“Advertising is the price you pay for unremarkable thinking.” Jeff Bezos may have been talking about advertising, but the same holds true for loyalty programmes.
Customer acquisition is more expensive than ever, yet many businesses still rely on outdated loyalty mechanics. Thirty years on from the launch of Tesco’s Clubcard, most programmes still offer the same basic value exchange: spend more money, receive more discounts. It’s a model that’s showing signs of fatigue, overuse and exhaustion.
At Yonder, we believe loyalty deserves a rethink. It’s no longer a marketing initiative or a series of offers, it’s a strategic lever for growth, relevance and transformation. We’ve identified five paradigm shifts reshaping the loyalty landscape, each with the power to unlock long-term commercial value.
1. From loyalty as a programme to loyalty-as-a-service
Loyalty is moving beyond discounts and points schemes. The most progressive brands are using loyalty budgets to deliver service-led value that deepens relationships, not just incentivises spend.
IKEA’s IKEA Family is a powerful example. Instead of asking themselves how they should reward customers, they asked what was holding customers back from spending. The answer? A lack of home confidence. In response, IKEA created a multi-touchpoint experience – from workshops to content – to build confidence and remove purchase barriers. The result is a loyalty model that doesn’t discount the product, but enhances the experience.
2. From spectator to participant
Loyalty is no longer something done to customers, it’s done with them. The most engaged members are those invited to co-create and contribute.
LEGO Ideas shows how this shift plays out. It’s a global platform where fans submit product designs, vote on ideas and take part in creative challenges. The community helps shape the brand’s future, creating loyalty that’s emotional, collaborative and lasting. In this model, membership is about influence, not just access.
3. From at transaction to beyond transaction
In a world driven by subscriptions and constant connection, loyalty must extend beyond the checkout. The most effective programmes maintain a continuous presence in customers’ lives.
Nike Plus nails this approach. It connects users through fitness tracking, exclusive product drops and personalised training plans. The programme isn’t just about selling shoes; it’s about becoming part of the customer’s lifestyle. By embedding the brand in daily routines, Nike turns occasional buyers into lifelong participants.
4. From benefits to bridges
Rewards have evolved. Customers want more than discounts; they want experiences that feel exclusive and relevant. But real transformation happens when benefits also act as bridges into new propositions or business models.
O2 Priority illustrates this well. It offers customers early access to events, private spaces and VIP experiences at O2 venues. It’s not just about added value; it’s about expanding brand meaning and customer lifestyle alignment. Loyalty becomes a gateway into a richer brand world.
5. From the power of one to the power of many
Today’s strongest loyalty strategies tap into shared purpose. Brands that connect customers through common causes or passions create more meaningful, resilient communities.
Patagonia’s Action Works platform enables customers to engage with environmental causes, reinforcing the brand’s mission and activating its network. By enabling collective action, Patagonia turns loyalty into a force for change, and a long-term growth driver.
Loyalty, reimagined
Whether your business is launching its first loyalty initiative or reinventing an existing one, the starting point is the same: uncovering unique customer truths through rigorous insight. Truths that align with your business model and unlock commercial value.
At Yonder, we take a broader view of your customer, market and growth strategy. We craft loyalty experiences that go beyond rewards: building brand equity, emotional resonance and long-term revenue impact.
Because in this new era, loyalty isn’t a programme. It’s a strategy.