I love loyalty programs.

That’s not something many people can say. Not because people don’t want good deals and personalized experiences, but because far too many programs fail to create relevance for customers. They end up as noise, not loyalty.

So why do I love them anyway? Because the potential is enormous when they’re developed the right way.

The problem with many loyalty programs is that they fail to create real value for customers.

This is also reflected in Forte’s annual survey, Forte Pulse 2025. Here, 77 percent of companies say they actively work with loyalty mechanisms. That sounds impressive, until we look at what’s actually behind the numbers.

Even though almost everyone claims to invest in loyalty, only 17 percent strongly agree that they use customer data to personalize communication and digital services. At the same time, more than half say they don’t do this at all. And when it comes to predictive analytics, the ability to anticipate customer needs, the figure is even lower: only 8 percent strongly agree that they succeed in doing so.

The gap is clear: respondents say they prioritize customer value, but deliver very little on the factors that actually create it.

Points Without Personality

Loyalty programs are everywhere. But as the numbers above show, relevance for customers is often missing — and that can cause frustration. This is confirmed by a McKinsey report showing that 75% of customers get frustrated when they don’t receive a personalized experience.

Instead of engaging, these programs risk becoming generic — just another offer of a small discount or unused points. The result? Noise, not loyalty.

We call this finding Points Without Personality. Companies build programs, but they often appear more as tools for the business itself than as experiences for customers. Customer data is often used to improve internal processes, but rarely to create real value in customer interactions.

What’s Missing?

The answer isn’t more apps, more points, or more coupons. What’s missing is the ability to use data and technology to make the experience personal. In fact, 44 percent of leaders point to technological maturity and poor data quality as major obstacles within their organizations. It’s not the willingness that’s lacking — it’s the ability to turn data into insight, and insight into action.

We’ve moved from asking “How do we build loyalty programs?” to a far more important question: “How do we make them relevant?”

Because loyalty isn’t about discounts. It’s about being seen. It’s about receiving offers and experiences that truly resonate. It’s about communication that feels like a dialogue, not a mass mailing.

True loyalty doesn’t come from customers having to be members. It comes from them wanting to be.

How Loyalty Can Become Genuine

When data and AI are used correctly, we can anticipate customer needs, tailor experiences, and offer services that make sense in everyday life. Then loyalty programs can become a driver of growth and differentiation — not just a checkbox on a marketing plan. So what should you do?

• Put data quality on the agenda. Poor data leads to poor customer experiences.

• Build technological maturity. AI is becoming a key factor in creating relevance.

• Look beyond discounts. Loyalty is about relationships, not percentages off.

True loyalty doesn’t come from customers having to be members. It comes from them wanting to be.
And that only happens when a loyalty program is more than a club — when it feels like an invitation to an experience made just for me.