In a recent webinar titled AI and Beyond: The Future of Loyalty in 2025, industry leaders Roger Williams (Head of Loyalty, Center of Excellence at Marigold) and Emily Collins (VP Research Director at Forrester) shared their insights on the future of consumer brand loyalty, the role of artificial intelligence, and the importance of data unification. Below are the key takeaways from the discussion.
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MarigoldAs brands continue to navigate the evolving consumer landscape, loyalty programs are undergoing a significant transformation. In a recent webinar titled AI and Beyond: The Future of Loyalty in 2025, industry leaders Roger Williams (Head of Loyalty, Center of Excellence at Marigold) and Emily Collins (VP Research Director at Forrester) shared their insights on the future of consumer brand loyalty, the role of artificial intelligence, and the importance of data unification. Below are the key takeaways from the discussion.
Key takeaways:
1. Loyalty Programs Are Expanding, but Brand Loyalty Is Declining
According to Forrester’s predictions, consumer brand loyalty is expected to decline by 25% in 2025, even as loyalty program participation continues to grow. This paradox is driven by consumers who are increasingly price-sensitive and deal-focused. Brands must recognize that while loyalty programs can help retain customers, their traditional methods of offering discounts may not be sustainable in the long run. Instead, companies should focus on deeper engagement strategies that go beyond transactional rewards.
2. Consumers Expect More Than Just Discounts
Consumers are looking for more than just financial incentives in their loyalty programs. Forrester’s research highlights that experiential benefits, such as exclusive access, enhanced service, and personalized interactions, play a critical role in fostering emotional connections with brands. Companies should balance transactional benefits with experiential ones to create a more holistic loyalty strategy.
3. Breaking Down Data Silos for a Unified Customer Experience
One of the biggest challenges marketers face is the siloed nature of loyalty and marketing technologies. A reported 78% of B2C marketing executives admit that their loyalty and marketing tech stacks are fragmented. To improve customer experiences, brands must unify their data, allowing for a more seamless integration of insights across marketing channels. This will enable more personalized and effective loyalty programs that cater to individual customer preferences.
4. AI’s Role in Loyalty and Personalization
AI is playing an increasingly critical role in optimizing loyalty programs and personalization. However, the discussion distinguished between two types of AI: generative AI and traditional machine learning. While generative AI has been making headlines, its role in loyalty is still evolving. In contrast, traditional AI and machine learning models are already improving customer segmentation, predicting purchase behavior, and optimizing loyalty rewards. The key is leveraging AI to enhance personalization without compromising privacy or overstepping consumer comfort levels.
5. The Privacy-Personalization Paradox
Consumers want personalized experiences but are also increasingly concerned about how their data is used. Transparency is crucial for building trust. Brands should ensure that customers have control over their data and are aware of how it is being used to enhance their experiences. Preference centers and progressive profiling, where consumers gradually share data over time in exchange for meaningful benefits, are effective strategies to address these concerns.
6. AI as a Marketer’s Superpower, Not a Replacement
The role of AI in marketing is not to replace human decision-making but to enhance it. AI can handle tedious, data-heavy tasks, allowing marketers to focus on strategic initiatives and creative problem-solving. AI should be integrated seamlessly into workflows to assist rather than dictate, ensuring that human oversight remains a priority.
7. Gamification and AI: Creating Engaging Loyalty Experiences
Gamification remains a powerful tool in loyalty programs, driving incremental customer engagement. AI can enhance gamified experiences by identifying the best rewards and challenges for individual customers, ensuring that loyalty programs remain engaging and rewarding. The ability to create hyper-personalized experiences through AI-driven insights will be a game-changer in 2025.
8. The Future of AI in Loyalty Programs
Looking ahead, AI will continue to evolve in the loyalty space. In the short term, brands will leverage AI for personalization, segmentation, and automation. In the long term, AI will play a more significant role in designing and orchestrating customer journeys. Companies that embrace AI-powered loyalty strategies will gain a competitive edge in fostering customer engagement and retention.
The future of loyalty programs lies in a balanced approach that integrates technology, data, and human insight. As AI continues to advance, marketers must remain adaptable, ensuring that AI enhances rather than detracts from the customer experience. By prioritizing transparency, unifying data, and offering both transactional and experiential benefits, brands can build loyalty programs that not only retain customers but also foster genuine brand affinity in 2025 and beyond.
Source: Marigold
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