The 2024 holiday season wasn’t only a race against time – it was a showcase of agility. With a compressed shopping window of just 27 days between Thanksgiving and Christmas, retailers and consumers alike felt the pressure. The smartest brands adapted, innovated, and turned that pressure into performance – emerging stronger in a shifting market.
From mobile shopping’s record-breaking numbers to AI’s unexpected retail takeover, this holiday season rewrote expectations. And at the heart of it all? Loyalty. The brands that came out on top were those that successfully engaged, personalized, and delivered value in ways that set them apart from the rest.
Let’s break down the biggest takeaways from the 2024 holiday season and what they mean for the coming year and the future of loyalty.
Holiday 2024 in Review: The Trends That Defined the Season
The Digital Domination Era
Mobile officially took over. Not only did it account for 54.5% of online purchases, but it surged to an impressive 65% on Christmas Day – cementing itself as the go-to platform for last-minute shopping.
Mobile wasn’t alone at the top. BOPIS (Buy Online, Pick Up In-Store) skyrocketed, grabbing 40% of online sales in the final holiday rush. The seamless fusion of digital and physical retail has transformed from a nice-to-have perk into a make-or-break differentiator.
AI: The Ultimate Shopping Sidekick
If there was a surprise MVP this season, it was AI. Retail site traffic driven by AI shopping assistants saw a mind-bending 1,300% increase. Whether it was chatbots streamlining customer service or AI-powered recommendations making shopping more intuitive, this season confirmed that AI is no longer a futuristic concept – it’s here, and it’s changing the game.
Gamification Took Loyalty to the Next Level
What used to be a gimmick is now a strategic engagement powerhouse, and brands that embraced gamification reaped the rewards.
Take E.l.f. Beauty, which transformed loyalty into an immersive experience with a virtual speakeasy – members unlocked 3D product drops and exclusive discounts, making shopping feel more like an event than a transaction. Meanwhile, Starbucks upped the ante by connecting its ‘Starbucks for Life’ rewards with Delta SkyMiles and Marriott Bonvoy, proving that loyalty programs can (and should) extend beyond their original category.
The Personalization Bar Got Higher
The era of “Hi [First Name], here’s your offer” has died. This year, brands used AI and behavioral data to craft offers that actually made sense for each shopper.
Target’s Circle members received AI-powered gift guides that reflected their actual shopping habits, turning browsing into a more tailored experience. Sephora’s Beauty Insiders got early access to curated bundles, reinforcing exclusivity and deepening loyalty.
The takeaway? After this holiday season, customers will not only appreciate personalization, but they’ll also expect it.
Value Is More Than Just Discounts
Inflation shaped shopping habits, and smart brands responded with value beyond discounts. Instead of racing to the bottom, they designed smarter spending strategies that helped customers maximize their spending power.
Target extended its price-matching policy throughout the season but tied it to Circle membership, rewarding loyalty instead of just slashing prices. Kohl’s doubled down on Kohl’s Cash, stacking rewards to help shoppers stretch their budgets without compromising on quality.
Rather than leaning into quick-fix markdowns, these brands prioritized long-term value perception.
Friction-Free Shopping Became the New Standard
Retailers that prioritized convenience won big this season. Walmart+ expanded same-day delivery and waived minimums, making impulse purchases easier than ever. Meanwhile, Lululemon flipped the script on “final sale” by extending return windows and accepting returns on traditionally non-returnable items for loyalty members – because stress-free holidays include stress-free returns.
Learnings for Loyalty in 2025
Loyalty Programs Must Go Beyond Points
The most successful loyalty programs this season created experiences. Whether through gamification, strategic partnerships, or immersive digital experiences, the brands that stood out made customers feel like they were part of something bigger than a transaction.
Personalization Needs to Get Smarter
AI-driven, real-time personalization is the new standard. Brands that don’t prioritize dynamic, contextual engagement will be left behind. The next evolution of loyalty is about anticipating what customers need before they even realize it themselves.
Value Isn’t Just About Discounts
Loyalty leaders are proving that value perception matters more than pricing alone. Whether it’s stackable benefits, extended guarantees, or exclusive early access, the brands that create intelligent frameworks for savings will build deeper trust and retention.
Convenience is King
Seamless, stress-free shopping is a must. The brands that win will be those that eliminate friction at every touchpoint – whether it’s through flexible returns, faster fulfillment, or effortless omnichannel experiences.
From Peak-Season to Peak-Performance
Holiday 2024 was a blueprint for the future of retail. The brands that succeeded didn’t just offer great deals; they understood how to meet customers where they were, engage them in new ways, and make shopping feel effortless.
For loyalty programs, the message is clear: It’s time to evolve. Gamification, personalization, smart value, and convenience are the new foundation of modern engagement. The best brands don’t just respond to trends; they shape them.
Written By:
Chris Barnett, Vice President, Strategic Consulting
As VP of Strategic Consulting at Kobie, Chris Barnett leads loyalty program and CX design engagements for a portfolio of clients and leads Strategy on the Retail vertical as well as the Loyalty Health Center of Excellence.
Marie DeLeo, Director, Strategic Consulting
As a Director of Strategic Consulting at Kobie, Marie plays a pivotal role in developing innovative loyalty programs for her clients grounded in data-driven insights. Marie has spent her career dedicated to creating consumer-centric marketing and loyalty experiences that not only enhance customer retention but also drive revenue through profitable customer behavior.
