By Roger Williams, Director of Loyalty Center of Excellence at Marigold

In an increasingly competitive landscape, emotional loyalty remains a cornerstone of sustainable business growth. While transactional perks like discounts and points continue to dominate, fostering deep, emotional connections requires a strategic approach that evolves with both your brand and your customers.

Customer expectations for loyalty programs will approach a high point in 2025. We can expect more demand for personalized, flexible, and value-driven experiences, and brands that adopt loyalty programs designed for scalability in these areas will lead the pack, bringing customers along as their offerings expand. And, with nearly 70% of consumers willing to pay more for brands they love, it’s worth the investment.

Several trends will define successful loyalty programs in the coming year:

●      Hyper-personalization powered by AI: Advances in AI and machine learning will enable loyalty programs to offer bespoke experiences based on individual preferences and behaviors.

●      Seamless multi-channel experiences: Consistency across online and offline touchpoints will be non-negotiable, with customers expecting unified rewards systems regardless of how they engage with a brand.

●      Sustainability and values-driven rewards: Consumers, especially Gen Z and Millennials, will increasingly favor loyalty programs that align with their values, such as eco-friendly rewards or community impact initiatives.

Embracing these trends not only meets customer expectations but also provides a strong foundation for building emotional loyalty over time - and emotional loyalty matters.

For one, emotional loyalty creates a competitive edge in crowded markets. It transforms customers into advocates who return and actively promote the brand. Emotionally loyal customers also have a higher CLV, making them more profitable over the long term. Finally, creating an emotional bond with your loyal customers makes them more likely to forgive occasional missteps, fostering resilience against market disruptions.

No matter where you are building your customer’s emotional loyalty, 2025 should be the year for precisely meeting customer expectations while driving engagement.

Start slow, scale smart: building loyalty from the ground up.

To create a loyalty program that can grow with your business, brands must start with a solid foundation and gradually expand their offerings. A phased approach allows businesses to refine their programs while ensuring customers stay engaged at every stage.

Phase 1: Launch a transactional foundation

●      Begin with simple, cost-effective rewards like discounts, vouchers, and points-for-purchases. These remain the most universally appreciated benefits and will attract a broad audience.

●      Since 2025 will see a growing expectation of seamless multi-channel experiences, focus on creating a consistent loyalty experience both online and offline through intuitive program interfaces, mobile accessibility, and reliable in-person support.

●      Pay attention to onboarding; studies show you have 60 days to onboard a member effectively before losing their loyalty. Ask about their preferences, segment, create aspirations, and wow them early. One of the best ways to wow members, before they have earned rewards, is by simulating redemption. Badges are a great way to simulate redemption early in the member's lifecycle.

Phase 2: Introduce personalization and tiered rewards

●      Once your program gains traction, incorporate personalized perks that reflect customer preferences, such as tailored discounts or exclusive product recommendations.

●      Introduce tiered rewards that incentivize increased engagement. For example, higher spending or frequent purchases could unlock VIP benefits or exclusive experiences.

●      Advancements in  AI can help you use data analytics to identify key customer segments and design experiences that cater specifically to their individual needs and preferences.

Phase 3: Expand with emotional and values-based rewards

●      Introduce rewards that go beyond the transactional, such as invitations to exclusive events, or early access to promotions.

●      As stated earlier, consumers in 2025 will increasingly favor loyalty programs that align with their values, so consider non-transaction rewards that support social or environmental causes that align with your brand.

●      Reinforce the shared journey: communicate program milestones as achievements customers have helped the brand reach. Highlighting customer contributions to the program’s growth fosters a sense of partnership and belonging.

Keep customers engaged at every turn.

Growing your loyalty program isn’t just about adding new features—it’s about ensuring customers feel engaged and valued. In 2025, dynamic engagement strategies will be critical for maintaining relevance and building lasting emotional bonds.

Strategies for Continuous Engagement include:

●      Gamify the experience: Introduce fun, interactive elements like challenges or limited-time offers that encourage participation.

●      Communicate progress: Use personalized messaging to regularly update customers on their rewards status and what they’ve achieved so far.

●      Solicit feedback: Involve customers in the evolution of your program by seeking their input on new rewards or features. This reinforces their sense of ownership and partnership with your brand.

A loyalty program isn’t just a tool for driving repeat purchases—it’s a vehicle for building enduring relationships. As businesses and their programs expand, customers who feel engaged, appreciated, and aligned with a brand’s values will evolve from participants to advocates. Emotional loyalty isn’t built overnight—it requires consistent effort, personalization, and a shared sense of purpose.

By starting small and scaling thoughtfully, brands can create programs that keep pace with their growth and bring customers along for the ride, ensuring that loyalty—and brand love—remain at the heart of their success in 2025 and beyond.