
How business is using technology to create personalised Gen Z brand loyalty
Gen Zs in South Africa are the most entrepreneurial of all the generations and with a growing economic influence, they are discerning in the way they spend their money. They are looking for personalised authentic experiences and this trend isn’t expected to change anytime soon.
Businesses looking to compete in a volatile economy are developing renewed methods to meet these changing customer needs. Chief among these methods is AI to create tailored services and products, providing value-added benefits for consumers, such as loyalty programmes, personalisation for online customers and cost-saving strategies.
According to a Research and Markets Report, the South African loyalty market has recorded a CAGR of 12.8% during 2019-2023. South Africa’s loyalty market is projected to continue to grow over the forecast period to record a CAGR of 9.4% during 2024-2028. South Africa’s loyalty market is expected to increase from US$345.5 million in 2023 to reach US$550 million by 2028. Furthermore, research finds that 68% of Gen Z want to buy from companies that support a primary social cause that aligns with their values.
As technology and consumer behaviour shift and accelerate into a new paradigm of thinking, businesses would do well to implement new ways of positively increasing perception to attract the younger generation of consumers. Business leaders across the tech, finance and consumer industries share their insights on what needs to change to create personalised experiences to attract future generations and remain relevant.
Retailers compete for shoppers with less purchasing power
This year’s holiday shopping season could be especially challenging for retailers as they compete for shoppers with less purchasing power than in past years. This is according to Zuko Mdwaba, Salesforce area vice president/Africa executive and South Africa country leader. ‘With the fewest number of days between Black Friday and Christmas since 2019 and 43% of consumers carrying more debt than they were in 2023, retailers should prepare for an uphill battle in terms of shopper conversion.’
New Salesforce data from the Salesforce Shopping Index indicates that shoppers are prioritising price this year. Two-thirds of global shoppers report that prices will dictate where they choose to shop this year, with less than one-third prioritising the quality of the goods.
As consumers hunt for the best deals, retailers can use strong discount strategies to appeal to and convert shoppers. Retailers can also use AI to augment employees, increase operational efficiency, build deeper customer relationships and drive higher margins.
‘This season will be competitive, intense and no doubt focused on pricing and discounting strategies. It’s never been more important to leverage technology like AI and rely on your customer data for guidance and insight into marketing campaigns – especially the holiday promotional calendar – that keep your loyal customers buying more and buying from you,’ adds Mdwaba.
Technology needs to resonate with Gen Z
There is no doubt that technology is something we can’t go without. Whether it is in our personal or professional lives, technology is needed to get by in our daily activities. It is often used as an aid in our work, easing some of our administrative tasks or helping out with research. Another way it can be utilised is by reaching and connecting with new audiences.
‘Everyone uses technology, so why not use it as a form of communication?’ says Keletso Mpisane, Head of Blink by MiWay. ‘It is by far the easiest and fastest way to connect with people and the beauty is that you can be creative with it.’
Blink by MiWay utilises this in many ways, such as being fully digital and easily accessible, and through their WhatsApp Chatbot, Blinky, who can provide consumers with insurance quotes in the blink of an eye.
‘In light of how important technology is to Gen Zers and the major role it plays in their lives, it’s important to use technology in a way that resonates with them and that they will use. Quick service, short reels and infographics go a long way,’ advises Mpisane.
Hospitality industry invests in Gen Z
‘As a Marketing Manager at Radisson Blu Hotel Waterfront, I’ve seen first-hand the power of digital engagement in cultivating brand loyalty, especially among Gen Z guests. Our Radisson Rewards programme is a key component of our strategy,’’ comments Nina Thomlinson, Marketing Manager at Radisson Blu Hotel Waterfront.
Gen Z, being highly digital natives, values personalised experiences, exclusive benefits and seamless digital interactions.
‘For example, our app allows members to easily book stays, earn and redeem points, and access personalised offers. We’ve also focused on creating unique experiences, such as behind-the-scenes tours and collaborations with local influencers that resonate with their desire for authenticity and social sharing,’ she adds.
By tailoring our rewards program to their digital preferences, hospitality businesses will be able to build stronger connections with Gen Z audiences and drive repeat business for both business and leisure travel.