Many traditional loyalty programs still prioritize discounts and points, focusing on transactional incentives over deeper customer engagement. However, to build lasting loyalty, brands must evolve. A new survey of over 14,000 consumers, conducted for our Consumer Products Report in association with Deloitte, revealed that 41% of consumers desire more personalized o ers, highlighting a strong demand for tailored engagement.

SAP Emarsys has seen rsthand how personalized loyalty programs can transform customer relationships. Clients like Molton Brown have leveraged our solutions to implement personalized loyalty strategies, leading to a 68% increase in customer value. This shift underscores a key insight: loyalty isn't just about transactions, it's about delivering experiences that align with customers' values and expectations.

Customer data is critical in this journey. According to our Global Consumer Products Engagement Report, 89% of US consumer product marketers believe AI is essential for engaging new customers. Leading brands like L'Oréal and John Frieda use AI-driven conversational marketing to deliver personalized interactions at scale, enhancing customer engagement.

The most successful brands today replicate the personal touch of a local shopkeeper using AI to deliver tailored rewards and experiences. Our AI-powered solutions enable brands to do this at scale, while gami cation and interactive apps foster deeper loyalty. As consumer preferences shift, brands that authentically align with values like sustainability and social responsibility build long-term loyalty, our research con rms this.

Retailers gather vast amounts of customer data, but many struggle to use it e ectively. New research from SAP Emarsys shows that 51% of brands su er from "dark data": data collected but not utilized. The gap lies not in technology but in strategy and execution.

Retailers need clear data strategies, understanding of customer segments and behaviors to create meaningful interactions. Companies like SAP Emarsys focus on AI-powered conversational marketing to personalize experiences at scale. AI technologies can transform raw data into actionable insights, enabling brands to offer tailored recommendations and communications.

Integrating customer data across channels to provide a seamless omnichannel experience is vital. Brands like Sephora have excelled at ensuring consistency in customer interactions across all platforms. By leveraging AI, brands can personalize each touchpoint, enhancing overall customer satisfaction and loyalty.

As AI and data use increase, ethical considerations become vital. SAP Emarsys emphasizes transparency and responsibility in AI, avoiding AI bias and ensuring ethical use. Data privacy and responsible AI are crucial amid regulatory pressures like the General Data Protection Regulation (GDPR).

SAP Emarsys' commitment to ethical AI frameworks positions us as a responsible industry leader, o ering strong thought leadership. Brands must comply with regulations and prioritize data privacy to maintain customer trust.

Building meaningful customer relationships and e ectively utilizing customer data requires strategic focus, exceptional execution, and ethical practices. By addressing these areas, retailers can drive business growth while fostering long-term loyalty. Brands that prioritize data privacy and responsible AI usage will not only comply with regulations but also enhance their reputation and cultivate deeper customer trust.