Gen Z is reshaping loyalty programs, challenging traditional strategies and forcing marketers to rethink how they connect with young shoppers. Instead of discounts, this generation values community and experiences that foster a sense of belonging.

Experiential loyalty programs that create a sense of belonging resonate strongly with this generation, noted Craig Crisler, CEO at SupportNinja. He pointed to IKEA’s workshops and Nordstrom’s in-store events as early examples of this shift.

Those brands succeed by leveraging artificial intelligence (AI) tools to understand consumer behavior and personalize their experiences accordingly. Retailers that want to win Gen Zers must understand their unique needs, use AI to enhance customer experience, and adapt strategies quickly to avoid being outpaced, he insisted.

“Gen Z is more interested in being part of a club or community than just getting discounts,” he told the E-Commerce Times.

That approach aligns with both marketing campaigns and CRM-driven customer engagement goals.