What Are The Real Trends Driving Consumer Loyalty?


In today’s Pod, we chat with Raju Malhotra, Chief Product and technology Officer at PAR Technology (NYSE: PAR). He joined PAR by acquiring Punchh, an omni-channel loyalty and engagement startup based in San Mateo, CA.

This discussion takes turns into the future of foodservice and tech as well as the overall guest loyalty journey that has begun to shift for Gen Z.

Gen Z Brand Loyalty: UX and Digital Gamification

Gen Z is the most digitally native generation to date, and their brand loyalty differs from previous generations. They are more likely to switch brands if they don't have a positive user experience (UX) or if the brand doesn't offer digital gamification elements.

User Experience (UX)

Gen Z values UX above all else. They want websites and apps to be easy to use, navigate, and understand. They also want them to be visually appealing and engaging.

If a brand's website or app is complex to use or not visually appealing, Gen Z consumers are more likely to abandon it and go to a competitor.

Digital Gamification

Gen Z also loves digital gamification. They want brands to create experiences that are fun and interactive. This could include things like quizzes, polls, contests, and rewards programs.

If a brand doesn't offer any digital gamification elements, Gen Z consumers are less likely to be loyal to it.

How Brands Can Use UX and Digital Gamification to Build Loyalty with Gen Z

Here are some tips for brands on how to use UX and digital gamification to build loyalty with Gen Z:

  • Ensure your website and apps are easy to use, navigate, and understand.

  • Invest in a visually appealing and engaging design.

  • Offer digital gamification elements to enhance your loyalty platform

  • Personalize the UX for each consumer.

  • Make it easy for consumers to interact with your brand on social media.

By following these tips, brands can create a UX and digital gamification experience that Gen Z consumers will love. This will help to build loyalty and encourage them to keep coming back.

Who is getting UX and Digital Gamification right with Gen Z

  • Uber Eats is a great example of how to use gamification to build loyalty with customers. The app has a number of features that encourage customers to keep coming back, including:

    • Points system: Customers earn points for every order they place. These points can be redeemed for free food and other rewards.

    • Tier system: Customers are placed into different tiers based on their order history. Higher tiers offer more rewards, such as free delivery and exclusive discounts.

    • Quests: Uber Eats regularly offers quests, which are challenges that customers can complete to earn bonus points. For example, a quest might challenge customers to order from a certain number of different restaurants or to spend a certain amount of money on orders.

    • Badges: Customers can earn badges for completing certain tasks, such as ordering from a new restaurant or using a new payment method. Badges are a way to recognize and reward customer loyalty.

    Uber Eats also uses gamification to encourage drivers to provide a good customer experience. For example, drivers are rated by customers after each trip. Drivers with high ratings are more likely to receive ride requests and are eligible for additional rewards. These are just a few examples of brands that are using UX and digital gamification to build loyalty with Gen Z. As more and more brands realize the importance of these factors, we can expect to see even more innovative and engaging UX and digital gamification experiences in the future.

Paul Barron