{"id":126812,"date":"2025-05-12T08:00:00","date_gmt":"2025-05-12T13:00:00","guid":{"rendered":"https:\/\/www.dacgroup.com\/insights\/blog\/none\/beyond-points-how-brand-loyalty-is-being-redefined-in-2025\/"},"modified":"2025-05-22T05:22:59","modified_gmt":"2025-05-22T10:22:59","slug":"beyond-points-how-brand-loyalty-is-being-redefined-in-2025","status":"publish","type":"post","link":"https:\/\/www.dacgroup.com\/en-ca\/insights\/blog\/strategy\/beyond-points-how-brand-loyalty-is-being-redefined-in-2025\/","title":{"rendered":"Beyond points: how brand loyalty is being redefined in 2025"},"content":{"rendered":"\n

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Loyalty isn\u2019t what it used to be\u2014and that\u2019s a good thing. Today\u2019s consumers aren\u2019t just looking for rewards; they\u2019re seeking highly authentic relationships with brands that reflect their values, respect their time, and recognize them as individuals. As expectations continue to rise, the brands that succeed will be those that evolve from transactional thinking to experience-led strategies\u2014where loyalty is earned through every interaction, not bought with points.<\/p>\n\n\n\n

The loyalty crisis: What the data tells us<\/h2>\n\n\n\n

2024 marked a turning point in customer experience, but not in a good way. According to recent findings shared in a February eMarketer webinar featuring Adobe and frog NA<\/a>, last year was the worst for customer experience in over a decade. That decline didn\u2019t happen in a vacuum. It was driven by rising consumer expectations colliding with brands\u2019 inability to deliver seamless, personalized, and value-rich experiences across every channel.<\/p>\n\n\n\n

Consumers today expect more; not just personalization, but interactions that feel relevant and mutually beneficial. Yet, as mentioned during the webinar, only 3% of consumers feel brands are truly \u201ccustomer focused.\u201d Even monetary loyalty programs, once a key pillar of retention, are falling short. A staggering 90% of consumers have a negative perception of loyalty programs, often because they feel transactional, impersonal, and detached from the actual brand experience. Consumers are willing to share their data, but when it doesn\u2019t translate into meaningful value or connection, trust erodes.<\/p>\n\n\n\n

With 60% of consumers reporting frustration with digital experiences (while 85% of brands believe they\u2019re delivering personalization), loyalty is harder than ever to earn\u2014and easier than ever to lose.<\/p>\n\n\n\n

Why is transactional loyalty fading?<\/h2>\n\n\n\n

For years, loyalty programs were the go-to tool for retaining customers. Offer a few points, throw in a discount, and customers would keep coming back\u2014until they didn\u2019t. The reality is that the traditional model of transactional loyalty is no longer enough. Today\u2019s consumers are savvy, selective, and increasingly aware when a brand\u2019s engagement strategy feels one-sided.<\/p>\n\n\n\n

Transactional loyalty programs tend to focus on short-term incentives: earn, redeem, repeat. But this approach often fosters loyalty to the program itself, not the brand behind it. The model has become so oversaturated that it’s no longer enough to validate a purchase decision. Shoppers are more likely to hunt for the biggest discount they can find, rather than commit to a single brand. What they\u2019re really looking for is deeply personalized loyalty and rewards based on their unique behaviors, patterns, and overall lifestyles. They want brands to become an extension of themselves\u2014brands that intuitively understand their motivations and create seamless, tailored experiences without requiring extra effort.<\/p>\n\n\n\n

As expectations evolve, customers are looking for relationships, not just rewards. They want to feel seen, understood, and appreciated beyond the checkout screen. Brand loyalty today reflects a consistent preference for a specific brand, despite readily available alternatives. It\u2019s not just about repeat purchases\u2014it\u2019s about emotional connection, trust, and long-term advocacy.<\/p>\n\n\n\n

A discount might catch attention once, but it won\u2019t build lasting loyalty. To stay relevant, brands must design experiences that make every interaction count.<\/p>\n\n\n\n

Enter holistic loyalty: Emotion over incentives<\/h2>\n\n\n\n

Loyalty today is no longer just about what customers get\u2014it\u2019s about how they feel. The shift from transactional to holistic loyalty represents a fundamental change in how brands must think about long-term engagement. Where traditional programs rely on points and perks, holistic loyalty is built on emotional connection, shared values, and seamless experiences that span every touchpoint.<\/p>\n\n\n\n

In this newer model, loyalty is the sum of all interactions a consumer has with a brand, not just the ones that lead to a purchase. It includes the content they engage with, the messaging and creative they see, the support they receive, the communities they join, and the purpose a brand stands for. It\u2019s experience-led, value-driven, and inherently more human.<\/p>\n\n\n\n

That doesn\u2019t mean rewards programs are obsolete, but they do need to be reimagined as part of a broader loyalty strategy\u2014one that is personalized, consistent, and context-aware. Consumers are actively seeking brands that align with their identity and beliefs. Shared values like sustainability, ethical sourcing, and inclusivity are no longer optional\u2014they\u2019re decisive. In fact, 72%<\/a> of global consumers are willing to pay more for sustainable products, while 55%<\/a> say environmental responsibility is extremely important in their brand choices. And 94%<\/a> say they\u2019re more likely to be loyal to a brand that offers complete transparency.Brands that embrace holistic loyalty don\u2019t simply retain customers but cultivate advocates. These are the customers who don\u2019t just come back but bring others with them. And they do so not because of a discount, but because of a connection.<\/p>\n\n\n\n

The four loyalty shifts that will define the next era<\/h2>\n\n\n\n

As loyalty evolves, it\u2019s clear that brands must move beyond old frameworks and meet consumers where they are\u2014in values, in experience, and in community. The following four shifts, as outlined in the Adobe and frog webinar, define the future of brand loyalty and personalization.<\/p>\n\n\n\n

1.     From static to adaptive<\/h3>\n\n\n\n

Loyalty is no longer a one-time setup; it must adapt and grow with each interaction. Consumers expect that their preferences, behaviors, and values will influence how brands engage with them in real time and across channels. Customers today expect brands to pick up where they left off\u2014continuing a tailored experience seamlessly, regardless of the interface or platform. This is where AI plays a pivotal role, enabling personalized content, next-best offers, and dynamic journeys that adjust based on customer actions. According to eMarketer, within the next three years, 60% of brands are expected to implement AI-driven loyalty initiatives, not just to retain customers but to drive long-term growth.<\/p>\n\n\n\n

2.     From fragmented to holistic<\/h3>\n\n\n\n

Customers engage with brands across an average of seven channels before making a purchase. They expect consistency across all of them. Siloed data and disconnected experiences break trust. A holistic approach means unifying data, content, and interactions to deliver seamless experiences, whether in-store, online, or through social. Transparency and trust also come into play here; open data practices help build the kind of credibility that loyalty is rooted in.<\/p>\n

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