How customer loyalty differs across generations and regions
Customer acquisition is only getting more expensive, so the last thing you want after winning over a new customer is to see them churn. To combat churn, you need loyal, happy customers.
We asked 4,000 consumers what drives loyalty for them, and what perks they want to see more of.
Understanding your audience’s “loyalty language” helps you build rewards and experiences they actually value.
Let’s break down what real consumers say makes them loyal to a brand, looking at how these preferences differ by generation and location.
What are the top 3 customer loyalty drivers?
The top 3 loyalty drivers
- The brand has the best products
- Good customer service
- Friends or family rate the brand
Unsurprisingly, a great product is the top reason people will come back to a brand. Followed by good customer service, and in third place is the brand’s reputation amongst friends and family.
A huge 55% of consumers said that friends and family liking a brand means they’re more likely to stay loyal themselves.
As well as driving loyalty, peers are greatly influencing discovery. 48.5% of consumers said they discover new brands via friends and family, which was second only to in-store browsing (49%).
So, keeping your existing customers happy could also be your biggest acquisition tool.
A strategy that keeps both ends of the funnel flowing? The dream. As busy marketers, we love a ‘kill two birds with one stone’ moment.
What do customers want from a loyalty program?
Moving on from what consumers say keeps them loyalty, we’re now going into the perks that customers want to see. Before we delve into the preferences of different demographics, here’s a global overview of what customers favor when it comes to loyalty perks.
Top 10 customer preferences for loyalty rewards:
- Free shipping and returns – 53%
- Cashback – 52%
- Freebie products, gifts, or samples – 45%
- Birthday and anniversary rewards – 43%
- Personalized discounts or offers – 40%
- Extended warranties or guarantees – 27%
- Early access to sales or new products – 27%
- VIP services – 15%
- Charitable donations – 13%
- Exclusive events or eet-and-greets – 12%
Gen Z shoppers’ loyalty language
Aged 16-28, Gen Z is the youngest generation holding purchasing power. When it comes to brand discovery, influencer marketing comes in third, after friends & family and in-store browsing. A huge 74% of Gen Zers say that influencer content has helped them discover new brands or products in the last 6 months.
Top 3 loyalty scheme perks for Gen Z
- Free shipping or returns – 46%
- Birthday or anniversary rewards – 41%
- Cashback and freebie products, gifts, and samples – 40%
In the last 12 months, 60% of Gen Z have spent more with a brand as a result of its loyalty program.
Millennial shoppers’ loyalty language
Millennials (aged 29–44) value loyalty programs more than any other generation, with 59% saying they’re important to their overall loyalty to a brand. This suggests that the right loyalty program could be especially effective with this age group. So, what does a great loyalty program look like for Millennials?
Top 4 loyalty scheme perks for Millennials
- Cashback – 50%
- Free shipping or returns – 49%
- Freebie products, gifts, and samples – 42%
- Birthday or anniversary rewards – 42%
In the last 12 months, 56% of Millennials have spent more with a brand to just to earn points or hit the next loyalty tier, proving that these programs really do work.
Gen X shoppers’ loyalty language
Gen Xers are aged between 45 and 60 years old. This generation says a brand having the best products is the key driver for staying loyal (69%), and 56% cite customer service as an important factor in their loyalty to a brand. When it comes to perks they like to see in a loyalty scheme, free shipping or returns, and cashback both tied for most important.
Top 3 loyalty scheme perks for Gen X
- Free shipping or returns – 54%
- Cashback – 54%
- Freebie products, gifts, and samples – 49%
In the last 12 months, 43% of Gen Xers have spent more with a brand as a result of its loyalty program. So, they’re definitely having an impact and driving repeat purchases
Baby Boomer shoppers’ loyalty language
Baby Boomers are aged 61-79 years old, and product quality is key for this demographic. 3 out of 4 Baby Boomers say that a brand having the best products is the most important loyalty driver. This is reflected in their reward preferences, where they are the generation most likely to seek extended warranties and guarantees, with 30% selecting this as a preferred loyalty scheme perk.
Top 3 loyalty scheme perks for Baby Boomers
- Free shipping or returns – 60%
- Cashback – 58%
- Freebie products, gifts, and samples – 47%
In the last 12 months, 25% of Baby Boomers have spent more with a brand as a result of its loyalty program.
How customer loyalty differs by region
Customer loyalty drivers and preferences also vary depending on where someone lives. Cultural context and local expectations can all shape what customers value most.
The same survey also highlights how attitudes and expectations around consumer loyalty differ across the US, UK, Australia, and Singapore.
Australian customer loyalty preferences
72% of Australians say a brand’s products are the biggest reason they keep coming back. Good customer service and recommendations from friends and family matter too, with 54% of Australian consumers saying they influence their loyalty. Loyalty programs come in close behind, with 51% calling them an important reason to return.
Two of these top loyalty drivers sit within a marketer’s control. Timely, well-automated customer service communications, like order updates, post-purchase check-ins, and proactive support, help create the kinds of experiences customers remember. And with loyalty programs influencing half of Australian shoppers’ decisions to return, having a thoughtful scheme in place can make a real difference to repeat purchases. The top loyalty perk Australian shoppers want is free shipping or returns, with 58% selecting this as a referred benefit.
Get more Australian-specific customer stats here.
Singaporean customer loyalty preferences
56% of Singaporean consumers say they’ve spent more with a brand in the last 12 months because of its loyalty program. Proving that when loyalty schemes get the experience right, they can have a direct impact on customer spend.
Singaporeans have an appetite for personalized experiences, including the rewards they want from loyalty programs. Nearly half (47%) say personalized offers are the most valuable type of loyalty reward.
When loyalty programs are built around what individual customers actually want, there’s a real opportunity to turn one-time buyers into repeat customers who spend more over time. Personalized offers, incentives based on purchase history, and rewards that feel genuinely relevant rather than generic all resonate strongly with shoppers in this region.
Get more Singapore-specific customer stats here.
American customer loyalty preferences
57% of US shoppers say loyalty programs are important to them, and in the last 12 months, 46% of US consumers have spent more with a brand as a result of its loyalty program.
Shoppers are looking for loyalty programs that offer tangible, immediate value, with rewards that feel both useful and personal. US consumers know what they want from loyalty programs: 52% want free shipping or returns, 51% want freebies, gifts, or samples, and 46% want birthday and anniversary rewards.
Discover more US-specific customer stats here.
UK customer loyalty preferences
When asked what they want to see offered in loyalty programs, UK shoppers ranked free shipping or returns (43%) as most important, followed closely by freebie products and samples (42%). In third is something marketers can influence: birthday or anniversary rewards (37%).
It’s still important to note that the same thing that closes a sale is what keeps customers coming back – perceived value for money and a risk-free experience (through free shipping and returns).
Birthday and anniversary rewards scored strongly across all generations, and are one of the easiest ways to create a moment that feels personal. To activate a birthday or anniversary program you simply need to capture the date and create an automation program to trigger. Include a warm and celebratory message and a unique discount or offer.
Get more UK-specific customer stats here.
The most popular loyalty driver
The winner here is free shipping and returns, ranking top for Gen Z, Gen X, and Baby Boomers, and second place for Millennials. It’s also the top or second-most popular perk among shoppers in the US, UK, Australia, and Singapore.
Free shipping and returns may not be the first thing you think of when you think about loyalty drivers. Far away from points or stamp cards of traditional loyalty schemes, this one is all about the customer experience.
We live in a time of instant gratification. If you want something, most of the time you can ask your search engine or LLM of choice and have it show up on your front porch the next day.
People want a quick and hassle-free shopping experience where they know if something isn’t quite right, they can return it without being out of pocket. Offering these as standard or as an exclusive benefit for loyalty program members is a popular way to keep your audience happy.
When loyalty and acquisition go hand in hand
Friends and family recommendations are one of the top drivers for finding new brands and also for staying loyal to a brand. Word-of-mouth is more than a great retention tool.
As this happens organically, it’s easy to let it do its thing, but there’s a lot more you can do. Be intentional in encouraging word-of-mouth recommendations, and reward customers who shout about your brand.
You can offer points for reviewing products, a free gift for each referral, and reward customers who post about you on social media by entering them into a monthly prize draw.
There are lots of ways you can be intentional about encouraging customer shares and ways to show your customers that you value their voice.
To win customer loyalty, your loyalty scheme needs to do more than just reward purchases, but also reward and encourage customer advocacy.
Get more information on global customer trends, including how they’re changing the path to purchase, in Dotdigital’s Customer trend index 2026/27.
