Top Customer Loyalty Trends for 2021 and beyond

August 23, 2021

By admin

Customer Loyalty Rewards Programs

It costs five times more to acquire new customers than it does to retain current customers and existing customers are 50% more likely to try a new product of yours as well as spend 31% more than new customers.  Hence, it is no surprise that customer retention is a crucial factor deciding the success of any business. That is why there is an increased focus by successful companies in revamping their customer loyalty program.

This has resulted in the evolution of loyalty programs which has made the traditional ones obsolete with innovative features like mobile loyalty apps, chatbots, gamified marketing techniques, and personalization more. So, let’s take a look at the trends that will define the loyalty programs in 2021 and beyond.


One reward program for all has become a thing of the past. The algorithms for capturing customer data and using it to its greatest potential are becoming more advanced every year. Loyalty program companies in India are investing heavily in using customer data to determine what each individual customer wants, what they like, what they might consider buying as an addition to their original purchase, and so on. In fact, non-personalized loyalty programs can get completely extinct in just a few years.  

Programs that reward the conscience

The values and ethics of a company has never been more important in the eyes of the consumer. A customer is more likely to continue shopping with you over your competitors if they feel that their purchases are helping to make a positive difference.

 A 2015 study by Cone Communications revealed that 91% of millennials would switch to a brand that is dedicated to a good cause. The trend is picking up among loyalty programs in India as well, as more companies appeal to the emotional side of their clients by showing that they also care about causes and various advocacies.

Instant Gratification

With the digital revolution in the country, we already live in an era where consumers don’t expect to wait for anything. Consumers are expecting everything to be at their fingertips, including loyalty programs. Instant gratification is a key function in almost all the successful loyalty programs in India.

Consumers want instant accumulation of rewards points that can be redeemable the moment they qualify for it. They will also continue to see instant coupons that are given for each completed transaction. This is where a loyalty program software can be your best friend. 


It has been reported that more than 80% of millennials and nearly 75% of baby boomers prefer to get rewards not just for purchases but because of their engagement with their favorite brands. Hence gamification methods will continue to improve, and loyalty platform softwares will make it easier for program operators to execute campaigns which persuade members to engage in specific behaviors.

Loyalty Program Partnerships

It has been done in the past, and it will still continue to happen this 2021 and beyond. Brands have always formed strategic partnerships with other equally popular brands to serve their customers better. The biggest draw of such loyalty programs is the flexibility and freedom of choice it offers to the customers. For brands, these programs are a great way to extend the reach and overall base of customers. These programs also enhance the credibility of your brand since it will be placed alongside other reputable brands.

Mobile apps

Mobile is increasingly becoming the crucial element in a brand’s sales and engagement strategy. Businesses that introduce an app can keep a pulse on their clients through advanced analytics through the app. It is much easier to track in-app activity and see which kinds of content draw the most user interest. By using an app, companies can refine their sales and marketing efforts with registration’s demographic info.

It is critical for businesses to always be updated when it comes to their loyalty and rewards programs to ensure that their clients will remain loyal to them. With so many competitors offering a world of value, those who do not offer this will eventually fade away.