Brands today are investing millions in loyalty programs, but many are missing the point. Recent research shows that only 18 percent of Gen Z consumers cite loyalty programs as a key reason they stay with a brand. Other reports show that and utilization of loyalty programs has grown just 10 percent over five years, even as enrollment jumped nearly 25 percent. The hard truth is that customers don’t stay with a brand for the points. But, they do stay for a purpose.

The U.S. loyalty market is projected to reach $27 billion in 2025, growing 15.7 percent annually. Consider some of these additional industry stats:

• Loyalty Leaders (companies at the top of their industry) have satisfaction rankings for three or more years that have grown 2.5 times faster than others.
• According to research, loyal customers are five times more likely to make a repeat purchase, 5 times more likely to overlook mistakes, and 4 times more likely to refer your brand.

But loyalty driven by programs alone often isn’t deep enough to sustain growth.

That’s because Gen Z, now commanding nearly a quarter of U.S. workforce spending power, isn’t motivated by discounts or swag. They demand authenticity, alignment with their values, and brands that act. Here are some additional stats that support this suspicion – 84 percent of consumers worldwide say they need to share values with a brand before buying, and nearly 60 percent of Gen Z feel aligned with other consumers who use the same brands.

Loyalty Starts with Leadership

Loyalty must grow from the inside out. Emotional intelligence, inclusive leadership, and consistent values are the backbone of meaningful engagement. Leaders who embody empathy and transparency create team cultures that produce marketing campaigns driven by trust.

That leadership is what frames the brand story authentically across messaging, customer interactions, and loyalty experiences.

Values-Driven Loyalty Marketing

Here’s how marketers can shift from transactional to transformational loyalty:

1. Align marketing with values, not promotions. Data shows Gen Z is 3.1x more likely to promote a brand that aligns with their values. Brands that prioritize sustainability, diversity, mental health, or social impact create fans of the brand.
2. Activate emotional connection, not just offers. Starbucks Rewards has grown to over 75 million members, driving 57 percent of U.S. sales, but it’s also supported by in-store experience and human touchpoints that reinforce trust. When loyalty feels like belonging, it becomes self-sustaining.
3. Treat retention as experience design, not automated drip sequences. Harvard Business Review reports that increasing retention by just five percent can boost profits between 25–95 percent. That requires two-way dialogue, surprise upgrades, vulnerability, and responding publicly when things go wrong.

Modeling Loyalty from Day One

Loyalty must begin before the first reward email. High-performing teams model customer-first thinking from leadership down. When authenticity, empathy, and transparency are baked into operations, they become the marketing advantage.

Whether you’re leading a loyalty program or designing customer experience, start by auditing your leadership values. Ask questions such as: Does our messaging match what we believe?

Loyalty isn’t earned. It is grown over time through consistent values, emotional connection, and marketing that listens. Younger generations are moved by authenticity, trust, and belonging, and other generations are watching them lead.

It’s time to move beyond “just points” and find that true connection.

About the Author

Katie Samuelson is a strategic marketing executive with over 12 years of experience driving growth and innovation for mid-stage and high-growth B2B SaaS companies. She is the founder of Growth Path Consulting Group. With deep expertise in demand generation, product marketing, and revenue strategy, Katie has successfully scaled businesses, built high-performing marketing teams, and led impactful go-to-market initiatives. Now, she advises and consults companies on marketing strategies, loyalty and customer retention programs, and product marketing — helping them drive revenue, optimize go-to-market execution, and scale effectively. She holds a Master’s in Business & Change Management from Northwestern University and a Bachelor’s degree in Communication from the University of Illinois.