Beyond the Transaction: Building True Loyalty

Loyalty isn’t about collecting points or redeeming discounts. It’s about connection. Today’s consumers don’t just buy products—they buy into brands that reflect their values, experiences that feel personal, and spaces that make them feel like they belong. 

For F&B, this shift is even more pronounced. A meal is more than a transaction; it’s an experience. Restaurants, cafés, and food halls create spaces where people connect, share moments, and build lasting relationships. The brands that recognise this are transforming their spaces into destinations. 

In this piece, Cheryl Sheppard explores how brands can cultivate loyalty by creating meaningful experiences that go beyond transactions. While customers today expect instant gratification and personalisation, building lasting relationships requires something more—creating a true sense of belonging. 

Key Examples 

• Private member clubs like Soho House continue to see membership grow because they create a sense of belonging among like-minded individuals. By curating spaces where members feel truly connected to their community, these clubs build lasting engagement that transcends traditional notions of exclusivity. 

• A new generation of food halls like the concept Al Mamlaka Social Dining that we created are a prime example how venues thrive on the engagement they can create through the strength of an overall brand. Consolidating 21 different kitchens under one master brand allows guest to see the space a social and community-focused dining destination. Many guests choose the food hall before they even think about where they’ve going to eat.  

• Global fashion and FMCG brands today have created entire ecosystems beyond their core product lines, expanding into adjacent offerings such as cafes, interactive experiences, boutique hotels and even theme parks. Every touchpoint is part of a wider plan to build a community and drive loyalty. Expect to see more of this in the future! 

These brands aren’t just offering a service—they’re inviting customers into an experience, a relationship, and ultimately, a story they want to be part of. 

Why Emotional Loyalty Wins?  

Many loyalty programmes focus on transactions—earn a point, get a reward.

But transactional loyalty is fragile. If a competitor offers a better deal—an extra free coffee, a slightly bigger discount—customers will switch. 

Emotional loyalty, on the other hand, is built on how a brand makes people feel. When customers feel valued, involved, and part of something bigger, they stay—not because of discounts, but because of the connection. 

So how do brands build this kind of loyalty?

1. Give Them Something to Aspire To

Loyalty members tend to spend more than non-members. But it’s not just about money—it’s about status, exclusivity, and first access. The most effective programmes offer: 

• Aspirational rewards—not just free nights but once-in-a-lifetime experiences, like meeting an F1 driver or exclusive dining events. 

• Early access to restaurant openings, special menus, or behind-the-scenes experiences. 

• Personalised status perks that go beyond transactions, making members feel special

2. Make Them Feel Like Insiders

Loyal customers don’t just want to be served—they want to be involved. Brands that make them feel like part of the process create stronger bonds. This could mean: 

• Giving top members the chance to preview new menus or help shape a restaurant’s experience. 

• Offering exclusive chef-led experiences, tastings, or members-only masterclasses. 

• Partnering with brands outside F&B—such as collaborations, where customers can get access to exclusive events.

3. Understand What They Want—Before They Do

Customers today expect more than generic offers. They want experiences tailored to their preferences, and they want them instantly. 

• AI-driven personalisation can anticipate needs, offering highly targeted rewards based on behaviour, preferences, and location. 

• Real-time dynamic pricing is becoming smarter—some hotel brands now adjust loyalty redemptions based on occupancy. If a hotel is at 95% capacity, members pay full price. If it’s under 95%, dynamic rewards kick in, ensuring better value for both customers and businesses. 

The key is offering the right thing, to the right customer, at the right time—seamlessly, without making it feel transactional. 

The Role of Technology in Loyalty 

Technology is making loyalty more intuitive and interconnected. But it’s also raising new challenges—especially around privacy, transparency, and fraud prevention.

1. Expanding Loyalty Beyond Single Brands

Loyalty programmes will no longer confined to one brand. Cross-industry collaborations are the future—hotels, retail, entertainment, and dining all working together through blockchain-backed authentication. This makes rewards interchangeable across sectors, offering a seamless experience.

2. The Fine Line Between Personalisation and Privacy

While hyper-personalisation allows brands to understand customers better, there’s a fine balance between relevance and overreach.

Loyalty should feel like a benefit, not surveillance.

Consumers want tailored experiences, but they also expect control over their data. Brands that are transparent about how they use customer data and what value they provide in return will build deeper trust.

3. Keeping It Secure

With more data-driven loyalty models comes the risk of fraud. The industry needs to prioritise security, ensuring that personalisation doesn’t come at the cost of data integrity and compliance with privacy laws. 

The Future of Loyalty: Connection, Not Transactions 

Loyalty is no longer about keeping customers—it’s about deepening the relationship and creating emotional engagement so they naturally advocate for the brand. 

The brands that get this right will: 

• Build aspirational experiences that go beyond perks. 

• Make customers feel like insiders, actively shaping the brand. 

• Use technology smartly—enhancing personalisation without compromising trust. 

Loyalty isn’t just about transactions. It’s about making people feel like they belong.