It’s more than just points…why the future of loyalty is about incentivized engagement

Dominic Hofer, founder and CEO of Loylogic Group explains why, in 2023 and beyond, incentives presented in the form of true experiences are the most impactful way to engage customers.

At Loylogic, we’re seeing an unprecedented level of interest in points-based rewards programs that offer enhanced engagement and loyalty to customers around the world. It's clear that loyalty continues to be a successful concept as organizations recognize the value of retaining existing customers.

Much of this demand is being driven by the continuing uncertainties the world is experiencing, times when loyalty programs – already powerful in strong economic times – really come into their own. Consumers are looking to economize and maximize return on investment, and points-based programs that focus on experiences have therefore become more enticing than cash. It's one thing to offer $1 for subscribing to a newsletter, but if that $1 becomes 100 or 1,000 points, which can be put towards an experience that has added value in the eyes of the consumer, it instantly looks more interesting. If you can stack up the points with multiple activities to get a bigger reward, so much the better.

Creating the incentivized engagement experience

Across Loylogic, we’re committed to staying at the forefront of this trend, empowering loyalty programs to focus on what loyalty points really deliver. We understand that consumers want to know what they will get for their points and how attainable those rewards are, so we concentrate on the incentive against points and other triggers, because that's the space that we know truly drives loyalty and engagement.

Consumers want to use their hard-earned points for something memorable. Even more so, the company sponsoring the program wants to make sure that the rewards made available to consumers stick in their mind and are associated to the brand. Points could be used to make a donation, for something sustainable, to enter a raffle to win a special prize, a gift for someone else or a bit of self-pampering. We don’t see value in offering cash-like shopping sprees with millions of rewards or a global collection of gift cards. Instead, we focus on creating memorable, lasting experiences.

It's our job to create the engagement experience, which is why we’ve developed a constantly evolving 'periodic table' of rewards, grouped according to their attributes. These elements will have varying appeal to customers, but the point is that we're always looking to develop value propositions that provide a more attractive and memorable reward than cash. This approach is flexible and enables us to successfully deliver loyalty programs for truly global clients, dealing with regional and national variations. Last year we shipped rewards to over 170 countries via our global marketplace, and we will continue to invest in creating new experiences that incentivize engagement.

Incentivizing global loyalty program journeys

Loylogic rightly has a reputation for being the company that meets global rewards needs, and since 2005 we've collected so much intelligence on loyalty programs, how they work, how consumers view them and so on that we're able to bring a stream of innovation to market. This applies across the entire loyalty program creation value chain, from the very early stages – consulting is an increasingly important part of our work – through to the ongoing development of programs, with the goal of shifting mindsets from loyalty to engagement. Engagement is a journey, which ultimately leads to more customers, engaging deeper with brands.

We firmly believe – and have the intelligence to back it up – that certain logics can be applied to create an effective engagement program. We create programs together with clients, truly differentiating their offering from what's elsewhere in their competitive environment. We then help to source the solution and move it forward, ensuring our engagement team helps to maximize the value of the program for our client.

Engagement that comes through an exciting reward incentive – what we call incentivized engagement or INGAGEMENT for short – obviously has a massive appeal. We have built relationships over the past 15 years, coupled with Loylogic's people, who have a DNA of discovery, to find the answers to how to package this and make it economic for a company, how to incentivize certain behaviors and make it worthwhile for the organization. That’s incentivized engagement and that’s what we love to do.


To find out how Loylogic can help you unlock the power of INGAGEMENT for your brand, contact us today. Click here to submit your details and we'll be in touch. 

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