(This thought piece started with my grey matter perspiration punctuated by Perplexity inspiration. Time-To-Write including ruminating; 7 days elapsed…120 min to write, read, edit, repeat (thank you Amantha Imber for the TTW tip)
I’ve been quietly ruminating for some time on where loyalty programs make an impact on their members and to a greater degree on humanity (well, members are humans anyway).
Moving from the dance floor to the balcony, I took a ride (metaphorically) above the streets of the city (it is Melbourne), looking over humanity.
People thriving and surviving the challenges, opportunities and joys of life.
This pretend perspective gave rise to the realisation loyalty programs impact in some small way, the lives of humans, every day.
Across many consumer categories – grocery, fuel, fashion, QSR, pets, sports, entertainment, hospitality, banking, travel and accommodation, airlines, health and general insurance, telco, tolls, motoring services, ecommerce, delivery commerce, lotteries, automotive (what have I missed), loyalty programs (however you define them) are here, there and everywhere.
The point of view gained from up high, provided an epiphany for eight impacts loyalty programs have on humanity.
- Normalising the data value benefit exchange (DVBx*)
- Datafying identity
- Amplifying status and ‘specialness’
- Compressing patience
- Commoditising privilege
- Feeding the craving for a saving
- Reinforcing reciprocity – a joy of life (JoyaltyTM
- Solving problems for humanity
1. Normalising the Data Value Benefit Exchange (DVBx)*
Loyalty programs have educated an expectation; data is a currency of exchange, a trade between the member and the ‘program’ (aka business).
Data is of value to the business (insights and income) in exchange for the benefit to the member of:
- Money: “programs saving me money (cashback, savings and discounts)”
- Recognition: “programs recognising me as a valued member, making me feel special with status and exclusive experiences”
- Time: ‘programs saving me time and making my life easier (digital receipts, tap and pay, member service hotline)
- Relevance: “programs are personalised and relevant to me (using my data to provide relevant and personalised offers and rewards)”
- Joy: “programs making my life more joyful, providing surprise offers and moments of delight
Impact: Humanity have realised the formality of loyalty programs as a data value benefit exchange. It’s a conscious competency…”why do you want my birthdate?”
Consideration: Don’t take member data for granted. PID (Personally Identifiable Data) belongs to members, now exchanged with consent. Respect the data you gain. Use it sensitively. Use it if you ask for it.
*(DVBx developed and quantified by importance to members in the 2025 For Love or MoneyTM research)
2. Datafying identity
An extension of 1. above (with a different point of view), humans are now a data asset. A data point. A unique ID. A member record.
However, moving the mindset from identification (an internal view) to identity (a member’s view) is an opportunity and ambition on the agenda of programs seeking to connect with members with more meaning.
For Love or MoneyTM 2026 identified 48% of members agreed that being part of a brand’s loyalty program reflects who they are, their identity.
This does not mean identity as a data point or unique number, it means identity as to “Who I am?”, “What I stand for” and “Where I belong”.
”I am a <insert program name> member!”
Being part of a loyalty program and engaging with it is more than a transaction; it is an expression of identity.
Impact: Humans are more than a data asset. A data point. A unique ID. A member record. Forgetting the identity of member, the human behind the identification and data point is a danger zone.
Consideration: While programs optimising for transactions remains important, evolving to anchor attachment through identity is on the agenda for the next generation of loyalty programs (the data tells us so).
Lifting loyalty programs from a transaction to a meaningful connection is an ongoing opportunity to be pursued.
3. Amplifying status and ‘specialness’
Loyalty programs with overt status and tiering amplify the social hierarchy of humanity.
These structures have reinforced ‘specialness’ into humanity, framed as an ‘earned privilege’.
Status has become gamified (status flyers are real and many) and belonging is now measured – who belongs to silver, gold, platinum and invite only?
It is also visible, the red ropes and member only access.
Impact: Humans learn symbolic recognition (1st, 2nd, 3rd place) and status from an early age, the moment socialising begins. Status is a tribal instinct within a commercial system.
“Look at me”. “Make me feel special”. “Show others I am special”. Loyalty programs are professional status makers.
Consideration: Managing members in and out of tiers can lose the specialness, creating angst for both members and the business. Tears for tiers.
4. Compressing patience
The mechanics of loyalty programs add to the need for now.
Immediate benefits stimulate a response and resolve an addiction for now, “sign up now and receive…”.
Depending on the program structure and frequency of buying behaviour, collecting for a future benefit loses shine over time. The caveat here is based on the size of the prize being greater than the effort expended to achieve it.
The commitment and consistency behind it (show me my rewards accumulating at pace towards my goal) goes a long way to staying the course. Think of Everyday Rewards ‘Bank your points for Christmas’ or those frequent flyer/buyer points accumulated for the family holiday.
Impact: Loyalty programs are reinforcing ‘shortermitis’ (the affliction of want it now), mirroring humanity’s time horizon from future oriented to instant gratification.
Consideration: It’s not one or the other. It is both. Even better, offer a choice – “do you want your benefit now or save it for the future?” Bonds Rewards have nailed this with ‘Manual rewards or Automatic Rewards’ https://www.bonds.com.au/rewards
5. Commoditising privilege
In contrast to ‘Point 3 above, ‘Amplifying status and specialness’, loyalty programs are moving privilege from the select few to the mass many where special treatment is more accessible, tradeable (think Status Match offers) and even purchasable (https://tinyurl.com/t3mu6bm5)
Impact: Loyalty programs become a paradox of privilege, allowing those that can to buy into specialness either through earning or paying.
Consideration: if privilege becomes too mass (exclusive for everyone), it gets lost in the clutter of conformity. This is as much a reality as it is a warning!
6. Feeding the craving for a saving
The saving habit, reinforced by programs providing value back (money in the most part) is accentuated during periods when humanity is challenged by living an affordable life (different for everyone), a pressure-point right now.
Be it fuel, grocery, QSR, travel, gift cards, movies, lipstick …and the 10th coffee free, loyalty programs feed the need to save or get a little back to ease the pressure.
Impact: In an economic whirlpool of maintaining a standard of living, loyalty programs are a go-to benefit for humanity (members), reinforcing the reality they are a source of savings.
Consideration: Savings from programs can become a price position (margin can erode) so extra sensitivity is needed to the world in which humanity craves to save.
7.Reinforcing reciprocity – a joy of life (JoyaltyTM)
Loyalty is a two-way street. A give-back to get-back. Loyalty programs play well in the sandpit of rational reciprocity, spend this to get that.
However, humanity are also, if not more so, on the lookout for emotional reciprocity.
Just say thank you, write a note of appreciation or add a TimTam to an order (thank you Adore Beauty) are stimulus for the greater of good of humanity. Random acts of kindness, giving joyful moments within a ‘planned spontaneity’ reality make for more human-ness amongst some to the human-mess.
Impact: While ‘love’ has many dimensions, humans love to love. Unexpected JoyaltyTM Moments of Magic are a love source. They are the future force of emotional connection with members and a potential barrier to bots and agents sparring over price.
Consideration: If loyalty programs create the plan (structure and budget) to be joyfully spontaneous, the short term and long-tail impact makes for a better human kind. More joy. More smiles. More moments to remember.
8.Solving problems for humanity
While loyalty programs in the main are impacting the member, there is a groundswell of programs providing solutions to problems impacting the greater good of humanity – for the better:
Grill’d Relish Membership – feeding the hungry. (Cost of 241,050 Meals donated since launching Relish in 2019).
Ritchies IGA & Liquor – “The Ritchies Community Benefit Program (part of their loyalty program) commenced back in August 1993. Ritchies have paid over $55 million to over 5,000 clubs, schools and charities from 1993 to the present day.”
Medibank Live Better Rewards – “Live Better rewards is a health and wellbeing program that rewards members for healthy actions. Walking, sleeping, eating healthy and more – everything counts!”
AAMI Driving Rewards – “Drive safe, get rewarded. Track your driving, score 85+ each month on the 1st then unlock cashback offers from retailers in the AAMI App when you have an eligible AAMI policy – like Car Insurance!*”
Impact: Solving problems in the world around us continues to be my personal mission with programs where relevant. The impact can be meaningful and measurable.
Consideration: As you develop or review your program, ask yourselves…is there a way the program can make an impact on the greater good of humanity?
Summary
Whichever way you look at the eight impacts on humanity, half full or half empty, it’s up to you to realise the relevance and impact of loyalty programs on the lives of your members.
They are part of humanity.
