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Last year saw a number of retailers rebuilding their loyalty programs from the ground up with the introduction of the Nordy Club from Nordstrom and the relaunch of Macy’s Star Rewards program, for example. While established players, such as Sephora and Ulta, continued vast improvements to their loyalty programs by offering new and ever-better benefits. 2018 proved that loyalty is not immune to the changes underway in retail, and brands must adapt to the shift in consumer behavior in order to remain competitive, and quite honestly, relevant.
In this predictions report, brand and industry experts weigh in on the changing role of loyalty and what lies ahead for the next year and beyond. Several of these predictions note that the more “traditional” loyalty schemes of collecting points that can be later redeemed for discounts will be replaced with greater personalization—loyalty plans more specific to each user and his/her goals.
Retailers big and small are re-imagining their loyalty programs to offer more compelling reasons to join and offering more valuable benefits. We have witnessed the commoditization of loyalty over the last few years, but in 2019, we will start to see brands experimenting with technology and new concepts to transform their loyalty schemes into sales-generating machines.
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