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Gen Alpha and the future of brand loyalty 

Katie Berndt, Lauren Sutherland

Born between 2010 and 2025, Gen Alpha represents the first generation born entirely in the 21st century and the second digitally native generation. Their spending power is projected to exceed $5.46 trillion by 2029. Understanding how to cultivate emotional loyalty with this unique cohort is essential for forward-thinking brands.  

Gen Alpha is growing up in an unprecedented technological landscape, shaped from an impressionable age by major global events like the COVID-19 pandemic and mainstream adoption of artificial intelligence. As the most diverse generation in history—with 26% identifying as Hispanic and 7% as multiracial—they represent approximately 13% of the U.S. population. By 2025, they will outnumber Baby Boomers and Gen X, and by 2030, they’ll constitute 12% of the workforce. 

What truly distinguishes Gen Alpha is its relationship with technology. Unlike Millennials who remember dial-up internet or Gen Z who grew up alongside social media, Gen Alpha has never experienced life without voice assistants or touchscreens, and 43% of Gen Alpha aged 13 agree with the statement “I am addicted to my phone.” This generation’s expectations, values, and engagement patterns will transform marketing strategies in the coming decade, requiring brands overhaul traditional approaches to building customer loyalty. 

Purchasing decisions driven by values and transparency

Gen Alpha is growing up amid climate concerns, conversations around mental health, and social justice movements. They are less trusting of traditional influencers like celebrities or athletes when compared to prior generations. Instead, they place more trust in smaller creators and niche brands, and their loyalty flows primarily to brands demonstrating authentic commitment to values and causes they care about.  

Forty percent of Gen Z adults stopped using or purchasing brands which contradicted or reversed their DEI efforts. This number increased generation to generation, from Baby Boomers (9%) to Gen X (14%) and Millennials (21%) to Gen Z. If this trend continues, we can expect a similar, if not greater, percentage of Gen Alpha to stop spending on brands with actions contradicting their personal values. Brands seeking loyalty from Gen Alpha must demonstrate genuine commitment to values rather than performative marketing.  

Sophisticated, mobile-first CX is table stakes

Ninety percent of Gen Alpha aged 13 have access to a computer, 90% to a gaming console, 82% to a tablet computer, 42% to a virtual reality headset, and 97% to a smartphone. By the end of 2024, there were an estimated 10.5 million Gen Alpha smartphone owners. While much of the cohort has limited access to social media platforms due to age-restrictions, the number of Gen Alpha social network users was expected to reach 6.5 million by the end of last year, with 65% of Gen Alphas aged 13 reporting they use TikTok at least once a day.  

Considering the pervasive mobile phone usage among Gen Alpha (let alone other generations), it’s no surprise that U.S. advertisers are expected to allocate 66% of their digital media spend to mobile this year. Brands not prioritizing or initiating a mobile-first engagement strategy will be left behind. 

Personalization and gamification as differentiators

Gen Alpha consumes entertainment differently, with short-form video, gaming, and interactive content as their primary media channels. Eighty percent of Gen Alpha regularly watches YouTube, including clips of traditional cartoons. Kids under 12 spend an average of 1 hour 48 minutes per day on the platform and are twice as likely to remember ads on YouTube compared to other platforms. In fact, YouTube is expected to overtake linear TV viewership among US children by 2026. It’s no surprise that 5 of the top 10 YouTube channels are kids’ channels, including educational and entertainment content and with most featuring child influencers.  

Gen Alpha has been algorithmically catered to from birth and expects brands to understand their preferences at a granular level. They have little patience for irrelevant messaging or generic experiences. Loyalty programs need to accommodate dynamic journey tracking and deliver hyper-personalized experiences based on individual behavior patterns and preferences in near- or real-time to attract and retain these young consumers. 

Gen Alpha also uses gaming to connect socially—both on and offline. About 50% of kids under 12 are digital gamers. At the beginning of the pandemic, about a third of them played Roblox and now that number is closer to two-thirds. There is often a collaboration or co-creation element in the games Gen Alpha prefers to play.  

Brands that successfully embed elements of gamification and co-creation into their customer and member engagement strategies are better positioned to stand out. Furthermore, creating omnichannel journeys that seamlessly engage across digital platforms—social media, gaming, streaming services, and more—will help brands evolve alongside this new generation of consumers. 

Creating lasting loyalty with Gen Alpha

The time for establishing brand loyalty with Gen Alpha is now. As their brand relationships form earlier, their expectations significantly outpace those of previous generations. Technological sophistication, genuine connection, transparency, authenticity, and shared values form the foundation of successful Gen Alpha loyalty strategies.  

The brands that win their loyalty won’t just sell products or services; they will create ecosystems of belonging that integrate meaningfully into Gen Alpha’s digitally immersive, values-driven lives. As these young consumers mature into economic independence over the next decade, the foundation laid today will heavily influence which brands earn the loyalty of the largest generation to date. 

Key strategies to transform Gen Alpha from casual customers to fierce brand advocates 
  1. Demonstrate authentic values alignment through actions, not just messaging. Gen Alpha will quickly identify and reject performative gestures that lack substance. In addition to transparency around sustainability practices, ethical supply chains, and measurable social impact initiatives, incorporate purpose-driven components into loyalty programs so members can contribute to meaningful change as well.  
  2. Deliver mobile-first, cross-platform experiences that meet Gen Alpha where they are today and adapt as their engagement preferences evolve. Ensure frictionless and consistent experiences across all touchpoints—in-store, mobile, and emerging platforms.
  3. Enable personalized experiences and co-creation through gamification, interactive challenges, and “edutainment.” Consider providing opportunities for members to influence aspects of loyalty programs and experiences, giving them a sense of ownership and investment. Ensure loyalty efforts reflect changing preferences and behavioral insights with regular feedback loops and adaptive reward systems.
  4. Foster a sense of belonging through peer-to-peer connection and community. Create spaces for interaction and shared brand experiences (even virtual co-shopping experiences, which can strengthen emotional loyalty in-game and in virtual stores) that promote user-generated content, peer recommendations, and, if possible, collaborative problem solving.  

 

Gen Alpha wields significant financial influence through digital payment methods (like Apple Pay) that parents have enabled on their devices. Their technological fluency and strong values give them unprecedented sway over family purchasing decisions, making them key influencers in household consumption well before reaching economic independence.