61% of brands consider adding experiential rewards to loyalty programs
Sixty-four per cent of brands are interested in adding new reward options over the next year, and 63 per cent have already updated their rewards within the last 12 months, according to research published by Loyalty360.
The association partnered with consulting firm Baseman Group to survey more than 160 brand marketers and produce its 2026 State of Customer Loyalty Report.
Loyalty360’s data shows experiential rewards such as travel, events and exclusive access topping the list of potential new benefits. Other options include instant win/surprise and delight rewards, cited by 42 per cent of those surveyed, while the same percentage are eyeing tiered/exclusive rewards for VIPs.
While 60 per cent cited technology integrations as their top loyalty program challenge, nearly a third said they struggle to attract and integrate younger generations into their programs.
Overall, 39 per cent said they have been running their program for more than 10 years, while less than a quarter have a program that is five years old or less.
While many loyalty programs have been in market for years,
longevity alone is no longer enough to remain competitive,” the report’s authors wrote. “Brands that view customer loyalty as a long-term business strategy
recognize that sustained success depends not only on maintaining a loyalty program, but on continually evolving it to meet changing customer expectations and business priorities.”
360 Magazine Insight
It’s somewhat heartening to see that, although 60 per cent of brands say their loyalty program has had a positive impact on customer spend, the No. 1 benefit was “customer value,” at 78 per cent. This is one of the most intangible areas to measure, but it speaks to how well brands recognize consumers’ concerns around affordability and the need to compete on more than price.
Brands also seem to look at their loyalty programs as a constant work in progress: more than have are planning significant enhancements such as new features or expanded capabilities, and more than 10 per cent are prepared to revamp their program completely.
On the flip side, was it was surprising to see that less than half (47 per cent) pursued personalization as an enhancement in the last year, though 73 per cent are looking at this over the next 12 months. This perhaps reflects the worries about AI readiness and perceptions around data privacy, which many are now actively tackling.
There was a similar gap between those who have tried gamification (33 per cent), and those looking at it in 2027 (67per cent). In order to keep consumers engaged, brands are recognizing apps need to be fun as well as fast and convenient to manage.
One warning note: there was a drop in those who said they have the metrics and key performance indicators (KPIs) needed to measure the impact of their loyal programs from 67 per cent in 2025 to 60 per cent today. Personalization, gaming and experiential rewards all pose risks, and brands will need to double down on tracking effectiveness as they’re introduced.
This gated 38-page report also covers a lot of other ground, including the size of loyalty teams, the need for promotions and discounting to drive demand and more.
