Loyalty Program Timeline

Loyalty programs have long served as a lifeline for brands during economic downturns:

— Take the late 1920s, for example, amid the Great Depression, Betty Crocker pioneered a modern loyalty concept with “box tops,” coupons printed on packaging that customers could collect and redeem.

— Fast forward to the 1990s recession, and card-based loyalty programs gained traction across the Western world.

— Then came the 2008 financial crisis, which fueled a loyalty program boom. Membership grew by 19% between 2007 and 2009 as consumers gravitated toward brands offering the best rewards and value.

— The COVID-19 pandemic was no exception… According to a Deloitte survey, nearly 80% of consumers recall a time when a brand responded positively during the pandemic, and one in five said it significantly increased their loyalty to that brand.

Today, businesses must reassess which customer segments matter most, how those customers engage with their brand, and which experiences or features truly resonate.

Loyalty Programs Work, Especially in a Downturn

Consumers are becoming more selective with their spending, and for good reason. According to Forrester, 73% of U.S. customers say loyalty programs help them save money. That makes a well-structured rewards program a perk as well as a lifeline for customers and businesses alike.

Whether you offer loyalty points, tiered rewards, or early access to special promotions, you’re delivering added value at a time when shoppers are actively seeking ways to stretch their dollar.

Consider Starbucks Rewards or Sephora’s Beauty Insider. These successful loyalty programs continue to thrive, even as prices rise, because they offer value beyond the transaction. Customers earn points, gain early access to exclusive deals, and feel like part of a community. That emotional connection translates into loyalty, even when budgets tighten.

Loyalty = Insight: Tap into First-Party Data

Today’s privacy regulations and cookie restrictions are making it harder to track customer behavior. A loyalty program solves that. By inviting customers to join your program and rewarding them for their activity, you gain direct access to valuable first-party data.

You’ll know:

• How often they shop.
• What they buy.
• What channels they prefer (in-store, online, mobile).
• What rewards they respond to.

This data lets you personalize the customer experience in real-time, boosting engagement and loyalty while decreasing your churn rate.

💡 Pro tip: Offer bonus points for profile completion or short surveys to collect zero-party data. Customers willingly share preferences in exchange for reward points or digital perks.

Shifting Focus: Loyalty Over Acquisition

During economic turbulence, customer acquisition costs typically increase. That’s why focusing on your current customers is critical. With the right loyalty strategy, you can improve retention and reduce churn without breaking the bank.

Top loyalty program strategies that inspire advocacy and increase customer lifetime value (CLV):

• Double points on essentials.
• Cashback rewards (earn and burn).
• Referral program incentives.
• Emotional rewards, like loyalty levels or tiers, recognition, and exclusive content.
• Access to limited-time offers or member-only pricing.

These programs give your loyal customers compelling reasons to stay engaged and new customers an incentive to join loyalty programs that reward them faster.

Go Digital, Go Omnichannel

Consumer expectations have shifted permanently. Your loyalty rewards should be just as accessible on a mobile app as they are at the register. A (digital) loyalty solution powered by bLoyal makes this seamless.

With our omnichannel loyalty program engine, your customers can earn points in-store, redeem them online, and get personalized promotions on the go, all while you manage one central customer database with real-time insights.

Loyalty programs for small businesses are just as powerful as those of companies with loyalty programs like Amazon Prime. The key is personalization, convenience, and value. Especially now.

Types of Loyalty Programs Across Industries

Unsure what types fit which loyalty program business model?

• Points-based loyalty programs – Ideal for retail, food & beverage, and eCommerce. Customers rack up points for purchases, referrals, reviews, and more.
• Tiered loyalty programs – Great for brands looking to reward long-term engagement. Offer escalating rewards, VIP access, or personal shopper perks.
• Paid loyalty programs – Also known as memberships. Think Amazon Prime. Members pay for convenience, free shipping, or exclusive offers, and stay loyal for longer.
• Value-based loyalty programs – Reward customers for aligning with your mission, such as sustainable purchases or charitable giving.
• Digital loyalty programs – Integrated into mobile apps or eCommerce stores, perfect for tracking, promoting, and scaling rewards.

Loyalty Program Examples: Brands That Thrived During Downturns

— During the 2008 recession, Sephora took a bold and strategic approach. Rather than cutting prices, they invested heavily in enhancing their Beauty Insider program, evolving it from a simple points system into an experience-driven loyalty community.

They introduced tiered membership levels (Insider, VIB, and Rouge) and shifted the focus to emotional value: early access to new launches, exclusive events, and thoughtful perks like birthday gifts. These benefits went beyond discounts, they made customers feel seen, appreciated, and part of something bigger.

Even as budgets tightened, Sephora fans stayed loyal because the brand gave them something more than savings: a sense of belonging. This loyalty-first strategy helped Sephora weather the recession and positioned it for massive post-recovery growth, cementing its place as one of the world’s most beloved beauty brands.

— During the 2020–2021 economic downturn, McDonald’s leaned into digital innovation and loyalty to stay top-of-mind, even as consumers tightened their wallets. The brand supercharged its MyMcDonald’s Rewards program with mobile-first features and gamification, combining convenience with engagement.

With mobile ordering, curbside pickup, and the revival of crowd favorites like the Monopoly game, now integrated directly in-app, customers could earn loyalty points with every order and unlock rewards, free meals, or upgrades. It wasn’t just about food anymore; it was about fun.

As dine-in visits dropped, the app became a powerhouse for both loyalty and revenue. By gamifying the experience, McDonald’s drove higher order frequency and increased average order value. The result? Millions of downloads and a surge in loyalty sign-ups across markets like the U.S. and UK, proving that even in low-margin sectors, emotional and interactive loyalty programs work.

— UK supermarket giant Tesco didn’t just survive recessions; it adapted through them, powered by its iconic Clubcard loyalty program. Instead of relying on one-size-fits-all discounts, Tesco used deep customer insights to deliver personalized offers that resonated.

By analyzing Clubcard data, Tesco could tailor promotions to real shopping behaviors, creating timely, relevant deals for individual households. This kept the brand top-of-mind, increased average basket size, and helped Tesco manage inventory more effectively in turbulent times.

Recession-Proofing Your Business With bLoyal

In a recession, people spend more carefully, but they also stay loyal to brands that reward them. Whether you’re just starting your loyalty journey or looking to level up your existing program, the best time to invest [in relationships] is now.

The good news? You don’t have to do it alone.

With bLoyal’s cloud-based loyalty platform, you get instant access to customer behavior, purchase history, churn rate, and campaign performance across all locations and channels. This empowers you to act fast, segment customers by lifecycle stage, and test new loyalty strategies based on what’s actually working. By choosing bLoyal, you can launch a flexible loyalty program that adapts to your business, regardless of size, and rewards your customers for what truly matters most.