Every brand has a story. Whether it’s told through clothes, music or skincare, that story—when crafted in meaningful and creative ways—is what draws people in and keeps them coming back.
Loyalty programs are uniquely positioned to keep that story alive. Because they invite people in, loyalty programs play a pivotal role in nurturing a brand’s relationship with its customers through interactions that make people feel part of a distinct community.
How a brand acknowledges their customers, remembers them and invites them back, not just to purchase more—but to show gratitude and recognition—is what drives sustainable growth through deeper customer engagement, retention and increased lifetime value.
But, while many loyalty programs work, some fall short of the mark. The path forward is through AI. Leveraging advanced AI-enabled loyalty technologies can help brands bridge the gap, deepening customer relationships with fresh thinking that takes loyalty initiatives from a state of potential to measurable growth.
As consumer expectations evolve, so does the technology people use to connect, and both factors heavily influence how people engage with and experience your brand. It’s this evolution that’s outpacing industry standards.
What once grabbed attention—a discount or complementary gift at point-of-sale—is no longer enough to make an impact. Brands looking to cut through the noise and turn their loyalty programs into a strategic growth lever need to spark consumer interest in creative ways.
Yet, amid the challenges, new possibilities are taking shape, providing loyalty program managers the ability to cultivate strategies that tap into innovation without over-complicating their workloads. With AI introducing new ways to engage customers and create unique experiences, loyalty programs can become a vehicle for brands to attract, retain and inspire lifelong advocacy from their customers.
The right loyalty partner frees up time to surface real-time insights for smarter, better decision-making and . AI-enabled technologies allow busy loyalty program managers the ability to strategize beyond short-term wins—setting in place campaigns that improve over time.
Investing in the right loyalty partner can help you combine data-driven personalization with meaningful forms of recognition that spark an active, ongoing conversation—reviving how you engage customers, provide value and orchestrate member journeys that resonate. And that’s what truly drives growth.
According to Harvard Business Review, loyalty leaders grow revenues roughly 2.5 times faster than their competitors. The reason? Loyalty programs have powerful growth opportunities within them—data.
Your first-party data is what allows you to personalize offers, make product recommendations and build customer relationships through targeted segmentation. It gives direct insight into consumer behavior, preferences and motivations, allowing marketers a clear view of their customers.
With a solid data strategy, you can innovate—creating uniquely differentiated experiences that reengage your loyal customers and also allows you to connect with prospective high-value segments. The right loyalty software unifies customer profiles across channels, cleansing and connecting it, so you can see the full picture of each person, and cultivate loyal relationships.
With the right data, brands can elevate the conversation from rewards based on how customers engaged with them in the past to crafting messages based on a vision of what’s next. First-party data, and amplified by supporting data sources, allows you to:
The right data and technology lays the groundwork for what’s next: loyalty program interactions that make a lasting impact.
According to our loyalty research, 70% or consumer respondents are motivated to participate in loyalty programs because they like what's being offered and find it of value. AI allows loyalty marketers to make interactions unique, memorable and customized to each individual.
By using AI-driven strategies, marketers can create campaigns that personalize at scale and respond in real time, allowing them the ability to do more with their loyalty programs than ever before. AI-enabled technology informs and advises—empowering marketers to build effective strategies that bring the purpose, value and vision of their brand to life for their customers.
In this way, AI does more than connect—it ensures every purchase, click and interaction facilitates meaningful consumer-brand engagement that establishes an emotional connection. Leveraging real-time insights is what helps brands show genuine understanding of their customers in a way that stands out.
The right data and technology offers rich insights that, fueled by AI, supports decision-making that informs smarter strategic execution and enhanced creativity. Using AI-enabled technology can help facilitate:
AI-powered loyalty is about transforming how you reach customers, allowing you to build seamless loyalty marketing campaigns that resonate with your customers across touch points.
According to Epsilon Pulse research, 94% of marketers have adopted AI for marketing, leaving a small contingent that has yet to explore these capabilities. In essence, AI is changing the way marketers are looking to connect with their customers, how they go about creating and executing campaigns—and ultimately, what approach they take to driving revenue growth
Loyalty programs are entering an exciting point in their evolution. According to Forrester, in 2024, 54% of U.S. online adults agreed that loyalty programs influence what they buy, and 64% agreed that programs influence where they make purchases.
While AI streamlines, augments and aligns insight, the loyalty marketer can focus on strategy and creativity—which is the key to turning casual customers into long-lasting brand advocates. With AI-enabled technologies, loyalty marketers can re-envision each touchpoint, curate personalized offers and shape engaging member journeys that influence how customers experience their brand.
Rather than continue investing in a loyalty program model that offered basic rewards, Walgreens reimagined their approach. The pharmaceutical retailer made a strategic move to create a space where customers could look after their well-being by providing personalized experiences for over a million active myWalgreens members.
Recognizing their data potential, Walgreens made a strategic move to digitally transform member journeys and strengthen their relationships with personalized consumer-brand interactions that established them as a trusted health partner. "Our ability to take [first-party] data and connect at an individual level—and then serve up the things that are most important to meet [our customer's] needs— that is golden," says Tracey D. Brown, president of Walgreens retail and chief customer officer.
By predicting, personalizing and optimizing in real time, Walgreens gave their customers access to information important to their healthcare journeys, and created meaningful and holistic experiences. Partnering with Epsilon allowed Walgreens to anticipate customer needs, deliver value and continuously optimize the experience, resulting in authentically differentiated experiences that grossed $10 million in revenue in a single quarter.
As Brown explains, "We have to have the partnership of a great partner that brings that expertise of data, tools and technology—mixed with Walgreens. We got your health and wellness needs covered. That is how you actually start to help change the overall future of health and well-being..."
Walgreens delivered the kind or care that made their customers feel seen, understood and left them thinking, “They get me.” This level of personalized attention is what makes brands stand out—not because they offer discounts and rewards, but because of shared moments built on real customer understanding.
Loyalty programs are a valuable asset and play a critical role in building community, fostering affinity and driving growth. They are a powerful way to tell a cohesive brand story and create experiences that resonate.
The next frontier of loyalty is powered by quality data and AI. The right loyalty partner provides both.
Epsilon’s AI-powered loyalty technology can turn your data into meaningful action, reinvigorating the way you connect with your customers, helping you keep up with the latest trends—and drive them. Investing in the right partner frees your time to lead with imagination and execute loyalty initiatives with precision and speed—all while fostering a community of long-term loyalists, passionate about your brand.
