Four loyalty experts share their priorities for 2024

Customer loyalty continues to be a dominant topic across industries, and businesses are actively seeking new ways to engage and retain their customers. Building and maintaining customer loyalty is no easy feat. Brands must constantly evolve, innovate, and refine their strategies to keep up with consumers who are bombarded with endless options and fleeting trends. The challenge lies not just in attracting attention but in cultivating a deep, lasting connection that keeps customers coming back time and again.

Gone are the days when simple rewards programs and basic data collection could suffice. In this era of heightened consumer awareness and skepticism, brands must go beyond the superficial and invest in strategies that are genuinely engaging and authentically aligned with their customers' values. The key to success lies in a multifaceted approach—one that combines cutting-edge technology with a deep understanding of cultural shifts and consumer expectations.

At Reaktor, we understand the complexities of building loyalty in this competitive environment. That’s why we've gathered insights from some of the top minds in loyalty, technology, and customer experience to explore what will drive customer loyalty in 2024 and beyond. Our latest whitepaper, The Latest on Loyalty, offers a comprehensive look at the strategies and innovations that will define the future of loyalty. It’s an essential resource for any brand looking to refine their approach and stay ahead of the curve. Download it here. 

Additionally, we recently hosted a panel discussion in New York, where four loyalty experts with retail, airline, and financial backgrounds shared their insights on what will be key defining factors of loyalty programs in 2024. Here’s a quick overview:

• Jordan Bowry from Michael Kors discussed omnichannel loyalty programs and the importance of tailoring customer experiences across regions.
• Raashi Hasija from Veronica Beard shared tips on enhancing customer loyalty through personalized clienteling strategies both in-store and online.
• Kara Nishida from Delta Air Lines spoke about redefining loyalty with their personalized in-flight connectivity and entertainment offerings.
• Phil McGahey from Mastercard highlighted the shift towards experiential loyalty and how brands can leverage data to personalize customer interactions and drive loyalty.

Jordan Bowry, Senior Director of Global CRM and Loyalty at Michael Kors discussed the company's omnichannel approach to loyalty. 

Michael Kors focuses on creating a seamless customer experience across all platforms, ensuring that every customer interaction, whether in-store, online, or through mobile apps, is seamless and unified.

One of his key points was the necessity of viewing the customer as the central focus rather than merely managing different channels separately. "We think of things internally as channels sometimes, but really, the customer thinks of us as Michael Kors wherever they're interacting with us," said Jordan. The core of this strategy is the brand’s commitment to creating a consistent and cohesive experience regardless of where the interaction occurs. 

Jordan also touched on the challenges of centralizing data, which is crucial for delivering personalized experiences. "Centralizing the data and making sure we have that single view of the customer... has enabled us to personalize that experience across wherever the customer comes to us." 

Going forward, Jordan expressed excitement about expanding the Michael Kors loyalty program globally and adapting it to different cultural contexts. "International expansion is one of the things I'm most excited about," he mentioned, highlighting their plans to tailor the program to meet regional variations in customer behavior and preferences.

Raashi Hasija, VP, CRM, Loyalty & Insights at Veronica Beard, spoke on the importance of a personalized approach to customer loyalty, diverging from traditional “earn and burn” loyalty programs. 

Veronica Beard’s strategy focuses on “clienteling,” which is about identifying top customers and building strong, personal relationships with them. 

Raashi explained that this process began in their stores, where associates would maintain ongoing communication with their best customers via text, recommending new products, informing them about sales, and offering personalized shopping experiences. They integrated a new POS system with clienteling features to enhance this process, allowing for better tracking, sales, and data insights.

"Clienteling has proved to be very beneficial for the brand." Raashi highlighted that providing a personalized and memorable experience is key to their success. Looking forward, Veronica Beard aims to extend these personalized experiences to their new stores and digital platforms, ensuring that customers who prefer online shopping can enjoy a similarly tailored experience.

“Our goal is to create what we like to call the living room in the sky,” began Kara Nishida, Director of CX for Inflight Entertainment and Connectivity at Delta Air Lines. 

Kara highlighted the success of the Delta Sync program, which includes Delta Sync Wi-Fi and Delta Sync Seatback. Both are designed to provide SkyMiles members with fast, free Wi-Fi and personalized entertainment options. The impact of these offerings has been remarkable. 

"We have acquired two million new SkyMiles members since launching in February 2023, which is truly exciting," she shared. This influx of new members significantly enhances Delta's ability to engage with its customers and gather valuable insights into passenger preferences.

Beyond the impressive membership growth since the launch, Delta has recorded 45 million streaming-quality Wi-Fi sessions, and the Delta Sync Wi-Fi service is now available on over 670 aircrafts.

Kara also noted that by the end of 2025, this service will be available on all 1,000 Delta planes, a massive undertaking that underscores the airline's commitment to enhancing the customer experience. "These numbers show just how much our customers value connectivity and personalized content during their flights," she added.

As Delta nears its 100th anniversary, the airline has been heavily investing in modernizing its technology stack and transitioning its data to the cloud. These upgrades are essential for providing the personalized and connected experiences that Delta passengers now expect.

Strategic partnerships have also been a key initiative of Delta. The collaboration with Paramount+ is a prime example, offering SkyMiles members exclusive in-flight entertainment. "You can simply log in to Delta Sync Wi-Fi and access Paramount+ on board and for 24 hours after your flight, for free," Kara noted. This initiative highlights Delta's dedication to offering distinctive, in-the-moment benefits that set their loyalty program apart.

Through these efforts, Delta continues to redefine customer loyalty by making sure that every flight offers passengers a personalized and memorable experience for passengers.

Mastercard, which powers some of the world’s largest loyalty programs, sees a trend toward more experiential and personalized loyalty strategies rather than traditional point-based systems. 

"When you think of Mastercard, you think of transaction data, and we have a unique point of view because we also power some of the world’s largest loyalty programs," began Phil McGahey, VP of Loyalty Sales at Mastercard. "But it all starts with the consumer," 

Phil emphasized that consumers today seek more than just points. They seek—value, convenience, and utility—in their interactions with brands. 

While earning points and redeeming rewards still play a role, consumers today increasingly seek more meaningful interactions with brands. "The brands that are really cracking that code well are the ones that we’re seeing with stronger results," Phil stated, highlighting the importance of personalization and unique experiences in driving loyalty.

Phil also discussed the role of data in loyalty programs, stressing the need for brands to manage and utilize customer information effectively. He explains, "You have this data—how do you monetize it, how do you act on that?" 

Mastercard's approach involves ensuring that its technology stack is well-integrated, allowing for a 360-degree view of the customer. This comprehensive understanding enables brands to deliver the right message at the right time, significantly enhancing the customer experience and driving loyalty.

As for emerging trends, "It’s never going to be a dull moment in the space of loyalty as it evolves." Phil talks about staying ahead of developments like virtual reality, personalization, and experiential programs, which have the potential to shape the future of loyalty programs. These innovations are poised to create new opportunities for deeper customer engagement and more tailored experiences.

A common thread throughout the conversation was a shift towards more integrated, personalized, and technologically advanced loyalty programs. The future of loyalty lies in understanding and acting on customers' nuanced preferences and behaviors of customers, making sure that loyalty programs are not just rewarding but truly resonating with their lifestyles and expectations.