AI holds the key to keep brands fresh and engaging for Gen Z, reveals SAP Emarsys’ fourth annual Customer Loyalty Index
Indianapolis, Sept. 24, 2024 – Almost half of United States Gen Zers (43%) and 41% of Millennials have abandoned a brand they were once loyal to because they grew ‘bored’ of them. That’s according to SAP Emarsys’ annual Customer Loyalty Index (CLI) announced today at SAP Customer Experience (CX) Live.
Regardless of whether consumers care deeply about a brand, the only way to cut through the noise is with better personalization and unique content based on individual interests.
According to SAP Emarsys data, younger consumers are particularly drawn to innovative marketing. Specifically, 33% of Gen Z, compared to 28% of all demographics, have tried a new brand because of its ‘creative marketing.’ Additionally, one-third of Gen Z (33%) are enticed by brands that use ‘cool’ content or imagery, compared with 27% of other age groups. Meanwhile, 26% of Gen Z, compared to 20% of other generations, seek out brands that deliver ‘memorable experiences.’
Look at Dunkin’s latest Love Island campaign or Taco Bell having a ‘Brat Summer.’ These brands have set a benchmark by turning everyday products or services into something innovative and memorable. Whether ‘Brat’ or ‘‘Demure’, SAP Emarsys asks the question, what does it take for brands to extend the initial loyalty ignited by fast-moving social trends into long-term true loyalty?
“It’s clear that consumers today, not just Gen Z, expect more than ‘business-as-usual’— they want meaningful and memorable experiences,” said Sara Richter, Chief Marketing Officer at SAP Emarsys. “The key to delivering that is personalization for every customer.”
“AI is the only practical solution for providing genuine one-to-one interactions at scale, across every channel and at the right moment. Brands that embrace AI-powered personalization are far better equipped to keep customers engaged, especially when attention spans are short and demands are high.
“By combining traditional marketing strategies with the advanced capabilities of predictive and generative AI, we’re empowering marketers to create exceptional experiences. For instance, our AI Product Finder seamlessly turns complex product data into engaging content, while our AI Subject Line Generator takes the guesswork out of crafting compelling headlines.”
For enterprises looking to stay ahead in an increasingly competitive landscape, SAP Emarsys leverages AI to optimize the entire marketing process—from customer segmentation to campaign execution and performance analysis. AI identifies the most profitable under-served audience segments representing new opportunities across different lifecycle stages, enabling highly targeted campaigns that are delivered at the ideal time and through the most effective channels.
This approach not only uncovers new customer groups but also personalizes content and interactions in real time, making one-to-one engagement seamless across multiple platforms. With generative AI, marketers can save 3-4 hours on manual tasks, allowing them to focus more on driving innovation and revenue growth.
Recognizing that an omnichannel marketing strategy is key to unlocking true loyalty, brands like the San Jose Sharks are making every interaction count by creating personalized, two-way conversations. Likewise, Ferrara Candy Company can target at a granular level, ultimately paving the way for hyperpersonalized customer experiences that resonate with brand fans.
With every interaction, life stages and interests become clearer, empowering the brand to better predict customers’ needs.
Customers now recognize the value exchange—when they share information like an email address or birthdate, they expect something meaningful in return, such as loyalty points or VIP perks like early access to new events or products. The outcome? A superior customer experience that keeps them coming back.
And marketers are increasingly turning to AI to foster long-term loyalty and reach new audiences. According to recent SAP Emarsys research, 72% of U.S. marketers have increased their investment in AI in 2024, and 78% have already experienced a rise in customer engagement after implementing AI-powered personalization.
For more on the nuances of customer loyalty in the US, you can find here the full fourth Customer Loyalty Index.
