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Beyond Points and Freebies: How Restaurants Are Redefining Loyalty Programs

You probably already know that loyalty programs can boost repeat visits, but in today’s restaurant landscape, points and free meals aren’t enough. With foot traffic down for years and competition intensifying, brands are getting creative — transforming loyalty into something immersive, personalized, and engaging. 

At the core of this transformation is a simple idea: loyalty isn’t just about giving rewards, it’s about creating experiences that make customers come back, engage, and even co-create the brand. Restaurants are realizing that emotional connection, surprise, and exclusivity can often be more effective than traditional discounts or freebies. 

 

Why Frequency Matters More Than Ever 

In the past, loyalty programs focused on one-time incentives — a free drink, a discounted meal, or points toward a reward. Today, frequency is king. Restaurants are measuring success not just by membership numbers, but by how often customers return. 

MyMcDonald’s members, for instance, visit 26 times per year, compared to non-members, who visit just 10.5 times annually. Circana research further shows that loyalty members make 22% more visits each year than non-members. 

This shift has made loyalty programs a battlefield. Brands can no longer rely solely on points or coupons to keep customers coming back. Instead, they are investing in programs that create memorable experiences, generate buzz, and make customers feel valued beyond a simple transactional exchange. 

 

Exclusive Access

Secret Menus and Early Launches 

One of the most effective ways to drive engagement is through exclusivity. Restaurants are rewarding loyalty members by giving them access to secret menus, early product launches, and limited-time offerings. 

  • Chick-fil-A offers its top-tier Red members the chance to try new items before they hit the menu, giving them a sense of insider status.
  • Potbelly now has an Underground Menu accessible only to loyalty members, featuring items like the Pork BBQ Mac — three-cheese Mac topped with slow-cooked pulled pork and a drizzle of sweet heat BBQ sauce. This menu allows members to experience items that aren’t available to the general public.
  • Portillo’s Perks program also offers hidden menu items, including Chili Cheese Fries and a Triple Cheeseburger, designed to make members feel like they’re part of an exclusive club.
  • Even Starbucks, known for one of the most robust loyalty programs globally, has shifted its secret menu into its app, allowing Rewards members to discover and redeem top drink customizations with ease.
  • Taco Bell has taken exclusivity further with its Taco Tuesday Drops, giving Rewards members access to special offers every Tuesday, inspired by strategies from sneaker culture. Wingstop has adopted a similar approach, launching weekly drops that include exclusive food offers, merchandise collaborations, and limited-run releases. 

By offering these experiences, restaurants make loyalty programs feel personalized, exciting, and worth joining, which increases both engagement and brand advocacy. 

 

Gamification

Making Loyalty Fun and Interactive 

Gamification is another key driver of engagement. Brands are now turning loyalty programs into interactive experiences that reward members for participation, not just purchases.

  • Taco Bell’s Fan Style feature allows members to build, name, and share custom orders that could appear on the national menu. This co-creation gives members a sense of ownership in the brand. 
  • KFC offers digital rewards to customers who participate in feedback programs, such as co-creating marketing campaigns or providing input on new menu items. 
  • Chipotle’s IQ Game tests members’ knowledge of the brand, allowing them to win prizes like buy-one-get-one-free entrée codes, Queso Blanco, or Adobo Ranch offers. 
  • Jersey Mike’s NFL Predictor Game enables customers to predict outcomes of up to eight NFL games weekly for a chance to win loyalty points, meal deals, or even a trip to the 2026 Super Bowl LX. 
  • Qdoba’s Diptember event rewards members for purchasing chips and dips over a 12-day period, offering prizes ranging from branded merchandise to free food items. 

Gamification not only keeps members engaged but also allows restaurants to collect valuable insights, build stronger relationships, and foster friendly competition that keeps the program fresh and exciting. 

 

The Business Impact 

The results of these strategies are tangible. Circana reports that loyalty traffic has doubled since 2019, now accounting for nearly 40% of all restaurant visits. These programs don’t just increase visits — they drive higher spend per visit, enhance customer retention, and encourage advocacy. 

However, it’s not enough to simply enroll members. Restaurants must focus on meaningful interactions, personalized communication, and surprise moments throughout the year. This might include exclusive early access, gamified challenges, or opportunities for co-creation. 

Restaurants that succeed in these areas don’t just see repeat visits; they create brand ambassadors who feel connected and valued, turning routine diners into lifelong advocates. 

 

Conclusion 

Loyalty programs have evolved far beyond points and freebies. Today, they are about experiences, gamification, and emotional connections. Restaurants that embrace these strategies can drive higher frequency, deeper engagement, and stronger long-term loyalty. 

Whether it’s a secret menu, a weekly drop, or an interactive game, the key is to keep customers excited, engaged, and feeling special. Loyalty is no longer transactional — it’s personal, interactive, and unforgettable. 

By redefining loyalty in this way, restaurants are not just retaining customers; they are building communities of engaged fans who keep coming back.

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How Non-Traditional Rewards are Changing Cardholder Engagement

Cardholders are no longer satisfied with simple points for purchases or cash back on every transaction. While traditional rewards have their place, today’s cardholders are looking for something more dynamic, personalized, and meaningful. As consumers grow savvier, businesses are turning to non-traditional rewards accelerators to keep cardholders engaged and excited. 

But what does that really mean? How do non-traditional rewards impact cardholder behavior, and why are they becoming essential in today’s competitive landscape? 

In this blog, we explore the rise of non-traditional rewards and how they are shaping loyalty programs, from experiential rewards to partner integrations & gamified experiences. We’ll dive into how these accelerators create deeper connections with cardholders and drive greater engagement than ever before. 

 

What Are Non-Traditional Rewards Accelerators? 

At the core, non-traditional rewards accelerators are incentives or benefits that go beyond the standard rewards model. Rather than offering points or cash for every purchase, these programs introduce more creative, personalized, and experiential options that resonate with cardholders’ values and lifestyles. 

Some examples of non-traditional rewards include: 

  • Experiential rewards like travel vouchers, exclusive event access, or VIP experiences.
  • Partner-based rewards, where cardholders can redeem their points for products or services from a network of brands.
  • Gamified elements such as challenges, badges, and leaderboards that create a fun, competitive environment. 
  • Charitable donations where points are used to contribute to causes that matter to the cardholder. 
  • Subscription services or limited-time offers, from streaming platforms to food delivery services. 

These rewards are designed to accelerate cardholder loyalty by offering more than just transactional value. They meet the evolving expectations of today’s consumer by tying rewards to their interests, values, and aspirations. 

 

Why Are Non-Traditional Rewards So Effective? 

1. Personalization is Key 

Today’s cardholders expect more than just a generic set of rewards. They want customization and personalization that reflects their tastes and preferences. Non-traditional rewards, like access to exclusive events or curated experiences, are tailored to the unique needs of each cardholder, making them feel valued and understood. 

For example, instead of offering a blanket discount for every purchase, loyalty programs can provide customized reward options based on previous spending habits, interests, or even social media activity. Personalization creates a deeper emotional connection between the brand and the customer, driving loyalty through meaningful engagement. 

2. Driving Emotional Engagement 

Non-traditional rewards also tap into emotional motivations. Experiences—such as concert tickets, luxury getaways, or VIP events—offer memories and feelings that stick with cardholders long after the transaction. This creates stronger emotional bonds between the cardholder and the brand, as the rewards become more about personal enrichment rather than mere transactions. 

When cardholders feel emotionally connected to their rewards, they are far more likely to remain engaged, continue using the card, and share their experiences with others, amplifying word-of-mouth marketing. 

3. Rewarding More than Just Spending 

Unlike traditional loyalty models, which often focus solely on transactional behavior, non-traditional rewards programs recognize and reward a variety of actions. This can include behaviors such as engaging with a brand on social media, referring friends, or participating in eco-friendly initiatives. By broadening the scope of what is rewarded, brands incentivize positive behaviors that contribute to a richer, more holistic loyalty ecosystem. 

For instance, a cardholder could earn points for purchasing sustainable products, posting a review, or referring friends—building a more integrated and community-driven reward model. 

4. Gamification Enhances Engagement 

Gamified rewards programs—where cardholders earn points, badges, and levels based on their activities—add an exciting element of fun to the loyalty experience. This competitive layer keeps cardholders engaged as they work to achieve rewards and climb leaderboards. 

A great example of this could be a health and wellness rewards program where cardholders earn points for fitness-related activities, such as tracking steps, attending fitness classes, or logging healthy meals. This approach keeps users motivated and involved while enhancing their connection to the brand. 

 

How Are Cardholders Responding? 

1. Increased Participation and Engagement 

Non-traditional rewards accelerators have proven to be highly engaging for cardholders. According to studies, cardholders are more likely to stay loyal to a program that offers unique and personalized rewards compared to one that offers a flat-rate cash-back system. When given the opportunity to choose from a broader selection of rewards, cardholders feel empowered, which results in higher satisfaction and more frequent interactions with the brand. 

2. Higher Conversion Rates 

Programs that offer dynamic and exciting rewards often see higher conversion rates, as cardholders are encouraged to act on their incentives faster. Whether it’s unlocking a VIP experience or gaining access to limited-edition products, these types of rewards create a sense of urgency and exclusivity, which can drive faster action and increased spending. 

3. Word-of-Mouth Growth 

Cardholders who receive experiential rewards or exclusive perks are more likely to talk about their experience, which leads to organic growth for the brand. Non-traditional rewards encourage sharing, and positive experiences are often spread via social media, boosting visibility and expanding the customer base. 

 

The Future of Non-Traditional Rewards 

As consumers become more digitally connected, the demand for non-traditional rewards accelerators will only grow. By integrating technology, personalization, and experiences, loyalty programs can continue to evolve and meet the needs of today’s cardholders. 

Brands will need to stay ahead of trends by continually innovating and offering rewards that align with cardholder values, interests, and lifestyles. Whether it’s through exclusive experiences, partner-based rewards, or fun, gamified challenges, the future of loyalty programs is increasingly about delivering rewards that feel personal and worthwhile to cardholders. 

 

To Wrap It All 

In a world full of digital distractions and endless options, traditional loyalty programs may no longer cut it. Non-traditional rewards accelerators offer a compelling alternative, providing personalization, engagement, and real value to cardholders. As brands continue to experiment with these innovative approaches, the future of loyalty programs is bright, and the rewards are only getting better. 

If you’re looking to boost your program’s engagement and create loyal, long-term customers, consider moving beyond basic rewards to an experience that truly resonates.

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How QR Codes Are Transforming Loyalty Programs and Events

Loyalty and rewards programs are the engine of sustained engagement. While they’ve long thrived in the digital space, their true power lies in their ability to bridge the gap between offline and online experiences. Enter the humble QR code, a tool that’s rapidly evolving from a simple convenience to a high-performing strategy for B2B marketers, and a game-changer for loyalty programs. 

The return to in-person events and a renewed focus on experiential marketing has pushed B2B brands to seek tangible results from every interaction. This is where QR codes shine, providing a seamless way to convert physical engagement into actionable digital data. For a loyalty program management company, this presents a significant opportunity to help clients not just track event ROI, but also deepen customer relationships and build more intelligent reward systems. 

 

From Passive Interaction to Active Loyalty 

QR codes have become an everyday part of life, with 9 out of 10 users engaging with them weekly. This widespread adoption creates a powerful new touchpoint for loyalty programs. When a customer scans a QR code, they are actively choosing to interact. This is a moment of high intent—a signal that they’re interested in what you have to offer. 

Instead of generic links, a smart loyalty program can use QR codes to: 

  • Offer instant loyalty points for attending a session or visiting a booth. 
  • Provide exclusive, event-specific rewards or discounts.
  • Trigger a personalized onboarding journey for new program members.
  • Allow members to redeem rewards on the spot, creating immediate gratification. 

This turns a passive interaction into a measurable, value-driven moment. For B2B loyalty programs in particular, this is a game-changer. The data from a scan reveals who engaged, what they engaged with, and where they are in their customer journey. This information is invaluable for lead scoring, personalization, and building a stronger pipeline. 

 

The Data-Driven Advantage for Loyalty Programs 

The real magic of QR codes lies in the data they generate. This data is the fuel for a more intelligent and effective program. Instead of relying on broad assumptions, brands can now act on precise, permission-based insights. 

Here’s what the data shows: 

  • 89% of B2B marketers say event data has positively influenced their marketing strategies.
  • 95% of businesses using QR codes have improved their ability to collect first-party data. 

This data flows directly into your CRM and marketing automation platforms. A loyalty program platform can then use this information to: 

  • Segment members based on their event interests, such as scanning a QR code for a specific product demo or a whitepaper.
  • Automate personalized follow-up with tailored content and reward offers.
  • Prioritize high-value members who showed the most engagement for direct outreach from a sales or account manager. 

This process transforms event interactions from a one-time activity into a strategic, long-term relationship-building opportunity. 

 

Best Practices for Seamless Integration 

To make QR codes a core part of your loyalty program, follow these best practices: 

  • Start with a clear value proposition. Tell people exactly what they’ll get for scanning. “Scan to get 500 loyalty points” or “Scan to redeem your exclusive event perk” is far more effective than “Scan Me.”
  • Ensure dynamic QR codes. This allows you to change the destination URL, update reward offers, or align content with different event sessions without having to reprint any physical materials.
  • Choose strategic placement. Place QR codes in areas where attendees have time to act, such as near a product display, in a lounge area, or at the entrance to a session.
  • Integrate with your platform. The best QR strategies are those that seamlessly feed data into your loyalty management platform. This ensures that every scan instantly updates a member’s profile and triggers the right actions. 

 

The Bigger Opportunity for Loyalty 

QR codes are changing the economics of engagement. They’re not just for events; they’re for every touchpoint. Imagine QR codes on product packaging that offer loyalty points for scanning, or in a retail store that give a customer a personalized offer. They provide a low-cost, high-impact way to gather high-intent data and build a stronger, more responsive loyalty program.

For a loyalty program management company, this is the future of engagement. It’s about empowering brands to connect the dots between every customer interaction, both in the physical world and the digital one, turning every scan into a step toward a more loyal and valuable customer.

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How These 4 Crypto Rewards Programs Are Revolutionizing Loyalty and Your Partners’ Wallet

In today’s digital-first world, traditional loyalty programs are being redefined. Imagine earning rewards that aren’t just points to redeem for a discount, but actual cryptocurrencies that could appreciate in value over time. It’s no longer a futuristic concept—crypto rewards programs are here, and they’re making a huge impact on how we engage with brands.

Whether you’re in India, Japan, Brazil, or the USA, crypto loyalty programs are helping brands offer innovative and flexible rewards that resonate with the modern consumer. These programs are a game-changer, offering benefits like tradeable tokens, staking opportunities, and engaging gamified experiences that traditional rewards simply can’t match.

In this blog, we dive into four standout crypto loyalty programs launched in 2025 and how they’re revolutionizing loyalty while creating new opportunities for both businesses and consumers.

 

1. Nubank’s NuCoin Relationship Program (Brazil)

Location: Brazil
Key Highlights:
  • Rewards for everyday banking activities (card usage, bill payments, data sharing).
  • Blockchain-based NuCoins used for discounts, event tickets, and more.
  • Gamification with “surprise chests” and quizzes.

Why It Stands Out

Nubank’s NuCoin focuses on engaging customers with consistent actions, like card usage and data sharing, turning banking interactions into valuable digital asset opportunities. This program avoids the speculation often associated with cryptocurrencies, making it a great choice for those new to digital currencies.

 

2. JPMorgan Chase & Coinbase Partnership (USA)

Location: USA
Key Highlights:
  • Convert Chase credit card points into popular cryptocurrencies.
  • Integration with Coinbase allows easy funding and crypto investments.
  • Access to the digital asset world without leaving traditional banking.

Why It Stands Out

This collaboration allows JPMorgan Chase credit card holders to use their loyalty points to get into cryptocurrency, making it easier for traditional consumers to dive into the world of crypto investing. It also integrates seamlessly into Chase’s existing banking services, providing a smoother user experience.

 

3. Mudrex Alpha Program (India)

Location: India
Key Highlights:
  • Tiered rewards based on trading volume.
  • Lowest trading fees in India.
  • Exclusive educational content for traders.

Why It Stands Out

Mudrex’s Alpha Program is a great example of how crypto loyalty can engage frequent traders and investors. By offering reduced trading fees and exclusive rewards, it keeps customers engaged while promoting affordable crypto trading. The program’s low cost of entry and educational resources make it an appealing option for crypto newbies.

 

4. Aplus x SBI VC Trade (Japan)

Location: Japan
Key Highlights:
  • Convert credit card reward points directly into cryptocurrencies like XRP, BTC, and ETH.
  • First Japanese credit card provider to offer direct crypto conversion.
  • Seamless integration with traditional spending habits.

Why It Stands Out:

Aplus has bridged the gap between traditional credit card rewards and cryptocurrency, making it easy for Japanese consumers to get into digital assets. By integrating with established financial systems, the program helps consumers transition smoothly from credit card rewards to crypto investments.

 

Benefits of Crypto Loyalty Programs

1. Flexibility and Tradeability

Unlike traditional loyalty points, crypto rewards can be traded, staked, or converted into other assets. This flexibility gives users more ways to maximize their value, whether they hold onto their rewards for future use or trade them for something else.

2. Potential for Appreciation

Since cryptocurrencies can increase in value over time, crypto loyalty programs offer users the potential for financial gain. This is a key advantage over traditional loyalty points, which tend to be tied to a fixed value.

3. Gamified Engagement

Many crypto programs incorporate gamification elements, like quizzes, challenges, and reward milestones, to keep users engaged. These interactive features drive increased participation and customer satisfaction.

4. Transparency and Security

Blockchain technology offers tamper-proof records of rewards, reducing fraud and increasing trust in the system. This security is a major selling point for both consumers and businesses.

 

Risks of Crypto Loyalty Programs

1. Price Volatility

One of the biggest risks of crypto rewards is the volatility of digital currencies. The value of cryptocurrencies can fluctuate dramatically, which may result in rewards losing value before being redeemed.

2. Regulatory Uncertainty

As cryptocurrencies continue to evolve, regulatory challenges remain a concern. Changes in crypto laws could affect how rewards are used or taxed, creating uncertainty for both consumers and businesses.

3. Security Concerns

If users are unfamiliar with crypto wallets or proper security practices, they could be at risk of losing their rewards or becoming victims of scams. Security education is essential for safe participation in crypto-based loyalty programs.

 

Navigating the Future of Loyalty with Crypto

As cryptocurrencies become increasingly integrated into everyday financial systems, crypto loyalty programs are offering new opportunities for businesses to engage customers and build stronger relationships. With the potential for financial upside and unique engagement opportunities, these programs are shifting the landscape of loyalty rewards.

While the benefits are clear, businesses must be mindful of the risks, such as volatility and regulatory changes. To succeed in the crypto loyalty space, businesses should ensure security, transparency, and clear educational resources for consumers.

With programs like Nubank’s NuCoin, JPMorgan Chase & Coinbase, Mudrex Alpha, and Aplus x SBI VC Trade leading the way, the future of loyalty is not only about earning rewards but also about exploring new ways to engage with the digital economy.

For businesses and consumers alike, embracing crypto rewards could open up a world of opportunities, whether for investment or simple savings.

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Why Referrals, Influencers, and Trust Matter with Zillennials

In today’s digital-first world, Zillennials, a unique blend of Gen Z and young Millennials, are redefining what loyalty and influence mean for brands. They’ve grown up in an era where ads are ubiquitous, making them experts at tuning out traditional marketing. So, what drives them to click ‘Order Now’? It’s trust, especially from voices they already listen to and believe in.

Whether it’s a TikTok creator they’ve followed for years or a friend sharing a discount code, Zillennials turn to real voices before making a purchase. This is a generation that craves authenticity and personal connections more than polished ads. Understanding this dynamic is key for brands hoping to engage Zillennials and drive scalable referral success.

1. Tap Into Trust That’s Already There

For Zillennials, referrals are powerful. In fact, 39% of them say a friend or family’s recommendation influenced a recent purchase. But it’s not just word-of-mouth from friends; influencers hold significant sway as well. Interestingly, nearly 4 in 10 Zillennials trust influencers more today than they did just a year ago.

What’s important here? Zillennials gravitate toward micro- and nano-influencers who seem like “one of them”. So, for brands, the strategy is clear:
Don’t try to start a new conversation;
Join the conversation, Zillennials are already having.

That means leveraging influencers and peer recommendations effectively.

To succeed in Zillennial referral strategies, it’s not just about offering a discount; it’s about creating conversations that are genuine and trustworthy.

2. Offer Real Rewards

Simply telling Zillennials to share a product doesn’t work anymore; the reward has to be worth it. These value-driven consumers don’t respond to vague, unappealing incentives. If a referral feels like a favor, it will get ignored.

Take the example of a campaign with a clothing brand that resulted in a 318% increase in conversion rates by using dual-sided incentives. Both the referrer and the referred benefited, making the process feel equitable and worth the social capital. Zillennials appreciate transparency and fairness, so any reward needs to reflect those values.

Moreover, personalization increases the appeal of referral programs—84.9% of Zillennials are interested in receiving personalized offers. Custom referral codes or exclusive perks are much more likely to drive action and help brands stand out in a crowded market.

3. Timing Is Everything

One of the most critical elements in referral programs is timing. The best time to ask for a referral is right after a purchase when customers are riding the post-purchase high. That’s the moment when excitement is peaking and second-guessing hasn’t yet set in.

Zillennials are more likely to engage with referral requests in moments of excitement, like receiving a thank-you page or a confirmation email. This is the sweet spot to prompt them for a referral, just as they’re finishing the purchase and their excitement is still fresh.

The key is to make the referral request feel like a natural part of the experience. Whether it’s a personalized prompt after checkout or a referral card in their product packaging, the goal is to make the request as exciting as the purchase itself.

4. Make It Easy and Scalable

Zillennials expect seamless experiences, especially when it comes to referrals. Technology plays a pivotal role in ensuring that the process is effortless for customers. Affiliate platforms and referral tech stacks make it easy for brands to integrate referrals into the customer journey, automate tracking, attribution, and payouts, and scale without creating friction.

If your referral program isn’t mobile-optimized, fast-loading, or capable of one-tap sharing, you’re missing out on Zillennial attention. Convenience isn’t optional—it’s expected. And if you’re not using data-driven platforms to track performance, you’re missing out on insights that drive ROI and effective scaling.

Tech and simplicity are not just nice-to-haves—they’re essential for creating a referral program that resonates with Zillennials.

5. Scripts Don’t Sell

Zillennials have an innate ability to spot anything that feels forced. Whether it’s a friend sharing a referral link or an influencer doing a product demo, the tone must be genuine and unscripted. If it sounds like an ad, it won’t work.

Around 80% of Zillennials turn to social media for product inspiration, but more than half say they’re skeptical of content that doesn’t feel authentic. Referral messaging should be real, spontaneous, and excited—never overly polished or scripted. Zillennials prefer believable voices over big-name influencers, so focus on trusted voices who come across as real and relatable.

To get Zillennials to refer, your messaging must reflect a natural enthusiasm rather than a polished brand pitch. Referrals work best when they feel like personal recommendations, not part of a brand’s marketing agenda.

 

Zillennial Influence Starts Here

Zillennials don’t want to be sold to—they want to be part of something they believe in. They discover brands through people they trust, and referrals make that discovery feel organic and genuine. Brands that want to succeed with Zillennials need to leverage the voices they’re already listening to.

With the right strategy, tools, and understanding of Zillennial values, referrals can move from a nice-to-have to a revenue-driving engine. When referrals feel like a conversation rather than a transaction, that’s when they drive success.

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Why Your Loyalty Program Needs More Than Just Generic Rewards

In today’s fiercely competitive loyalty landscape, brands are under pressure to continuously evolve and offer programs that stand out. Once simplistic, loyalty programs now have to contend with an increasing number of consumer demands. Customers expect rewards that are both relatable and valuable, making it crucial for brands to reconsider their loyalty strategies. So, what’s up? Generic rewards that add little value. What’s in?

Relevant rewards and ancillary offerings that align with member priorities and drive long-term financial success.

Trust

The Cornerstone of Loyalty

In a recent study, 43% of consumers cited trust as one of the top reasons for joining a loyalty program. Trust and transparency in the rewards and ancillary offerings are critical to fostering loyalty. When customers feel their loyalty is valued, they are more likely to continue engaging.

This creates a competitive advantage for brands that can deliver transparent & personalized loyalty offerings that match the members’ expectations.

The Power of Travel

Related Rewards and Ancillaries

Travel rewards continue to be one of the most sought-after redemption options. According to our survey, consumers are twice as likely to redeem points for travel than for any other type of reward. Travel-related rewards—including airfare, lodging, activities, and car rentals—hold great potential for brand loyalty programs, driving both engagement and repeat participation.

Travel-related ancillaries are also a major revenue driver, particularly for travel-focused loyalty programs. In IdeaWorks’ 2024 Yearbook of Ancillary Revenue, the top 10 airline frequent flier programs collectively generated $32.2 billion in loyalty revenue, marking an 18.6% year-over-year growth. Additionally, overall ancillary sales for these airlines topped $54.1 billion. This shows that loyalty programs—especially in travel—are a vital source of revenue and an area where brands can continue to innovate.

Flexible Payment Options

Meeting the Need for Convenience

Loyalty members are increasingly demanding flexible payment options. A significant 63% of survey respondents said they regularly use a combination of points and cash to redeem rewards, particularly for travel-related offerings. This data highlights how much customers value flexibility, which gives them the freedom to maximize their points and get the most out of the program.

To succeed, brands must provide flexible redemption options. Offering consumers the choice to combine points and cash or use points for a wider variety of rewards adds immense value to their experience, increasing customer satisfaction and driving deeper loyalty.

Expanding Beyond Traditional Travel Rewards

While travel-related rewards remain the most popular, it’s also important to consider rewards that cater to members’ daily needs. A great example is car rentals, which nearly 24% of rentals are for non-travel purposes—like moving, visiting family, or as a replacement for a primary vehicle. By offering points redemption or discounts on car rentals, loyalty programs can capitalize on this year-round demand, providing customers with a convenient and ongoing way to use their loyalty points, even when they’re not traveling.

Offering diverse reward options like this helps extend the relevance of a loyalty program throughout the year, not just during travel seasons, and allows brands to generate continuous revenue streams.

The Future of Loyalty

Fluid, Personalized, and Relevant

Loyalty programs today must be fluid—shaped by individual preferences and needs. AI-powered loyalty systems that offer hyper-personalized experiences can help brands achieve this. With the ability to analyze vast amounts of customer data, these programs can create highly individualized rewards that appeal directly to each member’s priorities.

As the loyalty landscape evolves, brands must focus on offering a relevant mix of rewards and ancillaries that meet the needs of customers, regardless of their lifestyle. The future of loyalty is not just transactional; it’s about creating experiences that align with customers’ personal journeys, from their daily commutes to their annual vacations.

 

Conclusion

The future of loyalty programs is bright for those who embrace personalization and relevance. Offering the right mix of travel rewards and ancillary options, along with flexible redemption methods, is key to increasing engagement and satisfaction. With the growing demand for choice and transparency, brands that build trust and deliver value-driven loyalty offerings will not only boost participation but also solidify their market position.

In the end, it’s clear: loyalty isn’t just about offering points. It’s about offering experiences that matter to your customers—and creating an ecosystem that works for them.

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