BLOG POST BY: The Goat Agency
October 31, 2024

Is Gen Z Brand Trust Declining? How To Reclaim Gen Z Brand Loyalty

Gen Z remains one of the largest cohorts in the digital space. They’re disruptors, eco-warriors, and trendsetters who demand originality, value diversity, and turn TikToks into movements that shake the wider media landscape. They’re reshaping the future. 

Recent studies have tipped the generation to become the wealthiest demographic ever. The “Spend Z” report from NielsenIQ predicts that Gen Z will have the fastest growth in spending power, reaching an estimated $12 trillion by 2030 and overtaking baby boomer spending by 2029.

This should strike a positive chord with popular Gen Z brands, however recent data has emerged highlighting a large number of Gen Zers are “ditching” brands they were once loyal to. Why is this happening? Have these brands shifted their values so that they no longer align with those of Gen Z? 

Well, according to SAP Emarsys’ annual Customer Loyalty Index, it’s actually just because they’re bored. 

Why is Gen Z brand trust declining?

Regardless of whether consumers care deeply about a brand, the only way to create a true impact is with personalized and innovative content based on personal interests. This is the style of content that cuts through the noise and resonates with Gen Zers.

According to SAP Emarsys data, younger consumers are particularly drawn to innovative marketing. 33% of Gen Z 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.’

With the data in mind, it could be that some Gen Zers are switching off because they don’t feel inspired by brands. Advertising exposure and fatigue is at an all-time high, especially for Gen Zers who are chronically online. It’s estimated that 4,000 – 10,000 ads are viewed daily online, while 91% of people think ads are more intrusive than ever before.

It’s imperative that brands cut through the noise, not become a part of it, but realistically, how can we do this? 

Let’s look at how brand marketers can take a step in the right direction, creating more meaningful and memorable experiences. 

How brands can reclaim Gen Z brand loyalty

It’s clear that consumers today, not just Gen Z, want more from brands. Today’s patron expects more than business-as-usual, they want content they can get behind. 

Activate around cultural moments

Cultural moments provide brands with an opportunity to show that they’re cool. Tapping into these moments lets consumers know that brands are in tune with their interests, and allows brands to capitalize on the mass engagement  surrounding a cultural phenomenon. 

Memorable moments like these can often indicate the mood of the wider population. When Brat Summer took over, the trend revealed a shift in the cultural sphere away from the “clean girl”/staying-in-over-going-out aesthetic towards a desire for hedonism and party experiences. 

Brands should look to weave their influencer strategies around cultural moments because these times offer heightened engagement and relevance. Cultural moments, such as holidays, major events, or trends, naturally capture public attention and evoke strong emotional responses. By aligning with these occasions, brands can tap into the audience’s current mindset, making their messaging feel more timely and original. .

Cultural moments often generate higher social media activity, allowing brands to maximize exposure through influencer partnerships. By being part of a trending conversation, brands can amplify their reach and drive meaningful interactions with their target audience. In short, combining influencer marketing with cultural moments creates a powerful synergy between relevance, trust, and engagement.

When activating around cultural trends, it’s imperative that brands move quickly. Arriving late to the party can take your strategy from unique to underwhelming in an instant. 

Personalize it 

Tailoring content towards the interests of an audience is crucial, especially if it’s Gen Z on the receiving end. This demographic wants content that matters to them, content they can relate to. 

Creating personalized influencer strategies requires brands to truly understand their audience. When this is done successfully it boosts relevance and connection between brand and consumer. Gen Z is much more likely to engage with content that feels tailored to their preferences, values, and needs than every day BAU content.  

Personalization should be on table, and here’s why: Audiences are more likely to comment, share, or follow a brand when the content feels relevant to their lifestyle or passions. This not only increases immediate interactions but also helps create long-term brand loyalty. Brands that want to deliver highly relevant content that drives more effective results should start getting to know their audience, and creating content that matters to them. 

Take the plunge

Fortune favors the bold. Brands that take the first step, venturing where no one has been before, often reap the biggest rewards. 

Being a pioneer allows a brand to tap into uncharted territories, whether it’s a new social platform, an emerging trend, or a creative partnership approach.. Early adopters are often seen as innovative and forward-thinking, which can enhance brand perception and attract a younger, tech-savvy audience.

Being the first to enter a new space or use a novel strategy gives brands the advantage of less competition and greater visibility. The uniqueness of the campaign can generate buzz, press coverage, and organic social sharing, amplifying reach. Additionally, it positions the brand as a trendsetter, shaping the market and forces competitors to act, or get left behind. 

Pioneering comes with risk, but those that pull it off successfully build more cutting-edge projects. To make a real impact with Gen Z, tearing through the noise and ad weariness, sometimes you have to step outside the box. 

The oddball effect

The oddball effect is a phenomenon where an unexpected item in a sequence stands out. As the viewer, we recognize the unfamiliarity and remember it much more vividly. In other words, doing something that’s slightly quirky and different in order to stand out. 

Our strategy team embraces the concept of “relevant irrelevance” as a unique way to distinguish branded content on social media. By intentionally blending timely topics with unexpected angles, we capture attention in a crowded digital landscape. This approach allows us to engage audiences who are seeking authenticity and novelty, rather than traditional promotional messaging. 

By crafting content that feels fresh and slightly offbeat, we not only spark conversations but also encourage sharing, ultimately fostering a memorable brand identity that resonates with diverse audiences.

Innovative influencer marketing examples that built brand loyalty with Gen Z

Verizon

“Demure fall” was a TikTok trend that involved being mindful, reserved, and modest – The polar opposite of “brat summer,” another TikTok trend that influenced the culture landscape earlier in the year. 

The trend was started by TikTok creator Jools Lebron, whose videos demonstrate how to be “demure” in everyday situations. In one video, Lebron shows how she does her makeup and styles her hair for work, and describes the look as “very demure”. 

Lebron blew up seemingly overnight, causing brands to catch wind. One of the earliest movers was Verizon, who partnered with the creator on Instagram to promote its range of mobile phones. 

“Verizon let’s me turn in a musty diva for a demure diva” Lebron said in her Instagram Reel, describing how Verizon enables her to “keep it cutesy”. 

Verizon moved at the right time, striking a partnership with a creator when they’re in the spotlight. While this is essential for these partnerships to work, it’s not all that contributed to the campaign’s success. Verizon gave Lebron the creative freedom to shine, tapping into the nuance that made her rise to fame in the first place, which gave the activation originality, something in which viewers could relate to. 

Hilton

On TikTok, short-form video is king. It’s widely regarded that the first three seconds are vital on TikTok, and if brands fail to win viewer attention within this timeframe, they’ll simply swipe along. 

However, in 2023 Hilton sought to break that mold. The brand launched #HiltonForTheStay a 10 minute long TikTok video featuring Paris Hilton alongside popular TikTokers such as @Kelz (5.5M followers), and more. 

Each creator had their own segment within the 10 minute slot, bringing their own flavor to the table. Each moment felt like a new video, which is how Hilton kept viewers switched on for the whole duration. From the comments alone, viewers loved it. One commenter said “This genuinely made me want to stay at a Hilton.” Another commented “I watched the whole thing! I’m more loyal to Hilton than my man.” 

Long-form content shouldn’t work on TikTok… should it? In Hilton’s case, it did. The campaign generated 35.7M views, 436K engagements, and 23.6M impressions. Hilton’s VP and Head of global content, media and partnerships, Dan Reynolds described the activation as “a great way of showing up in unexpected ways.”

“We’re asking you for 10 minutes of attention on a platform where you get 28 seconds. That’s a lot of time that Hilton is asking for from people, and we needed to really respect that. And we did that by creating a great, entertaining story, leveraging our celebrity and influencer partnerships and allowing them to own ‘Hilton. For the Stay’ creatively.” He added. 

At the time, the campaign was picked up by content creators, and the wider media, featuring in a variety of different publications. To break the internet, you have to break the mold. 

Rare Beauty

The Selena Gomez-owned cosmetics brand is synonymous with Gen Z, and its first ever global campaign is a showcase of how to create content that resonates with the cohort. 

‘Every Side of You’ is a celebration of individuality which spans social media, out-of-home, Sephora locations, connected TV, influencer marketing and paid digital. The initiative seeks to increase favor amongst Gen Z consumers with a positive message: “Love every version of you.”

The campaign kicked off with a hero video featuring Selena herself. The ad opens with Gomez exploring the different versions of ourselves that emerge through life’s ups and downs, and how Rare Beauty plays a part in those moments. 

@selenagomez

When I started @Rare Beauty , I set out to create a brand that celebrates you—*every* side of you. I’m honored to launch this new campaign as a reminder that you are beautiful, you are special, and you are always worthy of love. ​ ​ To be Rare is to love every you. Love your rare. ​ #rarebeauty

♬ original sound – Selena Gomez

The campaign delves into discussions around mental health, an aspect that could appeal to young consumers, particularly Gen Zers. Additionally, Rare Beauty has pledged to donate 1% of its annual sales to Rare impact, an initiative that aims to improve mental health services for disadvantaged communities. 

Celebrity and influencer-owned brands are flourishing. Brands like Arianna Grande’s R.e.m Beauty, Rihanna’s Fenty Beauty, and more recently Molly-Mae’s Maebe, continue to revamp the creator economy. Rare Beauty is putting Gen Z at the forefront of their approach, creating experiences that scratch the surface, and connecting with their values to win their advocacy, and more importantly, their trust.

Klarna

In the summer of 2024, Klarna launched ‘Rep Her’, an initiative addressing gender-based disparities in women’s sports merchandise. 

This campaign was the result of Klarna’s partnership with fan intelligence company Sports Innovation Lab. The data revealed that Sales of women’s football shirts through the Klarna platform are up 17% year over year, growing twice as fast as men’s shirt sales which are up just 8% from a year earlier. However, despite this growth, and the increase in interest around women’s sports, Klarna found that the supply of merchandise fails to meet the demand. 

To raise awareness, Klarna collaborated with the global football media brand COPA90 to launch new merchandise, including a football shirt and t-shirt featuring the phrase “Rep Her” and symbolizes the growing influence of women’s sports and celebrates fans’ passion. 

Klarna teamed up with FOUDYS, the world’s first retail site dedicated solely to women’s football, where shoppers can get their hands on the merchandise. Klarna announced that all proceeds from the sales will benefit The Laces Community Clubs, supporting the growth and visibility of women’s sports. 

Juliann Kane Senior Marketer for Social, Influencer and Content at Klarna, featured on the panel at our New York event, where she highlighted how the campaign stood to integrate with young sport fans, and advocated for change. The campaign’s emphasis on advocating for change catered to Gen Z’s values, making it a compelling blend of style, social impact, and connectivity.

REFY

REFY is redefining the perception of influencer trips, which in the past have been on the receiving end of negative press. However, with a more scaled back approach to these activations, REFY have put customers at the heart of their campaign, as well as featuring a feedback loop where they ask customers about new products, and things they’d like to see from the brand. 

This year the brand invited members of its customer base to a retreat in Mallorca, flipping the script on previous influencer trips. REFY tapped into its Instagram community to select the lucky few, giving them an opportunity that has previously only been offered to influencers.

By bringing its community together, REFY created an event that felt genuine. It felt accessible and relatable, and more importantly it didn’t come off as a typical ad. Followers were kept in the loop through TikTok’s and Instagram Stories, using the Q&A feature to keep everyone engaged. 

This move not only strengthened its connection with its consumer base, it dared to redefine an aspect of influencer marketing. REFY proved that its not all about polished influencer getaways to the world’s most exotic locations, they showed that listening to those closest to the brand is in-fact a great way to build stronger, longer-lasting relationships with customers. 

@mayafidel_

I still can’t believe this happened! Feeling so grateful for all of these opportunities 🥹 @REFY #contentcreator #refygirlsummer

♬ Tati TV PG – illumitati 7

Concluding thoughts 

The key to creating a meaningful impact with Gen Z lies behind an ability to stand out, a willingness to innovate and create refreshing content that ties into their preferences. If you are to take anything away from this piece, let it be these key takeaways:

  1. Dive into the zeitgeist: Brands should actively align their influencer marketing campaigns with current cultural trends and events. By tapping into shared experiences and movements, brands can create content that resonates deeply with Gen Z. This approach not only boosts engagement but also positions the brand as relevant and in tune with their audience’s interests. Quick, creative responses to emerging trends can enhance visibility and foster a sense of community.
  2. Celebrate the art of individuality: Tailoring content to the unique interests and values of Gen Z is crucial. Brands should invest in understanding their audience and crafting influencer partnerships that reflect those insights. Personalized campaigns that feel authentic and relevant are more likely to resonate, increasing engagement and nurturing long-term loyalty. This could mean collaborating with influencers who genuinely align with the brand’s message and audience, ensuring the content speaks directly to the Gen Z persona..
  3. Push the envelope of what’s possible: Boldness pays off. Brands should not shy away from experimenting with unconventional marketing strategies. Whether it’s exploring new social platforms or creating unexpected content formats, being a pioneer can set a brand apart. Successful campaigns that push creative boundaries capture attention and generate buzz, allowing brands to become trendsetters in the eyes of Gen Z. Embracing risks and showcasing innovation can significantly enhance brand perception and loyalty among younger consumers.
  4. Stay true to yourself: As a brand, consistency is key. Staying true to your brand values and persona is what ensures credibility, and in this ever evolving digital landscape we can get caught up in trying to fit in with the latest trends, sometimes a little more than is needed. Rather than trying to be everything to everyone, brands should look to keep a consistent tone of voice across channels, that’s where the true value lies. 
  5. Bring your customers along for the ride: Consumers, and even more so Gen Zers, want to be heard. When brands pay attention to their communities it helps develop a deeper bond with customers. REFY have proved that it doesn’t always have to be about the biggest creators, and that giving something back to followers can create a longer-lasting impression with those that feed into the brand. Bring communities together, make them feel like they are a part of your brand. 

Ready to reclaim Gen Z’s loyalty? Start by embracing cultural moments, personalizing your content, and daring to innovate in your influencer marketing strategies. Let’s spark some creativity together,  reach out to us today!

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Written by: The Goat Agency