Loyalty programs are evolving beyond points and discounts. Brands are tapping into personalization, community-building, exclusivity and unique experiences to create lasting consumer loyalty that feels authentic and valuable.

When I began advising clients on loyalty strategies, I worked with some of the early adopters, like Marriott, whose Marriott Rewards was an industry leader in points-based loyalty programs. My experiences speaking publicly about pricing strategies have allowed me to witness firsthand how rewards and loyalty programs have evolved over the years. Once, the formula was simple: offer points for purchases, then let customers cash those points in for discounts. But, in a crowded and increasingly savvy marketplace, consumers want more than just a deal—they want experiences, personalization, exclusivity and genuine engagement.

Personalization, Exclusivity, and Community

Today’s loyalty programs are all about forging a deeper connection beyond transactional discounts. While the point system is far from obsolete, modern loyalty is about knowing your customer on a deeper level and rewarding them with something that resonates personally. Think of it like this: in a world where we all crave connection, nobody wants to be “just a number.”

For instance, Sephora’s Beauty Insider program, recently updated, has taken strides to go beyond traditional point redemption. Members now receive access to exclusive beauty classes, early access to products, and even personalized birthday gifts. It’s not just about saving money; it’s about feeling part of an insider’s club—a concept that resonates strongly with consumers today. And if you look at the data, it’s effective: research from Bond Brand Loyalty indicates that 78% of consumers are more likely to continue doing business with a brand if its loyalty program offers personalized rewards.

In the Middle East, Careem, a ride-hailing and delivery service based in Dubai, revamped its loyalty program in early 2024. The program, Careem Rewards, allows members to accumulate points that can be used for various perks like free rides, free restaurant orders, free home cleaning or donations to charity. Careem’s emphasis on community-building and giving back resonates well with its customers, especially as 73% of consumers in the UAE prefer loyalty programs that contribute to social causes.

In addition to personalization, the power of many of these programs is in the exclusive offers they deliver. More often, it’s about providing the opportunity to experience something that money just can’t buy.

LEGO Insiders is a great example. LEGO’s loyalty program encourages engagement through various activities beyond purchases, such as participating in building challenges or attending exclusive fan events. Members can earn points that can be redeemed for unique, members-only sets and experiences, like attending special LEGO-themed events or receiving exclusive, collectible LEGO elements. This focus on fostering creativity and community involvement sets LEGO’s loyalty program apart and aligns it with modern loyalty trends.

Beyond Rewards: Experiences and Community-Building

Retail giants aren’t alone in reinventing loyalty. Airline programs have also shifted from focusing solely on frequent flyer miles to offering something much more exclusive. In 2024, Delta revamped its SkyMiles program to include exclusive “Sky Club” experiences for loyal travelers, such as bespoke wine tastings and chef-curated meals in their airport lounges. No longer are loyalty programs about just “earning miles”; they’re about elevating the travel experience itself.

Another fascinating example of modern loyalty comes from Nike. Their Nike Membership has grown into more than just discounts on shoes—members get personalized workouts, access to exclusive member-only gear drops, and even invitations to local running events. It’s a community, built around passion and engagement, and it’s working—Nike’s membership program grew by 30% year-over-year in 2023.

Smaller businesses are also creating innovative loyalty experiences. Bare Necessities, an Indian sustainable personal care brand, launched a loyalty program in 2023 that offers members exclusive workshops on zero-waste living and discounts on its products. This creates a community of like-minded customers invested in sustainability, enhancing loyalty and engagement.

Speaking of passion-driven loyalty, a new trend is emerging: loyalty through content. Look no further than Starbucks, which launched Starbucks Odyssey—a blockchain-based extension of their existing loyalty program that allows members to earn digital stamps and access exclusive coffee experiences or merchandise. This takes traditional loyalty up a notch by combining experiences, content, and even a bit of gamification.

Comcast launched “Xfinity Rewards”, which provides customers with unique rewards such as early access to movies, VIP tickets to live events, and even tech giveaways. Unlike a simple discount system, Xfinity Rewards focuses on exclusive entertainment experiences, bringing added value to customers beyond standard service packages.

Tech’s Role in Shaping Loyalty

The future of loyalty isn’t just about what you get—it’s about how it’s delivered. Technology is playing a major role in this evolution. Take Amazon Prime, for example. The reason behind Prime’s astounding loyalty lies not in points or discounts but in the hyper-personalized and frictionless experience: next-day delivery, exclusive streaming content, and tailored recommendations. It’s why Prime boasts 200 million subscribers globally, with over 90% of subscribers renewing annually, according to a 2023 Amazon earnings report.

Hyundai’s Bluelink Rewards, launched in early 2024, offers connected services to car owners. Not only does the program include remote vehicle start and personalized maintenance reminders, but it also rewards eco-conscious driving habits by allowing customers to earn points for driving in an energy-efficient manner. These points can then be used for various exclusive services, fostering both loyalty and sustainability.

B2B Loyalty Programs

Interestingly, the evolution of loyalty programs is no longer limited to consumers. Businesses to business marketers are also riding this wave, finding creative ways to keep customers engaged.

Siemens Smart Infrastructure Loyalty Program: Siemens launched a loyalty program in 2023 aimed at incentivizing customers in the building technology space. The program provides exclusive access to educational resources, training workshops, and priority service support for clients who invest in smart infrastructure solutions. This initiative supports professional growth and strengthens the relationship between Siemens and its clients while promoting advancements in building automation and energy management.

John Deere Rewards: John Deere has a loyalty program designed for farmers and agricultural customers, rewarding them for purchasing equipment, parts, and services. Members receive benefits such as access to exclusive training events, advanced product previews, and special pricing on John Deere equipment. This program connects customers to the brand beyond sales, emphasizing the long-term value of their relationship with John Deere.

Volvo Construction Equipment Club: In 2023, Volvo launched a loyalty program for its construction equipment customers. The program offers exclusive benefits such as priority access to limited-edition machinery, on-site training with expert operators, and even VIP invitations to industry events. By providing these exclusive rewards, Volvo aims to build stronger relationships with its customers and enhance brand loyalty.

Tips for Marketers: Moving Beyond Discounts
If there’s one clear takeaway here, it’s that points alone don’t cut it anymore. Loyalty needs to be personal, experiential, and authentic. Here are a few tips for marketers looking to evolve their loyalty programs:

1. Think Beyond Transactions: Points and discounts are fine, but pair them with personalized experiences. Take a page from Nike’s book—create exclusive experiences that tap into your customers’ passions.
2. Make It About the Journey, Not Just the Reward: Build a community or create a shared purpose. Brands like Starbucks are using content and unique experiences (not just rewards) to keep consumers engaged long-term.
3. Leverage Technology for Frictionless Rewards: Consumers value convenience. Make redemption easy, and use customer data to create highly personalized interactions, much like Amazon Prime does.
4. Sustainability Can Drive Loyalty: Customers today want to know that brands care about the environment. Apple and IKEA have effectively integrated sustainability into their loyalty models by rewarding customers for contributing to their eco-friendly initiatives.
5. Be Exclusive, But Accessible: Providing exclusive perks can create a sense of belonging, but remember that a good loyalty program should be accessible enough to draw in new customers and not feel elitist.

Last Words: Loyalty in a Modern Era
The future of loyalty is about so much more than points and discounts. It’s about understanding your customers—what they value, what experiences they crave, and how you can make them feel like an insider. From my personal experience advising brands, I have learned that loyalty must evolve to truly connect with today’s consumers. So for businesses willing to get a little creative, go beyond transactions, and focus on personalization and experience, the opportunities for building genuine loyalty are endless.

For marketers, the game has shifted from just acquiring customers to keeping them engaged. Investing in customer loyalty and consistently delivering value will future-proof brands in a world that’s becoming more subscription-first by the day.

Sources:
• Bond Brand Loyalty, “The Value of Personalization in Loyalty Programs” (2023)
• McKinsey: • YouGov, “Consumer Preferences for Loyalty Programs in the UAE” (2024)
• Accenture, “The Power of Personalization in Building Brand Loyalty” (2023)
• Bond Brand Loyalty, “Trends in Loyalty Programs” (2023)