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How this guide was prepared. Last updated October 2026. It draws on Brandmovers' experience designing loyalty programs and promotions, including the program examples cited below. It also draws on published consumer research, behavioral studies and US privacy and promotions rules, each checked at its source. |
What is working in loyalty in 2026 is activating the members a program already has: predictable earning combined with bounded surprise, design matched to each stage of membership, personalization the data can support, and a few KPIs measured against a control.
If a loyalty program has run the same earn-and-burn mechanic for three years, declining engagement is often a design problem as well as a market one. Some members leave for reasons a program cannot control: Deloitte reports that "4 in 10 Americans now exhibit deal-driven, cost-conscious, or trade-down behaviors across industries." But many drift when the program stops delivering value that feels relevant to how they behave, and that part is fixable. The two problems have different fixes. This guide is for program managers responsible for an existing program, whether optimizing a points structure, evaluating a new mechanic or making the internal case for a refresh, and each section covers a design challenge and what a program manager can do about it.
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Loyalty membership is nearly universal among US online adults, so for most established programs the harder measure is how many members are active.
Forrester reports that 90% of online adults in the US belong to at least one loyalty program (Consumer Benchmark Survey, 2024), which means few consumers are new to loyalty programs. Enrollment still matters where a program reaches only a small share of its own customers, but for most established programs the harder measure is activity. Deloitte's 2025 Consumer Loyalty Program Survey found that "the average consumer enrolls in eight loyalty programs, yet actively participates in only five." Members are spreading their attention across many programs, so for most established programs the bigger opportunity is activating the members they already have.
That shift changes where investment goes: from acquisition mechanics toward personalization, automation and re-engagement of existing members. Three design shifts are worth watching, each covered below in terms of what a program manager can implement: running loyalty and promotions together rather than as separate programs, treating gamification as behavioral design rather than decoration, and separating genuine personalization from personalized messaging style. The guide to running loyalty and promotions on separate platforms covers the first in detail.
Purely transactional programs create conditional engagement: members take part when the earn rate justifies the purchase and drift away when it does not.
Most programs are built on a simple logic: earn points on purchases, redeem for discounts or products. It works in the short term because it gives a clear, immediate reason to join. But a fixed schedule, where members know exactly what each purchase earns, gives nothing to hold attention once a member has decided whether the earn rate is worth it.
Programs that sustain engagement tend to combine predictable elements (points on purchase, tier progression) with variable ones that members cannot fully predict. Research offers qualified support: in four studies with real but small rewards, Shen, Fishbach and Hsee (Journal of Consumer Research, 2015) found that people "invest more effort, time, and money to qualify for an uncertain reward" than for a certain one of higher expected value, but only when they focus on the process of pursuing it rather than on the reward itself. Members who treat the program mainly as a discount may value predictability more, so test variable elements against a control before rolling them out. In practice this can be bonus point events with varying triggers, surprise recognition for a milestone, or tiered challenges with different reward outcomes. It does not require a rebuild, only identifying where the current mechanics are entirely predictable and adding controlled variability there.
Loyalty members value different things by stage: progress and head starts for newer members, status protection for members who already hold a tier.
A member who has just enrolled is in a different position from one who has been active for two years and is 200 points from a tier upgrade. Three principles help with design decisions:
Matching the principle to the stage avoids designing one campaign and expecting it to work across the whole member base.
Use experiential and non-transactional rewards when they reinforce a specific behavior for a specific segment and can be delivered consistently, not because they are fashionable.
Forrester suggests giving members "exclusive access to benefits such as limited-release products, first access to deals, and member-only events," but experiential rewards only pay off when the experience is genuinely different and relevant to the members receiving it. Three questions come first:
Sustainability-linked rewards, such as charitable donations tied to purchases, follow the same logic: they are most likely to resonate with segments that already show values-driven behavior, so test them with those segments before offering them program-wide.
Gamification works when it rests on behavioral mechanisms such as visible progress, head starts and bounded variable rewards, and is less likely to change behavior when it is a cosmetic layer of badges and leaderboards.
An example. For National Pizza Month, Brandmovers ran 31 Days of DiGiorno, a gameboard on which users completed tasks such as uploading receipts for DiGiorno purchases, taking a survey and referring a friend, earning one sweepstakes entry per space, plus a weekly "Spin to Win" wheel for a chance at prizes. The mix of fixed tasks and a weekly chance element was designed to give fans reasons to come back across the month.
Common failure patterns include notification overload, stacked challenges with no recovery time, and leaderboards where most members have no realistic path to a ranking. A practical sequence for adding a challenge: define the target behavior, set a duration that fits purchase frequency, give a head start at enrollment, show milestones along the way, reward completion, and measure completion and purchase behavior against a control group before scaling. The guide to gamification in loyalty programs covers mechanic design and the rules for chance promotions in more depth.
Personalization depends on clean member data more than on algorithms, so segmentation and behavioral triggers come before predictive models.
A sophisticated model on sparse or inconsistent data can underperform simple segmentation on clean data. Personalization typically works at three levels:
An example. Brandmovers built an activity-based loyalty program for a large CPG nutritional brand in which influencers earn points and rewards for engaging with the brand across social media, as well as for purchases, through missions and challenges. It is an example of offer design built around one segment's behavior, using simple rules rather than predictive models. The BLOYL™ program recorded a 62% engagement rate and a 3+ increase in average transactions per user (disclosed by Brandmovers).
Data capture is therefore a design decision, not only a technology one. Zero-party data (preferences members state directly) and first-party behavioral data (purchases, redemptions, channel activity) are what make personalization possible.
In the US, California's privacy law sets the most detailed rules for loyalty programs, including a notice of financial incentive, and several other states have their own consumer privacy laws.
Promotions add separate rules: sweepstakes and instant wins need official rules, a free alternative method of entry and attention to state requirements. The guide to promotions compliance covers them. This is general information, not legal advice.
Start with metrics you can collect reliably and act on: active member rate, redemption rate, repeat purchase frequency and incremental spend against a control group.
An example. A leading Canadian regional distributor runs its Culture Club program for its own business customers on BENGAGED™, Brandmovers' B2B channel incentives platform. The program recorded a 25% average sales increase among enrolled customers vs. 5% among non-enrolled (disclosed by Brandmovers). Because customers chose to enroll, the gap shows a difference between groups rather than proof of cause, but it is a useful starting point for a case to leadership, stronger when paired with each group's sales before enrollment.
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Metric |
Definition |
Review cadence |
What a drop can signal |
|---|---|---|---|
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Active member rate |
Share of enrolled members with a qualifying transaction in the past 90 days |
Monthly |
Mechanics no longer hold attention |
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Redemption rate |
Share of members who redeemed at least once in the past 12 months |
Monthly |
Threshold too high, rewards not relevant or redemption unclear |
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Repeat purchase frequency |
Qualifying transactions per active member per period |
Quarterly |
The program records buying rather than reinforcing it |
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Incremental spend |
Member spend compared with a matched control group |
Quarterly |
The program may be rewarding purchases that would happen anyway |
Add a yearly cohort comparison of first-year members with established ones. The loyalty KPI dashboard guide covers formulas.
Audit the current program before investing in new mechanics, personalization or analytics, then fix in sequence: compliance gaps first, then mechanics before personalization, and data before analytics.
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Mechanics audit: What share of enrolled members were active in the past 90 days? What is the redemption rate, and is it rising or falling year over year? Is the earn rate matched to purchase frequency, so members regularly get close to a reward? Does the program have any variable elements, or is every earn event predictable? Does onboarding give new members a head start? |
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Personalization audit: Is there at least a year of clean member-level transaction data? Can RFM segments be built in the current CRM? Are behavioral trigger messages in place for lapsed members, tier progress and redemption reminders? Is any zero-party data being collected? |
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Compliance audit: Does enrollment explain data use in plain language? Is a notice of financial incentive in place where required? Can access and deletion requests be met within 45 days? Do sweepstakes and instant wins have official rules and a free entry route? |
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Measurement audit: Can active member rate, redemption rate and repeat frequency be reported monthly? Is there a control group or baseline for incremental spend? Does a change in each metric trigger a specific action? |
BLOYL, Brandmovers' loyalty platform, includes gamification modules such as scratch-offs, gameboards, instant wins and challenges, a dynamic rules engine that can reward specific behavioral actions, A/B testing against a control group, predictive churn analytics and bidirectional CRM and CDP data flows. See the loyalty platform overview for details.
Loyalty in 2026 rewards treating the program as a design-and-measurement discipline rather than a trend-adoption exercise. Membership is nearly universal, so for most established programs the biggest opportunity is the members they already have. The mechanics that sustain engagement, bounded variable rewards, stage-appropriate design and personalization the data can support, can often be added to an existing program without a full rebuild, and most of the core metrics can be reported from a standard CRM, though measuring incremental spend needs a deliberately maintained control group. Start with the audit, then fix compliance gaps first, mechanics before personalization and data before analytics.
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Auditing or refreshing a loyalty program? Brandmovers designs and runs loyalty and promotions programs on BLOYL, from program diagnostics and mechanics design to personalization and measurement. Request a demo to talk through the gaps your audit surfaces with the Brandmovers team. |