Retailers increasingly recognize the value of seamless loyalty programs that follow customers wherever they shop. In 2025, successful systems are powered by integrated platforms, AI-driven personalization and a focus on emotional connection, not just transactional rewards.
What Works
- Unified Member Experience: Leading programs like Target Circle, Nike Membership and Best Buy Rewards enable point accrual and redemption online, in-store or through mobile apps, creating a consistent experience regardless of channel.
- AI-Personalized Offers: Programs leveraging machine learning deliver personalized experiences – tailoring rewards, communications and lifecycle messaging – boosting engagement and retention.
- Gamification & Tiering: Tiered structures, challenges and referral programs encourage active participation and customer-driven advocacy.
What Doesn’t
- Fragmented Touchpoints: Loyalty programs that do not sync across platforms lead to disconnected experiences. For example, points are earned via mobile but are unusable in-store.
- Low Emotional Resonance: Pure point-based programs risk disengagement if rewards feel generic. Consumers now expect programs that offer meaningful rewards and purpose-driven incentives.
- Uniform Offers Across Channels: Lack of tailored content per channel weakens appeal, especially for brands younger customers gravitate toward.
Case Highlight: Myer One (Australia)
Myer’s revamp under new leadership leverages its loyalty data and AI heavily; 4.6 million active members generate significantly higher spend, and the program is expanding across new apparel brands. AI-driven personalization via 50+ models is enabling Myer to deliver seamless experience online and in-store.
Best Practices for Retailers in 2025
- Build One Customer Profile across all channels for a unified loyalty experience.
- Use AI to Deliver Relevant Rewards: Personalization across lifecycle, location and behavior.
- Iterate Based on Feedback: Use real-time metrics and customer sentiment to refine rewards and experiences.
- Create Emotional Loyalty: Gamified tiers, meaningful partnered perks and storytelling-rich campaigns foster deeper connections.