Brand loyalty in 2026 gets personal

As 2026 approaches, loyalty programmes are evolving from simple retention tools into strategic growth engines, reshaping how brands engage with consumers. According to Lena Kleinwechter, Customer Engagement & Loyalty Strategist at Talon.One, four key trends are set to define the loyalty landscape next year.

“The momentum behind loyalty has never been stronger,” Kleinwechter notes. Data from Mintel shows that in the UK, 80 percent of consumers actively engaged with at least one loyalty programme in 2025, highlighting how integral these schemes have become to shopping habits. Brands are increasingly recognising that discounts alone offer only short-term gains. Research conducted by Talon.One in collaboration with Harvard Business Review found that 66% of enterprise brands plan to improve the profitability of their loyalty programmes in 2026.

Loyalty and promotions are converging as consumers rarely distinguish between a reward and a discount. Leading brands such as Sephora, Adidas, and ASOS have successfully linked promotions to loyalty programmes, driving engagement while protecting margins. Talon.One’s research suggests that 60 percent of enterprise brands plan to strengthen this integration next year.

Gamification is also emerging as a mainstream strategy. Iconic examples like Nike’s Run Club rewards or Sephora’s Beauty Insider Challenges show how interactive experiences can create non-transactional touch points, strengthen emotional connections, and encourage repeat engagement. In 2026, gamified loyalty programmes are expected to become a core driver of retention and brand affinity.

Finally, brands are rethinking traditional promotional emails. With average click-through rates around 2 percent, volume no longer equals value. Consumers now expect communications that are thoughtful, personalised, and relevant. Loyalty strategies will increasingly prioritise purpose-driven touchpoints over blanket campaigns, ensuring every interaction strengthens customer relationships and contributes to profitability.

The shift signals a broader realisation in luxury and lifestyle retail: loyalty is no longer a cost centre. When executed strategically, these programmes are powerful tools for engagement, personalisation, and revenue growth, a trend that looks set to accelerate throughout 2026.