Sure, reward points can lower the bill on a shopping trip, but when it comes to gaining loyalty, a trip around the racetrack definitely covers more miles.
That kind of experiential perk is among several creative member benefits that loyalty program operators delivered in 2024 in an evident bid to attract members. And the competition is heating up!
More than 90% of all companies now operate some form of a loyalty program, essentially making them as common as branded websites. And here’s one way they intend to stand out: In late 2023, 87.5% of loyalty program operators said they planned to engage with members in non-transactional ways in the next three years, Queue-It reported.
7 Reward Benefits Worth Watching
Non-transactional can mean many things, however, based on creativity (including bringing in a partner). This list of program perks and innovations from 2024 will shape what reward program managers and consumers can expect in 2025.
1. NASCAR’s Fan Rewards keeps pace. NASCAR has long invested in developing one-of-a-kind experiential rewards because they’re both memorable and good for business. After all, many NASCAR fans never make it to the tracks, instead choosing to watch from home or a public place like a bar or restaurant. The “VIP Experience” feature of Fan Rewards changes that by transporting these loyal fans to the tracks, where they can cash in their points for once-in-a-lifetime experiences. In 2024, these unique rewards include pace car rides, Victory Lane photos, and the opportunity to wave the checkered flag for qualifying rounds.
2. Walmart+ goes for the crown. Walmart launched its $98-a-year Walmart+ program in 2020 added features to keep the program enticing, such as the Walmart Cash savings benefit, a “promotional currency all Walmart customers can get through manufacturer offers.” Then, in August 2024, Walmart partnered with Burger King in a first-of-its-kind dining benefit that gives members 25% off all digital offers, plus a free Whopper every three months. (Walmart+ members have to link their Burger King Royal Perks accounts to kick in the benefit.) The partnership could boost sales at Burger King, attract more Walmart+ paying members and generate useful new data insights.
3. Ulta Beauty Rewards gets the nod for s-a-v-v-y. In 2024, this specialty seller of makeup, skin treatments and hair added a very popular word game into its rewards mix. Ulta’s GlamXplorer program was an activity platform that tied beauty to gaming with challenges that included a “Word of the Day” puzzle similar to the New York Times’ game Wordle. Ulta invited 1,000 top-spending Ulta Beauty Rewards members into the test, tapping into a wealth of insights and enticing purchases by incorporating solution words such as BLUSH. Ulta is now telling participants to “stay tuned” for what’s next. We are!
4. North Face XPLR passes the test. Among the perks of the outdoor gear brand’s XPLR Pass, members get to test unreleased products, meaning they get involved. In 2024, some members might have been testing products at one of North Face’s Trail Days hiking events in Austin, Denver and New York. At each event, members of all experience levels hiked with North Face athletes, professional guides and industry experts. Then, to reinforce camaraderie (and loyalty), North Face hosted lunch, drinks and music for the 100 participants. “Lots of new friends!” the brand encourages on its FAQ page.
5. Lululemon platform leans into experience. In a twist to standard reward program models, the activewear brand’s Essential program focuses on experiential benefits rather than financial savings. In 2024, Lululemon extended these benefits to include access to 12 outside fitness and wellness brands. Through Partner Perks, members get exclusive offers on buzzy brands like La La Land Café, Sweetgreen, Oura smart rings and Erewhon nutrition. Perks include free six-month memberships with Oura and half-price “lulu lattes” at La La Land, as well as community building.
6. Marriott’ Bonvoy makes a Swifty move. In a master stroke of innovation, the Marriott Bonvoy program announced a sweepstakes campaign in February in which members could win much-coveted concert tickets for Taylor Swift’s Eras Tour. The sweepstakes issued three opportunities to see the megastar perform with travel and hotel included. Marriot also enticed Bonvoy members to redeem their points toward Swift tickets through the Bonvoy Moments experiential portfolio. In return for 500,000 points, members gained access to two concert tickets and hotel nights. Marriot’s program inspired a lot of fan chatter and likely member enrollment.
7. Domino’s gives extra topping for tips. Domino’s “You Tip, We Tip” loyalty promotion is uncannily on the mark. Launched just months before U.S. presidential candidates Donald Trump and Kamala Harris called to cut taxes on tips, Domino’s pledged to give customers $3 coupons every time they tip a delivery worker. Credit cards similarly issue points on charged tips, but the restaurants aren’t directly involved. By owning the perk and devising a remedy for “tipping fatigue,” Domino’s gains full-on recognition. It also shows customers it cares by sharing the tipping burden, an effective recruitment tactic.
Looking Ahead: 3 Perk Innovations Worth Testing
The above incentives have something in common: they’re tests. Some might not survive into 2025, but they will inspire innovation. Here are three suggested guidelines.
- More competitive paid membership perks. In 2024, Target, Best Buy and even Chuck E. Cheese added paid membership tiers. So consumers are getting pickier about them: 31% shop for less expensive subscription options and 24% rotate subscriptions regularly, CNET reports. Let’s hope programs reinvest their membership revenue in benefits that are worth more than the enrollment fee, including an easy-to-find (and thoughtful) “pause subscription” button.
- More considerate artificial intelligence. The AI market, worth $185 billion according to Statista, is expected to grow at an annual rate of 28.5% for good reason: it processes data faster and more accurately than other technologies. However, no matter how well-targeted or creative the reward, members can tell if a brand sees them merely as sales targets and not as sentient beings. Companies can find ways to use AI to show they care beyond typical engagement tactics, such as product recommendations based on recent purchases.
- Find strength in partners. In Europe and Canada, hundreds of companies commonly work together to form joint loyalty programs (such as Nectar in the U.K). Through these collaborations, consumers can earn and redeem rewards at any of the participating brands, and the brands access a greater pool of data. This model has yet to take off in the States, but partnerships such as that between Walmart and Burger King offer similar benefits and should be more widely explored.
Are these efforts guaranteed? No. But uncharted territories carry risk, and companies have to dare risk and defeat, to embrace success. As T.S. Eliot supposedly said, “Only those who risk going too far can possibly find out how far one can go.”
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