Key Takeaways: 

• Gen Z loyalty to brands resets with every purchase.
• Proof and product efficacy matter more than a brand’s reputation alone.
• Winning Gen Z means earning a spot in their brand rotation, rather than owning the entire relationship.

Consumer loyalty used to be something brands could anticipate. Through repetition and familiarity, brands often only had to win consumers over once, and they were likely to remain loyal.

Gen Z, which represents roughly 25% of the global population, has flipped that formula on its head, forcing brands to compete for attention and loyalty again and again. Gen Z’s loyalty resets with every purchase and interaction, as they remain open to alternative products that may better meet their needs.

The New Gen Z Loyalty Economy, a report presented by Radius Insights, a brand strategy and innovation consultancy, and ONE Strategy Studio, an AI-first strategic insights agency, explores what is shaping the new loyalty economy and how brands can respond to this generational shift.

Shifts That Are Impacting Loyalty

• Proof now outranks reputation: Consumers increasingly rely on reviews, ingredient lists, product performance, and transparency.
• Dupes and alternatives are on the rise and consumers are more comfortable switching between brands that offer similar benefits or results. 
• Creators are replacing traditional brand voices, as consumers first discover products through creators and evaluate the brand’s claims afterwards. 
• Brands can become part of a consumer’s identity by earning a meaningful role within communities and spaces consumers already care about.
• Brands must anticipate who their consumers are becoming and evolve alongside their audiences to understand their changing needs.
• Data-driven personalization can feel like captivity to Gen Z. They increasingly push back against personalization when it feels like surveillance.
• Performance metrics can create anxiety, as Gen Z consumers may be less receptive to tools including skin scores, portfolio trackers, and other performance metrics.
• AI is heavily used by Gen Z, but only when consumers feel like they are in control and their decisions can be simplified. 
• This generation wants brands to educate them on their products and efficacy, but when that information becomes confusing or inaccessible, they are likely to pull away.

It’s increasingly not the brand itself that wins, but the efficacy of the product. Factors that once helped maintain loyalty, including limited choice, high switching costs, and a lack of information, no longer carry the same weight.

Yet, according to the report, “brand promiscuity isn't a personality trait of a generation. It's a rational response to a market with far less friction in it than the one the traditional loyalty model was built for.”

And with Gen Z’s spending power expected to grow to $12 trillion by 2030, it is increasingly important for brands to understand what drives this generation’s shopping decisions and what it will take to earn their continued trust.

As the report highlights, 70% of Gen Z consumers purchase dupe products across categories, more than any other generation. This presents a challenge to traditional ideas of brand loyalty, as consumers become more willing to call out brands when products fail to meet their expectations. They are also increasingly turning to AI for product recommendations that address immediate, specific needs, rather than automatically returning to a brand they have trusted in the past.

But this does not mean Gen Z is wholly disloyal. 

When Gen Z consumers find something they trust, they tend to stick with it. That trust, however, may not be attached to a brand alone. It often resides within a trusted community, creator, or cause, influences that increasingly shape which brands and products consumers choose to support.

Switching brands does not necessarily signal low emotional engagement, either. Instead, it is often because there are simply more choices, and more people and platforms influencing what to buy. On social media alone, algorithms are not designed around repeat purchase rates, meaning consumers are not shown the same brands over and over again. They are constantly exposed to new products, cheaper alternatives, and recommendations.

Loyalty is also about how Gen Z approaches shopping in general. According to the report, consumers do not typically browse a category looking for a brand they think they will love. Instead, they search based on specific needs, occasions, or products that resonate with their identity.

As the report outlines, this generation shops “need-state-first, then proof-first, then brand-last. The brand matters at the end of the decision, as reassurance, not at the start, as the reason to look.” For that, brands need to continue evolving alongside the Gen Z consumer and anticipate their future needs. 

How to Win Gen Z Over

• Brands must give Gen Z a clear reason to choose a brand for a specific need, moment, or occasion, rather than trying to own the entire relationship.
• Using product performance, trusted creators, user-generated content, and transparency makes Gen Z more likely to trust a brand.
• Build communities, rituals, and shared experiences that allow Gen Z to connect and contribute themselves, not just the creators. 
• A brand’s message carries more weight when it is validated by a person or community Gen Z already trusts.

For Gen Z, loyalty isn’t something brands own; it’s something they have to keep earning. And because Gen Z naturally switches between a portfolio of brands, the goal can no longer be to become the only choice. Instead, brands should focus on earning a consistent place in the mix.

“Brands can no longer assume loyalty—they have to earn it with every interaction,” said Amy Spera, VP and Senior Strategy Director at ONE Strategy Studio, in a statement. “Consumers are making fresh decisions every day, and the brands that win will deliver proof, relevance, and value every step of the way.”