Building Loyalty with Gen Z
By Zephyr Jaeger
August 2, 2022
For many established financial institutions, the prospect of attracting Generation Z is a bit daunting — they seem unlike any other generation before them, but that doesn’t mean you need to throw out everything from the old rulebook. This young, digitally-native generation is eager to learn, save, invest, and more — all of which requires guidance from a trustworthy source, like you! See, while they’re certainly eager to get going on their financial journeys, Gen Z is also lacking in financial literacy. If you’re willing to morph the way you’ve always done things, connecting with them won’t be nearly as hard as you might think, it will simply require a change of tactics.
Let’s take a look at some of the most important strategies for reaching this up-and-coming age bracket:
Incentivize Engagement With Tangible Rewards
When creating a loyalty program, it’s crucial to design it in a way that encourages and rewards your members. There are a few simple tactics to help get your users excited and keep them engaged with your business and its services, and a few things to avoid along the way. Building strong customer loyalty programs largely comes back to marketing psychology, so let’s take a quick look at how you can put that to work for your brand.
Some of the ways to launch a successful loyalty program are:
Positive reinforcement through attainable, continuous rewards
Rather than stringing customers/members along for months toward a reward, make the achievements easier to obtain to make them feel their goals are within reach; this encourages them to continue striving. One company that does this well is Starbucks; right on the homepage of their app is a visually appealing point tracker and an easily-accessible information section that lets users know how many points they need for varying rewards. The appealing design and the progress-tracking nature of this integration motivates Starbucks customers to keep moving toward their goal by making purchases using their apps. One way we’ve implemented a similar strategy with our users is by adding a streak feature to our app; it helps our users visualize their progress and measure the time left until they can redeem rewards.
Reminders of Goal Anticipation
While it’s important not to bombard your customers with notifications, letting them know that they’re close to achieving their goals, like a reward in exchange for making progress or completing objectives, is a great motivator to keep people pushing forward.
One way Zogo is working to help financial institutions build loyalty with their members using goal anticipation is through our new Mobile Banking Integration — an incentivizing program that combines our modern educational prowess with your systems and services. In addition to our standalone product, you can now add Zogo directly into your mobile banking app, creating a space for rewarding education that teaches your members about essential banking functions that you offer. With the Zogo integration, your members are able to earn points for various banking actions, such as opening a savings account, swiping a debit card a certain number of times, and much more, then redeem those points for gift cards.
As far as loyalty programs go, Zogo’s is designed to meet the needs and desires of your members in a modern, encouraging way. Our Mobile Banking Integration is made to keep users engaged, happy, informed, and coming back for more within your banking app without making them feel as though we’re dangling a carrot. We believe that even small strides, such as simply taking the time to learn something new, deserve to be recognized and rewarded, and that’s exactly what this integration is all about.
There are many other tactics for building loyalty with Generation Z, but the above are great jumping off points. Connecting with Gen Z may be a bit daunting, but thankfully, we’re all in it together! At Zogo, we’re hyper-focused on helping institutions such as yours make the most of their opportunities with this young generation as it’s beneficial for every party involved. Gen Z isn’t a potential target audience, they’re a necessary one, and we’re up for the challenge of helping you reach them.
Zogo helps credit unions educate, engage and attract young people. Backed by behavioral science research at Duke University, its gamified financial literacy app teaches sound financial fundamentals and rewards users for learning. Their mission is to make personal finance fun, simple, and social. Founded by Gen Zers, Zogo understands what it takes to reach the younger generation.