Gen Z and Millennial shoppers are leading the way in demanding experiential loyalty and increasingly want rewards that transcend discounting or financial incentives alone, according to the latest research from LoyaltyLion.

Original research of over 2,000 UK consumers showed that almost three quarters (73%) of Gen Z and Millennials now want experience-based rewards, such as early sale access or exclusive events, to motivate them to sign-up to a loyalty scheme.

And this increasing focus on personalised, value-added perks by younger cohorts is shaping how brands are building loyalty schemes to drive longer-term engagement.

Loyalty beyond just shopping

Earlier this month, ASOS launched its new tiered loyalty programme, ASOS.WORLD, aimed at evolving the way it connects with shoppers. Featuring four tiers, each band unlocks exclusive experiences and benefits, including early sale access, priority back-in-stock alerts and invites to events.  

Its Head of Loyalty, Macy Hong, said the move recognised that ASOS “customers want to engage beyond just shopping” and was reflective of the fashion brand taking a longer-term view of engagement past customer acquisition.

Gymshark also championed community-led loyalty when it launched its first members scheme. Rewarding customers “beyond simply shopping” was a key goal in creating the programme, Gymshark’s Chief Digital Officer, Carly Natalizia, said. As well as points earnt on purchases, it rewards “sharing and showing up” via brand engagement or completing Gymshark Training app workouts.

Loyalty is a relationship, not a transaction

Over half (55%) of the shoppers polled by LoyaltyLion said they now recieve experience-based rewards, however just 59% feel loyalty programmes deliver truly personalised experiences. Nearly a third (32%) would pay to enrol in a programme that delivered experiences, rising to 70% of Gen Z.

“Loyalty is about more than discounts,” Charlie Casey, CEO of LoyaltyLion, commented. “Shoppers are looking for brands that treat loyalty as a relationship rather than a transaction. It’s about creating a space where customers feel understood, valued and excited to return.”

“Consumers want to feel part of a brand’s journey. Get it right and they’ll keep coming back, spend more and advocate for you,” Casey concluded.