AuctionsAug 29, 2025
Sotheby’s UAE Sale to Feature 32-Carat Fancy Vivid Orangy Pink DiamondThe highlight of a single-owner jewelry and watch collection, it’s estimated to fetch up to $7 million at auction this December.
SurveysMar 28, 2018
Study: Young Consumers Are Demanding Loyalty from Brands
Here are four rules of loyalty from millennials and members of Gen Z, according to a recent survey from Alliance Data.
Columbus, Ohio--With technology providing so many options at their fingertips, millennials and Generation Z are looking at brand loyalty in new ways, according to a recent survey.
In its study, “The Rules of NextGen Loyalty,” Alliance Data looked at how Gen Z and millennials engage with brands and define loyalty.
The study, conducted by Alliance Data’s Analytics & Insights Institute, used a combination of qualitative and quantitative research methods to delve into what brand loyalty means for older millennials (those born between 1982 and 1989), younger millennials (born between 1990 and 1997) and Generation Z (born between 1998 and 2010).
Both generations have grown up with instant access to information and brands, which has greatly influenced their decision-making. Yet they haven’t abandoned the more traditional forms of engagement, and are finding ways to combine the digital experience with in-store visits, Alliance Data found.
Here are four rules of “NextGen” loyalty the firm discovered as a result of its study.
1. Loyalty is earned.
Because today’s younger consumers have so many options available to them with instant access to information online, they also can be more selective when it comes to where and how they shop.
They’re comfortable doing so both online and in-store and expect a consistent experience from brands across all channels.
According to the study, 63 percent of young consumers agree that since they have so many choices of where to shop, a brand must show them loyalty to earn their business.
For 43 percent of Gen Z, that means a brand must be accommodating to their needs. The same is true for 34 percent of younger millennials and 33 percent of older millennials.
Fifty-five percent of older millennials said they rarely purchase something different if they like a brand, and 53 percent of younger millennials and 51 percent of Gen Z said the same thing.
Brands need to recognize the unique motivations of Gen Z and millennials as the first step in building brand connectivity and earning their loyalty, Alliance Data said.
Price and quality are the top influencers for younger consumers when deciding among brands, but once those two factors are removed, selection and convenience are the most important factors.
Gen Z and older millennials also value consistency in product while younger millennials value rewards programs.
2. Loyalty is complex.
Loyalty has been viewed, traditionally, as one-dimensional.
But Alliance Data
Editors' Picks
Sponsored by
found that consumer loyalty to brands falls within a range of characteristics, from functional to emotional, and said that a brand rethinking its approach to loyalty requires understanding that true loyalty comes from a combination of factors within the spectrum.
For all three age groups surveyed, trustworthiness, honesty and reliability are at the core of loyalty in general. But when it comes to brand loyalty, there are a number of other factors coming into play.
For millennials, it’s also based on rewards, quality, discounts, reliability and coupons, among other things. For Gen Z, brand loyalty is described by the terms quality, reliability, discounts, and rewards.
Other notable aspects popped up for all groups like helpfulness, free shipping and convenience.
3. Loyalty is fragile.
Younger consumers expect great service and a great experience across all channels, and if those expectations aren’t met, they won’t hesitate to take action and voice their opinion.
In fact, 76 percent of younger consumers only give brands two to three chances before they stop shopping with them. One in three consumers, meanwhile, said nothing could be done for a brand to win them back.
Alliance Data said that to keep these consumers happy, “remember that beyond price and quality, (they) expect good service and a great experience.”
Not surprisingly, the demographics surveyed are also heavily influenced by social media. Thirty-five percent keep up with the brands they like on social media. 34 percent of Gen Z members, 29 percent of younger millennials and 26 percent of older millennials said they are influenced by bloggers and YouTubers on what to purchase.
This means they’re also more likely to be influenced by reviews and posts about a brand, and also to express their pleasure (or displeasure) over an experience.
4. Loyalty is multifaceted.
Transactions and sales should no longer be the only measure of loyalty, since it is now a combination of both function and emotion.
Once more emotional elements are introduced by a brand—like shopping options that make consumers’ lives easier, offering exclusive products, or even factors like making personal recommendations or showing they are socially responsible—it then moves past traditional brand loyalty and into aspirational territory.
Alliance Data said brands need to understand customers’ unique needs and think differently about measuring loyalty, understanding some customers only require basic service elements, while others need more.
Being able to measure young consumers’ loyalty and how they’re prioritizing certain values can help differentiate consumers to better target and earn their business.
For all three age groups surveyed, trustworthiness, honesty and reliability are at the core of loyalty in general. But when it comes to brand loyalty, there are a number of other factors coming into play.
For millennials, it’s also based on rewards, quality, discounts, reliability and coupons, among other things. For Gen Z, brand loyalty is described by the terms quality, reliability, discounts, and rewards.
Other notable aspects popped up for all groups like helpfulness, free shipping and convenience.
3. Loyalty is fragile.
Younger consumers expect great service and a great experience across all channels, and if those expectations aren’t met, they won’t hesitate to take action and voice their opinion.
In fact, 76 percent of younger consumers only give brands two to three chances before they stop shopping with them. One in three consumers, meanwhile, said nothing could be done for a brand to win them back.
Alliance Data said that to keep these consumers happy, “remember that beyond price and quality, (they) expect good service and a great experience.”
Not surprisingly, the demographics surveyed are also heavily influenced by social media. Thirty-five percent keep up with the brands they like on social media. 34 percent of Gen Z members, 29 percent of younger millennials and 26 percent of older millennials said they are influenced by bloggers and YouTubers on what to purchase.
This means they’re also more likely to be influenced by reviews and posts about a brand, and also to express their pleasure (or displeasure) over an experience.
4. Loyalty is multifaceted.
Transactions and sales should no longer be the only measure of loyalty, since it is now a combination of both function and emotion.
Once more emotional elements are introduced by a brand—like shopping options that make consumers’ lives easier, offering exclusive products, or even factors like making personal recommendations or showing they are socially responsible—it then moves past traditional brand loyalty and into aspirational territory.
Alliance Data said brands need to understand customers’ unique needs and think differently about measuring loyalty, understanding some customers only require basic service elements, while others need more.
Being able to measure young consumers’ loyalty and how they’re prioritizing certain values can help differentiate consumers to better target and earn their business.
More on Surveys
The Latest
FinancialsAug 29, 2025
Movado’s Q2 Sales Rebound Despite Tariff ImpactCEO Efraim Grinberg noted a resurgence in the fashion watch market.
CollectionsAug 29, 2025
Piece of the Week: Mark Davis’ ‘Bullseye’ Necklace The “Bullseye” necklace, with vintage bakelite and peridot, August’s birthstone, is the perfect transitional piece as summer turns to fall.
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key IssuesJewelers of America is leading the charge to protect the industry amidst rising economic threats.
Supplier BulletinAug 28, 2025
Clientbook Is Helping Jewelers Turn Clienteling Challenges into Wins with Hands-On Training and CoachingSponsored by Clientbook
Weekly QuizAug 29, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
GradingAug 28, 2025
GIA’s New ‘Quality Assessment’ for Lab-Grown Diamonds Is Coming It will classify lab-grown stones into one of two categories, “premium” or “standard,” in lieu of giving specific color and clarity grades.
SourcingAug 28, 2025
Botswana Declares Public Health Emergency Amid Diamond Sales SlumpPresident Duma Boko addressed the country’s medical supply chain crisis in a recent televised address.
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine JewelryAs a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.
MajorsAug 28, 2025
Borsheims Names New Jewelry BuyerFormer Free People buyer Afton Robertson-Kanne recently joined the retailer.
IndependentsAug 28, 2025
Sissy’s Log Cabin Donates School Supplies to Memphis StudentsThe jeweler teamed up with two local organizations for its inaugural “Back to School and Bling” event.
EditorsAug 27, 2025
Taylor Swift’s Engagement Ring Is a Fairy Tale for Vintage Diamond CutsThe singer’s new bling, reportedly a natural old mine-cut diamond, is no paper ring.
SourcingAug 27, 2025
11,685-Carat Emerald Recovered From Zambia’s Kagem MineDubbed the “Imboo,” or “buffalo,” emerald, the rough gemstone is part of Gemfields’ latest emerald auction, which is taking place now.
CollectionsAug 27, 2025
Mined + Found’s New Collection Gets Playful The “Play” collection centers on nostalgic toys that have kinetic elements to carry playfulness and wonder into adulthood.
CollectionsAug 26, 2025
Does Your Jewelry Stack Need a Snack?Designer Christina Puchi, the creative force behind CCWW Designs, has created charms and pendants based on iconic candies and crackers.
WatchesAug 26, 2025
Nick Jonas Gets Nostalgic in New Fossil CampaignThe Jonas Brothers star showed off new timepieces against the backdrop of his favorite spots in his home state of New Jersey.
IndependentsAug 26, 2025
Hinkamp Jewelers Celebrates 70 YearsThe family-owned jeweler in Fayetteville, North Carolina, is in the hands of the second generation.
ColumnistsAug 26, 2025
Back to School, Back to Style: Why August is Prime Time for Self-GiftingIn his latest column, Emmanuel Raheb shares tips for encouraging customers to treat themselves to new jewelry.
WatchesAug 25, 2025
London Jewelers Brings Rolex to Historic Hamptons HomeThe new stand-alone Rolex boutique is housed in the former Odd Fellows Hall, a landmark built in 1897.
CollectionsAug 25, 2025
Tennis Star Madison Keys Has the Perfect Necklace for the US OpenThe Brilliant Earth ambassador co-designed a diamond medallion featuring meaningful symbols.
TrendsAug 25, 2025
Amanda’s Style File: That’s a WrapWrap jewelry is more than just a trend; it’s the perfect motif for the coming season of layering, scarves, and pumpkin spice.
WatchesAug 25, 2025
WatchTime NY Show Returns for 10th Anniversary EditionThe three-day watch collector show, coming this October, will feature 44 exhibiting brands, as well as a new dinner experience.
GradingAug 22, 2025
Former Head of GIA India Promoted to Oversee Global Operations Sriram “Ram” Natarajan is now GIA’s senior vice president of laboratory operations and is based out of the lab’s headquarters in Carlsbad.
CollectionsAug 22, 2025
Piece of the Week: Retrouvaí’s ‘Diamond Vein Bond’ CollarThe one-of-a-kind collar represents the beauty of imperfection and the strength to rebuild.
MajorsAug 22, 2025
Kendra Scott Returns as CEO of Her Jewelry EmpireThree C-suite executives, including former CEO Tom Nolan, have resigned as part of what the company describes as a “transition.”
MajorsAug 21, 2025
Claire’s Finds Buyer, Could Save up to 950 StoresThe retailer, which recently filed Chapter 11, inked a deal to sell its North American business and intellectual property.
MajorsAug 21, 2025
Target Names New CEO as Sales Continue to Lag Target CEO Brian Cornell will step down in February and be replaced by the company’s chief operating officer, Michael Fiddelke.
Policies & IssuesAug 21, 2025
JA, IDMA Talk Tariffs With Execs in DC The group met with the president's senior trade advisor earlier this week to express the industry’s concerns about the effects of tariffs.
