Personalization and Digital Tools Redefine Brand Loyalty in 2025

A Deloitte report shows that as consumers increasingly seek value beyond price, brands are reimagining loyalty programs to deepen engagement, focusing on personalization, seamless digital experiences, and benefits that extend beyond traditional rewards.

Changing Consumer Definitions of Value

Recent research indicates that consumer expectations of value are shifting, with a growing focus on factors beyond price. According to Deloitte’s study, 40% of Americans now display cost-conscious or deal-driven behaviors, affecting industries from groceries to travel. Notably, even high-income households are reevaluating what constitutes value, seeking brands perceived as fair in pricing and generous in rewards. This trend has intensified price-based competition, but data shows that non-price factors—such as customer service, quality, and loyalty programs—significantly influence consumer perceptions of value.

For example, in the restaurant and hotel sectors, employee friendliness is a key value driver, while in apparel, helpfulness and effectiveness are prioritized. Brands that deliver value beyond price command higher future purchase intent, suggesting opportunities to differentiate without resorting to price wars.

Loyalty Programs as Strategic Differentiators

Loyalty programs have become a central strategy for brands aiming to build long-term customer relationships. Deloitte’s 2025 Consumer Loyalty Program Survey found that while price, value, and quality remain the top loyalty drivers, loyalty programs are a close fourth. These programs are no longer optional; they are now a strategic lever for sustained business performance.

Survey results show that 72% of consumers are more likely to spend with brands offering loyalty programs, and 56% increase their spending due to program participation. Additionally, 80% perceive greater value from brands as a result of these programs. However, there is a gap between enrollment and active engagement: while consumers enroll in an average of eight programs, they actively participate in only five, with over half engaging with just one program. This indicates that many programs lack ongoing relevance or fail to deliver sufficient value.

Beyond Points: Evolving Expectations and Generational Shifts

Consumers are motivated to join loyalty programs primarily by overall value, followed by ongoing benefits and immediate incentives. While discounts attract initial interest, the program’s sustained value is more important for long-term engagement. Preferences for loyalty programs also vary by generation. Gen Z and millennials value opportunities to support causes, participate in community events, and access efficient digital experiences. They are also more likely to be attracted to customized rewards and real-time digital features.

Strategies for the Next Era of Loyalty Programs

Brands aiming to convert enrollment into deeper engagement should consider three main strategies:

1. Effortless Redemption: Making reward redemption simple and flexible can increase engagement. While younger consumers tend to redeem rewards promptly, 40% of all respondents sometimes forget to redeem, indicating a need for more intuitive processes.

2. Purposeful Personalization: Tailoring loyalty experiences to individual preferences can enhance perceived value. Younger consumers, in particular, are willing to share personal data for more personalized offers. For example, 89% of Gen Z and 87% of millennials are open to sharing information to receive tailored experiences, compared with 64% of baby boomers. Personalized programs also drive higher spending among younger cohorts.

3. Enhanced Digital Tools: Digital features are increasingly important, especially for younger consumers. Over 90% of Gen Z and millennials find at least one tech-enabled feature useful, compared to 73% of baby boomers. Features such as payment integration, instant notifications, and personalized recommendations are particularly valued. Brands are encouraged to invest in digital capabilities that streamline access to rewards, improve consistency, and facilitate social interaction.

Implications for Brands

Loyalty programs are becoming essential for brands seeking to attract value-oriented consumers. While enrollment rates are high, the challenge lies in sustaining active, ongoing participation. Programs that offer easy redemption, meaningful personalization, and robust digital experiences are more likely to drive sustained engagement and differentiate brands beyond price competition.

Survey Methodology

The 2025 Deloitte Consumer Loyalty Program Survey collected responses from 5,564 U.S. adults who are loyalty program members. The survey covered seven major consumer-facing industry groups and 14 sectors, with data collected between September and October 2025. This comprehensive approach provides insights into how loyalty programs influence consumer behavior across various industries.

Discover more at Deloitte.