Younger shoppers are prioritising spend on experiences over buying physical products this summer – and they’re increasingly using loyalty points and perks to fund them – says new research from American Express (AMEX). 

Original research of 2,000 UK consumers by AMEX showed that almost six in ten (58%) of Gen Z and Millennials are opting for experiential spend over buying physical goods, with social media a key demand driver.

43% said social content had inspired them to book summer experiences, including music festivals, theatre trips and meals out. However, while younger shoppers are prioritising experience purchases, they also remain considered about which events they will splash out on. 60% prefer to “do a few things well” while a further 73% will plan ahead to ensure they can afford the experiences they want.

AMEX’s research also showed that Gen Z and Millennial shoppers will try and maximise the value of each purchase, often using perks or loyalty points to spread the cost. 61% of Millennials spend more on experiences when they can offset the cost using loyalty rewards, rising to 67% of Gen Zers.

“Highlighting the value and added benefits that younger consumers are seeking remains important for retailers, and can help drive repeat spend,” said Dan Edelman, UK General Manager of Merchant Services at AMEX.

“Gen Z and Millennials say that rewards, such as earning points or cashback, influence how they choose to pay and where they choose to spend. This will be a key battleground for retailers as they look to stand out against competitors,” Edelman added.

Younger cohorts of shoppers are more likely to decide how they pay based on the perks on offer. 70% are influenced by better rewards or cashback than other ways to pay, while around two-thirds are more likely to choose how they pay based on sign-up bonuses and welcome offers (66%) or retailer-specific incentives (63%).