A new study examining loyalty initiatives from 400 brands across six European countries suggests that traditional corporate loyalty programmes are struggling to foster genuine customer attachment. Analysis from IMPACT Commerce, which reviewed over 20,000 data points, highlights that the widespread focus on points-based rewards and discounts may do little to ensure long-term consumer commitment.
Discount dependency
The study found that 77% of brands rely primarily on points and discounts to attract and retain loyalty members. Only 28% of programmes offer any form of birthday reward, signalling a narrow approach to addressing customer needs beyond transactional incentives. The report indicates this model may be becoming obsolete, as consumers face 'membership fatigue' from a perceived "sea of sameness" in loyalty offerings.
Emotional connection
IMPACT Commerce's research positions emotional connection as a missing element in the current loyalty landscape. Brands are being urged to reconsider their approach to relationship-building, with many customers seeing little distinction between competing programmes or brands in saturated markets.
"If your program only offers discounts, you're not building loyalty - you're just meeting expectations. The winners of the future will be those who create emotional connections and meaningful experiences," said Kenni Wiltoft Rostgaard, Senior Manager, Customer Loyalty, IMPACT Commerce.
Behavioural drivers
Differentiating between types of customer loyalty is increasingly important, according to the report. IMPACT Commerce highlights that customers may remain loyal to a brand out of habit, identity, or shared values, rather than simply recurring transactional benefits. Recognising this difference is identified as essential for brands seeking deeper engagement from their audiences.
"A commuter who buys the same snack every morning is loyal for a very different reason than a lifelong Patagonia customer. One is driven by habit, the other, by identity or values. If you're trying to deepen loyalty without understanding the type you're designing for, you're not just being inefficient, you might be solving the wrong problem entirely," said Jonas Sylvest, Senior Director, Loyalty, CRM, CX & Design, IMPACT Commerce.
Personalised experiences
The study identifies a shift towards flexible, personalised loyalty experiences using first-party data and artificial intelligence. Brands are said to be increasing investments in data-driven strategies, aiming to predict and respond to individual customer needs through modular benefits and increasingly adaptable rewards structures.
This approach responds to what the study describes as 'liquid expectations': consumers now benchmark loyalty experiences against best-in-class examples from any industry. This puts pressure on brands to continuously enhance and tailor benefits, rather than maintaining static reward models.
Human touchpoints
Recognition and personalised gestures were highlighted as significant drivers of emotional loyalty. The report suggests that seamless checkout processes or automatic point accruals are now basic expectations rather than memorable experiences. Instead, brands are encouraged to design loyalty engagements that include unexpected recognition or customised experiences, which can help build memorable connections and 'emotional equity' with customers.
The study flags moments such as name recognition or special gestures as more likely to influence retention than transactional mechanics alone.
AI and future value
Another trend identified is the use of artificial intelligence and predictive models to measure and enhance customer lifetime value (CLV). These tools allow brands to shift focus from past behaviour towards anticipating future customer potential, moving beyond simple retention statistics or net promoter scores.
"In a world where loyalty is harder to earn and easier to lose, the brands that win will be those that go beyond transactions, and build the kind of relevance, recognition, and emotional pull that keeps people coming back," said Wiltoft Rostgaard.
