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Points Are Cheap. Loyalty Isn’t.

  • Writer: Beyond Team
    Beyond Team
  • Jul 29
  • 3 min read

“Loyalty means nothing unless it has at its heart the absolute principle of self-sacrifice.” — Woodrow Wilson 


While Wilson wasn’t talking about retail, his words feel apt in today’s consumer landscape. Because true loyalty – from customers, not just to them – must be earned, not bought. And in a world of rising costs and rising expectations, points alone don’t cut it anymore. Retailers must put data to work to earn trust, relevance, and emotional connection at scale. 

 

We’re long past “Loyalty 101.” What was once a simple points-and-perks model is now a sophisticated, data-rich ecosystem. Loyalty today is about how well a brand understands, anticipates, and supports its customers – not just financially, but emotionally and contextually. And data is the fuel that makes it possible. 

 

The Loyalty Surge – and the Data Gap 

 

Recent research by LoyaltyLion shows 55% of UK shoppers are more likely to join loyalty programmes now than a year ago. That figure rises to over 70% among Millennials and Gen Z – a sign that loyalty, done right, still holds immense value. But there's a catch: only 59% of consumers feel the experiences they receive are personalised. 

 

That’s a major disconnect – and a missed opportunity. 

 

The best loyalty programmes aren’t just marketing tools. They’re strategic assets. They provide consented, zero-party data directly from the customer – preferences, behaviours, motivations – that can’t be bought from third-party sources. But all too often, retailers are underutilising this goldmine, defaulting to static rewards and generic emails rather than dynamic, insight-led journeys. 

 

From Automation to Anticipation 

 

Smart loyalty programmes now leverage predictive analytics to do far more than send discount codes. They anticipate customer needs, flag potential churn, and fine-tune incentives in real time. They can simulate loyalty scheme changes before launch, test and optimise offers on the fly, and uncover the emotional motivators behind purchasing patterns. 

 

But AI doesn’t work in a vacuum. It demands clean, structured, and ethically sourced data. It needs a business culture that understands loyalty not as a channel, but as the central nervous system of customer intelligence. Retailers who elevate loyalty into an insights engine – not just a marketing tactic – are gaining a clear competitive edge. 

 

Look at Sephora’s Beauty Insider programme, which turns loyalty data into actionable beauty preferences and personalised experiences. Or Nike, which uses exclusive product drops and early access to reward loyalty and drive brand advocacy. These aren’t gimmicks – they’re strategic, data-powered experiences that connect at both rational and emotional levels. 

 

Loyalty That Feels Human 

 

It’s easy to get excited about the tech. But loyalty isn’t won through algorithms alone. Emotional connection still drives behaviour – especially in volatile economic times. 

 

Consumers seek value. But they’re also seeking belonging. They want to feel understood, recognised, and part of something. Loyalty programmes that deliver early access, exclusive communities, or product development input perform better with younger audiences because they offer something more than transactional benefit – they offer identity and involvement. 

 

The data backs this up. While 84% of UK shoppers say discounts matter, 73% of Gen Z and Millennials say experience-based rewards are what really motivate them. And with 78% willing to share personal data in exchange for better benefits, the willingness is there – brands just need to reciprocate with relevance. 

 

From Silo to Strategy 

 

Loyalty should inform how you price, how you innovate, how you retain, and how you forecast. It should shape your omnichannel strategy. It should drive product and service evolution. And with AI in play, it should be your primary testing ground for what actually works to move customer behaviour. 

 

Put simply: loyalty can no longer be a scheme. It’s a strategy. 

 

Retailers who combine human insight with machine intelligence will be the ones who build not just repeat business, but resilient, high-LTV customer communities. They’ll turn loyalty into lasting advantage. 

Because in a world of endless choice, loyalty is underpinned by relevance. And that starts with data. 

 
 
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