As we’ve seen, there’s a lot going on within the world of loyalty right now. Technology is enabling new kinds of user experiences and the expectations of customers have never been higher.

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On top of that, we’re witnessing a global trend to move towards more sustainable and ethical business practices, whilst brands are in a position of strength to be change makers within their respective industries and beyond.

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Here, we touch on the key trends happening within reward loyalty programmes that are being shaped by wider forces across technology, society and business.

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Innovation in reward type and execution

Innovation is everywhere! From the ‘metaverse’, web3, to the much-hyped NFTs, new-age technology is allowing brands to experiment in the ‘future of the internet’.

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Whilst there’s a lot of noise in this future-gazing space, there is merit and value to be had if you know what to look for. Essentially, what this technology allows for is a new kind of customer experience. And in the world of loyalty, customer experience is always going to play an important role in shaping the perception of your brand.

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Forward-thinking brands have adapted to these new technologies and ways of doing things.

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For example, with real life events put on hold during the pandemic, the pivot to livestream was seen across lots of industries - not just sports and entertainment. Brands were quick to jump on this in the loyalty space, with retailers such as Marks & Spencer in the UK using livestreamed events to reach a large proportion of member base, creating a sense of community and bringing some much-needed entertainment to the homes of their customers.

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Marks & Spencer launches events hub for loyalty members

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Burger King tapped into the gaming phenomenon of ‘glitching’ to promote hidden offers within their rewards app.

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Starbucks is looking to use NFTs to reward customers via its loyalty programme.

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Empowering sustainability

Across the board brands are looking to address growing customer concerns around the impact of business on the environment.

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Loyalty and rewards programmes provide a unique opportunity to do this in a meaningful and impactful way, whilst also empowering customers to join in and become more sustainable in the process.

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Ethically minded beauty retailer LUSH has always been one step ahead when it comes to empowering customers to act sustainably.

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Coffee powerhouse Costa Coffee is making it twice as rewarding for customers who use a reusable cup.

For every four drinks using a reusable cup, Costa Club rewards customers with a free drink. This is usually a free drink after eight purchases using a takeaway cup, so it’s twice as quick for acting sustainably. A win-win for all.

CSR / Purpose

Brands are intertwining their charitable and CSR partnerships into their loyalty programmes, giving customers the chance to spend points or transfer their rewards to a worthy cause.

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A win-win for both the brand, charity and the customer.

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American Express Membership Rewards have a partnership with charity fundraising platform JustGiving.

Allowing customers to exchange their points balance towards a monetary donation to a charity of their choice.

Personalisation

Personalisation continues to be spoken about as the holy grail of marketing and loyalty. But there’s no denying true personalisation, at scale, is hard.

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One brand that nails using data to truly deliver a personalised customer experience (albeit not within a loyalty scheme… but one that is as rewarding, loved and talked about as any other) is Spotify’s now annual Wrapped campaign.

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At Rapport Group, our team is experienced in developing and optimising loyalty programs that drive customer engagement and growth. If you're looking to develop a loyalty program for your business or want to optimise an existing one, we're here to help!