CHICAGO--(BUSINESS WIRE)--This survey of adults ranging from 18 to 29 years old found that as Generation Z and young millennials exhibit much greater price sensitivity and much lower brand loyalty than prior generations – there is a challenge for name brands looking to grow loyalty with this group.
The Swift Prepaid Solutions survey shows:
- 60 percent of Generation Z and young millennials are neutral when choosing between name brands and private labels.
- Over 80 percent indicate price is the most critical factor when making a purchase; and 50 percent believe name brands are much more expensive than private label brands.
- 67 percent of those who regularly choose name brands, purchase them when they want assurance the product will be up to their standards.
- The number one way they learn about brands is from friends and family, outpacing Google, social media, Amazon, retail stores and television in order.
- 68 percent are willing to refer name brands to a friend and 41 percent would do so for an incentive.
- 83 percent are more loyal to brands that offer value-added rewards and surprises.
- 82 percent are willing to spend earned rewards on special offers delivered with the reward.
As more young adults choose private label brands over name brands, promotion pricing, recommendations from friends and family and loyalty bonus rewards are influencing more purchase decisions. Prepaid virtual and physical cards, which Generation Z and young millennials are twice as likely to prefer over checks and PayPal, work best for these incentives.
“Brands are at a crossroad with the shifting loyalty of Generation Z and young millennials, requiring a fresh approach to engaging this next generation of buyers,” said Rodney Mason, Swift’s Chief Revenue Officer. “As brands develop new strategies, incentives and referral programs using prepaid cards will become more crucial to recruit, retain and grow their customer base by appealing to buyer’s wallets and communities.”
For more details, you can see the full study here.
About Swift Prepaid Solutions
Swift is leading the payments movement to greater value through high-impact brand connections at the intersection of the payment. Swift optimizes fast corporate-funded payments to businesses, their customers, employees, contractors, participants and channel partners through digital and physical card payments in 160+ countries, 17 languages and 10 currencies. www.swiftprepaid.com Swift is owned by Syncapay, a holding company “Investing In The New Frontier Of Payments.”