Gen Z's Influence on Customer Experience and Loyalty with Craig Crisler

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This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:   

1. What makes loyalty programs appealing to Gen Z customers? 
2. How does Gen Z’s approach to customer loyalty differ from previous generations? 
3. Why is it important for brands to focus on building community within their loyalty programs? 
4. How does personalized service contribute to repeat business and customer loyalty? 
5. Why should companies continuously evolve their loyalty programs for new generations?

Top Takeaways

• Gen Z consumers, people roughly between 18 and 28 years old, are quickly becoming one of the most influential groups of spenders. Their preferences are shaping the way companies design their services and loyalty programs. 

• Loyalty programs must evolve over time to meet the changing needs and habits of new and younger customers. Brands that don’t update their loyalty strategy risk losing relevance as younger customers will look elsewhere for more meaningful rewards.  

• While loyalty programs often offer perks like discounts or points, creating a sense of belonging and exclusivity resonates more with Gen Z customers. For example, loyalty clubs that invite them to events or offer early access to new products go beyond just saving money and make customers feel like they are part of something special. 

• It’s easy to fall into the trap of generational stereotypes like “Millennials are lazy” or “Gen Z can’t focus.” The truth is every generation has slackers as well as go-getters. Instead of hiring employees based on which generation they belong to, focus on attitude, personality, and drive. 

• Gen Z shoppers are drawn to brands that build real experiences and communities around their products. Creating experiences helps customers form memories and connections that keep them coming back.  

• Successful loyalty programs prioritize the personal aspect of the customer experience. Small gestures, such as using a customer’s name or offering information relevant to their needs, can make a huge impression. Customers like to return to brands that make them feel welcome and valued on an individual level. 

• When brands reach out to customers at a younger age, they can build lifelong loyalty. Companies that nurture these relationships as customers grow are more likely to keep them for decades, and the trust from the start pays off in long-term customer retention. 

• Businesses should use AI to make things easier but not forget that real conversations matter. AI should enable, not erase, the connections between companies and their customers. Customers of all generations still want to talk to actual people who understand their needs and can provide help. 

• Plus, Shep and Craig share customer loyalty strategy examples from brands like Nordstrom, Ikea, Starbucks, and Delta. Tune in! 

Quotes:

“Gen Z leans in on the idea of community in loyalty programs. They want a sense of belonging and love feeling treated special by the way a loyalty program works.” 

“The loyalty program you have for one generation may not be right for the next group; it needs to evolve and adapt to attract loyalty from the next wave of customers.” 

“The ultimate loyalty program isn’t about points or perks. It’s about doing such a good job that even if you took those away, your customers would still want to come back and do business with you.” 

“All good CX, all good brands, all good things, lean into humanity. AI is a great enabler, but ultimately the thing that drives amazing CX is two people co-creating value together. Lean into the human component of the work.” 

About:

Craig Crisler is the CEO and co-founder of SupportNinja, a people-focused company that provides full-cycle outsourced customer support solutions for emerging brands around the world. 

Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio.