2025 gave us a clear view of what drives loyalty, and what doesn’t.
Some tactics sparked engagement, others quietly faded, and customer expectations evolved in ways brands didn’t always see coming.
January is about reflection and action: keeping the lessons that worked, while being bold enough to experiment with what’s next.
This edition shows how to carry forward proven strategies, take smarter risks, and design loyalty experiences that customers don’t just join, they choose.
Let’s explore the January freshness together!
Even as brands reflect on what worked last year, they’re not standing still.
In fact, 77% of brands are maintaining or increasing loyalty budgets in 2025 (Loyalty360), signalling that loyalty remains a top priority, but not in the same old way.
Loyalty programs are experimenting even in uncertain times, and this stat shows it. Executives are gearing up for 2026 because they know that reducing friction, personalising experiences, and trying new approaches will ultimately drive stronger engagement, repeat behaviour, and long-term loyalty.
In short, budgets are up, but success will come to those who combine reflection with bold experimentation. Loyalty grows when you learn, adapt, and take calculated risks, exactly the mindset January is all about.
🟢 2025 State of Customer Loyalty Report
2026 Loyalty Trends: Nine Moves Your Customers Actually Want
2025 showed us that slow, generic rewards aren’t enough; customers now expect recognition that’s instant, personal, and fits their daily life.
In fact, programs that still rely on accumulation-based vouchers risk losing share fast.
Our latest blog highlights nine customer-led trends for 2026, including:
- Hyper-contextual micro-rewards: small, real-time incentives that shift behaviour immediately.
- Embedded finance loyalty: rewards tied to bill payments, savings, and everyday financial actions.
- Sustainability-linked incentives: doubling points for eco-friendly choices.
A key insight: customers notice relevance, speed and context beat points every time.
January takeaway? Start small, experiment boldly, and craft loyalty experiences your customers actually choose, not just join.
NEWS FROM LOYALTY WORLD
- Marriott Hotel Goes Bold: Step Towards Direct Bookings and AI-Driven Experiences in Loyalty
In 2025, major hotel groups took loyalty to the next level, proving that even well-established programs can benefit from testing new approaches.
- Marriott’s loyalty program grew 18% year-over-year to nearly 260 million members, while Hilton, Hyatt, and Wyndham experimented with perks, partnerships, and technology to drive more direct bookings.
Travel loyalty programs took bold steps in 2025, and it’s paying off. As customers grew eager to explore new destinations safely, program owners seized the moment to continuously experiment and adapt their offerings, from exclusive perks to seamless, direct booking experiences.
The key lesson for 2026? Even massive brands are taking calculated risks, offering new experiences, integrating technology, and refining loyalty incentives, to test what resonates and adapt quickly.
For loyalty teams, the opportunity lies in learning from each experiment, measuring engagement, and turning insights into programs customers actively choose.
- New Look’s Late Loyalty Bet: Learning Fast in a Crowded Market
After years without a formal loyalty programme, New Look made a bold move in 2025 by launching Club New Look across its 338-store estate.
For a high-street fashion brand that has long relied on price and promotions, introducing loyalty this late is less about catching up…And more about testing what actually drives repeat engagement today.
- Rather than leaning solely on points accumulation, New Look designed its programme around frequent interaction and perceived access.
- Members receive weekly “club price” drops, early access to sales and launches, and entry into exclusive prize draws.
The retailer didn’t roll the programme out blindly. A soft launch attracted 500,000 members, giving the team early insight into sign-up behaviour and engagement before scaling nationally.
With a target of 800,000 members by the end of the financial year, New Look is treating loyalty as a living system, one that can be adjusted based on real customer response.
The risk is clear.
- Weekly discounts can pressure margins, and launching loyalty late leaves little room for missteps.
But the lesson for 2026 is sharper: in fashion retail, standing still is the bigger risk. By experimenting with cadence, access, and digital-first engagement, New Look is testing whether loyalty today is less about long-term point accumulation and more about feeling “in the loop” every week.
https://www.thescottishsun.co.uk/money/15495274/fashion-chain-launches-loyalty-scheme/
- Risks Starbucks Took: Lessons Learned for 2026
Starbucks entered 2025 with a clear realisation: optimising for speed and transactions alone wasn’t building loyalty the way it used to.
Years of mobile-first convenience had delivered efficiency, but something human was slipping away.
Instead of doubling down on discounts or automation, Starbucks took a different risk. The brand reinvested heavily in the in-store experience, putting atmosphere, barista connection, and craft back at the centre of how customers engage.
- Today, around 60% of Starbucks transactions still include an in-store element, a signal that physical presence remains a powerful loyalty driver.
The gamble was intentional. Higher labour investment, redesigned stores, and technology used to support hospitality rather than replace it all come with cost and complexity.
But the upside is differentiation: a loyalty moat built on familiarity, belonging, and emotional continuity, not just convenience.
The takeaway for 2026 is telling. Loyalty doesn’t always advance by adding more mechanics. Sometimes it grows by stepping back, applying the lessons of the previous year, and taking calculated risks that make the experience feel worth returning to.
🟢 Starbucks Leans on In-Store Experience to Compete
- Why Purpose-Driven Loyalty Programs Are Going to Win in 2026
2025 has shown that loyalty is now about belonging, recognition, and experiences that feel personal.
- McKinsey reported that U.S. consumer spending intentions dipped across discretionary categories in early 2025, proving that value is being weighed purchase by purchase.
In response, loyalty programs moved from transactional rewards to purpose-driven engagement.
Forbes shows that,
- 90% of consumers want financial rewards, but now 85% expect free shipping or product perks, and around 70% want early access to sales and new products.
Programs that blend rewards with experiences (VIP events, early-access drops, and personalised recognition) create emotional attachment, not just transactions.
- Starbucks Rewards: Nearly 34 million members drive 60% of company sales, showing how engaged members buy more, more often.
- Represent and The INKEY List: VIP tiers, early-access launches, and member-exclusive events turn exclusivity into meaningful participation.
- Purdy & Figg: Subscription-driven, feedback-led experiences transform routine purchases into moments of delight, reinforcing why customers return.
These examples all point to one thing!
Loyalty programs that experiment, remove friction, and embed purpose at every touchpoint see measurable results.
Put simply, loyalty in 2026 is where purpose meets performance.
👉 Purpose Wins: How Brands Succeed in 2025
TIP OF THE MONTH
- Loyalty Tip of the Month: Random Acts of Rewards
January is the perfect time to try small experiments that keep loyalty fresh. Random, unexpected perks make customers feel valued and boost engagement, without relying on points or milestones.
Try sprinkling in bonuses like:
- A coffee on the house
- Early access to a product or feature
- A simple, personalised thank-you
These small surprises make loyalty feel personal and memorable.
Key takeaways for January:
- Test occasional, meaningful rewards
- Keep engagement dynamic and adaptable
- Make each interaction feel intentional
“Surprise! Here’s a coffee on us today, just because we appreciate you.”
Small experiments now can lead to big loyalty results in the year ahead.
https://www.linkedin.com/feed/update/urn:li:activity:7408823760906096640
INSIGHT OF THE MONTH
5% Increase in Customer Loyalty Correlates to 25-100% Profit Growth!
Research shows that even modest improvements in loyalty pay off disproportionately: a 5% increase in customer loyalty correlates with 25–100% profit growth. Loyalty is an important player in business that directly drives revenue!
In practice, this means that experimenting with new approaches, testing small rewards, and creating meaningful, timely interactions can create a significant impact.
Brands that rely solely on past tactics or static programs risk stagnation, while those willing to adapt and personalise their experiences can turn small gains into major returns.
Businesses should invest in loyalty program growth and be sure that their reward programs are are dynamic, human-centred, and intentionally designed.
Even incremental improvements in customer engagement can compound over time, transforming short-term actions into long-term habits, and measurable revenue.
https://capitaloneshopping.com/research/loyalty-program-statistics/
LOYALTY CALENDAR
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