The loyalty signal brands can’t ignore
Loyalty programs are in a constant state of reinvention. We’ve seen brands expand their ecosystems, add new reward structures and advance personalization through better data and smarter technology. But as we look ahead to the next five years, one shift is becoming unmistakably clear: loyalty is defined by the emotional connection customers feel with a brand.
Through our research and work with leading loyalty programs, we’re seeing the same theme emerge again and again.
Customers respond most strongly to experiences that make them feel understood, valued and genuinely connected.
While transactional benefits still matter, they’re no longer enough to create lasting loyalty on their own. Emotional connection has become a measurable differentiator, and one many brands are only beginning to understand.
When emotional connection is strong, we see measurable lifts not just in spend, but in visit frequency, advocacy and wallet share.
And the upside is meaningful. Emotional drivers offer clear direction on which experiences build trust, which interactions deepen connection and where customers may begin to pull away.
As more brands shift away from “earn and burn” structures toward experiences that feel human and relevant, the competitive advantage grows. The next era of customer loyalty belongs to brands that design with intention, balancing value and ease with genuine moments of connection with customers. Those who do this well will create brand advocates who choose the brand repeatedly.
As you explore this magazine, I hope the articles inside help you identify where your program is thriving and where it may be time to evolve. Because loyalty is deepening and the brands that embrace emotional connection today will be the ones customers trust and return to tomorrow.
Max Kenkel Senior Manager, Customer Solutions
What’s inside
PAGE 4
5 customer loyalty trends to watch for in 2026
PAGE 10 How psychological benefits affect customer loyalty programs
PAGE 16
4 ways to add emotional connection into your customer loyalty program
PAGE 22
Why brand trust is the advantage loyalty programs need
Five customer loyalty trends to watch for in 2026
BY: MATT DEVRIES, SENIOR MANAGER & STRATEGY ADVISOR, CUSTOMER SOLUTIONS
The loyalty landscape is quickly evolving, and not always in the best direction. We’re seeing some brands cut loyalty program value in response to cost pressures. Others are replacing human connection with automation. Many loyalty programs still look and feel nearly identical, offering little reason for customers to choose one over another.
At the same time, other brands are doing the harder work of evolving their loyalty strategies to meet changing customer needs, expectations and behaviors.
This matters now in 2026 because customers face a paradox of choice. U.S. consumer spending lost momentum in 2025 and loyalty is no longer guaranteed. It’s earned transaction by transaction. To drive engagement and retention in 2026 and beyond, brands must adapt to new loyalty trends and prioritize emotional connection, flexibility and relevance at scale.
Here are five customer loyalty program trends for 2026 that brands can use to build lasting advocacy.
Emotional connection is the loyalty engine
Emotional connection is one of the strongest drivers of true loyalty and is where many programs fall short. Yes, rewards will still matter in 2026. Redemption delivers functional value. But it also reinforces emotional value by signaling that a brand recognizes, appreciates and understands its customers.
The brands that stand out are those that intentionally create emotional moments, not just transactional ones. Loyalty becomes less about accumulating points and more about how a brand makes someone feel.
Key tactics brands are using to build emotional loyalty
> Surprise-and-delight experiences that feel unexpected and personal
> Exclusive member events and experiences that create access and belonging
> Alignment with social causes and values customers care about
> Omnichannel experiences that feel seamless, not siloed
> Frontline empowerment so employees can recognize, reinforce and reward loyalty in the moment
Discounts can be matched, but connection can’t. Having that emotional bond with a brand is what keeps people coming back even when the next offer looks a little cheaper.
—SARAH VANDERHART, CUSTOMER SOLUTIONS INSIGHTS & STRATEGY LEADER
2
Gamification drives deeper, ongoing engagement
Gamification has become a powerful way to refresh loyalty programs, especially in retail and quick serve restaurants (QSR). It introduces novelty without significant cost. Games create reasons for customers
Customizable game mechanics (spin-to-win, challenges, progress bars and instant wins) allow brands to tailor experiences while keeping them fresh over time.
“Gamification is a practical way to boost engagement without defaulting to bigger discounts,” Customer Solutions Strategist Marcus Morris said. “For younger, gaming-savvy members, features like missions or esports-inspired challenges can make loyalty feel familiar and fun.”
Gamification is a strategic engagement lever that keeps relying on constant discounting.
3
Zero-party data for smarter data strategies
Brands are collecting more zero-party data than ever with customers willingly sharing about preferences, interests and intent. Now brands face the challenge of acting on all of this data.
Data is only valuable when it fuels relevance. When used well, it enables personalized promotions with timely interventions and faster responses to
> Integrated platforms that allow seamless data exchange
> Fewer siloed technologies and lower infrastructure costs
> A stronger balance between personalization and privacy
> Better tools that make action easier
4
Flexible rewards and redemption are now expected
customer loyalty members want choices in how they earn and redeem. Flexibility is quickly
“If your rewards feel restrictive, your loyalty program will too,” Customer Solutions Manager Max Kenkel shared. “Instead of collecting points they don’t use, members redeem for what matters to them.”
Leading programs are expanding beyond traditional rewards to include:
Gift cards and cash back
Charitable giving and social impact options
Digital assets and emerging currencies
Travel, experiences and experiential rewards
Instead of discount-only rewards, flexible reward ecosystems are replacing one-size-fits-all models.
5
Omnichannel and real-time engagement set the standard
Instant rewards and frictionless redemption are now baseline expectations for loyalty members.
Customers expect to move easily across mobile apps, websites, email and in-store environments.
Loyalty programs need to deliver consistent recognition across each of these touchpoints. That requires unified customer profiles, real-time engagement and experiences that feel connected. When loyalty is seamless, customers notice. When it’s not, they’re more likely to disengage.
The future of customer loyalty belongs to brands that adapt
The loyalty programs shaping 2026 share a common foundation of being built around people, not just platforms. Emotional connection, flexible value, smarter use of data and real-time engagement are essential to retaining customers and driving sustainable growth. Brands that evolve their loyalty strategies can weather missteps, adapt to change and build lasting advocacy. Those that don’t risk becoming interchangeable.
About the author: Matt DeVries
Matt DeVries has more than 10 years’ experience managing loyalty and engagement solution design. With an educational background in both marketing and organizational behavior, Matt’s vast expertise and knowledge have helped shape effective solutions for many leading brands worldwide. His primary focus is understanding each client’s needs and industry concerns, which he couples with a solution-minded approach to position them for incredible results. In his free time, Matt enjoys off-roading with his family and camping off the grid in remote spots across the country, especially the southwest.
The hidden driver behind stronger customer loyalty
Today’s customers expect more than transactions—they expect meaning.
Our ebook uncovers the emotional forces that influence behavior, revealing how connection shapes spending patterns, visit frequency and brand advocacy.
With insights from 50+ brands, you’ll learn:
> The emotional drivers that matter most, according to real customers
> The barriers that prevent emotional connection
> How to design experiences that deepen loyalty at every touchpoint
Learn more in our full ebook.
info.itagroup.com/loyalty-ebook
How psychological benefits affect customer loyalty programs
BY: MAX KENKEL, SENIOR MANAGER, CUSTOMER SOLUTIONS
Psychology has proven that our decisions are influenced by innate desires to maximize positive emotions, express our identities and achieve our goals. On a business level, brands that help customers fulfill their needs get customers’ attention, gaining wallet share and sustaining customer loyalty.
To understand what drives truly effective loyalty programs, it helps to look at the three key psychological benefits they deliver: functional, emotional and identity. Because these benefits foster strong emotional connections between customers and your brand, it’s important to get them right.
Finding the connection between psychology and brand perception
Psychology drives how customers perceive value and ease, the two factors that lead to overall loyalty program satisfaction. An ITA Group study found loyalty programs with high perceived value create more brand advocates. These brand advocates are 6x more likely to visit and spend with a brand than other customers.
In a separate study conducted by CMB, ITA Group’s data-driven market strategy firm, customers were as much as 30x more likely to try a brand if they expected it to deliver strong functional, emotional and identity benefits. That’s a huge number when you’re trying to build up your customer base!
Getting the right mix of psychological benefits in your loyalty program encourages customers to build emotional connections, guaranteeing they become brand advocates.
But the right mix will be different depending on your industry. In fact, the right mix will likely vary within your brand’s customer groups. Finding a partner to help you manage your different audiences and provide the right psychological experiences is critical.
Members’ core psychological needs
Understanding the psychological benefits of loyalty programs
Since value is so important to overall loyalty program perception, the key question is:
How do you create value?
The answer is to create a compelling set of functional, emotional and identity benefits within your program.
At their core, the three primary psychological benefits can be described as follows.
FUNCTIONAL BENEFITS
How does the program enrich my life?
EMOTIONAL BENEFITS
How does the program make me feel about the brand?
IDENTITY BENEFITS
How does the program make me feel about myself?
FUNCTIONAL
What I want to do
Efficiently achieve goals and jobs to be done
EMOTIONAL
How I want to feel
Maximize good feelings and minimize bad ones
IDENTITY
Who I want to be
Enhance self-image, pride and self-esteem
FUNCTIONAL BENEFITS
Your loyalty program’s functional benefits help customers achieve their goals. For example, a customer might enroll in a retail loyalty program to keep up with the latest trends, so an invitation to an exclusive product launch will make them feel supported in their objectives.
Functional benefits include:
> Accomplishing goals
> Delivering on the brand’s promise
> Saving time or providing convenience
> Saving money or offering good overall value
When brands get this right, it’s the fastest way to create positive perceptions of value and ease.
EMOTIONAL BENEFITS
A good loyalty program’s emotional benefits maximize the good feelings (and minimize any bad ones) your customers have about the brand. And, because those benefits happen every time they use the program, the good feelings keep adding up.
Opportunities to reinforce emotional benefits include:
> Redeeming awards
> Receiving relevant personalized messages
> Getting custom, relevant offers
> Recovering from any customer relationship stumbles
> Delivering on the frontline experience
By curating positive experiences through the loyalty program, brands create lasting emotional ties between themselves and their customers. After all, who doesn’t want to do more business with a brand that makes them feel special?
IDENTITY BENEFITS
Identity benefits tap into the human need to be seen and understood. Brands scoring high on identity benefits treat their clients like unique individuals while connecting them to a broader community of like-minded customers.
These benefits work on two levels: personal and social.
Personal identity
How much does the brand fuel my personal pride through the loyalty program? This might look like a program that focuses on delivering experiences that make customers feel smarter, cooler or better about themselves whenever they use the program.
Social identity
Do I personally identify with the kind of person who likes/uses this brand and loyalty program? This is reflective of how a program builds a community around it. It makes customers feel that there are lots of people like them who frequent the brand.
Identity benefits are compelling because brands that excel at them scored high in our loyalty survey. While customers often downplay the importance of these benefits, they had a clear impact on the top programs in our study.
Unlock the forces behind lasting loyalty
This article introduces the three psychological benefits at the heart of high-performing loyalty programs. Explore the rest of the series to learn how each benefit shapes behavior, and how to design for them intentionally.
Harnessing the power of psychological benefits
Great programs have the right balance of functional, emotional and identity benefits. When all three benefits are correctly woven into the program strategy, they deliver the high perceived value loyalty members crave, increasing the likelihood that they’ll visit more, spend more and give your brand more market share.
About the author: Max Kenkel
As Senior Manager, Customer Solutions, Max leads our Customer Solutions line, ensuring all six components of a successful loyalty program deliver for our clients. With more than 10 years of experience in strategy across customer, channel and employee loyalty programs, he’s seen a lot. You’ll often hear him talk about how important data is to brands. In his words, “It’s easy to make decisions on intuition, but it’s a lot easier to justify to shareholders when you can back it up with data.” Beyond his professional passions, Max plays bass in a pop punk band, visits as many national parks as he can and is an aspiring poet, publishing his first book in 2023.
4 ways to add emotional connection into your customer loyalty program
BY: SARAH VANDERHART, INSIGHTS & STRATEGY LEADER, CUSTOMER SOLUTIONS
Many brands rely on discounts, points or promotions to keep customers coming back. But rewards alone often only buy the next transaction, not long-term advocacy. To truly stand out, brands must learn how to build customer loyalty through emotional connection. By fostering brand trust, recognition and shared values, customers feel seen and appreciated.
Our recent research uncovered a formula for emotional connection, with insights revealing how to build trust and loyalty through motivation and appreciation. When customers feel motivated and appreciated, they form genuine emotional bonds that lead to brand advocacy and sustained engagement.
This formula also complements the formula our earlier research revealed: value + ease = perceived benefit. That perceived benefit is what drives customers to keep coming back and sharing their positive experiences.
Let’s explore why emotional loyalty outperforms transactional tactics and how brands can put these formulas into action.
Why emotional connection outperforms transactional loyalty
Transactional loyalty is built on convenience, coupons and short-term incentives. It keeps customers active but rarely invested. Emotional loyalty is rooted in belonging, trust and appreciation. It’s what helps transform a customer into a brand advocate.
Our latest research found emotionally connected customers are not only more satisfied with their loyalty programs; they’re also 4x more likely to visit and spend more with the brand they’re connected to. When customers believe a brand shares their values or genuinely appreciates them, every interaction feels more meaningful. Still, value remains at the foundation of a successful loyalty program. Helping customers see and experience the perceived benefits of the program, whether through ease of use, meaningful rewards or consistent experiences, creates the trust needed for emotional connection.
How to build customer loyalty through emotional
connection
How do leading brands strengthen emotional ties and discover new ways to build customer trust and loyalty? It can start with these proven strategies.
AUTHENTIC, CONSISTENT BRAND COMMUNICATION
Focusing on transparency and honest ways to foster trust builds credibility over time.
RECOGNITION BEYOND PURCHASES
Celebrating milestones, feedback or surprise-and-delight moments demonstrates appreciation that feels personal.
PERSONALIZED EXPERIENCES
Tailoring offers, messaging and engagement to individual preferences and behaviors shows customers they are seen and understood.
4 3 2 1
SHARED PURPOSE OR VALUES
Aligning with customer values and causes creates a sense of belonging. For example, customers we surveyed described feeling “connected, valued and excited” through the Starbucks loyalty program. Its ease of earning and redeeming stars, birthday rewards, and personalized offers are great examples of how emotional connection creates passionate advocates.
4 ways to build a customer loyalty program that lasts
When designing or reworking a loyalty program, the most successful brands have clear objectives that build experiences that reinforce perceived benefit (value + ease) and emotional connection (motivation + appreciation).
Here are some key components to consider.
Reward redemption opportunities that happen early and often.
Redemption is one of the most powerful emotional triggers. It helps customers feel the benefit of the loyalty program and reinforces connection and appreciation.
A variety of reward options can appeal to a wider audience and give the customer a sense of autonomy and excitement.
Brands can test and learn which rewards perform best and even surprise customer segments with unexpected gifts to create memorable, emotional moments.
Omnichannel personalization, especially for retail and quick-service restaurant (QSR) brands.
Meaningful, connected experiences across touchpoints (digital, in-store and mobile) drive stronger, more consistent engagement.
Acting on more data can help brands turn insights into action.
For brands struggling to make the best use of their data, partnering with an experienced provider can help leverage existing data and collect new, meaningful information. Data-driven strategies reveal which benefits resonate most, personalize offers and communications and guide future enhancements based on real customer behavior.
Measure customer loyalty and keep up momentum
Successful customer experience leaders measure program impact through metrics like repeat purchase rate, NPS and customer lifetime value. But they also take time to listen and reflect on their data results. And these are simple habits you can incorporate into your loyalty program strategy as well.
Continuous optimization through feedback loops and evolving communications ensures your program stays relevant as customer expectations shift. Insights from engagement data can highlight when to refresh customer experiences or add new recognition moments when things start to feel stagnant.
Build
emotional connections today to create loyalty that lasts
Understanding how to build a customer loyalty program begins with an interest in deepening emotional connection. Focusing on value, ease and emotional connection can transform transactional programs into meaningful communities of loyalty brand advocates.
About the author: Sarah VanDerHart
With more than 12 years of experiential marketing and strategy experience, Sarah serves as the Customer Solutions Insights and Strategy Leader. As a leader of award-winning marketing teams, she thrives on delivering results-driven strategies that align with market trends to build emotional connections between customers and brands. Outside of work, you’ll find her hosting a fun gathering with friends, running around with her husband and their two young daughters, or cheering on the Iowa State Cyclones!
info.itagroup.com/loyalty-toolkit
Why brand trust is the advantage loyalty programs need
BY: SHAWN GANNON, SENIOR STRATEGIST, CUSTOMER SOLUTIONS
Customers today have more options, more information and higher expectations than ever before. As a result, loyalty can’t be secured through points and discounts alone. Increasingly, brand trust has emerged as one of the strongest predictors of long-term loyalty, shaping everything from customer consideration to repeat purchase and advocacy. This shift reflects an important reality for brands: trust is no longer abstract. It can be measured, understood and actively managed. And doing so creates a direct path to stronger, more resilient loyalty outcomes.
How trust is a strategic advantage for customer loyalty programs
Recent research and industry insights reveal that trust can predict loyalty more reliably than traditional metrics. While program enrollments or redemption rates remain useful indicators, they often fail to capture whether customers truly trust the brand itself. A loyalty program can appear healthy on the surface while deeper customer confidence is weakening.
Customers want to feel something, and so while it’s true that you can have a very successful loyalty program on paper, with pretty high enrollment and lots of offers, if the noise of the programs and offers and products and people that make up your brand are eroding trust in the background, then you’re going to be in trouble sooner rather than later.
So, without that foundation of trust, loyalty initiatives are forced to work way harder for the brand than what they’re probably designed to do.
—MAX KENKEL, SENIOR MANAGER, CUSTOMER SOLUTIONS
The research showed that high trust directly correlates with future engagement, including a customer’s willingness to return, try new offerings or remain committed when alternatives are available.
When trust declines, retention efforts become significantly more difficult and costly. This makes trust an early signal for both opportunity and risk. And that’s something today’s brands can’t afford to ignore.
To understand trust more clearly, we can look at six core pillars that consistently influence how customers evaluate whether a brand aligns with their needs and values.
The 6 pillars include:
Although the pillars remain consistent, their importance shifts depending on the industry.
> In travel, customer-first behavior carries more importance due to the stress and unpredictability of the experience.
> In retail, fairness, integrity and clear policies play a stronger role.
This variation highlights why trust can’t be treated as a single score. It’s a structured set of expectations that differ based on the environment and customer mindset.
Brands that understand these nuances can focus their efforts where they’ll have the greatest impact.
How brand trust strengthens customer loyalty activation
Trust also plays an integral role in how customers respond to loyalty programs themselves. When trust is high, customers are more receptive to loyalty initiatives and more willing to engage with new program features or benefits.
Defining what trust means within an organization is essential. Misalignment across teams can become one of the biggest obstacles, so establishing clarity around how trust shows up and how it’s measured, is a critical first step.
When loyalty programs are transparent, consistent and customer-centered, the programs boost trust in return. This creates a reinforcing cycle: trust supports loyalty, and a well-designed loyalty program strengthens trust. Brands that build their customer loyalty program strategies around this and emotional connection are better positioned to achieve durable, long-term customer relationships.
About the author: Shawn Gannon
With nearly a decade of experience in account management and merchandising, marketing and client strategy, Shawn serves as a Customer Solutions Strategist, helping brands build strong relationships with their trade partners and customers through effective loyalty strategies. He values showcasing ITA Group’s solutions and how they work to support the unique needs of prospective and existing clients. Outside of the office, Shawn enjoys spending time with friends and family, barbecuing and participating in recreational sports.
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