Loyalty programs have come a long way from simple “earn a point per dollar” schemes. Today, shoppers expect meaningful, personalized experiences in exchange for their loyalty. This article explores how modern customer rewards programs engage customers at each stage of the digital customer journey — beyond mere transactions — and what brands need to succeed. We will touch on global trends while offering practical insights into strategy, technology, and metrics.
Key Takeaways – TL; DR
- Modern loyalty programs enhance the entire digital customer journey, not just transactions.
- Engagement tactics like gamification and referrals build loyalty beyond purchases.
- Success depends on tech that supports a seamless digital customer journey.
- Data-driven insights prove loyalty programs can impact the digital customer journey at every stage.
Check out the latest loyalty industry trends, and explore which trends will have the biggest impact on your rewards program and digital customer journey.
The Evolution of Loyalty: From Transactions to Experiences
Not long ago, loyalty programs centered on transactions — spend money, get points, redeem for discounts. But customers today want more. They seek experiences, personalization, and emotional connection. Companies must deliver differentiated experiences with personalized benefits and relevant partnerships.
Loyalty has evolved into a two-way relationship:
- Experiential Rewards: Leading brands include exclusive events, access to communities, and VIP treatment as part of their loyalty offerings. For example, luxury retailer LuisaViaRoma’s LVR Privilege program blends points with perks like yoga classes and wine tasting to elevate the experience.
- Non-Monetary Engagement: Forward-thinking programs reward more than purchases. They incentivize profile completion, social media follows, content engagement, and other behaviors that keep customers engaged between purchases.
- Emotional Loyalty: The goal is to build a sense of belonging. Brands like Scandic Hotels have revamped their loyalty programs into lifestyle-centric communities that feel like “family” to members.
Mapping the Modern Digital Customer Journey
Modern loyalty extends across the entire customer journey, not just after purchase. Mapping loyalty features to each journey stage ensures no opportunity for engagement is missed. It’s about creating consistent touchpoints where the brand says “we value you” — throughout the entire digital customer journey.
Key touchpoints where loyalty can drive engagement include:
- Awareness Stage: Introduce the program early. Many brands offer sign-up bonuses or content engagement points to new visitors, building trust from the first interaction.
- Consideration Stage: Brands provide limited-time offers or points multipliers for first purchases. Exclusive content (like buying guides or style lookbooks) available to loyalty members can also keep prospects engaged.
- Purchase Stage: Omnichannel integration ensures customers earn rewards whether they shop online, in-store, or in-app. Peek & Cloppenburg’s Friends Club relaunch allowed self-enrollment via QR codes in-store and offered omnichannel challenges, creating a truly seamless experience.
- Post-Purchase/Retention Stage: Beyond points for repeat buys, brands keep customers engaged through challenges, communities, and exclusive perks.
- Advocacy Stage: Loyal customers become brand advocates. Modern programs encourage referrals, reviews, and social sharing through rewards.
Key Elements of Modern Reward Programs
Point Economy & Tiers: Points remain foundational, but now they’re often coupled with tiered status levels for added prestige: points fuel quick rewards, tiers encourage sustained activity to reach the next level.
Non-Transactional Earners: Modern programs reward behaviors beyond buying:
- Social media follows, shares, or UGC (user-generated content) creation.
- Content consumption: e.g., loyalty member-exclusive articles or videos, with points for reading or watching.
- Surveys & Quizzes: Gaining feedback or preferences in exchange for rewards.
- Community participation: Some brands have forums or events; active members earn perks.
Gamification: Adding fun and competition through challenges, badges, or games. Gamification taps into the human love of play, making loyalty enjoyable.
Experiential & Premium Rewards: Instead of just coupons, rewards now include experiences (concert tickets, trips, classes) or premium services. Premium loyalty programs (paid or invite-only) are on the rise, like Amazon Prime or Walmart+, offering high-value benefits for an upfront fee. These cater to a segment of customers willing to pay for VIP treatment, aligning loyalty with subscription models.
Technology Enablers for Modern Loyalty
Crafting a truly omnichannel, personalized program requires robust technology. Key enablers include:
- API-Centric Loyalty Platforms: Modern loyalty engines are built API-first, allowing seamless integration with e-commerce sites, mobile apps, POS systems, and more.
- No-Code Workflow Editors: To move fast, marketers can’t wait on IT for every program tweak. Antavo’s Workflow editor enables building complex reward rules and customer journeys without coding.
- AI and Machine Learning: AI helps analyze behavior patterns and personalize rewards at scale. Agentic AI solutions, like Timi AI, are able to provide expert advice or guide you through complex loyalty concepts.
- Mobile Wallets & Digital ID: To bridge offline and online, many programs use digital loyalty cards in mobile wallets or apps. Programs, like Whittard Rewards, allow shoppers to simply show their Pass at checkout in order to earn points after purchases.
- Privacy and Security Infrastructure: Modern loyalty tech offers consent management, encryption, and security features out of the box.
Measuring Success Beyond Points Accumulation
Traditional metrics like points issued or member count only tell part of the story. Modern loyalty demands modern KPIs to gauge success:
- Engagement Rates: Are members active and participating?
- Redemption Rates: KFC’s 40% proves a high perceived value.
- Order Metrics: LuisaViaRoma’s Platinum-tier members have a 199% higher AOV than Bronze-tier shoppers.
- Frequency: Bergzeit’s loyalty club nearly doubled order frequency per member.
- Data Collection: Programs like Sephora’s show how loyalty drives zero-party data sharing via quizzes and profiles.
These metrics go beyond vanity numbers, illustrating real behavioral shifts, and also provide actionable insights to optimize the digital customer journey continuously.
Implementation Guide: From Strategy to Execution
While we offer several articles and resources on loyalty program implementation — such as a loyalty program implementation guide, a downloadable data migration ebook, and the ultimate resource: our customer loyalty program definitive guide — here is a quick rundown on the major milestones:
- Set Clear Objectives: Know your goals—boost retention, referrals, or collect zero-party data.
- Build a Compelling Value Proposition: Offer a mix of points, tiers, and experiences that resonate with your audience.
- Choose Flexible Tech: Look for platforms with API integrations, no-code tools, scalability, and omnichannel readiness.
- Plan Your Migration: Migrate member data carefully. Pilot first, then launch with clear communication.
- Train and onboard: Equip staff and make sign-up effortless (QR codes work great!).
- Track Impact: Use KPIs to refine your program. Success stories like LuisaViaRoma, KFC UK, and Bergzeit prove the value.
Future Trends in Customer Loyalty
According to the Global Customer Loyalty Report 2025, members are craving more personalized and social experiences. 81.2% prefer programs that offer reward customization, yet only 49.2% of brands currently provide it.
Gamified data collection is also rising, with 55.1% of consumers more likely to share info through games or quizzes. Lastly, 76% of members value family accounts or point pooling, but fewer than half of programs support it. These features are gaining momentum, with the majority of future program owners planning to adopt them—signaling a shift toward more interactive and customizable loyalty experiences.
Loyalty Programs Support the Digital Customer Journey Every Step of the Way
As we move into the future, the only limit to loyalty program success is how well we can continue to meet (and exceed) evolving customer expectations across every journey stage. By focusing on genuine value, personalization, and omnichannel convenience, companies can build loyalty programs that truly drive engagement every step of the way.
Supercharge your future loyalty program or elevate your current concept by contacting our experts. Book a demo to see our platform’s capabilities or send us an RFP.
Make sure to check out our latest Global Customer Loyalty Report and see the most impactful trends to come.
Zsuzsanna is a Loyalty Specialist with years of experience in digital marketing and e-commerce. Zsuzsanna is known for having an analytic approach and high-level communication skills, helping her deliver engaging content. In her free time, she enjoys watching Formula 1 and listening to endless Taylor Swift playlists.
