Four Ways to Deliver Loyalty Program Personalization Members Actually Want

TL;DR: Loyalty program personalization is about using what members willingly share to deliver value they actually want. Do this by focusing on gamifying the data collection process, creating micro-segments, showing up better on mobile, and being more transparent with data collection.

Privacy-first marketing has fundamentally shifted how brands access customer data.

While third-party cookies remain accessible in Chrome (for now), browsers like Safari and Firefox have long since blocked them, and privacy regulations continue tightening globally. There’s no question that third-party and zero-party data have become essential for personalization that respects customer privacy.

Meanwhile, 71% of consumers now expect personalized experiences across every touchpoint, according to McKinsey. And they’re willing to share their data to get it. They expect brands to remember their preferences and use that information intelligently. 

The bottom line: While other marketing channels struggle with signal loss, you have members voluntarily sharing preferences and intent in exchange for value. From there, it’s all about making sure you’re capturing and activating their data strategically. 

Here are four ways to maximize loyalty program personalization:

1. Progressive Profiling: Building Rich Member Profiles Over Time

The most effective loyalty programs collect data progressively rather than all at once, requesting information at contextually relevant moments. 

When a member makes their third athletic wear purchase, ask about training goals. After browsing running shoes multiple times, ask about preferred running surfaces.

This type of customer data is what lays the foundation for a strong AI-powered personalization strategy. If your goal is to send AI-powered segmented offers to customers in the near future, start here.

Effective strategies

• Gamified data collection. Members who complete profile sections earn bonus points or unlock exclusive access, creating positive reinforcement around data sharing.
  • TIP: Create engaging challenges that capture non-transactional data in a way that’s fun and motivating for members. → Build and launch a new data-sharing workflow with Journey Catalyst (low-lift, no-code)
• Post-purchase surveys with incentives. Time requests right after transactions when members are engaged. Offer immediate points or a special offer for their next purchase in exchange for answering a few quick questions.
• Dynamic preference centers. Give members real-time control over personalization settings. Members who control their personalization often opt for more, not less.
• Contextual asks based on behavior. If someone consistently buys organic products, ask about other sustainability preferences.

Food for thought: In personalization, there’s a thin line between customers feeling understood and feeling creeped out. The first drives loyalty. The second, churn.

2. Real-Time Segmentation: Responding to Member Behavior

Real-time segmentation updates member groups based on their most recent interactions, not last quarter’s data. When a member crosses into VIP status, their next interaction reflects this achievement. When someone browses a new category, recommendation engines adapt immediately.

Effective strategies

• Micro-segments for precision. Instead of “VIP customers,” create “VIP customers who haven’t purchased in 45 days and typically buy quarterly.” This specificity enables targeted interventions.
• Predictive segments. Use purchase patterns and engagement signals to identify members likely to churn in the next 30 days. Reach out before they disengage.
• Multi-dimensional personalization. A member can be a VIP, a sustainable product enthusiast, and a mobile-first shopper simultaneously. Layer these dimensions for richer personalization.
• Secret tiers. Some loyalty programs choose not to publicize the extra perks their VIP members get. This adds to the feeling of exclusivity and belonging and can be a powerful retention driver.

3. Mobile-First Loyalty: Meeting Members in Their Primary Channel

With mobile commerce representing over 60% of online transactions, mobile is the primary loyalty touchpoint. 

Members check their phones nearly 100 times per day, creating multiple engagement opportunities. And you don’t need to develop an app to take advantage of this channel.

Effective strategies

• Digital wallets. Apple Wallet and Google Pay passes live on lock screens. Update a pass to show limited-time bonus points, and it appears instantly without requiring an app. 
  • Real-world example: Hoka uses digital wallet passes with engagement challenges through Badge. Members who add the pass to their wallet earn a $20 voucher for future purchases. By incentivizing wallet adoption, brands like Hoka create a direct channel for push notifications and richer data collection, making loyalty program personalization easier while giving members immediate value.
• Location intelligence. Advanced strategies analyze dwell time, visit frequency, and cross-shopping patterns to determine intent, enabling timely personalization triggers. 
• Progressive web apps. Not every brand needs a custom app. PWAs combined with wallet passes deliver personalized experiences without installation friction. 
• QR codes. Use strategically for in-store product information that unlocks bonus points, packaging that triggers offers, or event check-ins that activate exclusive experiences.

4. Building Trust Through Transparency

Members want tailored experiences and care about data privacy. That’s why good loyalty program personalization relies on transparency and member control.

Effective strategies

• Make data usage visible. Show members what preferences you’ve collected and how you’re using them. “Because you indicated you’re training for a marathon, we’re showing you these products” demonstrates respect.
• Provide granular control. Let members adjust personalization intensity by category. They might want detailed product recommendations but minimal promotional emails.
• Collect data contextually. Ask about dietary preferences during a food purchase. Request style preferences after browsing. Context makes requests feel natural.
• Default to quality over quantity. Personalize when you have strong signals. When signals are weak, a well-timed generic offer can outperform a poorly targeted personalized one.

The Path Forward

Start with one high-value segment. Build sophisticated personalization. Measure results. Then expand proven tactics to other segments. This focused approach demonstrates ROI quickly while building expertise.

What’s your next step in advancing your loyalty program personalization capabilities?