The news: Retailers are expanding experiential perks within loyalty programs to boost engagement and make their memberships more valuable.

• Walmart+ doubled the amount of Walmart Cash members earn on eligible hotel, car rental, and activity bookings made through Walmart+ Travel to 10%.
• Lowe’s introduced concert perks for its MyLowe’s Rewards and MyLowe’s Pro Rewards programs, including two-for-one ticket pricing for adults and children, complimentary lawn chair rentals, and other benefits at select events while supplies last.

Why it matters: Loyalty programs are becoming more important for both acquiring and retaining customers, as well as a way to incentivize spending at a time of growing financial instability. By expanding benefits beyond their core ecosystems, retailers can make their membership programs stickier. Adding experiential rewards tied to leisure activities that customers are excited to do—such as traveling or attending a concert—could encourage more frequent engagement and keep a brand or retailer top of mind.

More robust loyalty benefits can also help win shoppers from competitors, which can aid a company like Lowe’s that is trying to draw pro customers. Nearly two-thirds of adults worldwide (65%) said better or higher-value loyalty program perks were among the most compelling reasons to switch brands or retail stores, according to an October Capgemini survey.

Implications for retailers: Experiential perks like travel rewards or discounted concert tickets may not directly lead to higher sales. But they can help cultivate goodwill among shoppers, encouraging deeper loyalty and engagement while increasing customer lifetime value.