Loyalty: A Generational Perspective

I’ve been thinking a lot about loyalty recently. How it is inspired, built and maintained. One thing that has become incredibly clear is that there is a profound generational difference in how loyalty is perceived, earned and nurtured over a lifetime.

Within each generation, there have been a number of historical, social, cultural, political and economic events that have shaped how they view the world, relationships and everything in between.

When it comes to consumer purchasing preferences and habits, these influences play a major role, and when it comes to establishing loyalty, it seems there is a tendency for each generation to approach the concept quite differently.

For instance, take the Silent Generation (1925- 1945) growing up during a period when paternalism was the norm. World wars and economic instability enabled figures and institutions of authority to almost automatically generate a sense of compliance, obedience and a natural following.

Loyalty was almost an expectation, in some instances even a demand.

Children were brought up to be respectful and obedient to their parents and this trickled over into the way they viewed figures of authority (in everything from the government to the workplace) as they became adults. Life was seen to be full of challenges that must be overcome, with little questioning.

Loyalty was as much about what was expected of them in terms of normal behaviour as it was a choice so for this generation, once loyalty was established, it tended to remain.

In terms of their behaviour as consumers, this generation tended to be brand loyal almost from the get-go, provided the brand lived up to their side of the ‘trust’ contract and delivered on its initial promise. When it erred, permission to fail was often granted easily, seeing the failure as an anomaly.

Loyalty = familiarity and trust.

One example from historic research showed that car purchasers from this generation tended to remain ‘in-brand’ even as they passed through different life stages, moving up through the portfolio rather than exploring alternatives even as the choices and options grew exponentially. Whether this choice to stay within the brand was because of the generational mentality of ‘once you pick you stick’ or whether it truly was out of a sense of deeply built loyalty is yet to be determined. Perhaps with all things, it’s a little of both.

In complete contrast, Baby Boomers (1946-1965) ushered in the era of consumerism.

Growing up during one of the greatest periods of change including the Civil Rights Movement in the US and the Cold War in Europe, they saw a man put on the moon, the emergence of the first computers, as well as the first real public presentation of the corruption and instability in government.

Theirs was an era of cynicism, of distrust of authority. And it resulted in fundamental behaviour and attitudinal change; having an opinion, being heard, being an individual and being seen.

It’s no surprise therefore that when it comes to loyalty, there was a seismic shift.

No longer blindly obedient as many of the generation that preceded them, they constantly questioned who and what they were loyal to.

Loyalty was seen for the first time to be truly earned not demanded. The criteria for earning loyalty became ever greater and permission to fail declined fast. For the Baby Boomer’s, loyalty was dynamic because it continued to evolve (and no doubt still does).

For brands to earn the loyalty of the Baby Boomer they needed to connect emotionally and continuously create value. Brands needed to be consistent, constantly providing quality and value, and also resonating with them on a personal level. Brands needed to be more than just the product or service. They needed to bring meaning.

And as Baby Boomers have aged, their attitudes and needs have continuously evolved. They’ve re-evaluated their brands of choice, constantly seeking alternative options that deliver exceptional value. They are, in fact, quite distinguished brand hoppers unless they are given a good reason to remain loyal.

Understanding why something is worth their investment is a necessary precursor to them opening and re-opening their wallets, despite them having more disposable income than other generation.

Ultimately, Baby Boomers won’t pledge their loyalty to a brand unless it absolutely earns it.

They know they have many choices and take the time to weigh their decisions before committing to a brand. And if a brand doesn’t live up to expectations or needs change, they won’t think twice about seeking a replacement. In fact, Baby Boomers are 15.8% more willing to switch brands than Gen Xers (CrowdTwist 2015).

Gen X (1966-1980) on the other hand have grown up witnessing the fall of the Berlin Wall, the Challenger disaster, the coming of AIDS and MTV, the Iranian hostage crisis, Desert Storm and the Dot Com boom.

The first generation to be raised with email, the internet and the rise of e-commerce and convenience. The first generation for whom divorce was common and in which both parents worked outside the home.

During a Gen X’s life-span they have seen technological advances that have reshaped the world we live in. Many of which have already come and gone; the CD, DVD, answering machine, Walkman, mixtape, MTV, video store and mall shopping.

They adopted digital technology early in their lives, they understand how it works and how to make the most of it. They are also incredibly savvy and know when they are being pitched at. As the generation that experienced a stagnant economy, high unemployment and instability, they are known for being cautious and sceptical.

They view the world with some cynicism which remains a challenge for brands. However, this generation is also the change generation. Pushing back the envelope of old age, Gen X’s attitudes to life, health, work and responsibility changed remarkably from the Baby Boomers who came before. ‘Work hard, play hard’ a mantra for many of Gen X; adults in many things but still very much a child at heart.

As consumers, Gen X value their diversity, independence and eclectic tastes. They are a well-educated yet sceptical cohort. They lean towards brands who reflect diversity and acknowledge that every consumer is different.

They seek brand relevancy and authenticity. They reject brands who use a generic ‘one size fits all’ approach or brands that reinforce the status quo, reflect traditional values or engender traditional stereotypes. They like brands who recognise they can think for themselves and shun those who patronise or attempt to instruct them. Gen X favour brands who make them curious, who pique their interest, brands who don’t ‘sell’.

Sceptical about marketing tactics, Gen X are more grounded when it comes to being advertised to and marketed at. Try to sell and you’ve lost your Gen X in a heartbeat. It’s all about providing high-quality products and services and demonstrating a 2-way relationship is at the heart of the brand.

And when it comes to loyalty, with Gen X it’s a different story yet again. Whilst admittedly, trying to woo a Gen X consumer is hard, once they find a brand they like and trust, they tend to stick. They are less interested in trying new brands and are even willing to pay more for items from their favourite brands, rejecting lower cost alternatives in favour of their brand of choice.

Finally, Gen Y (1981-1997), possibly the generation most written about, the most sought-after by brands, and yet the most difficult to ‘typify’. They are without a doubt the most misaligned and misunderstood generation, despite the column inches dedicated to them.

However a few things are certain, they’ve grown up in a period of rapid, incessant change.

They’ve been the guinea pigs of rapid technological innovation, socialised through the rise and rise of social media, and experienced political instability, financial instability and domestic terrorism first hand.

They are the generation with the least faith in institutions. They demand tolerance for religious, racial, gender and sexual orientation differences and won’t support any institution they see in conflict with economic or social inequality.

Of all the generations, they are the most ethnically diverse, the most tolerant of difference and the most in favour of individualism.

Unlike previous generations, they tend to ignore traditional advertising, and expect instant, personalised communications on the channels and devices they’ve grown accustomed to. Figuring out Gen Y decision making journeys and purchasing behaviour patterns is no easy feat as everything is always changing. The status quo is that there is no status quo.

Gen Y have high expectations of brands, they want them to be honest, direct, ethical, humorous and to surprise them. They place value on the experience a brand provides and they expect personalised engagement 24/7. They want to be engaged continuously and expect brands to offer compelling incentives that reward them, as well as activities that engage them.

And they want to share feedback, be involved in product and service innovation and even in some cases create their own content for the brand.

Ultimately, they don’t want to be marketed to, they want to feel a human connection with a brand, knowing their voice and opinions are heard. When it comes to loyalty, Gen Y are highly demanding. One bad experience can be enough to make them reject a brand in its entirety.

BUT they will also go out of their way for a brand they love.

To earn and maintain loyalty from this discerning group, brands must connect emotionally, brands must offer meaning beyond the product or service itself, and keep offering it, compellingly, continuously, consistently,