Digitalization of loyalty programs is one of the ways of adapting modern companies to contemporary market trends. Digitalization of loyalty programs implies maximum customer orientation and business adaptation to digital trends. The emergence of digital channels in all aspects of social and business life has left an impact on many industries. Moreover, the digital presence has influenced the acceptance of the business paradigm change by many industries, as well as customers. Loyalty programs contribute to building and strengthening relationships with customers, but the question arises: To what extent do digital loyalty programs meet customer requirements? Consequently, the paper investigates the impact of digitalization of loyalty programs on building long-term relationships with customers. The digital user experience, the transition from physical loyalty cards to mobile applications and individualized approach to customers contributed to a better understanding of customer engagement in the digital era. Thanks to proactivity and new communication channels, the process of creating value for customers is significantly simplified. Technology, resources and people are necessary to properly manage customer loyalty. A company's financial performance largely depends on keeping digital loyalty programs attractive. Maintaining a loyal customer base is more valuable than attracting new customers. A loyal customer is more than a satisfied customer; a loyal customer is a business partner.