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As retail customer expectations continue to rise, loyalty matters more than ever. Brands must embrace the key tenets of modern loyalty strategies to engage with customers in the ways they deserve. Then, they can pursue the game-changers that will turn loyalty into a revenue-generating asset.
Loyalty is a team effort
Customer loyalty used to be an afterthought; a cherry-on-top byproduct of good business. It was something that happened to a business, not something that was proactively generated and honed. Today, successful retail loyalty programmes are built with cross departmental collaboration and serve as the front door to the organisation. A loyalty programme is the primary way customers interact with a business; it’s the vehicle for customer data-sharing, digital orders, feedback, and more.
Today, three key tenets are emerging in retail customer loyalty:
Personalisation at scale
Personalisation serves as the driving force behind effective loyalty programmes, making customers feel uniquely appreciated and ensuring that promotions are delivered to the people most likely to redeem them.
Engagement & gamification
Brands must offer a variety of engagement drivers, including gamification, to communicate their relevance and value, nurture awareness, and encourage digital and in-store visits.
Retail media monetisation
Loyalty programmes are also collaborations between retailers and their partners (e.g., suppliers), creating opportunities for new revenue streams.
Loyalty game-changers
Agentic AI:
Unlocking loyalty insights with Agentic AI: Turning Data into Action. Retailers today have no shortage of loyalty data – but without the right tools, that data
can easily become overwhelming. The real challenge isn’t collecting information – it’s knowing how to act on it. That’s where Agentic AI comes in.
Journey orchestration:
Marketing automation meets customers where they are right now. Personalisation at scale is about identifying which products, offers, and engagement tactics resonate with customers. But just as important as the “what” is the “when.” Timing matters.
RFM (recency, frequency, monetary value) segmentation:
Behavioral segmentation unlocks precision at scale. The ability to create and action meaningful segmentations can drive sales, loyalty and strong ROI. One foundational segmentation strategy is Recency-Frequency-Monetary Value (RFM).
Want to know all about every insight? Go and download the full piece, here.
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