In an era where brands are increasingly scrutinizing the financial impact of their loyalty strategies, Jonathan Silver, CEO of Engage People, has a clear message: loyalty programs must drive measurable, positive ROI or risk becoming expendable.
Speaking with Loyalty360 as part of the "Leaders in Customer Loyalty: Industry Voices" series, Silver shared his perspective on where loyalty is headed, the technologies reshaping customer engagement, and the strategies brands must embrace to ensure their programs succeed.
Customer Loyalty: A Financial Vehicle, Not Just an Initiative
Silver emphasized that Engage People approaches loyalty through a business-first lens. "At the end of the day, a loyalty program is a financial vehicle. It needs to have a positive ROI," he said. Rather than applying a one-size-fits-all model, Engage People works closely with clients to define loyalty against their unique business objectives, whether that's driving customer frequency, improving retention, or deepening engagement.
A Two-Pronged Approach to Loyalty Technology
Engage People supports brands through two primary offerings: a full-scale loyalty management platform, and its fast-growing "Pay with Points" technology. The latter, Silver noted, is redefining customer engagement by integrating points redemption seamlessly at checkout, whether online or in-store, helping brands meet customers "at the moment of truth."
"When you're at checkout, the offer must be immediate and meaningful," Silver explained. "Asking people to pre-register or take multiple steps before redeeming doesn't drive the engagement brands need."
Industries Leading Loyalty Innovation
Silver acknowledged widespread innovation across sectors, but highlighted particular strides in travel, retail, and financial services. Airlines and hotels, for instance, are "identifying top customers and putting the right benefits in front of them — beyond just miles or points." Meanwhile, partnerships are becoming increasingly critical, with brands collaborating to leverage each other's loyalty currencies and drive mutual growth.
The Technological Future of Loyalty: Real-Time, Relevant, and ROI-Driven
While AI garners much attention, Silver cautioned that its full impact remains 12-18 months away. In the near term, brands are focusing heavily on cost management and ROI measurement, rethinking how loyalty budgets are justified to the C-suite.
"Technology now allows real-time segment creation, real-time offers, and rapid testing," Silver said. He stressed the importance of using these capabilities to test and learn: "Everyone's consumers are different. The world's changing so rapidly. Try, test, and don't be afraid."
Why Loyalty Programs Fail — and How to Avoid It
When asked why programs underperform, Silver pointed to legacy technology, lack of C-suite buy-in, and an overemphasis on complexity. "Social media has trained people to engage for 20-30 seconds. Loyalty communications must fit into that window," he advised.
He also emphasized the need for clearly defined metrics tied directly to financial outcomes, noting, "If you're revamping member engagement, that's a significant technology and analytics investment. You need the right financial goals in place."
The Metrics That Matter in 2025
Success metrics will continue to vary by industry, but Silver identified key areas brands must track:
- Frequency and basket size for high-frequency retailers
- Spend and retention for financial services
- Status benefits over points accumulation for travel brands
He also flagged an often-overlooked consideration: "Expiring points may improve short-term financials but damage long-term retention. You have to balance cost recoupment against the lifetime value of the customer."
Pay with Points: A Game Changer
Silver cited Engage People’s Pay with Points solution as delivering some of the most significant loyalty impact he's seen in 35 years. "We're seeing increased card spend, reactivation of dormant accounts, and operational cost savings — all while boosting member engagement scores dramatically."
Importantly, he noted that Pay with Points benefits all parties: brands attract new customers and drive higher sales; banks see happier, more engaged cardholders; and customers experience greater redemption flexibility.
Looking Ahead: Consumer Expectations and Brand Strategy
Looking forward, Silver predicts that mobile transactions and personalized, real-time offers will become even more dominant. Brands that succeed will deliver relevant offers seamlessly through mobile devices without crossing into intrusive territory. "As technology and AI evolve, the capability to meet customers where they are, at exactly the right time, will define loyalty leadership," he said.
His parting advice for brands? "Test. Learn. Don't be afraid. Some things will work, some won't. But you have to try."
To hear the entire interview with Jonathan listen to the episode of Leaders in Customer Loyalty on your favorite podcast platform.