TLP Signals Newsletter | Yum China loyalty programme surpasses 590 million members

Hey loyalty legend 👋

Here’s your most important signals across the loyalty, CX, and CRM industries, from programme shake-ups to quieter signals that say a lot about where things are heading.

Loyalty & Rewards News
🇨🇳 Yum China loyalty programme surpasses 590 million members Yum China’s loyalty ecosystem across KFC and Pizza Hut has reached roughly 590 million members. Loyalty customers now account for more than half of total sales, supported by app-based ordering, tiered benefits and paid perks that drive frequency and scale. 🔗 https://www.reuters.com/world/china/kfc-parent-companys-loyalty-program-china-surpasses-590-million-members-2026-02-04/

Why this matters: This is loyalty as infrastructure, not a campaign. When loyalty is embedded into daily behaviour, it becomes a core revenue engine rather than a marketing lever.


🇺🇸 Starbucks relaunches Rewards with a three-tier structure Starbucks is rolling out a redesigned Rewards programme from March, introducing tiered membership levels and shifting perceived value toward experiences rather than pure discounts.🔗 https://www.axios.com/2026/01/29/starbucks-rewards-program-changes-2026

Why this matters: Tiering gives brands tighter control over reward economics, but only works if customers feel progression is achievable and worthwhile.


🇺🇸 Advance Auto Parts refreshes its rewards tiers Advance Auto Parts has updated its loyalty programme to simplify earning and redemption, reducing friction for its DIY customer base. 🔗 https://finance.yahoo.com/news/advance-auto-parts-launches-advance-130000294.html

Why this matters: Complexity kills engagement. Clear earn and burn mechanics consistently outperform clever programme design.


🇺🇸 Panera Bread shifts MyPanera back to a points-based rewards model Panera Bread is restructuring MyPanera, moving away from surprise-driven rewards after customer backlash and toward a predictable points-based structure. 🔗 https://www.thestreet.com/restaurants/panera-bread-revamps-loyalty-to-win-customers-after-backlash

Why this matters: Predictability builds trust. Surprise without clarity creates confusion and erodes confidence.


🇺🇸 Royal Caribbean International plans a portfolio-wide loyalty programme Royal Caribbean is preparing to launch a unified loyalty initiative across its cruise brands to encourage cross-brand engagement and higher lifetime value. 🔗 Royal Caribbean Makes a Significant Loyalty Program Change Fans Have Been Asking For

Why this matters: Portfolio loyalty can unlock lifetime value, but only if the experience feels genuinely connected rather than stitched together.


🇬🇧 Boots UK and Superdrug challenged over member-only pricing Consumer groups have raised concerns that some member-only deals may inflate base prices, creating the illusion of savings rather than delivering real value. 🔗 Boots and Superdrug accused of misleading shoppers with ‘dodgy’ reward card deals | The Independent

Why this matters: Loyalty collapses the moment customers feel manipulated rather than rewarded. Trust is the real currency.


CRM, Data & Customer Strategy
🌍 Loyalty and CRM now account for over 50 percent of marketing spend New research shows marketers are allocating more than half of total marketing budgets to loyalty and CRM initiatives, reflecting a shift toward retention-led growth. 🔗 Global Customer Loyalty Report 2026 | Antavo


🌍 CRM platforms evolve toward AI-driven, context-aware models CRM systems are moving away from static records toward real-time, AI-supported decision engines designed to act on customer context. 🔗 https://www.destinationcrm.com/Articles/CRM-Insights/Insight/A-Look-Ahead-at-CRM-in-2026-173336.aspx

Why this matters: Competitive advantage now comes from speed of execution, not volume of data collected.


🌍 CRM and loyalty technology consolidation accelerates Recent acquisitions highlight continued consolidation as vendors push toward unified CRM, loyalty and engagement stacks. 🔗 https://hipther.com/gaming-and-entertainment-usa/2026/01/06/104764/xtremepush-acquires-scrimmage-to-deliver-only-all-in-one-loyalty-crm-and-gamification-solution/

Why this matters: Fragmented stacks slow teams down and dilute customer experience across channels.


Strategy & Reality Check
🌍 Emotional loyalty overtakes transactional thinking Loyalty strategy is increasingly focused on recognition, relevance and emotional connection rather than points inflation. 🔗 https://happyrewards.io/the-future-of-loyalty-programs-what-can-you-expect-in-2026/

Why this matters: Emotional loyalty reduces price sensitivity and creates defensible brand preference.

Discuss these signals at www.tlpcollective.co