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Picture: rawpixel.com/Freepik
Picture: rawpixel.com/Freepik

This year will see key shifts in the way  loyalty programmes are designed and executed as businesses work to build stronger connections with their customers. Personalisation, engagement and delivering meaningful and tangible value will be key focus areas, says Gordon Wilson, business director at Achievement Awards Group.

Personalisation has been a buzzword in the loyalty space for years, though few brands have managed to implement it successfully.

Wilson says the industry is finally getting to the point where AI and quality data are intersecting, allowing companies to start leveraging the benefits of personalisation.

“AI and predictive analytics are incredibly powerful in driving highly tailored customer experiences that take personalisation into a new realm. Brands now have the ability to move beyond general segmentation to create hyperpersonalised interactions that foster deeper connections, increase customer lifetime value (CLV) and reduce churn,” he says, adding that personalisation is no longer merely a trend or buzzword but rather an absolute necessity for customer retention and growth.

He says gamification is also on the rise as companies work to make their loyalty programmes more engaging for consumers with rewarding experiences that encourage repeat engagement with rewards programmes.

“Gamification drives participation and fosters emotional loyalty by creating interactive, enjoyable customer experiences that spark curiosity and a sense of novelty. When AI and data-driven insights are overlayed, businesses can further tailor and personalise the gamification challenges based on past behaviours, interests and purchase history,” says Wilson.

The loyalty industry is also being affected by marketing automation, AI and predictive tools. Wilson says businesses should be leveraging automation to streamline communications, deliver timely offers and optimise campaign effectiveness, all while reducing operational complexity.

“Marketing automation and predictive tools are revolutionising loyalty programme design by making them more personalised, intelligent and data-driven to create highly engaging, seamless and customer-centric loyalty experiences,” he says.

Personalisation is no longer merely a trend or buzzword but rather an absolute necessity for customer retention and growth
Gordon Wilson

As economic pressures continue to mount, he predicts that customers will increasingly value programmes that offer tangible financial benefits. “Programmes emphasising discounts, cash-back and flexible reward redemption are expected to dominate in 2025, as brands seek to meet the demand for clear, practical value.”

Wilson says loyalty programmes need to work smarter to meet customers and members where they are, now.

“Loyalty is no longer transactional — it’s built on shared values, trust and memorable experiences. Brands that focus on emotional engagement by aligning with customer values while  demonstrating authenticity and offering consistent, delightful and personalised experiences, will gain a competitive edge,” he says.

The most successful loyalty programmes, he points out, are those that reward with meaning, reinforcing behaviours that drive loyalty with rewards that are personal, meaningful and memorable, giving customers the opportunity to choose the rewards that they really want and need, right now.

“This demands a more granular, personalised and data-driven approach to programme design that leverages marketing automation, data and predictive tools to deliver the very best results,” he concludes.

The big take-out: The most successful loyalty programmes are those that reward with meaning, reinforcing behaviours that drive loyalty with rewards that are personal, meaningful and memorable, giving customers the opportunity to choose the rewards that they really want and need, right now.

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