Brand Loyalty Trends

I analyzed 100+ loyalty programs in the last 30 days. Most brands still run loyalty like it’s 2009: Earn points, get a discount, repeat. The top 10%? They’re using loyalty to change behavior- not just reward it. If I were Head of Loyalty at a $10B+ brand today, here’s exactly what I’d do to build a program that drives LTV, repeat purchases, and real retention: 1. Stop Giving Away Loyalty - Make Them Pay for It Costco, RH, Barnes & Noble. When customers pay upfront, they buy in - literally and psychologically. Forget free points. Paid memberships = commitment, retention, higher LTV and emotional sunk cost. 2. Make Loyalty Required, Not Optional - Integrate Directly into Payments Starbucks preloads!!! When rewards are embedded in how people pay, behavior shifts faster, and for longer. This is probably the biggest opportunity in loyalty right now. 3. Forget Delayed Points - Instant Gratification is More Important Immediate dopamine beats theoretical future savings. Slow accumulation = slow engagement. Instant offers = repeat behavior. The 2nd purchase matters more than the 10th. 4. Make Loyalty Emotional, Not Transactional REI, North Face, Sephora. Customers want to belong, not just save. Identity, community, and shared values are outperforming cashbacks and discounts in driving long-term loyalty. Loyalty isn’t just a discount strategy, it’s a brand strategy. 5. Invest in Status + Experiences, not Generic Perks This isn't just theory – with companies like Rapha and Lululemon offering loyalty members exclusive product drops, community events and behind-the-scenes experiences. Lean into waitlists and exclusive product drops. Less financial. More status + psychological “being in the club.” 6. Reward Engagement, Not Just Transactions MoxieLash, Pacifica, Lucy & Yak. UGC. Reviews. Referrals. Loyalty now means participation. The modern flywheel starts before checkout - and lasts far beyond it. ~~ Bottom line? If your loyalty program is still playing a game from 15 years ago, your customers are going to find better options. Today, the best brands in 2025 aren’t just rewarding loyalty- they're engineering it. PS: We analyzed 100+ programs across QSR, retail, travel, and fintech. Next week I’ll share the Top 30 loyalty programs leading the way. Stay tuned🙏

Loyalty isn't what it used to be. 74% of consumers say their loyalty is harder to earn than ever (source: KPMG), so how can your brand buck the trend? Recent studies have illuminated a stark reality: the era of guaranteed customer loyalty is over. Accenture Strategy reports that a whopping 77% of consumers retract loyalty faster than just three years ago. Similarly (and mind-blowingly), NielsenIQ finds that only 8% of shoppers consider themselves truly brand loyal, a drastic plummet from years past. But why the shift? Deloitte points out that 57% of consumers have recently switched brands for better price or value. Meanwhile, PwC underscores that one-third of consumers now place 'trust in brand' at the top of their shopping priorities, moving away from traditional loyalty. This landscape demands a new approach. Brands need to pivot from purely transactional relationships to creating meaningful connections. Here are actionable steps your brand can take: 1. Invest in Trust:  ↳ Enhance transparency and consistently communicate your brand values. 2. Personalize Experiences:  ↳ Leverage data to tailor experiences that resonate personally with consumers. 3. Reward Engagement:  ↳ Develop a rewards system that appreciates more than just purchases, such as social shares or community involvement. 4. Foster Community:  ↳ Build platforms where customers can interact, share experiences, and feel part of the brand story. 5. Adapt Quickly:  ↳ Stay responsive to market changes and customer feedback to continuously improve the offering. (side note: Nift excels at points 2 & 3 above, if you want to chat) Here's what it boils down to—the key to regaining and retaining loyalty lies in understanding and adapting to these new consumer behaviors. As Gartner highlights, 65% of customers are more open to new brands than ever—a challenge, but also an opportunity to redefine what loyalty means in your industry. Let's rethink loyalty together—because it's clear that the rules of engagement have changed.

Customer loyalty isn't what it used to be—and that's putting it mildly. In my latest Experience Matters conversation, I sat down with Sara Jurmain Richter, CMO of SAP Emarsys, to dive deep into findings from two groundbreaking studies: the Customer Loyalty Index 2025 and the B2B Buyer Loyalty Index 2025. What we discovered is both eye-opening and urgent for every business leader. Here's the reality: 52% of US consumers will switch brands after a single bad experience. Just one. It doesn't matter how many positive interactions came before; one misstep and they're gone. Add to that the fact that 57% will switch if they find a cheaper option, and you start to see just how fragile customer loyalty has become. But here's what organizations really need to be aware of: B2B and B2C loyalty have converged. The expectations your customers have in their personal lives—seamless experiences, personalized communication, real-time responses—are now the baseline for their business relationships too. 74% of B2B buyers claim loyalty, yet 70% are in what Sara calls "default loyalty"—staying simply because switching is too painful, not because they're truly engaged. We explored several critical insights: 𝗧𝗿𝗲𝗻𝗱 𝗟𝗼𝘆𝗮𝗹𝘁𝘆 𝗶𝘀 𝗥𝗶𝘀𝗶𝗻𝗴: A new form of loyalty driven by viral moments and social media is displacing traditional brand relationships. 29% of consumers lose interest once something stops trending. 𝗔𝗜 𝗶𝘀 𝗡𝗼𝗻-𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝗯𝗹𝗲: 95% of B2B buyers say a supplier's use of AI positively impacts their loyalty. AI-driven personalization at scale isn't a nice-to-have anymore—it's essential for survival. 𝗧𝗵𝗲 𝗟𝗼𝘆𝗮𝗹𝘁𝘆 𝗜𝗹𝗹𝘂𝘀𝗶𝗼𝗻: Most "loyal" B2B customers are simply operationally dependent, not emotionally engaged. This transactional relationship crumbles the moment friction appears. 𝗘𝗦𝗚 𝗠𝗮𝘁𝘁𝗲𝗿𝘀, 𝗕𝘂𝘁 𝗣𝗿𝗶𝗰𝗲 𝗦𝘁𝗶𝗹𝗹 𝗪𝗶𝗻𝘀: While 33% switched brands following a controversy and 24% due to sustainability practices, price remains the top factor in loyalty decisions. Sara shared how SAP approaches this challenge differently—by connecting customer engagement to operational execution, unifying data across the entire enterprise, and delivering omnichannel engagement at scale built on a foundation of trust and security. The bottom line? Loyalty is no longer a program—it's a business growth strategy earned moment by moment. Brands that leverage AI, real-time data, and connected systems to deliver personalized care will build trust and gain competitive advantage. Those that don't risk losing customers they thought were locked in. I encourage you to watch the full conversation and dive into the research. The insights are invaluable for anyone responsible for customer experience, marketing, or business growth. #CustomerExperience #CustomerLoyalty #B2B #AI #Marketing #CX #SAPEmarsys #BusinessStrategy SAP Customer Experience

I've been reflecting on one major trend from last year that I feel will be hard to ignore in 2025: Gen Z’s relationship with brands and social media. This generation doesn’t just consume content, they drive it. And they do so with a level of authenticity and transparency that demands our attention. For Gen Z, brand loyalty isn’t built on flashy ads or influencer endorsements alone. It’s about values. It’s about knowing what the brand stands for and aligning with causes they care about: be it sustainability, inclusivity, or social justice. Here’s how I’ve been thinking about this shift as an entrepreneur: For Gen Z, being true to themselves is really important. They want brands that embrace uniqueness and support personal expression. To connect with them, we need to be authentic and offer products and messages that let them express who they really are. Social Media is the New Word of Mouth: If you’re not engaging in the conversations Gen Z is having on social media, you’re missing out. They trust their peers and online communities more than traditional advertising, and their feedback is immediate and powerful. Experience Over Projection: For this generation, it’s not just about seeing an ad but engaging with a brand in a meaningful way. Whether through personalized experiences, interactive campaigns, or exclusive content, creating a connection is more valuable than ever. Gen Z is not just shaping the future of business but is redefining what it means to build loyalty and trust. Is your brand ready for this shift?

Why Luxury Brands Are Losing Ground and How to Win Back Their Clients After years of expansion, the luxury industry is entering a more complex cycle. Growth is slowing, margins are tightening, and even iconic houses are seeing their numbers fall. Bain & Company expects global personal luxury sales to decline slightly in 2025, following a softer 2024. Gucci’s recent 25 percent drop in sales is a visible symptom of a wider shift: the rules of attraction in luxury are changing. The reasons are not purely economic. Inflation and global uncertainty are testing even affluent clients, while younger generations are redefining what luxury means. For them, craftsmanship still matters, but not without authenticity and cultural relevance. Price alone no longer signals prestige. What once inspired desire can now feel distant or transactional. Several forces are reshaping the landscape. The aspirational middle tier, long the engine of luxury growth, is pulling back as entry-level products become less accessible. Meanwhile, high-net-worth clients are spending more selectively, favoring brands that offer meaning and discretion over logos and noise. The so-called quiet luxury trend is not a passing phase but a deeper realignment of taste and value. In this context, leadership teams face three urgent challenges. - First, rethink client engagement. True loyalty now depends on experience, not just exclusivity. Clients expect intimacy, recognition, and personal connection. Programs that feel mechanical or impersonal no longer retain attention. - Second, recalibrate value and pricing. The luxury price spiral of the past decade has reached its limit. To justify high positioning, brands must reinforce storytelling, product excellence, and emotional payoff at every touchpoint. - Third, restore cultural meaning. Luxury is built on imagination and identity. A logo without a narrative is an empty shell. Brands that connect heritage to modern relevance through art, design, sustainability, or craftsmanship can regain credibility and desire. The slowdown we are seeing is not a crisis of consumption but of coherence. Clients still want luxury, but they expect it to mean something again. If your brand is navigating this new reality, I help leadership teams design strategies that rebuild desirability and long-term loyalty. Together, we can turn today’s pause in growth into a moment of reinvention. Contact me to explore how. #LuxuryStrategy #BrandLoyalty #ClientExperience #LuxuryMarketing #Leadership Picture courtesy of Gucci

Here’s a wake-up call for brands still counting on old-school loyalty tactics: Loyalty isn’t what it used to be. It’s no longer just about discounts, punch cards, or exclusive offers. Today, loyalty feels more nuanced, and more earned. People (especially younger consumers) are asking deeper questions: What does this brand stand for? Do its actions match its words? How does it treat its team, its customers, the world? Earlier this month, I was chatting with a 22-year-old who had stopped buying from a beauty brand she once loved. Not because the product changed. But because the brand made a move that didn’t sit right with her, something that felt completely at odds with what they claimed to stand for. She didn’t rant. She didn’t post. “It’s not cancel culture,” she said. “It’s about credibility.” That stuck with me. We often think of loyalty as something we can inspire with the right offer. But sometimes, it’s just as easily lost with one off-note action. But the opposite is true too: If a brand listens, adapts, owns its mistakes, or stands for something real. Customers notice. They share. They come back. And they become brand advocates, not just buyers. So maybe the real question isn’t: “How do we make people loyal?” But: “Are we showing up in ways that deserve their loyalty?” Because in this new landscape, loyalty isn’t earned once. It’s re-earned constantly. PS: If you had to define loyalty in one sentence today, how would you describe it? #loyalty #customers #branding

Brand loyalty is no longer the safety net it once was. Gen Z doesn’t automatically gravitate to legacy names.  A decades-long reputation doesn’t guarantee attention, much less preference. What matters instead?  Relevance, credibility, and consistency in how a brand shows up today. Gen Z will switch in a heartbeat if they don’t feel understood.  They research, compare, and call out brands that fail to deliver.  At the same time, they reward those who stand for something meaningful, act transparently, and keep the experience seamless across every touchpoint. Winning them over requires a shift: From leaning on history to building present-day proof From brand-centric messaging to community-centric conversations From promises to delivery, every time You don’t need a legacy name to win Gen Z.  You need to earn their trust, again and again.

👀 𝗧𝗵𝗲𝘀𝗲 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗹𝗼𝘆𝗮𝗹𝘁𝘆 𝗵𝗮𝗰𝗸𝘀 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗳𝘂𝘁𝘂𝗿𝗲-𝗽𝗿𝗼𝗼𝗳 𝘆𝗼𝘂𝗿 𝗯𝗲𝗮𝘂𝘁𝘆 𝗯𝗿𝗮𝗻𝗱 The brand loyalty game is changing. Gen Z swipes, samples, unsubscribes — then repeats. ❗ BUT: 𝙂𝙚𝙣 𝙕 𝙘𝙤𝙣𝙨𝙪𝙢𝙚𝙧𝙨 𝙖𝙧𝙚 𝙨𝙤𝙢𝙚 𝙤𝙛 𝙩𝙝𝙚 𝙢𝙤𝙨𝙩 𝙡𝙤𝙮𝙖𝙡 𝙩𝙤 𝙩𝙝𝙚 𝙗𝙚𝙖𝙪𝙩𝙮 𝙨𝙚𝙘𝙩𝙤𝙧, 𝙬𝙞𝙩𝙝 60% 𝙬𝙞𝙡𝙡𝙞𝙣𝙜 𝙩𝙤 𝙠𝙚𝙚𝙥 𝙗𝙪𝙮𝙞𝙣𝙜 𝙛𝙧𝙤𝙢 𝙩𝙝𝙚𝙞𝙧 𝙛𝙖𝙫𝙤𝙧𝙞𝙩𝙚 𝙗𝙧𝙖𝙣𝙙𝙨. So let's look at the bigger (loyalty) picture: 📉 Beauty brand loyalty is down 20% in the last two years. 📉 90% of Amazon beauty purchases? Unbranded. In a category obsessed with newness, retention is now the most underrated growth lever. Now what's the winning playbook? Connection > Coupons. Ritual > Rewards. Participation > Points. Here’s what smart brands are doing: 🪐 OSEA Malibu reduced churn by 40% just by improving its subscription UX based on customer feedback and conducting frequent A/B testing to optimize the customer journey. 🪐 REFY doesn't just reward customers — it recruits them. Its product development strategy invites the community to shape the brand's future, creating co-ownership through direct engagement. 🪐 Medalist Skin rewards customers for real-life actions like attending women’s sports games or signing up for a 5k run — loyalty as lifestyle. 🪐 Face Reality focuses on strategic product bundling to successfully increase loyalty among their B2B partners and B2C customers simultaneously, resulting in 90%+ B2B retention rates. 🪐 Charlotte Tilbury Beauty turned loyalty into lore. Its “Beauty Universe” rewards fans with surprise gifts, quizzes, and access to the mysterious Magic Vault — a program that feels more like a fantasy game than a transaction. 🪐 Glow Recipe knows loyalty lives on social. “Glow Rewards” rewards referrals, shares, and follows — treating community actions as valuable as purchases. 🪐 Aveda leans into accumulation. Its paid “Plus Rewards” program unlocks everything from robes to spa days, doubling down on experiential aspiration. Across the board, the brands winning on loyalty all share one trait: ❗ 𝙏𝙝𝙚𝙮 𝙩𝙧𝙚𝙖𝙩 𝙡𝙤𝙮𝙖𝙡𝙩𝙮 𝙖𝙨 𝙖 𝙧𝙚𝙡𝙖𝙩𝙞𝙤𝙣𝙨𝙝𝙞𝙥, 𝙣𝙤𝙩 𝙖 𝙧𝙚𝙩𝙚𝙣𝙩𝙞𝙤𝙣 𝙩𝙖𝙘𝙩𝙞𝙘. So what should you be doing? 🔺 Design community into your product, not just your Instagram. 🔺 Design your loyalty program like a universe, not a discount bin. 🔺 Reward values, not just volume. 🔺 Swap point-hoarding for co-creation, access, and honest reward. 🔺 Make engagement feel like access, not effort. ❗ 𝘽𝙚𝙘𝙖𝙪𝙨𝙚 𝙞𝙣 2025, 𝙩𝙝𝙚 𝙗𝙧𝙖𝙣𝙙𝙨 𝙩𝙝𝙖𝙩 𝙠𝙚𝙚𝙥 𝙩𝙝𝙚𝙞𝙧 𝙘𝙪𝙨𝙩𝙤𝙢𝙚𝙧𝙨? 𝙒𝙞𝙡𝙡 𝙗𝙚 𝙩𝙝𝙚 𝙤𝙣𝙚𝙨 𝙩𝙝𝙖𝙩 𝙠𝙣𝙤𝙬 𝙩𝙝𝙚𝙢. Thoughts? Drop them below! 😍 #BrandLoyalty #BeautyMarketing #RetentionStrategy #CommunityBuilding #BrandStrategy #BeautyIndustry #BeautyTrends #MarketingStrategy #BeautyBusiness #GrowthMarketing

Is a recession coming? Maybe.   But one thing’s certain: your points program won’t survive it — unless it feels like cash.   At Kalder, we work with retailers, fintechs, brands, and sports teams navigating this shift in real-time.   Here’s what we’re seeing across the board:   Margins are thinning. Budgets are tight. And your customers? They’re not spending like they used to... So what’s next?   1. Loyalty points are turning into cash equivalents. Consumers aren’t chasing “cute” rewards anymore. They’re chasing value. Utility. Relief.   Expect grocer dollars, gas points, mobility credits, and travel miles to outperform every other loyalty currency — because they stretch real budgets.   In inflationary cycles, customers don’t want to feel rewarded. They want to cover the bill.   2. Consumers will hunt harder — because they need to, not just want to. Recessions rewrite behavior. In high-trust categories like grocery, gas, mobility, and discount retail, we’re seeing a surge in offer engagement.   Why?   Because consumers are actively searching for ways to stretch their income. They’ll dig, they’ll click, they’ll link a card. Friction that used to kill the funnel? They'll push through if the upside feels real.   More time. Tighter wallets. More value sensitivity.   3. Partner rewards are becoming a core revenue line, not a side project. Sales alone aren’t enough anymore. Every brand exec is asking:   “How do we monetize our existing audience?”   Partner rewards now sit at the intersection of loyalty and retail media.   We're seeing brands: → Sell their loyalty currency to partners (airlines, grocers, mobility apps) who want access to their top customers → Monetize their best users — turning reward-loving shoppers (think TJMaxx Moms, Macy’s Stars) into a new line of revenue → Run offer marketplaces where partners pay to issue cashback and commission deals — driving their own acquisition   This isn't just retention anymore. This is a business model.   4. Subscription-based loyalty programs will be the first to get cut. If your rewards don’t tie to daily life, expect churn. Shoppers are reprioritizing essentials: groceries, gas, travel, transit.   They’ll stick with brands whose rewards feel liquid — rewards that help them pay for a meal, a ride, or a bill.   If your subscription tier offers soft perks, light discounts, or early access? You may not make it through the next quarter.   5. Rewards that feel like real money will win. Loyalty isn’t dead — it’s evolving. And the brands that win will be: → Earned daily – tied to frequent, everyday spend → Used broadly – not just “10% off next time,” but real currency → Sought after – so valuable, other brands want to issue them   Imagine this: Hobby Lobby Cash earnable at a gas station 🛍️ Macy's Stars earned on your Uber ride 🥫 ALDI USA Points stacked from your travel booking   When rewards feel unlocked, not locked-in — they become currency.

The Loyalty Playbook Is Broken. Here’s What Comes Next. Loyalty used to be easy. Hand out a punch card. Dangle a 10%-off code. Hook them with a plastic keychain. People came back—not because they loved your brand, but because it was a hassle not to. That game is over. In 2025, loyalty isn’t transactional. It’s psychological. It’s whether your brand can make someone feel seen in a sea of sameness. The real signals live in open-text survey fields. In post-purchase comments. In the moment before they click unsubscribe. It’s emotional. It’s messy. And no, your NPS score isn’t picking it up. The problem? Most brands are still playing by 2003 rules—optimizing for points when they should be decoding feelings. The new loyalty drivers aren’t perks. They’re clarity. Confidence. The quiet sense that your brand actually gets them. This isn’t about hiring more analysts. It’s about using tools that translate raw, unstructured feedback into emotional intelligence—at scale, in seconds. So you can stop guessing and start responding. The old playbook was about rewards. The new one is about relationships. And the brands that win will stop asking, “How do we make them stay?” And start asking, “Do they feel understood?” Because points expire. Empathy doesn’t.