The New VIP Economy Turns Loyalty Into a Lifestyle

Loyalty programs all used the same playbook: spend more, collect more points, get a discount. That formula is becoming dated and some programs are ahead of the curve, taking the leap away from coupons and cashback. Now, loyal customers are starting to expect exclusivity in the form of private-membership models, where status unlocks personal service, exclusive events, premium travel and access that cannot be bought at checkout. 

Why Traditional Loyalty Programs Are Losing Appeal

The numbers explain why brands are paying attention. Deloitte found that loyalty programs increase perceived value for customers, as 80% of consumers said they get more from a brand because of the loyalty program. But consumers were enrolled in eight programs on average and actively engaged with only five. The real battle for companies is not just signing people up, they must also make membership worth using.

Airlines have been moving in this direction for years, but the gap between “miles” and “membership” is becoming clearer. Delta’s SkyMiles Experiences, for example, lets members use miles for experiences ranging from wellness retreats and culinary events to VIP sports packages and international trips. The reward is entry into an experience that feels scarce or difficult to access otherwise, other than just defaulting to cheaper flights.

Hospitality brands are also innovating their loyalty programs. Marriott Bonvoy Moments allows members to redeem points for unique experiences spanning sports, food, entertainment and culture, including VIP access that Marriott says can’t be purchased otherwise. That can mean everything from major sporting events and celebrity-chef experiences to concerts and behind-the-scenes access. In its model, loyalty points become a currency for proximity for getting members closer to people, places and events that ordinary they cannot reach.

A few major companies have been pioneering this model for some time. American Express Platinum has long treated concierge service and event access as part of the product, with cardholders able to request help with restaurant reservations, event tickets and travel. Its Premium Events Collection provides access to selected sporting, dining and cultural experiences. Revolut Ultra also extends its loyalty program beyond banking, offering unlimited access to more than 1,600 airport lounges with travel benefits, mobile data and a portfolio of lifestyle subscriptions. A financial account is increasingly packaged as a membership for how a customer travels, works and spends.

Gaming and entertainment platforms are now developing their own version of that high-touch model, and are arguably taking it a step further. 1win, a gaming platform which serves more than 30 million registered players, has built a 20-level VIP structure divided across six groups. At the lower end, benefits still include familiar loyalty mechanics such as cashback. Its higher tiers are where it is really innovating how a platform treats its best customers, as its program shifts toward dedicated personal managers, 24/7 assistance, concierge services, closed tournaments, private travel and events.

1win’s concierge service is where it really innovates the concept of loyalty programs, assisting with organizing purchases and travel plans, providing support at home or when traveling, and even giving access to medical consultations and emergency aid. In a sector where loyalty has often meant reload offers, deposit bonuses and cashback percentages, the new normal will be private travel and truly tailored, personal service to practically any need of a customer. The platform behaves less like a membership brand to this extent, offering access that only comes with status.

The direction across industries is strikingly similar. High-touch loyalty increasingly comes down to four things: recognition, human service, access and experiences. Points still matter, but now they are just the infrastructure rather than the product itself.

That may be the biggest change in the new VIP economy. Loyalty programs have stopped asking, “How much can we give you back?” They are now asking, “What can we give you access to that you will actually value?” As airlines, fintech apps, hotels and gaming platforms converge on that question, loyalty is less about rewards and increasingly about lifestyle.

Disclaimer: This article is for informational purposes only and does not encourage or promote gambling. Readers should understand the risks associated with gambling and comply with applicable laws and regulations in their jurisdiction.