Gen Z and Millennials Demand Excitement From Brands, According to SAP Emarsys Study

In its latest research on customer loyalty, SAP Emarsys found that 43 percent of Gen Z and 41 percent of Millennials in the U.S. said they’ll ditch a brand they had been loyal to if it gets boring.

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The findings serve as a wake-up call to marketers who need to level up their strategies and tactics in a saturated marketing environment. “Regardless of whether consumers care deeply about a brand, the only way to cut through the noise is with better personalization and unique content based on individual interests,” authors of the report said.

Other key findings of the research include that “younger consumers are particularly drawn to innovative marketing” with 33 percent of Gen Z (compared to 28 percent of all demographics polled) saying they “have tried a new brand because of its ‘creative marketing.” In addition, 33 percent said they “are enticed by brands that use ‘cool’ content or imagery, compared with 27 percent of other age groups.” Twenty-six percent of Gen Z said they seek out brands that offer memorable experiences, which compares to 20 percent of other generations polled.

“Look at Dunkin’s latest Love Island campaign or Taco Bell having a ‘Brat Summer,’” the report noted. “These brands have set a benchmark by turning everyday products or services into something innovative and memorable.”

Sara Richter, chief marketing officer at SAP Emarsys , said igniting initial loyalty and turning it into long-term loyalty requires greater personalization. “It’s clear that consumers today, not just Gen Z, expect more than ‘business-as-usual’ — they want meaningful and memorable experiences,” Richter said. “The key to delivering that is personalization for every customer.”

Richter said AI is the only practical solution for providing genuine one-to-one interactions at scale, “across every channel and at the right moment. Brands that embrace AI-powered personalization are far better equipped to keep customers engaged, especially when attention spans are short and demands are high.”

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Richter said by combining traditional marketing strategies with the advanced capabilities of predictive and generative AI, “we’re empowering marketers to create exceptional experiences. For instance, our AI Product Finder seamlessly turns complex product data into engaging content, while our AI Subject Line Generator takes the guesswork out of crafting compelling headlines.”

Richter said for retailers and brands looking for a competitive edge, her company’s solutions “leverage AI to optimize the entire marketing process — from customer segmentation to campaign execution and performance analysis.” The chief marketer said AI can identify “the most profitable underserved audience segments representing new opportunities across different lifecycle stages, enabling highly targeted campaigns that are delivered at the ideal time and through the most effective channels.”

The survey results put a spotlight on the importance of generational marketing and engagement. Each generation is clearly different in terms of taste and expectations. And there’s a generation looming on the horizon that may prove more difficult to connect with, based on recent social media trends: Generation Alpha. Those born between the early 2010s to the mid-2020s are being lured to brands by untraditional forms of content.

Currently, Nutter Butter, the sandwich cookie from Nabisco, is making waves on TikTok with viral videos and animations that mimic a dark web aesthetic. The chaotic clips feature eerie voiceovers, strobe effects and unusual themes — such as garnishing the peanut-shaped cookie with a cooked shrimp. The brand’s most recent dozen TikToks have more than 70 million views. The content is causing Gen Z and Millennials to gasp, with those demographic cohorts saying the viral TikToks are “causing nightmares” and inducing trauma.

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