Weekly Update 27th October 2022

Written by Tom Peace

2023 Loyalty Marketing Trends

#1 Digital adoption to continue.
A new study from Juniper Research has found that memberships of loyalty programmes with a digital element will increase from 37 billion in 2020 to 48 billion in 2023 globally. This past year, brands such as KFC have replaced a stamp loyalty program with a mobile app-based rewards scheme.

#2 Artificial intelligence.
A study found that by the end of 2020, customer experience will overtake price and product as the key brand differentiator. It's predicted that over 40% of customer interactions will be automated via AI by 2023.

#3 Gamification.
When you gamify a loyalty program, it creates an incentive for customers to interact regularly with your brand. A study shows 40% say there should be games with loyalty programs, this is expected to grow with time. An example of this is PINK by Victoria's Secret. The PINK Nation loyalty program targets GenZ by offering extra loyalty points for playing daily trivia games and sharing promotions on social media.

#4 Multiple touch points.
Brands are understanding that consumers want a loyalty program that covers all channels. For example online, in-app, in-store or on social media. The omnichannel program should reward a customer for promoting a product on social media, leaving an in-app review, or for shopping instore. Loyalty programs need to be adaptable and easily accessible in 2023.

#5 Partnerships.
Strategic loyalty partnerships are on the rise. In a loyalty partnership, partners provide forms of value for each other's customers, that they couldn't create on their own. For example, in 2019 Hilton and Lyft join forces. Consumers can link their Hilton Honors and Lyft accounts to earn 3 points per $1 spent on Lyft rides and redeem their Hilton Honors Points for Lyft credits.