Brands today face a growing challenge: how to keep loyalty programs engaging and relevant in a market filled with similar offerings. As customers demand more tailored experiences and meaningful interactions, the loyalty landscape is shifting toward smarter integrations, innovative technology, and creative strategies.
In this edition of Loyalty Live, Loyalty360 sits down with Aaron Lobliner, Chief Client Officer at Cataboom, to explore the trends and strategies brands are leveraging to create impactful loyalty programs. From balancing innovation with consistency to integrating gamification and non-transactional rewards, Aaron provides valuable insights into how brands can differentiate themselves and foster deeper customer engagement.
L360: 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. Based on your experiences with clients, what are the most common types of enhancements brands are requesting in their loyalty programs for 2025?
Aaron Lobliner: Great question. Obviously, I’m going to be a little biased coming from Cataboom, but we’re hearing a lot about gamification—that’s our world. Gamification is a really common enhancement. Beyond that, another big focus is on integrations and how everything fits into the tech stack. Brands want to weave together CRMs, CDPs, and other tools to create a seamless experience. It’s about getting integrations right, ensuring the tech stack is synergistic, and making sure all elements talk to each other. Gamification fits into this fold by driving engagement, but so does personalization. Brands want to ensure these enhancements provide additive value without overcomplicating things for their customers.
L360: How should brands incorporate these new trends into their existing loyalty strategies? How can they strike a balance between innovating their loyalty programs and maintaining consistency for existing customers?
A.L.: You don’t want to change things too much for existing customers or risk losing them, but you also want to keep things fresh and interesting. It’s all about being additive. How do you add more value to the customer’s experience without complicating it? When customers feel they’re receiving more value, whether through gamification, personalization, or unique experiences, the enhancements become much more relevant. Additionally, brands should look beyond transactions. Real loyalty goes beyond points programs; it’s about creating meaningful engagement that’s not just tied to purchases. That’s where incremental changes and non-transactional rewards can make a real impact.
L360: In our State of Customer Loyalty Report, we saw 72% of brands feel there is a sea of sameness regarding customer loyalty programs. Can you share an example or two of a brand successfully differentiating itself through a unique strategy, campaign, or reward offering?
A.L.: It’s amazing how often we hear brands say they’re struggling to stand out. For example, we worked with Chipotle to create a trivia-based gamification program focused on brand benefits like sustainability and product quality. It not only engaged customers with fun incentives like BOGO burritos but also highlighted what makes Chipotle unique. Similarly,
Taco Bell incorporated a roundup-to-charity feature in their loyalty program but added gamification—customers earn coins to play a skill game, which unlocks free products. It’s a unique way to engage customers while supporting a good cause. These programs differentiate by giving customers something fun and meaningful that goes beyond traditional loyalty mechanics.
L360: How can brands effectively incorporate non-transactional rewards, such as exclusive experiences or benefits, into their loyalty strategies to strengthen engagement and differentiate their programs?
A.L.: Non-transactional rewards are an excellent way to create deeper connections. Gamification is a great tool here. For instance, if a brand has sponsorships, they can tie gamification to those, offering exclusive experiences like concert tickets or sports events. Giving customers a choice in their rewards is another way to personalize the experience. For example, if you have NFL and CMA sponsorships, let customers choose which prize they’d like to play for. This level of customization reaches different audiences and makes the loyalty program more inclusive and engaging.
L360: Among
new technologies like AI, gamification, and data collection, which do you believe will have the greatest impact on loyalty in 2025 and why?
A.L.: That’s a tough one because they’re all interconnected. AI is critical for serving up the right data and messaging at the right time, and it’s going to be even more profound in the next few years. But gamification and zero/first-party data collection are tightly linked. Gamification drives engagement, which in turn helps brands collect rich, actionable data. That data feeds into CRMs, CDPs, and AI systems, enabling smarter marketing decisions. It’s not about choosing one technology over another but rather how they all work together to enhance the loyalty ecosystem.
L360: Gamification has become a popular strategy for driving engagement in loyalty programs. Can you share some successful examples and how brands can use it to enhance the customer experience?
A.L.: We recently worked with Loblaws in Canada on a December gamification program. It’s simple but highly effective. Customers play daily games tied to manufacturer offers, and everything is seamlessly integrated into their tech stack. Another great example is KFC in Australia. They launched an evergreen app game with multiple levels, the better you perform, the better the rewards you unlock. This encourages repeat engagement. Gamification can also address specific goals, like Foot Locker’s use of gamification to mitigate point liability. These examples show how gamification can be tailored to achieve diverse objectives while enhancing the customer experience.
L360: As customer interactions continue to span digital and physical channels, how should loyalty programs integrate these experiences for a cohesive customer journey?
A.L.: Integration is key. Brands need to think about the customer journey holistically—pre-shop, during-shop, and post-shop. For example, we worked with Home Goods to create a hybrid digital-physical scavenger hunt. Customers scanned QR codes in-store to play games and unlock rewards. It’s about providing value and engagement at every touchpoint. Whether it’s a digital game or an in-store experience, the goal is to make the journey seamless and engaging across channels.
L360: What barriers do brands face in achieving real-time personalization, and how can they overcome these obstacles?
A.L.: The biggest barrier is data flow. Many brands struggle with integrating their data in real time. It’s a challenge to ensure that data flows seamlessly between systems like CRMs and CDPs. To overcome this, brands need to invest in IT infrastructure and partnerships with technology providers. Personalization should feel authentic, and tools like AI and gamification can help tailor experiences to individual preferences without feeling invasive.
L360: How do you think
consumer expectations will evolve in 2025, and how should brands prepare to meet them?
A.L.: Consumers want to feel special. They want to be treated like VIPs. Programs should focus on creating that sense of exclusivity and value. This can be achieved through tiered rewards, gamified experiences for specific member levels, and personalized offers. When customers feel valued, they’re more likely to stay loyal.
L360: How can brands keep up with evolving customer preferences while managing the risk of overwhelming their loyalty programs with too many features?
A.L.: It’s all about keeping things brilliantly simple. People are busy, so loyalty programs should be easy to understand and engage with. Gamification, for example, should be fun and straightforward, offering clear incentives. When programs are intuitive and enjoyable, customers are more likely to return and engage without feeling overwhelmed.