Curiosity, Healthy Friction Fuel Loyalty: Forrester Exec Shares Views

Forbes

15-04-2025

MIAMI - MAY 20: Alain Filiz shows off some of his credit cards as he pays for items at Lorenzo's ... More Italian Market on May 20, 2009 in Miami, Florida. Members of Congress today passed a bill placing new restrictions on companies that issues credit. The vote follows the Senate passage of the bill, which now heads for President Obama's promised signature. The bill will curb sudden interest rate increases and hidden fees, requiring card companies to tell customers of rate increases 45 days in advance. It will also make it harder for people aged below 21 to be issued credit cards. (Photo by)
In the loyalty industry, change is the only constant—and we may be standing at the edge of the biggest transformation yet. Loyalty programs are no longer just about points and perks. According to John Pedini, Principal Analyst at Forrester, they're becoming one of the most powerful platforms for emotional connection, data strategy, and long-term competitive advantage.
In a recent conversation, Pedini and I unpacked what's changing in the loyalty landscape and why brands that lead with empathy, curiosity, and trust are best positioned to win in the years ahead.
'Loyalty is, at its core, a relationship-building platform,' Pedini said. 'It's always been the most efficient way to get consumers to raise their hand and say, 'Yes, I want a deeper connection with your brand.''
But as he explained, the traditional model—built on transactional incentives—is no longer enough. 'The old playbook was simple: get someone to spend more and reward them just enough to keep them engaged. But now? That's table stakes. The brands that are winning are engineering emotional loyalty into their programs.'
This evolution is urgent. Consumers aren't loyal to brands anymore—they're loyal to value. And value, increasingly, means relevance, convenience, and experience.
Pedini sees a clear gap between brands that show curiosity about their customers and those that don't.
'I sign up for programs every week,' he said. 'And I'm often surprised by the lack of curiosity. Brands ask for your name, email, birthday—and then that's it. They rely solely on inferred behavior to personalize the experience.'
The better approach? Ask smart, intentional questions upfront. Brands that build customer profiles through active engagement—not passive data collection—are better equipped to deliver personalized experiences that feel like a service, not a sales pitch.
'Relevance is everything,' Pedini noted. 'It's the bridge between data and emotional connection.'
When brands get it right, emotional loyalty pays off in spades. As Pedini explained, 'There's a difference between a transactional scan-and-go program and one that builds a sense of belonging. When you can tap into emotion, that's when a customer might drive past a competitor or pay a little more—because the relationship feels worth it.'
Soft benefits—like early access, exclusive content, or even recognition—can create opportunity cost, making it harder for consumers to walk away.
'A well-run loyalty program builds healthy friction into the experience,' he said. 'You want just enough urgency and exclusivity that people stay engaged, but not so much that it feels manipulative.'
While airlines often get credit for engineering loyalty through soft benefits like boarding priority and lounge access, Pedini pointed to Chick-fil-A as a less obvious—but highly effective—example.
'They've built a program that's simple, seamless, and highly intentional,' he said. 'There's clarity in the benefits and a focus on making the customer feel understood.'
Contrast that with brands that offer vague or open-ended rewards. 'When there's no urgency, and the customer can't clearly see what they're earning or why it matters, the program becomes forgettable. That's not loyalty—that's data collection.'
I asked Pedini if brands like Apple or Ben & Jerry's—those with cult-like followings—need a formal loyalty program. His answer: not necessarily, but they absolutely think in terms of loyalty.
'Apple's packaging tells you everything,' he said. 'You've already paid. They don't have to impress you. But the moment you open the box, the care they put into it proves how much they value the customer experience.'
That, Pedini argues, is loyalty. It may not involve points or tiers, but it's a commitment to deepening a relationship at every touchpoint. 'Not every brand needs a programmatic approach. But every brand needs a strategy for building emotional connection.'
With AI accelerating the personalization frontier, loyalty is becoming a more powerful tool than ever. Pedini believes the future lies in programs that adapt in real time—serving offers, content, and experiences that reflect each customer's intent and behavior.
'AI lets us move from generic blasts to one-to-one interactions,' he said. 'But only if the brand has done the work to understand the customer. That starts with a loyalty strategy grounded in curiosity, trust, and respect.'
The next generation of loyalty leaders will think beyond rewards. They'll design relationships—ones that are reciprocal, relevant, and rooted in the customer's world, not the brands.