3 insights shaping the future of customer loyalty programs

By: Sarah VanDerHart

What you need to know  

  • Customers who feel emotionally connected to a brand are 4x more likely to visit and 4x more likely to spend. 
  • Many brands are underdelivering on the loyalty program aspects customers care about most, missing valuable opportunities for differentiation. 
  • Reward redemption is the key that turns loyalty program participation into connection, appreciation and repeat engagement.

 

loyal customer at coffee shop

How do you measure something as instinctive as emotion? For loyalty program marketers, that question is becoming impossible to ignore. Emotional connection has long been viewed as an intangible bonus, but today it’s a powerful force evolving customer loyalty. 

To better understand how customers experience emotional connection within loyalty programs, ITA Group commissioned a study of 5,000+ loyalty program participants across 50+ leading brands in industries including quick service restaurants (QSR), retail, finance, telecom and gas. 

We gathered insights from a diverse group of loyalty program members and examined programs across major industries to reflect a wide range of real-world experiences. 

Our research explored key questions like: 

  • Why emotional connection is a critical factor in loyalty program success 
  • How emotional connection influences spend, visit frequency and long-term loyalty 
  • Which factors strengthen or weaken emotional connection 
  • How brands can apply a practical formula to create meaningful, measurable connections within their loyalty programs 

Now you can use these findings to make emotional connection your loyalty program’s greatest strength. 

Related: Revisit the first part of our customer loyalty research to see how value and ease create a framework for emotional connection.

3 research takeaways for customer loyalty leaders  

1. Emotional connection is a multiplier for customer loyalty 

When customers feel an emotional bond with a brand, our study revealed that it drives measurable behavior. Emotionally connected customers are 4x more likely to visit and 4x more likely to spend than customers who feel disconnected. This deep level of emotional connection turns programs from transactional tools into relationship builders.  

2. Brands are underdelivering on the loyalty drivers customers value most 

Our research also uncovered a gap between what customers say they value from brands and what brands provide. The findings uncovered five key emotional drivers that brands are overlooking. For loyalty leaders, addressing these gaps creates one of the biggest opportunities to stand out in an increasingly crowded loyalty program landscape. 

3. Redemption keeps the loyalty cycle turning 

The sooner a customer redeems, the sooner they feel rewarded and connected. Redemption is the momentum loyalty programs must incorporate to drive the loyalty cycle. It signals value, sparks emotional satisfaction and keeps customers cycling through engagement, advocacy and repeat behavior. Loyalty programs that make redemption easy and provide valuable rewards set the flywheel in motion, driving a positive cycle of retention. 

What this new research means for customer loyalty programs 

Today’s most successful customer loyalty programs deliver both function and feeling. They balance value, ease and emotional connection to create experiences and relationships that customers genuinely care about.  

Our upcoming ebook, Quantifying customer loyalty’s hidden drivers, explores these findings and offers practical steps for brands looking to strengthen connection at every stage of the loyalty journey. This research reinforces that loyalty programs are one of the most powerful tools brands have for: 

  • Strengthening emotional connection with customers 
  • Delivering consistent perceived benefit through easy redemption of rewards and perceived benefit 
  • Turning basic customer participation into advocacy 

Related: How to increase loyalty program value with improved functional benefits 

“What we’re excited about in this research is that we can take emotional connection beyond a feeling or sentiment and really turn it into a proven, quantifiable difference that you can include in your loyalty program,”

—Chris Jones, Senior Vice President of Engagement Solutions

Our research also introduces a clear, data-backed formula marketers can use to guide a successful loyalty program, one built on both measurable benefit and emotional connection. Together, these findings form a road map to turn loyalty from a transactional metric into a true business advantage. 

If you’d like to learn more before the full ebook release, watch our on-demand webinar for more on how the study came together and what these early results could mean for your loyalty program.

watch our on-demand webinar
Sarah VanDerHart
Sarah VanDerHart

With over 12 years of experiential marketing and strategy experience, Sarah serves as the Customer Solutions Insights and Strategy Leader. As a leader of award-winning marketing teams, she thrives on delivering results-driven strategies that align with market trends to build emotional connections between customers and brands. Outside of work, you'll find her hosting a fun gathering with friends, running around with her husband and their two young daughters, or cheering on the Iowa State Cyclones!