Almost half of UK Gen Zers (46 per cent) and 29 per cent of other generations have abandoned a brand they were once loyal to because they grew "bored" of them, a recent study has shown, also highlighting the changing expectation of customers and increasing use of AI in marketing.
According to SAP Emarsys’ annual Customer Loyalty Index (CLI) announced today (27) at SAP Customer Experience (CX) Live, younger consumers are particularly drawn to innovative marketing.
Citing the example of Liquid Death bottled water that has been “radically entertaining” to get cut through, the study states that 30 per cent of Gen Z, compared to 23 per cent of all demographics, have tried a new brand because of its "creative marketing".
Additionally, over a quarter of Gen Z (31 per cent) are enticed by brands that use "cool" content or imagery, versus 21 per cent of other age groups. Meanwhile, 28 per cent of Gen Z, compared to 17 per cent of other demographics, seek out brands that deliver "memorable experiences".
The study also focused on the increasing use of AI to optimise the entire marketing process. The study points out that brands like Ferrera Candy Company and Pizza Hut are making every interaction count by creating personalised, two-way conversations. This results in the consumer’s life stage becoming clearer, and with each future interaction, the brand can better predict the customer’s next needs.
According to recent SAP Emarsys research, two-thirds (66 per cent) of marketers agree that AI will be crucial for boosting customer engagement in 2024, and half (50 per cent) have already experienced a rise in engagement after implementing AI-powered personalisation. AI enables brands to stay competitive by quickly adapting to changing customer expectations.
As Sara Richter, CMO at SAP Emarsys, explains, “It’s clear that consumers today, not just Gen Z, expect more than ‘business-as-usual’—they want meaningful and memorable experiences. The key to delivering that is personalisation 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 personalisation 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.”
