The role of loyalty programs has changed significantly in recent years. Where customer loyalty once revolved around simple reward points systems, programs now use technology, data and personalization to truly engage customers.
We conducted research into various loyalty programs with Sia Partners, and in this article I would like to share a number of highlights with you. So gives us examine a fresh look at how companies in the Netherlands adapt their loyalty programs to the ever-changing expectations of customers. The research includes 32 brands from 11 sectors, including supermarkets, fashion, travel and sporting goods, with a focus on user experience, features, branding and promotion.
The big winners of the past year
H&M came out on top thanks to seamless integration, personalized rewards and sustainability in their loyalty program. Albert Heijn follows in second place with a personal approach and an omnichannel strategy. Decathlon is in the top three for the first time thanks to their intuitive user experiences and a strong commitment to corporate social responsibility. See the image below for the full ranking.
New trends for 2025 in loyalty programs
A notable trend for the rest of this year is the growing emphasis on sustainabilityalso called ‘green loyalty’. Consumers, especially younger generations, expect brands to take responsibility for their environmental impact. Companies such as Decathlon and Rituals respond to this by rewarding customers for conscious choices.
For example, Decathlon encourages consumers to recycle, repair or rent products and offers rewards for participating in circular consumption programs. Rituals uses their app to create awareness about sustainability and offers tips for a more conscious life.
Technology also plays a major role in the evolution of loyalty programs. Of artificial intelligence you can use data for hyper-personalization. Albert Heijn, for example, applies advanced algorithms to tailor discounts and recommendations to individual purchasing behavior. This not only increases customer satisfaction, but also helps reduce food waste, through smart pricing strategies for products close to their expiration date. AI makes it possible to proactively respond to customer needs and strengthen loyalty on a personal level.
Gamification as an underutilized opportunity
Gamification remains a relatively underutilized opportunity, but brands such as Decathlon and McDonald’s are showing how effective it can be in driving interaction and engagement. Decathlon, for example, links sporting challenges to rewards, motivating customers to stay active and redeem their points. McDonald’s combines gaming elements with their loyalty program, such as their ‘Family Mode’ and seasonal promotions such as the ‘Monopoly’ campaign, which encourage customers to return repeatedly.
Another important development is the rise of omnichannel strategies. This integrates physical and digital channels, ensuring a consistent and user-friendly experience. Brands that do this well are Nike and Lidl, the apps of these brands offer customers real-time product information, personalized offers and tools that improve shopping experiences. Consider scanning products for discounts or virtual fittings. This type of integration encourages customers to shop across multiple channels, which contributes to higher customer loyalty and longer customer lifetime.
Sustainable loyalty as the key to success
The benchmark shows that loyalty programs are increasingly shifting from traditional loyalty points models to strategies that combine technology, personalization and sustainability. This gives you programs that not only offer rewards, but also add real value to customers’ lives.
Decathlon, for example, uses their loyalty program not only to reward customers, but also to involve them in their mission for a sustainable future. This is a strategy that not only increases brand loyalty, but also has a positive impact on society.
So, do you also want to build a strong competitive position? Think about programs that are more than transactions; build emotional connections and communities around your brand.
Do you have any examples of good loyalty programs of your own? Then let us know in the comments below.
Source: www.frankwatching.com
