalty community is extremely important.
• Nearly one-third have become long-term brand consumers because of the relationships they formed — while roughly the same share dropped off because the experience felt impersonal.
• 73% still join loyalty programs for value-based rewards (points, discounts), followed by free shipping (53%), birthday gifts (47%), and personalized offers (41%).

Why It Matters: Loyalty Beyond Transactions

Loyalty today isn’t earned through cold discounts — it’s built via emotional connection, shared identity, and community belonging. Gen Z isn’t just looking for a deal; they’re looking for a brand that makes them feel seen and part of something bigger.

A loyalty program that fosters interaction — peer forums, shared challenges, member-driven content — becomes a hub of belonging, not just a path to the checkout.

Actionable Moves for Marketing Teams

• Build active member communities by encouraging interaction through message boards, challenges, or spotlighting member stories.
• Balance value and belonging — while community matters, reward structures are still critical to keep members engaged.
• Make it social with gamification elements or voting systems that let members influence rewards.
• Humanize the experience by avoiding faceless automation — use moderators, influencers, or brand ambassadors to create real connections.

Final Note

Gen Z’s loyalty is not earned, it's nurtured. Brands that prioritize connection, shared identity, and authenticity in loyalty programs will turn members into advocates. At Smart 360, we help brands transform loyalty from a transaction into a community-building engine.