Dani Mariano, Chief Executive Officer of Razorfish.
Loyalty is no longer a static concept. For decades, it was treated as a matter of points and perks, a transactional system designed to keep customers coming back. This model worked well for Millennials and Generation-X, who were introduced to loyalty through frequent flyer miles, cash-back credit cards and rewards programs that offered clear, tangible benefits. These consumers were often willing to exchange their data or commit to repeat purchases in return for exclusive deals or upgrades.
But just because it worked in the past doesn’t mean it will work going forward. For the next generation of consumers, this approach feels impersonal and outdated. Traditional loyalty may still play a role, but it’s no longer the whole story.
A New Generation, A New Set Of Expectations
Gen-Z and Gen-Alpha are reshaping what loyalty means. They’re the first generations to grow up entirely in a digitally connected world, and with social platforms, streaming content and AI-powered tools woven into their daily routines, their expectations around brand behavior are evolving far faster than many companies can keep pace with.
These generations aren’t just looking for better rewards—they want to be seen and heard. According to GWI, only 43 % of U.S. Gen-Zers are loyal to brands they like, and just 37% report using loyalty or reward programs, both lower than Millennial and Baby Boomer levels.
In a world shaped by automation, what resonates most are moments that feel genuinely human: a personalized response on social media, co-created product content or brand actions that feel spontaneous. This shift toward emotional connection is forcing brands to rethink how they build trust.
From Transactions To Trust
To meet these expectations, marketers need to focus less on acquisition and more on alignment. The brands that will build long-term loyalty are the ones that create meaningful moments, listen to their audience in real time and invest in communities over conversions. That means showing up consistently both online and offline, and building trust not through transactions but through transparency.
Equally important is creating space for two-way communication. This doesn’t just mean replying on social media; it means inviting feedback, co-creating content and giving customers a sense of ownership in the brand’s direction. For example, Nike has let sneaker fans vote on which styles will be released. Glossier has built product lines directly from customer feedback gathered through digital communities.
This participatory model builds trust by showing that the brand isn’t just broadcasting—it’s listening. Gen-Z and Gen-Alpha don’t just want to buy from brands—they want to build with them.
Blending Real And Virtual Identity
We’ve seen through our work that this shift is especially pronounced in categories like travel, leisure and luxury. These are industries where the experience is the product, and younger audiences are paying close attention to how those experiences reflect their identity, both in real life and in digital spaces. Today’s consumers are curating their personal brands across both physical and virtual worlds, from immersive pop-ups to co-created content and virtual collectibles stored in digital wallets.
But this isn’t just about where consumers are; it’s about how they think. Gen-Z and Gen-Alpha move fluidly between digital and physical environments, and they expect brand experiences to follow suit. For these generations, brand trust isn’t built in one place; it’s reinforced across all touchpoints. What once were considered separate channels are now part of a single, integrated identity journey.
Brands that recognize this shift and create cohesive, cross-environment experiences will be better positioned to build lasting relationships. It’s no longer enough to show up. Brands must show up the same way everywhere.
Connection Is The New Currency
Loyalty is no longer something you buy. It is something you build. As more Gen-Zers come of age and Gen-Alpha starts to influence household decisions, the pressure is growing. But with that pressure comes the opportunity to evolve how we connect, communicate and create value in a way that feels personal, purposeful and lasting.
This is not just a generational shift. It is a call to reimagine the foundation of brand relationships in a world where connection is currency.
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