Brands are constantly exploring innovative ways to engage their audiences and stand out in a crowded marketplace. From leveraging partnerships to gamifying experiences, the loyalty strategies shaping 2025 are redefining how brands connect with their customers on a deeper, more meaningful level.
In this edition of Loyalty Live, Loyalty360 speaks with Ellen Green, Vice President of Loyalty Strategy at Bounteous. Ellen shares insights into the industries driving loyalty program innovation, the rise of gamification, and the importance of emotional loyalty in creating lasting connections. She also discusses the challenges brands face in adopting new technologies and how they can ensure a balanced approach that delivers measurable value.
Mark Johnson: We saw in our 2024 State of Customer Loyalty Report that 79% of brands have an interest in updating, enhancing, or redoing their customer loyalty offerings. Are there specific industries leading the charge in loyalty program innovation? If so, which ones, and what are they doing differently?
Ellen Green: One of the things we love to do when working on loyalty strategy engagements, whether it’s designing a new program or evolving an existing one, is hosting a cross-industry inspiration workshop. We pull insights from various sectors because industries like retail and travel have been leaders in loyalty for years, while newer spaces like B2B are starting to make strides.
For example, we often hear brands reference Delta Airlines as a North Star vision, even in B2B contexts. When we dive deeper, it’s about the customer experience Delta offers—seamless booking, reinforcing value through timely notifications, and clear status tracking. Similarly, brands like REI stand out in retail by aligning their loyalty programs with their mission—from community events to reinvesting membership fees into nature initiatives.
As for emerging trends, partnerships are a significant focus, like Delta’s collaborations with Starbucks or Marriott. Gamification is another area gaining momentum. Both strategies are set to flourish in 2025 as they continue to enhance engagement and provide unique value.
Mark Johnson: Brand partnerships continue to be of interest for many brands, though they can be challenging to incorporate. What are some of the potential benefits and challenges of such collaborations?
Ellen Green: Partnerships are indeed a big trend. They’re typically driven by two goals: acquiring new customers by tapping into a partner’s audience and adding value for existing members in ways a brand couldn’t achieve alone. Effective partnerships have synergy from a consumer perspective, shared brand values, and a commitment to evolving over time.
For instance, Hilton’s partnership with Lyft continues to grow by adding new benefits, while Delta and Starbucks started with simple points-earning mechanisms and have since expanded to include sweepstakes and gift card promotions. These partnerships thrive because they stay dynamic and consistently deliver new value to consumers.
Mark Johnson:
Gamification has become a popular strategy for driving engagement in loyalty programs. What are some successful examples of gamification in loyalty, and how can brands use it to enhance customer experience?
Ellen Green: I love gamification in loyalty programs because it taps into human psychology—creating those dopamine rushes that keep customers coming back. Duolingo is an excellent example; their entire experience is gamified, with streaks and achievements celebrating every bit of progress.
Another great example is Ulta’s Glam Explorer, designed for their top-tier customers. It’s a gamified experience that makes customers feel special and keeps them engaged across channels. When developing gamification strategies, we explore multiple facets, from driving emotional loyalty to motivating behaviors with a sense of accomplishment. Even something as simple as real-time responses to data capture can create meaningful engagement. The key is finding the right balance and tailoring gamification to fit the brand and its customers.
Mark Johnson: In a crowded market where many loyalty programs offer similar rewards, how can brands differentiate themselves by fostering emotional loyalty and building stronger, more meaningful relationships with customers?
Ellen Green: Emotional loyalty is crucial. When we conduct consumer research, we segment customers into groups based on economic, functional, and emotional loyalty. Then, we identify which benefits resonate most with emotionally loyal customers and explore ways to elevate other segments into that emotional space.
Exclusivity and unique experiences are powerful drivers of emotional loyalty. Offering benefits customers can’t find elsewhere—whether it’s exclusive merchandise, special access, or one-of-a-kind experiences— it helps create that emotional connection and sets brands apart.
Mark Johnson: How can brands effectively incorporate non-transactional rewards such as exclusive experiences or benefits into their loyalty strategies to strengthen customer engagement and differentiate their programs?
Ellen Green: Non-transactional rewards are a personal favorite of mine. They can range from exclusive sweepstakes and one-of-a-kind experiences to unique merchandise. One standout example from 2024 was a personalized coffee mug I received from PetSmart as part of their loyalty program. Every morning, I see my dogs on that mug and think about PetSmart fondly. It’s those small, thoughtful touches that build emotional connections.
Mark Johnson: How can brands balance investing in new technologies with ensuring these innovations deliver measurable value to the customer experience?
Ellen Green: Being technology-agnostic, we approach this by focusing on use cases rather than starting with a specific tool. We help brands create short-term plans and long-term roadmaps with ROI-driven objectives to ensure investments align with their goals. For instance, some may need a CDP, while others require marketing automation tools. It’s all about selecting the right technology to improve efficiency and enhance the customer experience.
Mark Johnson: What are the biggest challenges you see with current customer loyalty offerings? How should brands address these challenges, especially if they have limited resources?
Ellen Green: A common issue is basic loyalty programs that lack depth. Many rely solely on points systems without leveraging customer data to create meaningful interactions. Brands need to listen to their customers and continuously evolve their programs to foster emotional connections rather than just transactional relationships.
Mark Johnson: What barriers do brands face in achieving real-time personalization, and how can they overcome these obstacles?
Ellen Green: Real-time personalization requires four key elements: executive buy-in, operational capacity, scalable creative versioning, and AI-driven testing. Not every brand needs to aim for full-scale personalization. Zero-party data collection can be a great starting point, like Noodles & Company’s member voting initiatives. Tailoring content based on real-time input can deliver personalization without overwhelming resources.
Mark Johnson: The last question we have for you is, how do you think consumer expectations will evolve in 2025, and how should brands be prepared to meet them?
Ellen Green: Consumers are prioritizing value, especially in challenging economic times. AI adoption will rise, but data privacy will also become more critical.
Younger generations are leaning towards experiential rewards over transactional ones, and brands should prepare to meet those expectations with creative, personalized offerings.