How 2025 Loyalty Trends Are Shaping What’s Coming in 2026

Loyalty in 2025 looks very different from just a few years ago. Loyalty programs have evolved from simple “earn-and-burn” schemes into dynamic, data-driven systems that deliver instant value, personalized experiences, and deeper customer engagement.

For businesses, loyalty is no longer just about encouraging repeat purchases; it’s about creating meaningful relationships and embedding themselves into customers’ daily habits.

Three major shifts are driving this change:

• • • AI-powered personalization, making loyalty more tailored and relevant than ever.
    • Demand for instant, frictionless redemption, with customers expecting rewards they can use immediately through wallets, QR payments, or vouchers.
    • A move toward experiential loyalty, as consumers favor emotional value, exclusivity, and flexibility over pure discounts.

These shifts are reshaping customer expectations, and rewriting the playbook for brands. As we move into 2026, the businesses that adapt to these trends early will be best positioned to drive retention, loyalty, and long-term growth.

Let’s dig into the key loyalty trends of 2025, how they’re shaping 2026, and the practical steps brands can take now to stay ahead.

The Loyalty Lessons of 2025 That Will Shape 2026’s Biggest Wins

1. AI & Hyper-Personalization; From Segments to Individuals

Brands are increasingly investing in AI-driven loyalty platform and analytics to understand customer behavior at a granular level.

Rather than generic quarterly promotions, companies can now deliver offers and communications tailored to each individual’s purchasing history, preferences, and context (e.g. time of day, season, past behavior).

According to recent Open Loyalty report: 58% of brands listed personalization as their top loyalty program investment for 2025. Meanwhile, according to Hubble, companies using these personalized strategies commonly reported higher redemption rates and increased customer engagement.

Why it matters for 2026 and beyond

Personalization is no longer optional. As customers become accustomed to individualized experiences; from streaming services to e-commerce, they expect the same from loyalty programs. In 2026, failing to personalize will likely mean falling behind.

Brands that leverage AI-driven personalization effectively can:

• • • Predict what each customer values most; timing, reward type, channel.
    • Serve relevant offers (higher conversion) while reducing spam and noise.
    • Increase lifetime value (LTV) and retention, because customers feel understood and valued.

What you as a brand should do

• • • Build data infrastructure to gather cross-touchpoint data (web, app, in-store, payments).
    • Use AI/ML models for personalized offers and predictive segmentation.
    • Set KPIs such as redemption-rate lift, repeat-purchase rate, and engagement per user.

Over time, personalization becomes more intelligent; moving from simple rules-based segmentation to real-time decisioning and predictive offers.

2. Instant Value & Payment-Native Loyalty; Because People Want It Now

Digital payments, mobile wallets, and instant redemption mechanisms have pushed loyalty programs into “money-like” functionality. Rather than waiting for physical items. Customers can redeem rewards directly as cash-equivalent value; usable immediately.

In markets like Indonesia, the trend is particularly strong. The 2025 market intelligence report from ResearchAndMarkets.com projects strong growth; loyalty programs now frequently integrate with e-commerce platforms, mobile wallets, and digital payment rails.

Why it matters for 2026 and beyond

For 2026, “instant value” becomes the new baseline. Customers will expect that loyalty isn’t just points to collect; it’s value they can use immediately, like cash in their digital wallet.

Brands that don’t provide flexible, frictionless redemption risk being bypassed. Conversely, those that treat loyalty balance like cash; enabling QR payments, top-ups, e-vouchers; will enjoy stronger engagement and higher perceived value.

What brands should do

• • • Enable partial redemption, micro-spending, or “pay-with-points” flows.
    • Make redemption easy, immediate, and transparent; as seamless as paying with cash or card.

3. From Points-Only to Gamification & Experience-Based Loyalty

2025 saw a strong pivot away from simple points-for-purchases toward gamified and experience-driven programs. According to Loyalty Program Trends 2025 report by Open Loyalty, over 45% of brands consider gamification or experience-based rewards the single biggest game-changer for engagement.

This includes mechanics like:

• • • Challenges and milestones
    • Tiered or subscription-based loyalty (paid “premium” tiers) for VIP experiences or early access.
    • Surprise rewards, exclusive offers, or community-based benefits rather than just discounts.

Why it matters for 2026 and beyond

As consumers become more value-conscious and accustomed to flexible rewards, transactional value (points, discounts) becomes less powerful on its own. What builds long-term loyalty is emotion, engagement, identity, and belonging; not just saving money.

In 2026, loyalty programs that offer experiences, community, gamified journeys, and flexibility will outperform those relying solely on discounts.

What brands should do

• • • Introduce gamified mechanics; challenges, progress bars, milestone rewards.
    • Offer experiential or premium-tier perks: early access, exclusive drops, member-only events.
    • Provide flexibility in reward choice; let users pick what rewards that matters to them.

This can significantly boost engagement and turn loyalty into a habit or lifestyle rather than a one-time transaction perk.

4. Loyalty Program Usage Up, Brand Loyalty Down; A New Dual Reality

Data suggests a paradox: even as consumers participate more in loyalty programs, their emotional loyalty to brands is decreasing. According to a survey by Emarsys, brand loyalty dropped from 77% in 2022 to 69% in 2024; a sign that many customers now pick loyalty incentives over brand allegiance.

This makes sense in a world where multiple brands offer comparable offerings, and switching costs are low. If consumers can get rewards and value, they’re less concerned about sticking to one brand.

Why it matters for 2026 and beyond

For brands, this means that loyalty programs are no longer a bonus; they’re essential. Without a strong program, customers may not stick around. But with a well-designed program, brands can still maintain engagement even when loyalty to the brand itself is weak.

Loyalty in 2026 is about value + relevance + convenience, not just nostalgia or brand identity.

What brands should do

• • • View loyalty programs as a core retention tool, not a perk.
    • Focus on delivering real, tangible value, regularly; not just occasional discounts.
    • Track engagement metrics beyond sign-ups: redemption rates, repeat-purchase frequency, customer lifetime value (CLV), churn among members vs non-members.

5. Data, Privacy, and Interoperability; The Infrastructure Behind Modern Loyalty

As loyalty becomes increasingly digital, brands must invest in secure, transparent, and interoperable infrastructures. Consumers expect their data to be handled responsibly, their wallet balances to be portable, and their experiences to transition smoothly across channels and partners.

At the same time, many loyalty programs began evolving into “coalition” or “cross-brand” ecosystems; sharing reward infrastructure across merchants, apps, and industries.

Why it matters for 2026 and beyond

Without strong data governance and interoperable systems, loyalty programs risk becoming siloed, clunky, or insecure. As customers demand seamless experiences; across brands, devices, payment methods, only programs built on robust digital infrastructure will thrive.

What brands should do

• • • Invest in data privacy, consent management, and secure data handling.
    • Explore cross-brand or coalition loyalty models to increase flexibility and value for members.
    • Ensure loyalty balances or rewards can be used across multiple touchpoints; online, offline, payment rails.

What These Trends Mean for 2026: Six Strategic Loyalty Predictions

Based on how 2025 played out, here’s what we expect to define loyalty in 2026:

1. Instant Value Becomes the Minimum Viable Offering
   Loyalty must deliver usable value; not just promises. QR payments, e-wallet redemptions, e-vouchers, and flexible reward options will become the baseline expectation.
2. AI-Based Personalization Must Be Balanced with Trust and Privacy
   As brands scale personalization with AI, data privacy and ethical use will become central. Consumers are more aware of data misuse. Brands that handle data transparently and respectfully will gain competitive advantage.
3. Rewards-as-Currency Gains Real Traction
   Loyalty balances will increasingly function like digital cash; stackable, shareable, and usable across merchants and payment methods. Cross-brand “wallet loyalty” models and coalition programs will accelerate.
4. Experiences > Discounts; Especially for Younger Cohorts
   As younger, value-conscious consumers (Gen-Z, younger millennials) become a larger share of spenders, loyalty programmers will prioritize experiences, community, exclusivity and flexibility over bulk discounting.
5. Engagement; Not Enrolment, Becomes the Key Success Metric
   Focus will shift from simply acquiring loyalty members to activating them, keeping them engaged, and driving meaningful interactions that translate into revenue. KPIs will include redemption rate, repeat purchase frequency, CLV uplift, member retention, and engagement per active user.
6. Loyalty Programs Evolve into Embedded Digital Ecosystems
   Loyalty will integrate more deeply with e-commerce, mobile wallets, and cross-merchant networks; but the biggest shift is the rise of conversational loyalty, especially on WhatsApp. Instead of requiring another app, brands can embed enrolment, point tracking, tiers, and reward redemption directly in chat, creating a seamless, app-less journey where transactions, communication, and rewards live in one familiar space.

Wrap up; The Future of Loyalty is Value, Flexibility & Human-Centered

2025 wasn’t just another year for loyalty; it’s the year loyalty evolved. From rigid point-based schemes to fluid, intelligent, customer-centric ecosystems, the rules of engagement have changed.

In 2026, success goes to brands that deliver real-time value, personalized experiences, flexibility in how rewards are used, and a sense of belonging or exclusivity. Loyalty isn’t about forcing brand loyalty; it’s about earning trust, adding value, and giving customers the freedom to choose what matters to them.

If your brand is ready to transform loyalty from a perk into a long-term asset, let’s talk! Tada is here to help you in building a loyalty program that truly delivers.