In today’s global and competitive market, businesses are constantly seeking new ways to enhance customer loyalty. The loyalty programs on the rise today are no longer like the ones that excelled a few years ago. To keep your program relevant in the loyalty space, it is important to keep updated on recent developments in the area. This article overviews five key trends impacting the future of customer loyalty and how they can drive business success.
Written by Karin Rise, Senior CRM & Loyalty Manager and Julia Stopner, Business Consultant Analyst, on March 5, 2025 | Reading time: 5 minutes
1. Digital Experiences
Businesses must adapt to the swiftly evolving scenery of digital loyalty programs. Customers today expect not only a well-functioning digital interface but an experience through a digital ecosystem, providing instant gratification through real-time rewards and seamless transfer of offers. This trend also caters to a growing demand for contactless services, where convenience and smooth interactions are of great importance.
Starbucks is a leading example of this trend with its Starbucks Rewards program. The app allows customers to order and pay ahead, earn stars for purchases and receive personalized offers. This not only speeds up service but also enhances customer satisfaction by providing instant rewards and tailored promotions, making it a role model for digital loyalty programs.
2. Collaborations & Ecosystems
Secondly, collaborations and ecosystems are redefining engagement strategies at great speed. By forming strategic partnerships, brands can offer more comprehensive and cohesive experiences that go beyond what they could achieve independently. Loyalty programs that rely on partnerships between brands can offer their customers a wider array of benefits, allowing clients to choose the rewards that fit them personally.
Rakuten, a Japanese e-commerce platform and service provider, represents one of the world’s leading loyalty ecosystems and has over 111 million users. The ecosystem provides the ability to gather and spend loyalty points across hundreds of popular Japanese brands, thus providing members with the possibility to gather points for almost all conceivable tasks. The popularity of the Rakuten program showcases the great potential of the ecosystem concept.
3. Omnichannel Personalization
Omnichannel personalization also stands out as a trend. Customers today expect a smooth and personalized experience across all touchpoints, whether online or offline. By using advanced customer data, businesses can tailor their rewards and interactions to meet individual preferences. Artificial Intelligence (AI) is instrumental in this process.
Fredrik Holmén, partner at Eidra and AI specialist states: “Soon most companies will be able to produce unlimited content tailored for increasingly smaller customer segments. And they will! Authentic and relevant storytelling will both be an opportunity to drive loyalty for brands and a requirement to avoid content fatigue”.
Booking.com exemplifies this trend. Through its app, users can search, book and manage their trips, thus enabling the company to collect a vast amount of data that can be used to personalize and improve the experience further.
4. Experiential Rewards and CSR
Moving beyond transactional “earn and burn” models, businesses today are starting to focus on creating emotional connections with customers through unique experiences. By offering rewards that money can’t buy, such as exclusive events or access to secret products, companies can foster deeper loyalty. Additionally, incorporating CSR initiatives, like product donations or tree planting, further strengthens the emotional bond between the brand and its customers.
Marriott and Hyatt have successfully implemented experiential rewards in their loyalty programs. Through initiatives like Marriott Bonvoy Moments, customers can use their loyalty points for exclusive experiences, including such things as VIP access to events. These unique offerings create memorable moments that connect with guests at a personal level, building a stronger emotional connection with customers.
5. Subscription-Based Loyalty
Subscription-based loyalty programs are gaining popularity as businesses seek to offer exclusive benefits for a fee. This model bridges the gap between loyalty and subscription services by providing customers with discounts, exclusive events and superior service in a paid program. By paying, customers gain access to a host of benefits that can be even more exclusive than the ones in free loyalty programs, leading to enhanced value and long-term loyalty.
Amazon Prime is a standout example of subscription-based loyalty. For an annual fee, members receive benefits such as express shipping, access to streaming services and exclusive deals. This comprehensive package not only improves customer experience but also encourages continued engagement within Amazon’s wide ecosystem, making it a benchmark for successful subscription-based loyalty programs.
Conclusion
Embracing current loyalty trends can significantly impact a business’s ability to attract and retain customers. By focusing on digital proficiency, collaborations, personalization, experiential rewards and subscription models, companies can build stronger, more loyal customer relationships. Staying ahead of these trends is essential for long-term success.
How Curamando Assists in Loyalty Excellence
Curamando offers extensive solutions to help businesses navigate the complexities of modern loyalty programs. With an established process, we tailor loyalty programs to fit the specific needs of each of our clients. As part of Eidra, our consultancy collective, we do this in collaboration with our partner companies, leveraging the expertise of professionals within business development, marketing and technology across the group. Our CRM and Loyalty team delivers comprehensive consulting services, encompassing the entire spectrum from crafting loyalty strategies and concepts to their full implementation and value realization. With Curamando’s expertise, businesses can effectively implement these trends, ensuring a competitive edge in the loyalty landscape.
Read more about our loyalty offering.
