Gen Z’s trust test: Can your brand pass?

Loyalty strategies for a new generation of consumers

Trust is built slowly, over repeated positive experiences. Once broken, it’s difficult to repair. Marketers know that trust is the bedrock of brand loyalty. But for younger consumers, especially Gen Z, brand loyalty is more conditional than ever. As Gen Z continues to enter the workforce and flex their economic influence, they are proving to be more discerning, digitally fluent and value-driven than generations before them. And earning their trust is no small feat. 

The reality: Brand loyalty is on the decline

A striking forecast from Forrester Research: Brand loyalty is expected to drop by 25 percent in 2025.¹ While that number sounds dramatic, it signals a larger shift in consumer behavior—driven largely by Gen Z. Raised with endless options at their fingertips, Gen Z doesn’t give loyalty freely. It has to be earned—and re-earned—over time. Inflation and rising costs in essentials like groceries, education, insurance and housing, along with the looming impact of tariffs, have made this generation more price-sensitive and brand-fluid than ever.

So, how can brands keep Gen Z coming back? Here are three ways to build lasting loyalty.

#1: Prioritize the customer experience

Customer experience is still one of the most powerful drivers of loyalty. And for this social-first, digital-native generation, that means intuitive, seamless experiences across every channel. Clunky checkouts and broken mobile experiences are instant deal-breakers. While a digital-first mindset is essential, human support still matters—especially when things go wrong. Resolving issues quickly and empathetically builds lasting trust. Creating a frictionless journey, both online and in-store, keeps Gen Z coming back. And brands that actively engage in real conversations about their products—not just push them—stand out.

Pro tip: Invite feedback—and act on it. Gen Z wants to be heard, not just sold to.

#2: Demonstrate real value and back it up

Gen Z isn’t anti-brand—they’re anti-B.S. They buy from brands that offer quality, authenticity and alignment with their values. And while they may be value-conscious, they’re willing to spend their hard-earned dollars on premium products and experiences. This means that brands need to deliver the value proposition in a way that clearly communicates why it matters, without overhyping it. 

​​This is where influencer relationships—and user-generated content (UGC)—can help. The right creator can make a brand feel relatable, tell stories that people connect with and reach the right audience. And when brands amplify authentic content created by real customers, it adds a layer of credibility that’s hard to fake. Take prebiotic sodas like Ollipop and Poppi—they’ve tapped into Gen Z’s health-conscious mindset and used both influencer endorsements and UGC to hard-launch their brands into mainstream recognition.

Pro tip: Deliver stories, not sales pitches. Use social proof and UGC to show value through your customers’ eyes.

#3: Build loyalty programs that reward loyalty

Gen Z grew up with loyalty programs—but a basic points card won’t cut it. When they share personal data, they expect something meaningful in return: personalized perks, real value and a reason to keep coming back. Today’s loyalty programs need to be mobile-first, intuitive and offer a mix of financial and experiential rewards. Starbucks Rewards is a standout example. Its app is seamless, point-earning is transparent, and the program layers in personalized touches that surprise and delight—think freebies, birthday rewards and gamified challenges that keep users engaged.

Pro tip: Your loyalty program should be more than a discount engine—it should be a natural extension of your brand story. Make it feel like something worth belonging to.

Future-proofing loyalty

Brand loyalty isn’t dead, but it’s evolving, especially for Gen Z consumers. This generation has high expectations, shorter attention spans and endless options—but they’re also highly loyal when a brand gets it right. If brands want to win the trust of Gen Z, it comes down to a few things: a smooth and intuitive customer experience, the offer of real and authentic value, and loyalty programs that are worthy of their time. Gen Z can tell when you’re paying attention, and when you're just talking. Future-proofing your brand starts with building around what matters most to them. 

_{SOURCING: ¹Predictions 2025: Retail. Forrester Research, Inc. October 22, 2024.}