For decades, loyalty programs operated under a simple logic: buy, collect points, redeem. It was a transactional model that served its purpose, but today it faces an uncomfortable question: are points still enough to retain a customer?
The answer, according to the most recent data, is no.
By Daniel Velasco Rallo — Strategic Planner | May 2026
Table of Contents
- The points model ran out
- The new currency: experience
- Personalization: from promise to execution
- What the leading brands are doing
- The Latin American context: in transformation, not lagging behind
- The new standard
- Frequently Asked Questions
The points model ran out
It’s not that points have disappeared—they’re still there, and in many programs they’re the backbone of the system. The problem is that they no longer differentiate customers. When every airline, bank, supermarket, and department store offers points, points cease to be a reason for preference and become a commodity.
One statistic illustrates this well: 87% of consumers say loyalty programs influence their loyalty, but only 21% clearly understand the benefits of the program they belong to. There’s declared engagement, but little real connection. Customers are enrolled, but not committed.
Why? Because traditional models tend to reward frequency, not relationship. They appeal to the wallet, not the person.
The new currency: experience
What’s replacing—or rather, enriching—points is something harder to copy: experiences. Early access to products, exclusive events, personalized surprises, benefits that make customers feel the brand knows and values them beyond their average purchase amount.
34% of consumers now identify exclusive experiences as one of the most important benefits of a loyalty program. And this isn’t just a whim: there’s neuroscience behind it. Approximately 70% of brand preference decisions are based on emotional factors. Not on price, not on points. On how a brand makes you feel.
This doesn’t mean giving away trips to all customers. It means designing moments that generate that feeling of exclusivity, of recognition, of “this brand understands me.” Sometimes it’s as simple as a genuinely remembered birthday, a recommended product that truly fits their habits, or preferential access that saves them time.
Personalization: from promise to execution
Personalization is the most repeated word in the industry, and for good reason: 50% of consumers consider it very important to be able to choose their own rewards. They want control. They want relevance. They don’t want to wait months to redeem something they’re not even interested in.
The challenge lies in execution. Personalization at scale requires data, technology, and a clear strategy for transforming information into customer value. This is where artificial intelligence is making a difference: it allows for the identification of behavioral patterns, anticipation of needs, and the activation of rewards at the precise moment, not days later.
In Latin America, this openness already exists: 42% of consumers are comfortable sharing their data if it translates into personalized benefits. The willingness is there. The opportunity lies with the brands that know how to leverage it responsibly and creatively.
What the leading brands are doing
The companies leading this transition didn’t abandon points—they redefined them. Points remain the accumulation mechanism, but they are no longer an end in themselves. Now they represent access to something more: a membership level, an experience, a community.
The most successful programs of 2026 share some characteristics:
- Immediate and flexible rewards. Long accumulation cycles are frustrating. The best programs allow for quick redemption in various formats, depending on the customer’s preference.
- Recognition beyond expenditure. They don’t just reward how much you buy, but who you are to the brand. A loyal customer of ten years receives different treatment than a new customer.
- Surprise and anticipation. The unexpected element — an unannounced benefit, an unsolicited upgrade — generates more recall and affection than any points table.
- Emotional and social value. Programs that connect with causes, allow you to donate points, or generate a sense of community among their members.
The Latin American context: in transformation, not lagging behind
EY points this out directly: “Loyalty programs in Latin America are in a transformation phase.” And that, viewed optimistically, is an advantage. It means there’s room to build well from now on, without having to dismantle obsolete structures.
Brands in Mexico, Colombia, Peru, and the rest of the region have a real opportunity: to design programs that don’t simply imitate models from the North, but rather respond to the sensibilities, habits, and values of the Latin American consumer. This consumer values closeness, trust, and personal attention—attributes that, when properly channeled, are precisely what a memorable experience can offer.
The new standard
The loyalty programs that will survive and thrive in the coming years will not be those that accumulate the most points in their database. They will be those that achieve something more difficult and more valuable: making customers want to return, not because they accumulate points, but because they belong.
The shift from points to experiences is not a fad. It reflects a changed consumer, one with more options than ever before, who chooses to stay where they feel valued.
The question is no longer whether your program needs to evolve. The question is how quickly you can start.
Frequently Asked Questions
Why is the traditional points model no longer sufficient?
Because it has become a commodity that rewards purchase frequency but doesn’t build a real relationship. 87% of consumers say these programs influence their loyalty, but only 21% clearly understand their benefits, demonstrating a lack of genuine connection and commitment to the brand.
What do today’s consumers look for in a loyalty program?
They seek exclusive experiences, control, and personalization. 34% of consumers value exclusive experiences, and 50% consider it very important to be able to choose their own rewards immediately and in a relevant way.
Summary of Key Statistics and Indicators
| Metric / Statistic | Percentage / Impact |
|---|---|
| Consumers influenced by loyalty programs | 87% |
| Consumers who clearly understand its benefits | 21% |
| Preference for exclusive experiences in programs | 34% |
| Preference decisions based on emotional factors | Approximately 70% |
| Consumers who consider choosing their rewards important | 50% |
| Consumers in Latin America willing to share data for personalized benefits | 42% |
Want to know how to take your loyalty program to the next level? At LMS, we’ve been helping brands in Mexico and Latin America build lasting relationships with their customers for over 27 years. Meeting Agenda
