Ever play “two lies and one truth?” Given three reasonable statements, guess which one is true. Let’s play with these three statements about customer loyalty and engagement.
1. Gen Z loves loyalty programs and deal-seeking.
2. Baby Boomers crave live encounters more than younger generations.
3. Customers are loyal because they feel emotional affinity for a brand.
Like all generalizations, these statements have limited utility. If we’ve learned anything from years working in customer engagement, it’s that one size does not fit all. Still, despite the advancements in technology, especially AI, truly relevant customization – of messaging, benefits, rewards, offers, experiences – remains more the exception than the rule in programs at scale. So, averages still have some validity.
Now, let’s use data from the 2025 Deloitte Consumer Loyalty Program Survey to see if each of these statements is true or false.
If you picked Number One as the lie, the Deloitte findings suggest that it is actually true. Nearly 75% of Gen Z respondents say they prioritize shopping with brands that have programs, while about 70% emphasize the importance of program membership during harder economic times. Saving money is important for this younger segment, perhaps even more so than for their more financially established parents.
Number Two sounds like a truth, if you think Boomers aren’t comfortable in the digital world. But in fact, only 13% of Boomers are interested in member or community events, compared to 41% for both Gen Z and Millennials, and 26% for Gen X. On the other hand, all cohorts said “efficient and enjoyable” digital experiences are very important, from 64% for Boomers to 75% and 77% respectively for Gen Z and Millennials. Except for Gen X. There may be something to the oft-cited notion (another truth?) that Gen X are generally outliers; only 45% prioritized digital CX.
Brands love to be loved, and most marketers would love to find Number Three to be true. Yet most consumers make choices on more prosaic, less emotional criteria like price, quality, convenience, and increasingly, sustainability and other positive corporate values. 65% of marketers believe their brands are loved, yet only 25% of consumers say their brand choices are motivated by emotional attachment.
It seems that core drivers like savings, convenience, friction-free shopping, and valuable rewards are still the keys to loyal behavior – which we increasingly define as retention leading to enhanced customer lifetime value. That doesn’t mean that emotional engagement isn’t important. But we think that engagement is rarely driven by “brand love,” but by repeated positive experience, led overwhelmingly by the digital experience. Your thoughts?