5 things today’s top customer loyalty programs are doing differently

At this year’s Loyalty360 conference in Orlando, Florida, one thing was made clear: brands can’t afford to treat loyalty as a static program anymore. Brands are rapidly evolving how they: 

• Go to market with loyalty 
• Integrate loyalty with marketing 
• Drive member acquisition, retention and referrals 
• Keep people engaged 
• Prove return on investment 
• Evaluate KPIs and the indicators of a successful program 
  

Loyalty is getting sharper, smarter and more strategically aligned with overall business growth. 

Here are the five big shifts we noticed after attending the conference and what they mean for brands trying to build stronger connections with customers. 

1. Loyalty programs are in flux and most brands know it 

If you have a legacy program in a competitive industry, now’s the time to adjust to remain competitive. From acquisition to retention, referrals to ROI tracking, loyalty now touches every point in the customer journey. Programs are being optimized to prove their business value in real-time, and brands with legacy systems are moving fast to modernize. 

According to a report shared at the Loyalty360 conference, 64% of brands say they’re actively updating or reworking their loyalty programs in the next 12 months. Your competitors are working to keep up with shifting customer expectations and proving genuine value. 

What this means for you: Take this as a sign. If your program hasn’t evolved recently, now’s the time. Take a hard look at how your loyalty efforts align with broader marketing and revenue goals. 

2. Non-discount rewards are gaining attention 

Yes, discounts still work. Discounts, BOGOs, free burritos and points that encourage customers to buy more will always have a place in most programs. However, brands are realizing an actual reward strategy is critical to the success of a modern program. They’re getting more creative and intentional about how rewards drive emotional benefits and brand differentiation. 

Infusing new reward options is the top change brands are making in their existing loyalty program. It’s part of a strategic effort to deliver perceived value. Our own research backs this: programs offering exciting, differentiated rewards drive higher perceived value and more customer engagement. 

What this means for you: Your reward mix is your brand’s value statement. Make it count. Build a strategy that balances transactional value with emotional relevance. 

Related link: How deeper emotional and identify-driven rewards boost perceived value in customer loyalty programs 

3. Finance leaders need to see loyalty as revenue, not cost 

According to Loyalty360’s recent report, 35% of respondents listed organizational buy-in/budget constraints as a current challenge with customer loyalty programs. Many finance leaders still view loyalty as a cost center, not a revenue engine. That perception creates friction for loyalty leaders trying to secure funding and prove program effectiveness.  

Smart brands are changing this by: 

• Building airtight business cases tied to metrics like CAC:LTV Ratio
• Reporting on loyalty’s impact across acquisition, retention and referrals 
• Embedding finance early in the planning process 
  

What this means for you: To secure loyalty investment, speak the language of the CFO. Data, not sentiment, drives approval. 

4. Employee experience is loyalty’s secret accelerator 

You’ve probably heard the phrase EX equals CX. At the conference, that idea took on a new urgency. Front-line employees, whether in store, on the phone or online, are key to getting customers into your loyalty ecosystem and keeping them there.  

Brands are actively exploring ways to better enable sales associates, customer service and other customer-facing employees with more confidence, better delivery and stronger understanding of the brand’s loyalty program. Some are doing this through access to tools, some via gamifying their ability to drive loyalty sign-up and participation through incentives and other quarterly/annual recognition campaigns. 

What this means for you: Consider how you can reduce internal barriers. A successful loyalty strategy requires full integration, from planning to performance measurement to employee awareness. 

Related link: Your front-line employees might be the most overlooked loyalty asset

5. Customer loyalty has officially entered its next era 

It’s never been a better time to reimagine what a great loyalty program can do for your brand. The future of loyalty is no longer about just keeping customers. It creates meaningful connections, improving margins and turning transactional buyers into brand advocates. Doing that in today’s market requires flexible platforms and smart personalization in a culture of ongoing optimization. 

As for AI? It made cameos throughout the conference, but nothing game-changing... yet. Expect that to change fast. AI’s role in segmentation, predication and personalized engagement is only just beginning to unfold. 

What this means for you: If you’re not rethinking your loyalty strategy, your competitors probably are. 

If you’re rethinking your loyalty strategy or just wondering where to start, a little guidance can go a long way. Our Customer Experience Solution Assessment is a quick, free tool to get you started. Take the assessment to find your ideal customer loyalty solution and see which approach best fits your brand’s needs and goals.