arket? The answer is simple. The role of loyalty is changing. For years, loyalty programs were primarily designed to drive retention through points, discounts and rewards. Customers spent money, earned points, and redeemed benefits. The value exchange was straightforward, and for a long time it worked. Today, however, retailers are asking much more of loyalty. Programs are increasingly expected to support customer acquisition, power personalisation, fuel retail media networks, generate first-party data, deliver customer insights and increase lifetime value. In many organisations, loyalty has evolved from a marketing initiative into a strategic business asset sitting at the intersection of customer experience, data and commercial performance. At the same time, customer expectations continue to rise. The latest “For Love or Money” customer loyalty report found Australians now belong to an average of 10.1 loyalty programs. In an environment where consumers are inundated with memberships, offers and rewards, simply offering points is no longer enough to earn engagement. The challenge for retailers is no longer getting customers into loyalty programs. The challenge is remaining relevant once they are there. As a result, we’re seeing a new generation of loyalty programs emerge – programs designed not just to reward transactions, but to create ongoing value, deeper engagement and stronger customer relationships. Across the market, four clear trends are beginning to reshape how retailers think about loyalty. 1. Loyalty laddering One of the most interesting shifts is the emergence of what I call loyalty laddering – multiple loyalty propositions working together to create deeper engagement and unlock greater value across different customer segments. Rather than relying on a single program, retailers are building ecosystems of benefits. Coles is a strong example, combining Flybuys with Coles Plus and Coles Plus Saver to create multiple layers of value and stickiness. These programs are designed to work together, increasing engagement while creating additional reasons for customers to remain within the retailer’s ecosystem. 2. Hyper-personalisation and individualised rewards Personalisation has long been a loyalty ambition, but we’re now seeing programs move beyond personalised communications to truly individualised rewards and experiences. Customers increasingly expect programs to reflect their preferences, behaviours and shopping habits. This can include personalised welcome offers, customised reward options, individual double-points days, tailored bonus periods and rewards based on specific purchasing behaviours. Myer’s recently revamped MYER one program includes personalised double-points days, while Starbucks Rewards offers initiatives such as Free Mod Mondays, encouraging customisation. These examples signal a broader shift towards loyalty experiences that adapt to the individual rather than treating all members the same. 3. Accelerated earning and smaller rewards Consumers increasingly expect to experience value sooner. As a result, retailers are reducing the gap between earning and redemption through accelerated earn rates, milestone rewards, and smaller benefits that can be accessed more frequently. Rather than requiring members to accumulate points over extended periods, programs are being designed to reinforce engagement earlier and more often. The principle is simple: Customers are more likely to engage when they can see tangible value quickly. Delayed gratification is becoming harder to justify. 4. Pooling and shared accounts Traditionally, loyalty programs have been designed around the individual customer. Increasingly, however, retailers are recognising that purchasing decisions often occur at a household level. Family accounts, linked memberships and pooled rewards are becoming more common as retailers seek to better reflect how customers actually shop and make decisions. Myer’s recent program enhancements introduced family pooling capabilities, allowing members to combine spending and unlock benefits faster. These structures create greater flexibility for customers while helping retailers strengthen engagement across entire households rather than individual members. Together, these trends reflect a broader shift occurring across the loyalty landscape. Programs are becoming more personalised, more flexible and more deeply embedded within the customer experience. The focus is moving away from simply rewarding transactions and towards creating genuine value that strengthens customer relationships over time. The execution gap remains While retailers clearly recognise the importance of loyalty, many continue to face maturity challenges. Our research found 57.1 per cent of retailers describe their loyalty capability as still maturing. The broader findings tell a similar story. While 89.1 per cent of retailers identify personalisation as strategically important, only a small proportion believe they have the mature capability to deliver it effectively. Similarly, while omnichannel experiences remain a major priority, many organisations continue to grapple with the data, technology and operational foundations required to execute consistently across channels. These findings matter because loyalty does not operate in isolation. A loyalty program is only as effective as the customer data, technology infrastructure, and experience ecosystem supporting it. Without those foundations, loyalty strategies struggle to achieve their full potential. AI could accelerate every one of these trends While loyalty is already evolving to meet changing customer expectations, another force is beginning to reshape the landscape – yes, AI. Much of the discussion around AI in retail has focused on productivity, personalisation and operational efficiency. Yet its potential impact on loyalty may prove just as important. My study found more than 83 per cent of retailers believe AI and agentic commerce will have a significant or moderate impact on how consumers shop. That’s a remarkable statistic, considering how early we still are in the adoption curve. The reason is that AI is not simply changing how retailers operate. It is beginning to change how customers discover, evaluate and purchase products. And that has implications for loyalty. Designing loyalty for machines, not just humans Historically, loyalty programs have been designed to influence human decision-making. In the emerging era of agentic commerce, they may also need to influence machine decision-making. As AI-powered shopping assistants become more sophisticated, consumers will increasingly be able to delegate elements of the shopping journey to technology. Whether it’s replenishing household essentials, comparing prices, identifying offers or recommending products, AI will play a growing role in purchase decisions. When that happens, loyalty becomes more important, not less. An AI agent still requires signals to guide decision-making: purchase history; brand preferences; past behaviour; membership status; rewards balances; personalised offers; historical interactions. These are all signals that loyalty programs help capture and structure. In many ways, loyalty data becomes part of a customer’s digital identity. An AI assistant evaluating multiple retailers on behalf of a customer may increasingly consider loyalty benefits alongside price, convenience and availability. Existing memberships, accumulated rewards, exclusive benefits and historical preferences could all influence recommendations. That changes the role of loyalty dramatically. The question is no longer simply: ‘How do we make our loyalty program attractive to customers?’ Increasingly, retailers may need to ask: ‘How do we make our loyalty program attractive to the AI systems helping customers make decisions?’ It is a subtle shift, but potentially a profound one. The next chapter of loyalty The future of loyalty is unlikely to be defined by bigger discounts, larger points balances, or more complex tier structures. Instead, successful programs will increasingly focus on creating meaningful value through personalisation, flexibility, customer understanding, and deeper engagement. The four trends emerging today – loyalty laddering, hyper-personalisation and individualised rewards, accelerated earning and smaller rewards, and pooling & shared accounts – all point towards a future where loyalty becomes more dynamic, more personalised and more deeply integrated into the customer experience. AI and agentic commerce will probably accelerate that evolution. For years, loyalty programs have been designed to drive repeat purchases. Today, they are becoming customer data engines, personalisation platforms, and strategic business assets. Tomorrow, they may become something else again. As AI becomes increasingly embedded in the shopping journey, retailers will need to think not only about how loyalty creates value for customers, but also how that value is recognised, understood and acted upon by the systems helping customers make decisions. Because in the next era of commerce, loyalty may not simply influence whom the customer chooses. It may influence whom their AI chooses as well.