- Safwan AMM
- 11 September, 2025
How Gen Z is Changing Loyalty Programs: Lessons for Sri Lankan Retailers
Gen Z (ages 13–28) is not like the generations before them. Discounts and points? Not enough anymore. What they truly want is community, experiences, and belonging.
Why Discounts Don’t Work Anymore
Traditional loyalty programs in Sri Lanka — think “buy 10 teas, get 1 free” — don’t excite Gen Z. They grew up online, surrounded by choices. If they don’t feel connected to your brand, they’ll switch in a heartbeat.
As Craig Crisler, CEO of SupportNinja, puts it:
“Gen Z is more interested in being part of a club or community than just getting discounts.”
Case Study: IKEA and Nordstrom
Big global brands are already moving in this direction:
- IKEA runs DIY workshops where young people can design and decorate their own spaces. The focus? Creativity, not discounts.
- Nordstrom hosts in-store events — from meet-and-greets with stylists to DJ nights for makeup launches. These events feel more like a party than shopping.
Result? Customers don’t just buy products — they feel part of something special.
👉 Imagine if ODEL or Cool Planet hosted styling workshops with influencers or live DJ shopping nights. Young Sri Lankans would love that vibe.
The Gen Z Paradox: Digital Yet Craving Community
Gen Z spends hours online, but they also crave physical community.
- Covid-19 shaped this habit — years of being stuck online made them value real-world connection.
- They want brands to give them places to belong, not just places to buy.
For example, in Sri Lanka, think about how popular pop-up food festivals or streetwear events have become. It’s not about the food or clothes alone — it’s the crowd, the energy, the feeling of being part of a tribe.
AI + Influencers = Winning Formula
AI helps brands understand behavior — what Gen Z likes, when they shop, and even their impulse buys.
- Amazon predicts what customers need before they know it.
- IKEA uses influencer-driven TikTok trends to get Gen Z attention without heavy advertising.
In Sri Lanka, imagine Keells using AI to send personalized offers: “Hey, Safwan! Your favorite ice cream is 20% off tonight.” Or a local clothing brand collaborating with TikTok creators to host styling challenges.
Impulse Buying: A Hidden Goldmine
Adobe’s research shows Gen Z is 25% more likely than older shoppers to buy on impulse.
- They shop late at night.
- They splurge after payday.
- They fill carts just for fun.
This means Sri Lankan e-commerce brands should send late-night flash sale alerts or payday special offers.
Key Lessons for Sri Lankan Retailers
- Move beyond discounts. Build community.
- Host experiences. Events, workshops, pop-ups.
- Use AI + influencers. Personalize the journey.
- Catch the impulse. Target night-owl and payday shoppers.
Gen Z isn’t loyal to products — they’re loyal to communities. If your brand feels like “their group,” they’ll stay.
So the future of loyalty is not a stamp card. It’s a club, an experience, and a lifestyle.
✨ Sri Lankan Example: Imagine if Spa Ceylon invited customers for a “wellness evening” with music, free yoga, and aroma therapy. The crowd would post, share, and come back — not for discounts, but because they felt special.
