Customer loyalty across generations – exploring preferences and approaches of Millennials and young Gen X
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Mid-career adults (30–44 years old): Millennials and young Gen X
Pragmatic loyalty membership preferences
Millennials, also known as Gen Y, and young Gen Xers are more loyal to industries that align with their busy, resource-driven lives. In comparison to the general population, their memberships lean slightly more towards travel-related programs like airlines (14% vs. 13%) and hotels (13% vs. 11%).
At SAS, before the pandemic, most points were earned through flights. Now, the majority are earned in daily life, but people still want to redeem them for travel. It’s the dream of travel—what I like to call “the bonus experience”—that keeps people engaged. Olivia Wasniewski, Head of the EuroBonus Program at Scandinavian Airlines |
However, supermarkets (27%) still dominate within their loyalty memberships, though they trail slightly behind the general population (32%).
For mid-career adults, the most important factors when they decide to join a particular loyalty program are those with measurable value:
- discounts and cashbacks (71% vs. 69% of the general population),
- value of rewards (67% vs. 64%),
- better customer service (52% vs. 48%).
Gen Y and Gen X earning and spending rewards
Mid-career adults mostly earn and spend their loyalty points mainly during everyday actions, such as:
- everyday shopping for food (30%),
- dining (12%),
- shopping apparel and electronics (10% vs. 8% of the global population).
- food shopping (25%),
- online purchases (20%).
Big no to direct messages: avoiding emails and phone calls
The only generations that prefer mobile apps and loyalty portals over email are Gen Y and young Gen X. They do not want to receive offers through this channel, like other age cohorts surveyed; instead, they prefer mobile apps (51%) and loyalty portals (41%). Moreover, they share a more streamlined, no-nonsense approach to communication, being less interested in phone calls (36%) and social media marketing (23%).
Prioritizing tech-savvy features
Mid-career adults show a strong interest in technological features, such as:
- rewards in digital wallets (47% vs. 40%)
- instant digital rewards (46% vs. 39%)
- flexible redemption options (44% vs. 38%).
Beneficial personalization
A considerable number of mid-career adults prioritize exclusive rewards (59%) and frequent purchase discounts (57%), presenting a practical approach. Despite the fact that 44% are willing to share data for rewards, privacy concerns (36%) and doubts about profitable reward value (9%) still remain key barriers.
On the positive side of (hyper)personalization, of course, is the ability to create customized, tailored experiences for customers based on customer data, which create more value and lead to higher customer loyalty than standardized customer experiences. However, to ensure that personalization is not perceived as intrusive, companies must always be aware of possible data protection concerns and proactively. In this regard, customers appreciate transparency and control over what happens to their data. Dr. Lena Steinhoff, Chair of Marketing and Digital Transformation at the University of Paderborn |
Sustainability in action
Even 67% of Millennials and Gen Xers are more likely to join a loyalty program that prioritizes sustainability – the most out of all surveyed generations. They are also willing to pay up to 60% more for more eco-friendly products or services. Moreover, 62% claim they have switched or stayed loyal to a brand because of its sustainability practices.
Key takeaways
To sum up, mid-career adults value quality, trust, and efficiency. They combine the pragmatic tendencies of Gen X with the tech-savvy expectations of Millennials, making their preferences a fascinating middle ground between younger Zillennials and the older population. By implementing generational marketing strategies, marketers can better connect with their target audiences, boosting customer loyalty and sales.
Want to gain more data on loyalty trends?
This article presents only a glimpse of the information and data presented in the report Customer Loyalty Predictions 2025 and Beyond: Report on AI, Privacy, and Sustainability. To understand even better current trends and shifts in customer expectations, as well as their preferences, and behaviors, get the report here.
