Loyalty programme enrolment has been increasing in recent years. At first glance, this looks like a positive trend for brands. But dig a little deeper, and it becomes clear that the growth in membership isn’t necessarily translating into deeper engagement.
According to research by Boston Consulting Group, the rapid proliferation of loyalty programmes is having a diluting effect. Today’s average consumer belongs to more than 15 programmes, yet engagement is declining. The study points to a shift in consumer expectations: points and cashback are no longer enough to sustain interest. To truly stand out, brands must offer personalised and differentiated experiences.
This isn’t an isolated finding. A YouGov poll found that 65% of UK consumers are reluctant to join or remain in loyalty programmes due to irrelevant rewards.
Building loyalty in a new era
So how can brands deliver more relevant, personalised communications — and build genuine loyalty rather than just a quick quid pro quo?
The challenge is that personalisation depends on meaningful insight. Yet the data from loyalty programmes is often siloed and limited.
In many cases, the systems managing loyalty schemes aren’t integrated with those handling other customer touchpoints — such as in-store point of sale (POS) systems, ecommerce platforms, and customer service channels. As a result, brands lack a complete view of each customer’s behaviour, especially when no direct incentive is involved.
Enter AI
This is where AI can make a real difference. With an AI-enabled cloud architecture, brands can unify data from all customer interactions across every channel — in real time.
A customer data cloud can build a complete history of each customer’s interactions with the brand. Using AI, businesses can model behaviour, predict lifetime value, and identify high-value customers who warrant greater attention.
AI can also analyse purchasing patterns to anticipate what a customer might want next, enabling brands to deliver personalised promotions at the right moment and through the right channel. It can even detect early signs of churn and recommend offers likely to retain those at risk.
Real world results: Wyndham Hotels & Resorts
This ambition to unlock customer insights led Wyndham Hotels & Resorts to implement the Amperity customer data cloud. With over two dozen brands — including Ramada and Days Inn — and more than 9,000 hotels globally, Wyndham had struggled with fragmented data across multiple systems.
The group wanted to build an accurate 360-degree view of each customer. Earlier attempts at matching and merging customer data had been time-consuming, often taking weeks. With the AI-powered data cloud, these tasks now take minutes.
The result? Wyndham has significantly improved the personalisation and timing of its communications, leading to increased direct bookings and lower retention costs. It has also applied insights from its loyalty members to target non-members via digital media — driving a 60% increase in loyalty programme signups, while reducing acquisition costs by 35%.
The value of loyalty, reimagined
Loyalty programmes offer real value — for both customers and brands. But to move beyond purely transactional relationships, brands must tap into the full spectrum of data that customers willingly share.
The key to making every touchpoint relevant lies in turning that data into insight. With consumers engaging across more channels than ever before, doing this manually is no longer feasible.
AI is stepping in to solve this complexity—consolidating data, analysing behaviour, forecasting purchases, and uncovering insights that drive better outcomes. As Wyndham’s experience shows, brands that embrace AI-enabled loyalty strategies aren’t just improving engagement—they’re redefining what loyalty means.