The Future Of Loyalty Is Emotional. Not Transactional.

Forbes

22-05-2025

We live in a time of paradox: more customer data than ever, yet less attention, less retention, and more churn. Loyalty programs are widespread—but often feel empty. If your rewards don't spark joy, they're just discounts with lipstick.
In a recent conversation with Tal Keshet, VP of Snappy, we explored what it takes to turn loyalty into emotional brand love, and transactions into trust. His message? Loyalty isn't about programs. It's about people. And people remember how you made them feel—not the coupon you emailed last Tuesday.
People tend to have bigger emotional connections to experiences than things.
'An emotional connection gives a unique advantage—when it's done right,' says Keshet. 'We are inundated with so much information throughout a day but if you received something even years ago that made you feel special, that's something you hold on to, sometimes forever.'
Jason Zim, VP Mobile Product Management at Circana, 'Behavioral economics is a key driver to consumer participation. We created a tiered reward structure that allows users to earn more when they produce more. Further we show the user how they are progressing while they are in the application.'
Traditional loyalty programs have been largely transactional. They reward frequency, but not affinity. As Tal put it:
'Cash is easy. But that's a miss. Traditional loyalty focuses on static offers, generic messaging, and transactional behaviors.'
Instead, Tal champions what he calls 'experience-led loyalty'—where customers are not just rewarded but recognized. In fact, the recognition matters as much as the reward.
This shift echoes research I conducted while at Barkley regarding Gen Z and Millennials—who now represent the majority of purchasing power. They are loyalty skeptics. But they're deeply loyal to brands that share their values, understand their needs, and reflect their identities.
As Tal emphasized, brands must evolve from points to personalization, from offers to occasions that feel bespoke.
Emotion drives behavior. Behavioral science shows that feelings of gratitude, recognition, and surprise build stronger memory structures than rational incentives.
'If I can make a customer feel like they are that most important customer—and do that over and over again—they'll amplify. They'll share the brand, they'll write the review, they'll become an advocate,' says Tal.
This reflects a growing truth: emotional connection is a business asset. According to Forrester's Dipanjan Chatterjee, 'Loyalty is not a program. It's an outcome.' The brands who win long-term are those who make customers feel like more than a transaction.
And it starts with rethinking how your brand shows up across every moment.
In my own research and consulting, I've found that the best brands ask better questions. Here are several drawn from my frameworks and Tal's insights that every executive team should reflect on:
Tal's approach—at Snappy and in his strategy work—is simple but profound: the brands that win make people feel special. This is especially powerful in an era where competition is a click away.
As I've said before and written about in my book 'Marketing To Gen Z,' Empathy + Insight = Brand Love. But it's not just love—it's loyalty that lasts.
Circana's Zim elaborated, 'We try to gamify the experience so there's intrinsic fun in addition to a reward.'
The best loyalty strategies are born not in the marketing department, but in the boardroom. It takes alignment across product, customer service, brand, and analytics to truly elevate experience from functional to emotional.
If you're a leader reading this, ask yourself:
Are we offering rewards—or creating relationships?
The answer may determine whether your brand is in the competitive set or dominating it.