During a panel discussion on the state of customer loyalty at the Loyalty Expo, leaders from top technology providers, including Engage People, Response Labs, and Salesforce, discussed how loyalty programs are evolving and the growing role AI is playing in that transformation.
Len Covello, Chief Technology Officer at Engage People, noted that the brands he is speaking to are interested in utilizing AI to make real-time offers to customers based on all the data points they have on them, rather than using it for chatbots, or what Covello calls “a glorified FAQ process.”
“So, we're looking at things around the earned construct and ultimately the burn construct and how we can use AI to provide a more meaningful, personalized experience for the customer,” Covello said.
Andy Locke, Partner – Director of Strategy and Data at Response Labs, pointed to the fact that as AI plays an increasingly important role in powering loyalty programs, it also reinforces the important role that data plays for brands.
"AI can process a lot of data, and when built appropriately, it can build the profile of your ideal customer,” Locke said. “And the more data points and data information you have feeding that machine is going to give you a more well-rounded idea of who that top customer is.”
Meanwhile, Michael Puffer, GTM Lead and Senior Director of Loyalty Business Consulting at Salesforce spoke about how the best-in-class loyalty programs are delivering both emotional value and measurable results. Ultimately, the best programs are the ones that create something meaningful for members, with results that can prove ROI to key stakeholders in the company.
“So, to me, it is value that customers or consumers can feel, and results that executives and leaders can measure,” Puffer said.
The panelists also spoke about how partnerships and ecosystem loyalty are growing, with brands increasingly wanting loyalty currencies to work across partners, whether through points transfer, pay-with-points, card-linked offers, or real-time redemption. And while trophy rewards remain attractive, utility matters more in this uncertain economy, as customers look for practical value: saving on groceries, gas, everyday spend, time, and convenience.
This session is open to Loyalty Expo attendees and Loyalty360 Brand Members. To watch the full video, click here.