4 ways to revive a stale loyalty program

If you’re running a loyalty program today, chances are you’re feeling it: Engagement is slipping. What was once the industry’s secret weapon has turned into a constant uphill battle.

The numbers tell the story: 34% of U.S. adults with a loyalty program forget they even have one.

Within six months, more than half of members will disengage. By the end of the year, three out of four are gone. And a staggering 91% say all loyalty programs look the same.

For travel brands especially, that kind of fatigue is costly. You invest heavily in points and perks, but the formula—earn, redeem, repeat—no longer cuts it. Members don’t want another discount. They want something that feels worth remembering.

Points can buy transactions, but only emotions buy loyalty.

The new currency: Emotion

The next wave of loyalty isn’t about transactions. It’s about trading earned points for feelings.

Think about it: Nobody remembers the exact seat they had on a flight. But they’ll never forget the airline that made it possible to see Taylor Swift live or the hotel that gave them access to a once-in-a-lifetime cooking class in Rome.

In fact, Gen Z and millennials are more likely to take a trip for an exclusive experience compared to Gen X and boomers, according to Phocuswright research.

That’s the opportunity brands are missing. Live events and experiences tap into emotional loyalty. The kind that makes people feel special, brag to their friends and stay connected for the long haul.  

They don’t want points. They want memories.

4 ways to get your members re-engaged 

We’ve put together a list of four perks that can revive a stale loyalty program, starting with the biggest opportunity that’s been hiding under everyone’s noses for decades.

1. Curated live events and once-in-a-lifetime experiences

Let’s be honest: “double points Tuesdays” doesn’t exactly get anyone out of bed. But access to playoff tickets, a Broadway premiere or a sold-out festival? That’s a loyalty perk members will talk about.

Programs like Air Miles are already proving the point, giving members access to live events such as concerts and sporting events beyond the standard seat upgrade. And partners like TFL argue live experiences are the real key to reviving loyalty programs.

Actionable ideas:

• Partner with event providers to unlock access to concerts, sports, theater and cultural events.
• Create limited-edition packages for top-tier members. Scarcity drives excitement.
• Design bundles that make stories worth sharing, not just receipts.

Bottom line here: Stop handing out basic freebies. Start handing out goosebumps.

2. Hyper-personalization: The antidote to 'delete'

Nothing kills loyalty faster than an irrelevant offer.

More than half of consumers say a bad email damages their perception of a program. And yet, 44% say most offers don’t even apply to them.

Members don’t want more noise—they want to feel seen. Hyper-personalization uses zero-party data, purchase behavior and predictive analytics to serve up offers that make sense.

Actionable ideas:

• Collect preferences through surveys and app interactions.
• Use purchase history to recommend the next experience, not the last one.
• Tailor redemption options by member segment.

When you nail personalization, the payoff is huge: the top 10% of loyalty members drive half of all loyalty spending.

3. Flexible earning, redemption and partnerships

If it takes forever to earn enough points for a reward, members give up. Nearly half of consumers say it takes too long—and 84% want points to work like money.

Flexibility changes the game. Members who can redeem across multiple categories spend 3.9x more than those who can’t.

Actionable ideas:

• Build cross-industry partnerships to give members more ways to earn and redeem.
• Offer micro-earn opportunities that feel rewarding in the moment.
• Make redemption so simple a five-year-old could figure it out.
  
  

4. Recognition tiers and premium memberships

Status still matters. In fact, 75% of members feel accomplished when they qualify for a higher tier. Tiered programs create aspiration—while paid loyalty programs turn casual members into super-spenders.

Adidas’ adiClub, for example, rewards top-tier members with early product access, training apps and tickets to unique events. It’s gamification but with bragging rights attached.

Actionable ideas:

• Use gamified tiers to encourage ongoing engagement.
• Add premium perks (even paid ones) for members who want all-access benefits.
• Foster community with features that let members celebrate wins together.

The bottom line when reviving a stale loyalty program

Loyalty programs aren’t going away—if anything, they’re multiplying. But if brands want to cut through the fatigue, they need to evolve. Members crave experiences, personalization, flexibility and recognition.

The biggest opportunity hiding in plain sight?

Partnerships with live event providers.

When you layer that with personalization, smarter redemption and tiered recognition, loyalty stops being a points game—it becomes a story worth sharing.

At the end of the day, loyalty isn’t earned with discounts. It’s earned when brands create the kind of moments members will talk about for years to come.