Loyalty Trends 2024 – Solutions and Strategies for Success

Learn more about loyalty trends for 2024 and beyond in the narrative below. These are solutions and strategies for your success....
Loyalty Trends 2024 – Solutions and Strategies for Success
Written by Brian Wallace
  • It’s no surprise that something as elusive as customer loyalty is constantly changing. But how will loyalty marketing continue to evolve in 2024? Let’s find out what trends are expected to emerge in the months to follow.

    Evolution of Loyalty Programs

    As of 2020, a staggering 90% of companies had some sort of loyalty program in place. The importance of customer loyalty has been proven time and again, and most brands – regardless of the industry – are trying to capitalize on a special bond with their clients. The concept is still incredibly relevant in 2024 – only now, catering to the needs of the overstimulated, socially and eco-conscious customers is becoming increasingly difficult. Gone are the days of simple punch cards; loyalty programs have to implement more and more advanced initiatives to provide customers with immersive experiences and keep up with their ever-changing values. The future of loyalty programs lies in ultra-personalized offerings, sustainable initiatives, and the ability to connect with clients on an authentic, deeper level.

    Based on what we’ve been observing in 2023, here are the top customer loyalty trends we believe will continue or start to blossom in the next couple of months:

    1. Loyal Customers in 2024

    The first point on our list is not as much a trend as it is a suggestion but one that you can’t start a loyalty strategy without. Who are your customers in 2024? With societal changes and the influx of Gen-Z members in the consumerism market, it makes sense to ask that question. Because modern customers care like never before. They care about the Earth, equality, ethical practices, and shared values. They support brands promoting social responsibility and environmentally sustainable products. They’re also very in tune with modern technologies and expect the “phygital” experiences.

    2. Social Media Engagement

    Increased customer engagement is one of the most important goals of any loyalty program. In 2024, we have a variety of tools that help achieve it – and social media is definitely one of them. More and more businesses leverage social platforms to foster meaningful connections. After all, 62% of millennials say they are more likely to become loyal customers if a brand engages them on social networks. Whether through targeted content or rewarding loyalty members for interacting with the brand’s communication channels, social media can be an excellent platform to boost engagement, and its importance is poised for growth.

    3. Sustainability

    With 69% of customers willing to spend more on eco-products, it’s safe to say that green loyalty programs are 2024’s next big thing. Companies are recognizing the need to go sustainable and are praised for their efforts to make consumerism less harmful to the planet. One example of such an initiative is Starbucks’ Reusable Cup or IKEA Family’s Buy Back Programs that reward members for sustainable choices – and work in favor of these brands’ image in the meantime.

    4. Blockchain-Based Loyalty Solutions

    In times of increased cyberattack risk, more and more people are worried about the safety of their assets and data. That’s why blockchain, offering unparalleled transparency and security, is becoming increasingly prevalent in the world of loyalty programs. The technology is used in various rewards schemes, such as AirAsia BIG Loyalty and Singapore Airlines KrisPay, where it ensures the integrity and traceability of transactions, providing customers with a secure and convenient way to redeem rewards. If you don’t use it yet, 2024 may be the perfect time to start.

    5. Interactive Gamification

    While gamification in loyalty programs is hardly a new trend, it’s definitely still one to follow. By incorporating elements of fun and competition, gamification is excellent at driving customer engagement and fostering deeper connections with an audience. One great example of how it’s done in 2024 is Starbucks Odyssey – an extension of the Starbucks Rewards Program that encourages members to participate in online games, quizzes, and other fun activities in return for “Journey Stamps” (non-fungible tokens) and Odyssey Points that can later be redeemed for exclusive experiences.

    6. Seamless Omnichannel Experience

    Companies using various channels have 2.5 times higher purchase frequency compared to those using one channel. It’s not surprising, considering that for modern customers, navigating many different channels at once is like second skin. That’s why providing them with a seamless omnichannel experience should be a standard, not a luxury. Yet, just over 10% of companies claim their omnichannel game is strong. To get ahead and gain a competitive advantage, make sure you integrate various channels through which customers can interact with your business. Use the power of AI to combine the in-store and online shopping experiences for cross-channel integration and consistent branding.

    7. AI in Loyalty Program

    In 2023, the global AI market size was close to $208 billion. By 2030, the market size is expected to reach nearly $2 trillion. Using artificial intelligence to boost business performance is now the new norm, and its impact will only continue to grow. In the world of loyalty marketing, AI can be a great tool for predictive analytics, dynamic pricing optimization, customer segmentation, creating tiered loyalty programs, and hyper-personalization. AI’s capabilities in terms of enhancing loyalty programs are truly mind-blowing, and it’s very safe to assume they will be put to use more and more in the future, which is why you should jump on that bandwagon sooner rather than later.

    Customer Loyalty Redefined

    As we navigate the evolving landscape of customer loyalty in 2024, it’s evident that businesses are embracing innovative strategies to build lasting connections with their audience. From leveraging social engagement and gamification to embracing blockchain technology and predictive analytics, the future of loyalty programs is poised for unprecedented growth and evolution.

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