The Co-Op launched a dividend-based loyalty scheme in 1850. So the concept has history – but today, it’s powered by data, not stamps. Decision intelligence has the potential to bring loyalty into a new era.

Most platforms can deliver loyalty. But few help you design it. That’s where data science, microsegmentation and tailored targeting come in.

Rewarding every customer the same way burns budget fast. Especially when they were going to make a purchase anyway. Personalisation powered by decision intelligence protects margin and boosts impact, so only the customers who need offers receive them.

Who’s loyal? Who’s lapsed? Who could be worth more? Segment your customers based on loyalty, so you can focus on mid-loyal customers to drive true incremental growth.

Different customers need different loyalty mechanics, based on their behaviour and preferences. Collectors drive frequency. Rewards build retention. Cross-sell tactics grow the basket. At the end of the day, strategy beats guesswork.

Target customers with mechanics and offers to encourage behaviour changes, like ‘buy again’, ‘cross-sell’ and ‘win-back’. Think of it as Spotify, but for retail – one-to-one loyalty at scale.

Growing customer loyalty isn’t just about pounds and points – even brands without a traditional loyalty scheme can benefit. Investing in personalised experiences and tailored offers builds long-term value and incrementality.

Supplier funding is a ‘triple win’.

1. Customers get better offers.
2. Brands gain share.
3. Retailers lower costs

In fact, supplier funding can cover up to 50% of loyalty programme costs.

As well as helping retailers understand their customers, first party data from loyalty schemes can power rich, high-performing retail media. For some brands, it’s worth up to 5% of topline revenue.

With the right segmentation, targeting and measurement, loyalty becomes more than a programme or scheme. It becomes a driver of revenue, insight and long-term competitive edge. The best retailers see this and act on it.