Different generations shop differently—it’s nothing new. What’s new is how they interact with brands through technology. The recent Customer Loyalty Predictions 2025 report, conducted by Comarch, reveals key insights into how loyalty is experienced across age groups and how it will influence customer loyalty in 2025 and beyond. Let’s explore the most surprising cross-generational findings to see what’s in store.
Loyalty Program Membership Declines with Age
A major takeaway from the survey is the sharp decline in loyalty program membership with age. Gen Z and Millennials are the most active participants, each belonging to an average of 12 loyalty programs, while Gen X follows with 10, and Baby Boomers, at the other end, engage with only 6.
This generational gap suggests that younger customers are far more inclined to participate in loyalty programs, driven by an environment of constant digital interaction, instant rewards, and easy access to various loyalty offerings. In contrast, older generations seem less inclined to invest time in managing multiple memberships, preferring to engage with brands in more traditional or direct ways.
Unconventional Loyalty Programs Appeal Across Generations
While mainstream loyalty programs dominate the market, the survey revealed that unconventional, niche programs are also drawing interest across all age groups globally. About 2-3% of respondents from each generation reported participation in loyalty programs not covered in the original survey, indicating a broader appeal for unique or unconventional offerings. This could range from niche industry programs to hyper-localized loyalty schemes that cater to specific consumer interests.
In Australia, even though grocery organizations see the biggest engagement with their loyalty programs (70% of Aussie consumers use them every time they shop), the most awareness gathered transit apps (75%), delivery apps (70%), and convenience and fuel (55%).
Trust and Social Proof Decline with Age
One of the most striking findings is the generational divide in the value placed on recommendations and loyalty programs. While 55% of Gen Z and 50% of Millennials consider word-of-mouth, online reviews, and social proof essential for purchasing decisions, this importance declines significantly among older generations, with only 47% of Gen X and 38% of Baby Boomers sharing the same sentiment.
Additionally, according to Retail Doctor Group and Pureprofile, the influence of loyalty programs also diminishes with age. Australian Gen Z and Millennials are approximately 70% more likely to be swayed by these programs, compared to just 35% of Baby Boomers. This suggests younger consumers are more inclined to trust peer opinions and loyalty rewards, while older generations prefer personal experience.
Sustainability: Valued but Actionable Interest Varies
Across generations, sustainability is a universally acknowledged value. In Australia, 45% of consumers consider sustainability to be ‘very’ or ‘extremely’ important. However, there is a difference in how generations act on these beliefs.
Zoomers and Millennials are significantly more likely to make purchasing decisions based on sustainability, with many choosing to support eco-friendly brands. On the other hand, Baby Boomers, while acknowledging sustainability (56% deem it important), are less likely to act on it (only 32% have switched to sustainable brands).
Skepticism Toward Personalization Among Older Adults
As reported by Retail Doctor Group and Pureprofile, personalization is the fourth most common reason for joining loyalty programs in Australia. Gen Z and Millennials eagerly welcome tailored offers and experiences. However, the appeal of personalized marketing drops with age. Comarch’s survey shows that older consumers, particularly Baby Boomers, are less impressed by the level of personalization in loyalty programs, with many expressing discomfort at the amount of personal data being used to curate offers.
Dynamic Pricing is Polarizing
Dynamic pricing, where prices fluctuate based on demand and customer behavior, has gained traction in many industries. However, it is highly polarizing across generations, and 54% of Australians just want simple service at a good price.
Gen Z and Millennials may tolerate pricing models that adapt to market conditions, but Baby Boomers are notably uncomfortable with this approach. Nearly 24% of Boomers view dynamic pricing positively, but 14% have an intensely negative view—twice as many as any other generation.
The Decline of Exclusive Experiences with Age
Research shows that exclusive events are important to 7% of Australian consumers, and exclusive benefits are the 7th most important reason for joining a loyalty program.
Globally, unique experiences are highly appealing to Gen Z, but interest in these perks declines with age. While 60% of Gen Z find exclusivity appealing, only 46% of Baby Boomers do. This suggests that loyalty programs targeting older generations should shift away from flashy, exclusive rewards and focus on practical, accessible benefits. For Baby Boomers, the appeal of VIP perks is less about status and more about value and simplicity.
Generational Divide in Communication Preferences
Email may remain the most popular communication channel for all generations, but the shift to digital engagement is starkly divided. In Australia, over 50% of Gen Z start their buying journey on social media, while Baby Boomers prefer more traditional communication methods, such as email or loyalty program portals. It shows the importance of tailoring communication strategies to each generation’s preferences, ensuring that brands reach their target audience in the most effective way possible.
Instant Gratification Matters Across Ages
Instant gratification remains a key motivator for loyalty program participation across all age groups. Both Gen Z and Baby Boomers show strong interest in instant digital rewards, highlighting a universal desire for immediate recognition and value. In Australia, 35% of consumers avoid retail loyalty programs due to insufficiently valuable rewards or slow accumulation. For marketers, this underscores the importance of quick rewards, as the expectation for real-time benefits continues to grow across generations.
More Data on Global Loyalty Trends in 2025
Clearly, age shapes how consumers engage with loyalty programs, but certain trends remain universal. However, differences in trust, communication channels, and reward preferences highlight the necessity of tailored strategies.
In Australia, the generational divide is particularly evident in how loyalty programs influence purchasing behavior. The majority of Gen Z and Millennials let the programs influence their behavior, but only 35% of Baby Boomers feel the same. For marketers, this means loyalty programs must balance aspirational elements, such as exclusive experiences for younger consumers, with practical, everyday benefits that resonate with older demographics.
Want more insights on loyalty trends? This is just a sneak peek at the data from Comarch’s Customer Loyalty Predictions 2025 and Beyond: Report on AI, Privacy, and Sustainability. Get your copy today and explore actionable statistics from around the globe.
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