How fandom strategies can drive youth loyalty

With Tesco’s decision to widen Clubcard access to under‑18s, loyalty programmes are entering a new era.

It’s a recognition that they must capture customers earlier if they want to matter for the next decade. Retailers that have treated loyalty as a back‑office ledger of points and coupons are now being forced to compete with platforms that understand attention, not just transactions.

App‑first entrants such as Lidl Plus and M&S Sparks have shown that a slick mobile experience and immediate savings can cut through. But discounts alone are a short‑term hook and are difficult to roll back from. Younger shoppers will sign up when money is tight, but they will leave just as quickly if the experience is clunky or irrelevant.

Economic pressures are pushing younger shoppers to loyalty schemes; roughly seven in 10 Gen Z and Millennials say they are more likely to join loyalty programmes because of this. At the same time, our upcoming research revealed that almost two thirds (64%) of 25-34-year-olds switched brands in the past year due to poor digital experiences.

It’s one thing to get these young shoppers signed up, the real challenge is how to turn this into long-term loyalty?

Understanding Gen Z and Gen Alpha

In an effort to cater for Gen Z and Gen Alpha, retailers face a twofold problem. They must keep delivering measurable value while redesigning the experience to match the expectations set by social apps and streaming services.

Younger shoppers live in a world where feeds are personalised, gratification is instant and social proof drives discovery. They judge apps by how often they open them for reasons beyond a purchase.

That means loyalty must evolve from something that is purely transactional to providing real value beyond a single purchase, to become something young people boast about.

Borrowing from social

First, personalisation must feel human. Generic “10% off” emails are dead weight, not only because the discounts are small, but despite constant messages, any notification needs to be intentional and personal to what individual consumers need.

What resonates are timely nudges. A push when a favourite product is back in stock; a recipe‑based bundle after a weekend browse; or a micro‑reward for trying a new range. Younger cohorts will be responsive to personalised incentives when they feel authentic.

Second, borrow the mechanics that keep people coming back to social apps. A daily check‑in, a micro‑mission to try a new snack, a streak that unlocks a one‑day discount. These are methods apps like Snapchat and TikTok have pioneered to create momentum and shareable moments. Gamification isn’t about gimmicks; it’s about creating tiny, repeatable dopamine loops that reward behaviour and generate social content.

Third, make loyalty social and creator‑friendly. Allow members to share achievements, curate bundles with creators, or unlock exclusive drops. When a reward becomes content, the programme earns cultural relevance. Advocates, more than ever, are the difference when attracting and growing a younger audience.

Building better experiences

It’s also about being useful and understanding how young people use your app and how it compares to the other platforms they favour. If a retail app can tap into the features that make the likes of YouTube and Instagram attractive, it has a good chance of keeping younger consumers engaged for longer.

For example, could a supermarket host creative video recipes or a beauty retailer include exclusive skincare routines, unlocked through loyalty? It’s all about capitalising on the interconnectedness and ease of use to keep users from slipping into other platforms.

Ultimately, however, it comes down to the experience being enjoyable.

Points, vouchers and redemptions need to be clear, explained in plain language and redeemable in one tap. Real‑time receipts, instant cashback notifications and contextual suggestions make the app feel alive, reflecting current needs and evolving with them.

But can the fan experience go further and be even more immersive through partnerships with platforms where Gen Alpha spends their time? When Superdrug launched its Roblox partnership in 2024, the branded gaming experience drew in nearly 1 million players, driving increased engagement with the retailers. Meeting younger consumers where they are will increase a winning strategy as brands look to compete for attention.

Merging online and physical

If the digital experience is the hook, then the store must be the stage. Long‑term loyalty is built when digital convenience and in‑store experience reinforce each other. The fandom model used by creators can help inspire how to balance the online and offline experience.

Learn to build up the hype with your online presence and convert this attention in your physical space. Use the app to create exclusive in‑store moments through flash discounts or offers that only appear when you’re near a store, pop‑up collaborations, tastings or creator meet‑ups that require a simple app RSVP. These moments can turn a routine shop into an event worth sharing.

Make the omnichannel journey feel seamless. If someone saves a recipe online, offer a curated shopping list with a time‑limited in‑store discount at their nearest branch. If they scan a product in store, surface complementary items and a micro‑reward for adding them to the basket. These contextual nudges convert browsing into buying and make the retailer feel helpful rather than intrusive.

Rethinking rewards and measurement

Retailers will also need to rethink the concept and reward of loyalty and broaden it to reflect Gen Z priorities. Give points for recycling packaging, attending events, or trying new ranges. Rewarding behaviours that align with younger shoppers’ values can help build emotional connection beyond price.

And finally, make sure you measure the right things. Tracking lifetime value, visit frequency, engagement with non‑transactional features and social referrals can show whether a programme is creating affinity or merely driving discount chasing.

Thoughtful measurement will reveal whether the app is a habit or a utility and help you to evolve and enhance the experience further.

Building loyalty to be proud of

Tesco’s move to open Clubcard for under‑18s is a wake‑up call. This is a long-term play, locking in loyalty early, and keeping customers as their spend increases over time. It is not about fast cash from offers and others can learn from the strategic approach vs a tactical offer based approach that won’t lock in customers.

To win Gen Z and Gen Alpha, retailers must combine real value, human personalisation and playful digital mechanics, then stitch those experiences into the physical store experience. The lesson is to treat loyalty as culture, not just commerce, to keep younger consumers on side by turning everyday shopping into a community they actually want to belong to.

Article originally published on Internet Retailing