As customer acquisition costs continue to rise, loyalty programs are being forced to grow fast. In this Q&A, Max Kenkel, Customer Solution Line Manager of ITA Group, shares how brands can move loyalty beyond a passive marketing tactic and turn it into a true enterprise growth engine. From test-and-learn strategies and frontline empowerment to clearer ROI and a sharper focus on behavior change, Kenkel outlines what’s holding loyalty programs back today, and what brands need to prioritize as they look ahead to 2026.
Loyalty360: As companies lean more heavily on loyalty to offset rising acquisition costs, how are you seeing loyalty programs shift from “marketing tools” to “enterprise growth engines”?
Max Kenkel: There are multiple things brands can do to turn a “plain” loyalty program into something that drives growth. Leaning into test-and-learns is a big one—testing offers and communications, especially ideas that are distinctive, humorous, or aligned with your brand strategy.
Another area is frontline enablement. Brands should be amping up the frontline so employees are actively using the program at the POS to drive incremental sales. At the same time, it’s important to do research to better understand customer habits and design promotions that reinforce or shift those behaviors in favor of the brand.
Boosting program value is also key, particularly by increasing redemption, since redemption reinforces both the value and the emotional connection between the brand and the customer. And finally, brands should always define how they plan to use collected data, then leverage the loyalty program to capture and apply more zero-party data over time.
Loyalty360: As boards and CFOs demand clearer ROI, what evidence-based methods are being used to justify investment in loyalty modernization?
Max Kenkel: The great thing about loyalty programs is that they almost always track actual sales, not just clicks, cost per click or conversions. That makes ROI straightforward, provided the brand shares costs and margins with their loyalty partner for accurate calculations. Additionally, ROI should evolve over time with a strong test-and-learn approach and regular check-ins. For brands selling through third-party stores with fragmented POS systems, a loyalty partner that captures transactional data may be the only way to know who’s buying. The message to CFOs is one of clarity and confidence. When the loyalty partner does their job, it’s a partnership worth involving the CFO deeply.
Loyalty360: What early signals suggest where loyalty is heading in the next 2–3 years, beyond personalization and gamification?
Max Kenkel: I’m not sure loyalty will broadly shift in one specific direction, but there are major opportunities to make programs more cohesive.
That includes stronger frontline empowerment through better training, tools, and AI-driven insights that support real human connection. There’s also a growing role for AI insight services that give stakeholders clearer, more actionable information so they can respond quickly and confidently.
Another area is a deeper focus on customer behavior—using research to shape habits and designing promotions that drive meaningful behavior change, not just transactions. At the same time, brands have an opportunity to deliver unexpected value beyond discounts, since customers increasingly want experiences, not just rewards.
And finally, creating a more unified loyalty narrative is critical. Too many programs still run in isolation, and the more loyalty ties directly into the broader brand and marketing strategy, the stronger the overall impact.
Loyalty360: If you could eliminate one outdated assumption about loyalty, what belief should the industry leave behind going into 2026?
Max Kenkel: That a boring program can be successful, or that you can just passively manage loyalty and expect great results. Customers see through it almost immediately, and brands need to put in the effort to see the expected results. If you’re strapped for resources internally, find a partner that offers full end-to-end support to help you put the time and effort into a program that it deserves.
Loyalty360: What advice would you give brands who feel their loyalty strategy is falling behind but aren’t sure where to begin in trying to improve their loyalty efforts?
Max Kenkel: It really depends on why they feel it’s falling behind. If it’s that their partner isn’t bringing ideas, then it may be time to find a new strategy partner who will. If it’s that the current toolset is legacy or antiquated and doesn’t provide enough flexibility to run differentiated promotions and offers, then it might be time to replatform.
If customers simply aren’t excited about the program, there are a lot of ways to infuse additional value and excitement without changing the core mechanics.
I also think frontline enablement is key. If the frontline isn’t talking about the program or using it to upsell, then the brand is leaving money on the table.