Generic discounts and points alone aren’t enough anymore. Consumers today expect not just rewards, but relevance – pushing brands to rethink their loyalty strategies. This includes how they use AI, technology and data insights to engage meaningfully across every touchpoint.
Retailers are turning to AI and data-driven strategies that focus on personalisation, exclusivity and meaningful experiences. All in a quest to build real, lasting connections with the brand itself – not just the rewards it offers.
Last month, we held a private breakfast to discuss… Joined by our recommended partner, Comarch, an advanced loyalty marketing platform that helps businesses design, manage and optimise customer loyalty programmes. They support personalised marketing, data-driven insights and omnichannel customer engagement to boost retention and brand loyalty.
Top 10 Tips from the Evolution of Loyalty Breakfast Discussion
1. Understand Your Audience – Tailor loyalty programs to different consumer segments, particularly younger consumers who seek excitement and real-time rewards.
2. Go Digital-First – A mobile app-based approach is essential for engaging tech-savvy consumers and ensuring seamless access to loyalty benefits.
3. Gamification Drives Engagement – Interactive and rewarding experiences keep customers engaged and encourage frequent participation.
4. Expand Partnerships – Collaborate with restaurants, hotels, and airlines to enhance the value of loyalty programs by allowing customers to earn and redeem points across multiple sectors.
5. Emphasise Personalisation – True loyalty comes from making customers feel valued and unique, which requires deep data insights and segmentation. Customers should see loyalty schemes as an extension of their personality and are a tool to facilitating the lifestyle they hope to achieve.
6. Avoid Over-Reliance on Discounts – While discounts may drive initial interest, long-term loyalty is built through personalised experiences, not just price reductions.
7. Ensure Transparency – Clearly communicate program benefits, tier structures, and reward mechanisms to maintain consumer trust and engagement.
8. Sustainability Matters, But Needs Authenticity – Many consumers value green rewards, but brands must ensure transparency and genuine impact to avoid accusations of greenwashing.
9. Bridge Digital and In-Store Experiences – Loyalty programs should seamlessly integrate online and offline shopping behaviours to create a cohesive customer journey.
10. Prepare for Operational Challenges – When launching promotions or new loyalty initiatives, ensure that infrastructure and resources can meet demand and deliver a positive customer experience.
Insights from Zoe Nicolay – Session Storyteller
Zoe began the conversation by sharing her experience in developing a new proposition strategy and leading the rollout of Dairy Farm International’s customer loyalty programme, one of Asia’s foremost retailers.
The younger consumers in Hong Kong were particularly drawn to exciting deals, so the loyalty program needed to reflect that. The primary objective was to attract Gen Z consumers by engaging them through a digital-first, app-based approach. This allowed customers to access their loyalty points in real time and see immediate benefits, as waiting for rewards was a major
deterrent.
To enhance engagement, the loyalty program incorporated gamification to encourage points accumulation. Additionally, partnerships with restaurants and hotels expanded the ways customers could earn points. Transparency and immediate results were critical to the program’s success.
The launch was a citywide event in Hong Kong, and Zoe emphasised the importance of thoroughly mapping the customer journey beforehand. She highlighted the need to combine emotional and transactional loyalty, as transactional rewards alone are insufficient for sustained engagement. Competitions, events, and partnerships helped maintain customer interest beyond basic points accumulation.
Zoe also noted key differences between the Asian and UK markets, such as the faster adoption of delivery apps in Asia and the unsuccessful attempt to introduce an Oyster card-linked loyalty app in the region.
The Asian Consumer
The discussion highlighted key insights about younger Asian consumers, particularly their preference for exciting deals and daily engagement. Unlike their European counterparts, Asian consumers more readily embrace new technologies like delivery apps, which influenced the approach to loyalty programs.
The Middle East Consumer
Consumers in the Middle East were described as early adopters of technology and highly engaged with loyalty programs. The group noted that the region is an excellent market for observing emerging loyalty trends, making it a valuable area for retailers seeking to innovate
The Use of Multi-Partner Points Systems
The discussion covered the benefits of partnerships with third-party businesses, such as restaurants, hotels, and airlines, to allow customers to earn and redeem points across different sectors. This approach enhances convenience for customers and adds value to their shopping experience. The group agreed that loyalty programs should focus on making the consumer’s life easier rather than simply driving transactions.
True Loyalty Versus Transactional Loyalty
The group debated whether high-transactional loyalty programs genuinely foster loyalty or merely function as data collection tools. While discount-driven schemes can attract customers, they often fail to establish long-term brand connections. True loyalty stems from customer self-identification with the brand, emphasising personalisation and emotional engagement.
Points-based loyalty programs risk losing consumer interest over time. Therefore, retailers should complement these schemes with experience and personalised interactions rather than relying solely on discounts.
To Discount or Not to Discount
The discussion explored when discounting is appropriate. Luxury brands, for instance, often avoid discounts to protect their brand identity. Instead, they use data-driven segmentation to personalise customer experiences and build loyalty through recognition and exclusivity.
The group suggested that luxury brands should reconsider using points-based loyalty schemes due to the lower purchase frequency in this sector. Instead, they should focus on creating a premium in-store experience where customers feel recognised and valued.
Sustainability & Brand Engagement
Communicating sustainability efforts remains a challenge, as consumers interpret sustainability initiatives differently. The group acknowledged the fear of greenwashing accusations, emphasising the need for transparency and honesty about a brand’s sustainability journey.
A/B testing was suggested as a valuable tool for evaluating new sustainability messaging and loyalty initiatives before full-scale implementation. The group also questioned whether sustainability efforts genuinely drive customer loyalty, citing cases where consumers had the
option to use loyalty points for green initiatives but chose not to.
Other Areas to Consider
- Bridging Digital and In-Store Loyalty – Retailers must consider how to integrate digital loyalty experiences with traditional in-store interactions to maintain a seamless customer journey.
- Product Range Considerations – Retailers should ensure loyalty programs reflect the different purchasing behaviours of online and in-store customers.
- Operational Readiness – When launching promotions or loyalty initiatives, retailers must have the necessary infrastructure in place to handle demand and maintain a positive customer experience.
