Loyalty in Numbers
According to the US Bond Loyalty ReportTM published in partnership with Visa, the average consumer has 19 loyalty memberships – but is only active in 9. Even more striking, US consumers are sitting on roughly $140 billion in unused loyalty points.
This staggering accumulation of unused rewards suggests a disconnect between what loyalty programs offer and what customers actually value. If consumers are registering for programs yet neglecting to use them, the implication is clear – loyalty assets are not perceived as useful or impactful.
So, what does this mean for brands? It means that simply offering a loyalty program isn’t enough. To increase engagement, brands must elevate the perceived value of their programs and eliminate the friction that prevents customers from spending their points.
Why Aren’t Loyalty Programs Working?
Loyalty programs, minus the loyalty
Despite the explosion of digital engagement and personalization tools, the loyalty industry has remained largely stagnant. The traditional model still reigns: reward customers with loyalty points based on spending, and allow those points to be redeemed either at the brand’s own outlets or a small network of partner merchants. And often, redemption is governed by rules that don’t reflect customer behaviour or preferences.
This creates a race to the bottom. Many consumers become members of multiple programs in the same sector particularly in commoditized categories like supermarkets or airlines. With nothing to lose, shoppers follow short-term incentives. One week it’s Tesco for double points; the next, Sainsbury’s offers a better deal on their go-to coffee brand.
While this may seem like a win for the consumer, it weakens the emotional bond between brand and customer. Loyalty becomes transactional, not relational. You’re left with a loyalty program that doesn’t really nurture loyalty.
CoinBridge introduces a breakthrough: loyalty assets that are brand-agnostic in redemption, yet tightly connected to the brand in emotional value. Instead of boxing consumers into narrow redemption pathways, brands can empower them with flexible, frictionless payment options – without sacrificing visibility or control. This paradigm shift enables loyalty and opportunism to coexist, elevating utility and choice while deepening customer-brand connection. It’s not just about offering rewards, but making those rewards effortlessly relevant.
CoinBridge introduces a game-changing approach. Customers can redeem loyalty assets anywhere, in a brand-agnostic manner. This expands value and aligns loyalty with choice and convenience. And it provides a proper foundation upon which to build.
Complicated redemptions
One of the most persistent challenges in loyalty programs is the complexity surrounding point redemption. While earning points is usually straightforward, understanding how and where to spend them can leave even the most loyal customers feeling frustrated, disillusioned, or outright disengaged.
The core issue? Lack of clarity and consistency. A single point may be worth 1p in one context, 0.3p in a nother, or subject to temporary boosts during seasonal campaigns. Add layered tier systems and limited-time promotions into the mix, and customers are left guessing. For example, one week their points might double in value toward select merchandise, but the next, the value drops or expires. This ever-shifting value undermines trust.
CoinBridge eliminates this friction by assigning every point a fixed, transparent monetary value set by the brand and clearly displayed within the loyalty app. There are no surprise conversions or conditions. Whether shopping online, in-store, or through a partner, the redemption value remains consistent.
This makes the customer experience intuitive and smooth. With CoinBridge, users simply Tap & Go, confident in the value of what they’ve earned. Brands benefit too. Reducing redemption barriers drives more frequent engagement and increases perceived value, transforming loyalty into a truly rewarding exchange. Like in building trust into any relationship, the key is to keep it simple, transparent, and consistent.
Rewards that don’t feel rewarding
A major reason many loyalty programs fail to drive long-term engagement is the sheer amount of effort required before any meaningful reward can be claimed. Customers may spend thousands of pounds often via co-branded credit cards or frequent purchases only to discover their points barely cover a basic perk. Consider airmiles. After substantial spending, consumers might only be able to afford a short-haul economy ticket, often with seat restrictions, blackout dates, or hefty taxes that rival low-cost airline prices.
This creates a perception problem. The reward feels out of reach, or worse, underwhelming, even anticlimactic, when finally redeemed. When customers realize the cost-benefit equation doesn’t work in their favour, they disengage entirely.
CoinBridge flips this model on its head by converting every point into real, spendable currency – regardless of balance size customers gain immediate utility. They don’t need to wait until they’ve hit a redemption milestone. Instead, even a small balance can be applied toward everyday essentials: a pint of milk, a morning coffee, a chocolate bar.
These micro-redemptions pack emotional punch. Each one delivers a small win that reinforces the value of the loyalty relationship and keeps the brand top-of-mind. For businesses, it means increased app engagement, repeat visits, and stronger emotional loyalty, all while delivering real value in a frictionless way. It should be worth their while – and truly feel that way, too.
Use ‘em or lose ‘em expiration dates
Expiration policies are another major pitfall in traditional loyalty programs. Many schemes impose a one-to-three-year deadline for redemption, creating a ticking clock that does more harm than good. Rather than motivating usage, these deadlines often result in lost rewards and lost trust.
Imagine building up a points balance over time, only to see it disappear before you get the chance to redeem it. For customers, this isn’t just disappointing, it can feel deceptive – a bait-and-switch situation. That frustration can quickly turn into dissatisfaction, reducing brand advocacy and long-term retention.
CoinBridge reduces this risk by making rewards easy and convenient to spend in any amount, anywhere, at any time. When redemption is part of the everyday experience, there’s no need to “beat the clock.”
This consistent usage pattern naturally lowers the likelihood of expiration, even if a deadline technically exists. By enabling customers to spend points on everyday purchases without restrictions, brands eliminate the negative emotions tied to lost rewards turning potential resentment into loyalty reinforcement. When rewards are more integrated – not just a singular experience – they can become a regular and meaningful part of customer life.
The Loyalty-to-Payments ™ Revolution
The current loyalty landscape is littered with unintended consequences complex redemption rules, low perceived value, and emotional disconnection that drive customers away instead of pulling them closer. Rather than cultivating loyalty, many programs create confusion, stress, and disillusionment.
That’s why CoinBridge’s Loyalty-to-Payments™ solution represents more than just a feature upgrade; it’s a structural reset for the loyalty model itself. This approach eliminates the friction, removes artificial limitations, and reframes loyalty as a seamless, everyday utility rather than a distant reward.
By redefining how loyalty assets are earned and spent, CoinBridge enables brands to engage customers with a model that reflects modern consumer expectations – instant, simple, and personal.
The Loyalty-to-Payments™ revolution isn’t just about better technology. It’s about better relationships. It transforms loyalty from a clunky side feature into a daily, value-driven interaction that boosts trust, frequency, and long-term growth.
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