Gen Z Loyalty: Why Traditional Strategies Aren’t Enough

There’s a lot that goes into a successful customer loyalty strategy, but what do you do when you can’t figure out what your customers want? Building loyal Gen Z buyers might feel impossible…

Are any of these familiar?

• You spend valuable resources updating your website or social media.
• You give Gen Z customers your most dependable salespeople.
• You try everything to make Gen Z customers happy.

Yet, you don’t hear back from them. Or worse, they leave you nasty reviews.

What do you do after exhausting all options to please, what seems like, the unpleasable?

Here’s the hard truth: 62 percent of Gen Z consider multiple options even when they have a favorite brand. Of that group, 50 percent admit they’ll switch brands for a lower price or a higher quality product.

Gen Z seems impossible to satisfy. So how can you keep their extremely important business?

1. Authenticity is the most important thing to Gen Z.

Everyone is giving the same advice: be more authentic!

But how? It’s easier than you might think.

Authenticity is giving consumers a consistent feeling throughout every interaction, anytime, anywhere.

Depending on your business, that could mean a lot of things:

• If customer service is a point of pride for your dealership, why not show it? Post customer reviews that highlight what makes your dealership experience different (and better) than the competition.
• Maybe your dealership has a similar feel to the minimalist, artistic, and futuristic experience that consumers get when visiting an Apple store. Your website should proudly reflect that. Maybe your dealership feels more modern and straight-to-the-point like a Microsoft store. Proudly reflect that too. These two tech businesses are great examples of two similar companies targeting different groups of people.
• If your dealership puts intentional effort into making personal connections with your customers, avoid formal, resume-like descriptions. You could consider sharing answers from your salespeople to a fun, unrelated question to make them more relatable to customers. Humanize your staff by using pictures and descriptions that feel like real people, not robots.

You need to be honest with yourself and build a brand that reflects the experience you’re providing now, not what you want the experience to be. Don’t deny your flaws and be honest about them when you are prompted. You could help your potential customers see that you’re not afraid to admit fault by responding to negative reviews with action steps aimed at improving those weaknesses.

2. Gen Z is less digitally focused than we believe.

Shockingly, 97 percent of Gen Z shop in-person. In fact, malls in America are experiencing a resurgence due to Gen Z shoppers.

But don’t fire your digital marketing team just yet. Gen Z is still online, and your efforts can’t end there. Most shoppers make an in-person visit after researching other dealerships and are more informed than ever on vehicle specs and potential deals.

Allowing online shoppers to pick up where they left off by scheduling in-person visits seamlessly connects their online research to the in-person experience, satisfying potential Gen Z buyers’ needs for a faster buying process. And it gives your sales team additional information about a potential buyer’s interests, allowing them to adequately prepare for any questions or concerns they may have at an in-person visit.

3. Gen Z requires creative solutions.

Traditional loyalty programs aren’t as captivating as they used to be, especially for your Gen Z customers. Using these programs, their loyalty will be shaky at best. They need something different. This is a great opportunity to be creative and try new approaches that “gamify” your program. Popular apps, Duolingo and Snapchat, keep people engaged using “streaks”, which track the number of days a person consecutively uses the app. Streaks are shockingly motivating for consumers and can offer a solution to keep your Gen Z customers coming back.

If you’re unsure where to begin, consider:

• Building streaks into apps and websites for on-time routine maintenance appointments.
• Giving out digital badges or statuses for reaching streak milestones like five service appointments in a row.
• Offer grace periods to “restore” streaks to help when customers miss a routine maintenance appointment, lose their streak, and take their business somewhere else.
• Experiment with exclusive merchandise (a tactic that shows promise for Gen Z) or discounts on maintenance and future car purchases after hitting streak milestones.
• Create or sponsor local car clubs or events with exclusive incentives for streak holders giving opportunities to show off badges, streaks, or rewards.

The incentive to “keep your streak alive” motivates consumers in a way other loyalty programs can’t and could help you keep more of your Gen Z customers.

Building loyal Gen Z customers is hard, but it’s not impossible.

Reaching Gen Z is about connecting with them by being transparent, proud of your strengths, and unafraid to admit your weaknesses. It’s important your efforts give equal attention to all your touchpoints, both digital and in-person. And as you earn more of Gen Z’s trust, rewarding that trust becomes the key to securing loyal customers for years to come.

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