Loyalty360 Releases 2026 State of Customer Loyalty Report: The Strategies, Ideas, and Technology Pow

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Loyalty360, the association for customer loyalty, has released its 2026 State of Customer Loyalty Report, sponsored by Baesman. Drawing on insights from more than 160 brand marketers across industries, the report offers an in-depth look at how leading brands are adapting their customer loyalty strategies to continued economic pressures, evolving consumer behaviors, and emerging technology.

As loyalty programs mature, they are no longer just a marketing initiative centered around points and discounts but are now viewed as long-term business strategies that are driving customer growth and spend. As such, brands are modernizing their programs through optimization, increased personalization, and expanding their programs beyond traditional rewards to deliver further value to both their customers and their business.

"Customer loyalty has evolved beyond a program or promotion to become a strategic business capability that touches nearly every aspect of the customer experience," said Mark Johnson, CEO of Loyalty360. "This year's research shows that brands are making significant investments to continually enhance their loyalty strategies through personalization, technology, AI, and data-driven decision-making. The brands seeing the greatest success are those treating loyalty as an ongoing business strategy rather than a one-time initiative."

Key Report Highlights:

64% of brands are exploring enhancements or full overhauls to their loyalty programs.

63% are maintaining or increasing loyalty investment despite economic uncertainty.

Experiential rewards (61%), Instant win/surprise and delight rewards (42%), and Tiered/exclusive rewards for VIPs (42%) are gaining popularity.

83% of respondents rate their loyalty strategy as effective or very effective.

Content creation and messaging (43%), Customer segmentation and personalization (40%), and Predictive analytics and risk management (27%) are cited as top use-cases for AI.

60% cite technology integrations as a top challenge.

"Brands are increasingly recognizing that customer loyalty isn't something you build once, but something you continually refine," said Carly Stemmer Ivory, SVP & Research Analyst at Loyalty360. "This year's research shows organizations making meaningful investments in personalization, technology, and program enhancements while placing greater emphasis on measuring business impact and adapting to evolving customer expectations."

What’s Inside the Report:

Loyalty Strategies and Enhancements – Enhanced personalization, gamification, new reward options, and digital experience upgrades top the list of strategic priorities.

Reward Preferences and Member Engagement – A continued shift toward experiential, exclusive, and emotionally resonant reward offerings.

AI and Data Strategy – 41% of brands are exploring potential AI applications and/or establishing AI governance, guidelines, or responsible AI practices.

Organizational Support – 72% of brands report maintaining or increasing investments in customer loyalty, with 46% increasing their investment level.

Customer Loyalty Challenges – In addition to technology integration, brands also site platform constraints and internal resource allocation/staffing as key barriers.

2026 Trends & Opportunities – Highlights actionable priorities around personalization, reward innovation, artificial intelligence, digital experiences, and building organizational

"We're proud to sponsor Loyalty360's State of Customer Loyalty research for another year,” states Kim Welther, Vice President, CRM & Loyalty at Baseman. “This report confirms what we're seeing across the industry: personalization and AI are no longer optional, they're expected. At Baesman, we help brands build the data foundations that make that kind of personalization possible, and this research is a valuable benchmark for where loyalty strategy needs to go next.”

Loyalty360's State of Customer Loyalty Report is now available on loyalty360.org. For additional information on the report, to arrange an interview, or speak with an analyst regarding the report, please feel free to contact info@loyalty360.org.

About Loyalty360

Loyalty360 is the only objective community for customer loyalty enabling and encouraging dialogue among industry leaders. Through a unique blend of original content, cross brand collaboration, and diverse learning opportunities, we've created a network of brands and technology providers representing some of the best voices the customer loyalty industry has to offer. Visit us at Loyalty360.org, or subscribe and follow us on YouTube, Twitter (X), LinkedIn, and Instagram.  

About Baesman Group

Baesman Group is a trusted partner in customer loyalty, helping brands design, optimize, and execute loyalty strategies that drive long-term member engagement and measurable ROI. With expertise in data-driven marketing, customer analytics, and personalized communications, Baesman supports every stage of the loyalty lifecycle from program design and member acquisition to ongoing loyalty program management and engagement through email, SMS, and direct mail. Brands like Fleet Feet, Carhartt, and Hibbett rely on Baesman to turn customer data into loyalty that performs. For more information, visit https://www.baesman.com/.