Getting Loyalty Unstuck

Loyalty programs have come a long way from punch cards and green stamps, but in today’s rapidly changing world, simply keeping the lights on isn’t enough. David Slavick, Co-Founder of Ascendant Loyalty Marketing, reflected on four decades of loyalty innovation in our recent webinar Loyalty & CRM Today. He asked, how do brands move beyond “business as usual” to create loyalty programs that not only keep up with evolving customer expectations, but actually inspire and excite?

The Innovator’s Mindset

“If a program becomes stale, then your existing members are going to potentially shift over to your competition, because they’re innovating and you’re not.”

Innovation isn’t just about wild ideas—it’s about finding new solutions to old problems, piloting, learning, and refining. As David shared, creativity is about balancing the freedom to imagine with the discipline to execute. But innovation can be stifled by organizational constraints, especially from the top. C-suite buy-in is essential for a culture of experimentation. Don’t underestimate the role of your frontline staff—sales associates and customer service teams are often your most powerful loyalty ambassadors.

Action Steps:

• Regularly review your program’s performance and challenge “the way we’ve always done it.”
• Build business cases for new ideas to win executive support.

Ask Yourself: Where are our biggest organizational constraints, and what’s one “rule” of our program we’ve never questioned?

Responding to Change

“Economic conditions can ultimately drive new innovation based upon new customer demands. We actually saw that with the pandemic.”

Societal and economic shifts—like the pandemic or changing consumer confidence—demand agility. Loyalty programs can be a stabilizing force, offering value and nurturing relationships during turbulent times.

Even subtle tweaks in response to market changes can have a big impact. No need to be a fast follower, lead by regularly analyzing your journeys and identifying gaps in customer experience.

Action Steps:

• Conduct regular competitive audits to identify gaps in market offerings.
• Use customer and market data to tweak your program in response to external pressures, even if only incrementally.

Ask Yourself: When was the last time we did a competitive analysis? What external trends are impacting our customers’ loyalty right now?

Getting Your Customers Involved

“Roadmaps and designs should evolve from customer feedback… Tell me what you think about my program.”

Move beyond transactional feedback. Create ongoing, two-way dialogue with members. Advisory panels and in-person feedback sessions—like American Eagle’s youth panels—yield richer, actionable insights than surveys alone. Direct feedback on redemption, benefits, and partner opportunities can spark meaningful innovation.

Action Steps:

• Act on customer feedback, starting small and scaling where possible.
• Share updates with members on how their feedback is shaping the program.

Ask Yourself: What’s the most actionable feedback we’ve received this year? How are we closing the loop with members who share ideas?

Pilot, Learn, Refine

“If you fail, learn from it, do a 360 a hindsight associated with it, and then refine it.”

Innovation requires a test-and-learn mindset—small pilots, rapid feedback, and a willingness to iterate. Failure is a data point, not a dead end. Build a business case and share learnings across the organization to accelerate improvement.

Action Steps:

• Launch small-scale pilots and measure results before scaling.
• Create a centralized repository for sharing test results and learnings.

Ask Yourself: What’s one bold idea we could test with minimal risk? How do we share and act on learnings from failed experiments?

By challenging old assumptions and listening to your members, you can transform your loyalty strategy from a maintenance exercise into a true engine for growth and connection. The future of loyalty belongs to brands willing to lead, adapt, and inspire.

Access the full recording of the webinar here. Get in touch with David Slavick here.

Annex Cloud empowers brands to move forward faster and stay ahead in rapidly changing times. Start accelerating your loyalty innovation.