The 2026 State of Customer Loyalty report from Loyalty360 shows that brands aren't just running their loyalty programs anymore. They're rebuilding them. Based on more than 160 brand marketers, the research reveals where loyalty budgets, teams and technology are heading, and what's standing in the way. Here's a preview of what's inside and why it matters for your 2027 plan.
TL;DR: What does the 2026 State of Customer Loyalty report reveal?
Customer loyalty has moved from a points program to a business strategy, and brands are being asked to prove it.
- Nearly nine in 10 brands plan to update, enhance or redesign their loyalty program in the next 12 months.
- Personalization is the top investment priority for the year ahead.
- AI is moving from experiment to everyday tool in loyalty marketing.
- Technology integration is still the biggest barrier, and people and resource challenges are growing fastest.
- Brands that measure honestly and win executive support are the ones pulling ahead.
Planning your next year? Pair this preview with our guide to building a 12-month loyalty roadmap and our look at what separates high-performing customer loyalty plans.
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What is the 2026 State of Customer Loyalty report?
The 2026 State of Customer Loyalty report is Loyalty360's annual research into how brand marketers are investing in, modernizing and measuring their loyalty programs.
This year's edition draws on more than 160 brand marketers. It covers program maturity, investment priorities, technology adoption, organizational support and business results, with year-over-year comparisons that show which way the industry is moving.
What makes it useful is the point of view. These aren't consumer opinions about rewards. They're the people who own loyalty budgets, answering the questions you're probably asking in your own planning meetings.
Why are brands reinventing their loyalty programs now?
Brands are reinventing their loyalty programs because longevity alone no longer keeps a program competitive.
Many programs in the research have been in market for a decade or more. That maturity is a strength, but customer expectations, digital experiences and AI have changed faster than most program structures. According to Loyalty360's 2026 State of Customer Loyalty research, 89% of brands plan to update, enhance or completely redesign their loyalty program within the next 12 months, up sharply from 64% the year before.
That jump tells you something important: program evolution has become an ongoing business practice, not a once-a-decade relaunch. The full report breaks down how many brands are planning a refresh versus a full rebuild, and which enhancements they've already added.
What customer loyalty trends will shape 2027?
Personalization leads the customer loyalty trends heading into 2027, with brands looking well beyond traditional points and discounts.
Loyalty360 found that 73% of brands name enhanced personalization as a key focus for the coming year. Close behind are gamification, new reward options and digital and mobile app experiences, followed by brand partnerships, tier changes and better member communications.
For example, a specialty retailer might keep its points structure but add tier-based challenges and personalized reward reminders, so members feel the program was built for them rather than handed to them.
The report shows how each of these priorities has shifted over three years of research, which is where the real planning value is. Some trends are climbing quickly. Others are holding steady.
How are brands using AI in loyalty programs?
Brands are using AI across the loyalty lifecycle, from content and messaging to segmentation, prediction and offer decisions.
The headline is simple: only 8% of respondents say they aren't using AI in their customer loyalty efforts at all. AI is becoming part of the infrastructure, not a side experiment.
The more interesting story is in the gap between the most common uses and the advanced ones. The report shows which AI applications are mainstream today and which are still early, a useful way to see where your team sits against peers and where the next competitive edge may come from.
Inside the report
Nearly nine in 10 brands are rebuilding loyalty.
Find out what they're changing, what's getting in the way and how they're proving ROI to leadership.
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Source: Loyalty360, 2026 State of Customer Loyalty
What's holding loyalty programs back?
Technology integration is the most common barrier to loyalty progress, and organizational challenges are rising behind it.
Loyalty360 reports that 60% of brands cite technology integration as a challenge, with platform limitations close behind. But the biggest year-over-year change isn't about technology. It's about people: resource allocation and staffing saw the largest increase of any challenge measured, and competing priorities and budget buy-in grew too.
That matters, because a new platform won't fix a team that's stretched too thin. We see it again and again: strategy should drive the technology, not the other way around. The full report includes a side-by-side table of 10 challenges for 2026 and 2025, so you can see which are easing and which are getting harder.
If data is one of your sticking points, our post on customer data that strengthens loyalty marketing is a good next read.
How do loyalty leaders prove ROI to the C-suite?
Loyalty leaders prove ROI by connecting their program to customer growth, spend, retention and enterprise insights, then reporting on it consistently.
The research points to a measurement picture that's still in progress. Many brands say they have the KPIs they need, yet a growing share say they have only some of them. At the same time, more loyalty leaders report spending extra time advocating to their C-suite.
The good news: brands that put in that work are seeing it pay off. The report shares how many respondents say their program is driving customer growth, increased spend, digital engagement and enterprise insights, plus how executive support has changed since last year.
Useful metrics to bring to that conversation include:
- Retention: how many members stay active and keep buying over time.
- Member spend: how much more members spend than non-members.
- Purchase frequency: how often members come back.
- Engagement: how members interact across email, app, web and store.
- Incremental ROI: what the program earns above a holdout group.
For benchmarks on the first one, see why industry retention averages fall short.
How did Fleet Feet turn loyalty data into a 600% incremental ROI?
Fleet Feet turned its customer data into a tier-targeted reward reminder campaign that delivered a 600% incremental ROI.
Challenge. Fleet Feet wanted to see what direct mail could add to its loyalty program, and needed to prove the results against a control group.
Solution. We built a direct mail test from Fleet Feet's customer data, including a reward reminder campaign targeted by loyalty tier, so each member got a message that fit where they stood in the program.
Impact. The reward reminder campaign earned a 24% response rate, performed 5% higher than holdout and delivered a 600% incremental ROI.
One challenge. One idea. One accountable team. Read the full Fleet Feet story.
Results reflect specific client engagements; averages are noted where applicable.
How can you use the report to plan your 2027 loyalty strategy?
Use the report as a benchmark: compare your priorities, challenges and results against your peers, then decide where to invest first.
Here's a simple way to work through it with your team:
- Benchmark your roadmap. Compare your planned enhancements with what peers are prioritizing.
- Name your real barrier. Decide whether your biggest obstacle is technology, people, budget or measurement.
- Check your KPIs. List the metrics leadership asks for and mark which ones you can report today.
- Pick one personalization win. Choose a single segment or tier where a more personal message could move retention.
- Build the business case. Use peer data to show leadership why loyalty deserves continued investment.
For example, a loyalty director preparing next year's budget could use the report's investment and executive support findings to show that peers are holding or increasing spend, then pair it with her own retention data to make the ask.
Need a framework for the personalization piece? Start with our customer segmentation strategies.
Frequently asked questions about the 2026 State of Customer Loyalty report
Who conducted the 2026 State of Customer Loyalty research?
Loyalty360 conducted the research, surveying more than 160 brand marketers about their loyalty programs and strategies.
What is the top loyalty priority for brands in 2026?
Enhanced personalization is the top priority, with 73% of brands naming it a key focus for the coming year, according to Loyalty360.
Are brands still investing in loyalty during economic uncertainty?
Yes. The research shows most brands are maintaining or increasing their loyalty investment despite economic pressure. The full report has the breakdown.
How many brands use AI in their loyalty programs?
Most of them. Only 8% of respondents say they don't currently use AI in their customer loyalty efforts.
What is the biggest challenge for loyalty programs right now?
Technology integration is the most cited challenge at 60%, while staffing and resource concerns grew the most year over year.
Where can I get the full 2026 State of Customer Loyalty report?
You can download the full 2026 State of Customer Loyalty report here, with every chart and year-over-year comparison.
Final takeaway: loyalty is now a discipline, not a program
The brands in this year's research aren't chasing shiny features. They're doing the harder work: better data, honest measurement and alignment across teams so that personalization and AI actually pay off.
That's where the competitive advantage is being built in 2027. And it's where we spend our days with clients, through loyalty program design and management, customer analytics and the multichannel execution that brings it to members.
Get the full report to see every finding, then let's talk about what it means for your program. Talk to our Customer Strategy Services team or explore how we approach customer loyalty.
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