Generative Loyalty: Artificial Intelligence Meets Customer Loyalty

Posted on January 31, 2024 by Trevor Antley

Generative Loyalty is the state-of-the-art approach to customer loyalty from Capillary Technologies and Brierley, a Capillary Services Company. The Generative Loyalty framework incorporates artificial intelligence (AI) and large language models (LLMs) to create loyalty programs with robust capabilities. Powered by the latest innovations in AI, Generative Loyalty can make loyalty programs hyper-personalized, more dynamic, and more engaging than ever.

Generative loyalty continually self-generates campaigns and incentives, allowing loyalty insights to drive contextualized messaging to be constantly reinvented.

Generative Loyalty: New AI-Driven Loyalty Paradigm

Imagine a world where AI powers your loyalty management!

Graphic showing four main features of Generative Loyalty: automation, predictive, ROI measuring, self-generating campaigns.

Capillary’s Generative Loyalty LLM leverages historical data with the rich context of the loyalty programs, offers, products, and customers to predict individual customer behaviors and personalize their experiences.

aiRA Chatbot & Nudge Framework

Generative Loyalty is a paradigm shift in the user experience (UX), making loyalty management as easy as talking to Capillary’s trusted loyalty chatbot AI: aiRA.

Loyalty management can be overwhelming for marketing teams, but that’s where Generative Loyalty’s Nudge Framework can help! Nudge is an advanced framework that helps manage loyalty programs and empowers marketers with valuable recommendations to guide their choices.

AskAira: An AI Assistant for Marketers

Capillary’s advanced AI chatbot, aiRA, is central to Generative Loyalty and takes full advantage of the Nudge Framework, incorporating Nudge Theory in the context of Loyalty Marketing. Using the Capillary platform with aiRA’s content nudges can give you an upper hand against the competition when looking to improve customer engagement with Nudge and deliver a great experience.

aiRA’s Capabilities

aiRA leverages the Nudge Framework to help enhance loyalty solutions! The Nudge Framework revolves around the nudge theory, which seeks to understand how people think and make decisions. The framework attempts to improve decisions while modifying unproductive influences, such as setting up a promotion but not activating it.

Designing nudges is very complex — but that’s where Generative Loyalty and aiRA’s AI capabilities come in! As an example, the following are some common digital nudges used in loyalty solutions:

Well-timed prompt (micro-nudge) that reminds users if we have missed something and urges action.
Optimal heads-up in the form of user notifications based on their usage pattern.
An incentive that fosters users to use a service.

Working with 250+ brands and touching 800 million+ end customers globally, Generative Loyalty from Capillary is a product-led way to help loyalty marketers and brands improve the performance of their marketing programs by leveraging artificial intelligence (AI). One of the layers across the Capillary suite of products, the nudges can be broadly categorized into three kinds:

Type 1 (Data-led Nudges): Know how your program is doing and potential disruptions to watch out for.
Type 2 (Platform best practices): Low-hanging fruits to leverage product features.
Type 3 (Proactive Nudges): New initiatives that can boost program performance to the next level.

As part of Generative Loyalty, the nudge framework empowers customers to be independent and mitigates turnaround clarifications. Although strategic initiatives, deep dives, and new long-term engagements are the current approaches adopted by Capillary, Nudge is the answer to streamlining the processes.

Generative Loyalty Ecosystems

Generative Loyalty consists of dynamic, evolving ecosystems with seamlessly integrated tools, LLMs, etc., and massive memory that grows with each customer interaction. Brands can use this framework — with the help of aiRA, of course — to create dynamic, predictive, and adaptable loyalty solutions.

Generative Loyalty allows brands to create ‘smart’ loyalty programs that create hyper-personalized customer experiences (CXs). As the most cutting-edge loyalty solution, Generative Loyalty maximizes customer engagement and optimizes return on investment (ROI).

How AI & Generative Loyalty Impact the Industry

Generative Loyalty is changing how businesses interact with customers. Brands are leaving traditional, task-driven loyalty strategies for the current focus on more interactive and engaging approaches to customer loyalty.

Marketers can use AI-powered tools to create loyalty programs that analyze customer interactions and gather insights to create dynamic, hyper-personalized user experiences (UXs). They can also use these insights to personally provide users with the most engaging and relevant content, which can build long-term emotional loyalty.

Generative Loyalty’s powerful predictive forecasting capabilities are a game-changing moment for customer loyalty. Using artificial intelligence (AI) and large language models (LLMs), programs can create dynamic, personalized customer experiences (CXs) by analyzing customer data to understand customer behavior, preferences, and interactions and acting on real-time insights from this data.

Holistic AI-Powered Loyalty Solution

Generative Loyalty brings a holistic customer loyalty approach to creating hyper-personalized customer experiences. Research shows personalization is crucial to a positive customer experience (CX). About 84 percent of customers appreciate being treated as individuals. A marketing strategy that approaches loyalty and reevaluates loyalty programs with this in mind is guaranteed to be more successful.

Approximately 70 percent of consumers appreciate connected processes for contextualized engagement, so efficient customer loyalty ecosystems must be multi-faceted. This emphasizes the value of a loyalty program’s ability to create dynamic, immersive loyalty experiences.

Powerful Features of Generative Loyalty

The following are a few of Generative Loyalty’s most powerful features:

Predictive Personalization: AI analyzes customer data to personalize experiences, making loyalty programs more effective.
Segmentation and Insights: The platform’s AI analyzes customer data and leverages insights to segment customers.
Enhanced Customer Engagement: AI-driven strategies result in higher customer engagement and loyalty.

Capillary’s innovative AI loyalty solutions integrate personalization, segmentation, and predictive analytics into one loyalty framework as an innovative, customer-centric solution. Loyalty programs built using Generative Loyalty guarantees enhanced results over traditional loyalty marketing.

Loyalty programs built with AI and the Nudge framework could gather insights into customer behavior and use them to create a more dynamic customer experience (CX) or for more targeted marketing communications. This level of personalization — or hyper-personalization — will give brands an edge over competitors since it not only meets but exceeds the expectations set by traditional methods.

Preparing for a Generative Loyalty Future

Icon for aiRA, the AI chatbot for loyalty programs created by Capillary Technologies and a main feature of Generative Loyalty. Icon shows an image of a friendly-looking robot waving.

Generative Loyalty and hyper-personalization will soon be the new standard for customer loyalty and engagement. By leveraging Generative Loyalty from Capillary Technologies, brands can stay ahead of the curve and differentiate themselves and their loyalty solutions from competitors early.

Capillary’s end-to-end platform is a suite of products like Loyalty+, Engage+, Insights+, and Anywhere Commerce+. The Capillary CDP (customer data platform) is underlying all this, powered by aiRA (artificial intelligence framework).

Contact Capillary Technologies to learn more about Generative Loyalty and how it can enhance your brand’s loyalty solution!

Aneesh Reddy of Capillary Tech on his wins, mistakes and a breakout SaaS model

Posted on January 25, 2024 by Capillary Marcom

Mobile Apps Are Redefining Fuel Retail Loyalty and Here’s How

Posted on January 22, 2024 by Anjali Pillai

If customer engagement is key to a successful loyalty program, mobile apps are the catalyst that makes it happen. While everything has taken a drastic change with mobile apps, loyalty programs too are undergoing a mobile-app-based transformation to create seamless experiences for end customers.

A mobile app loyalty program can be defined as a digital loyalty initiative designed to engage and reward customers through a smartphone application. These apps are powerful tools that help retailers

enhance customer engagement
differentiate their brands, and
provide personalized experiences by gathering valuable customer data.

According to a study by Google, 53% of users prefer using an app to retrieve account and loyalty card information, giving a strong reason for brands to switch from the traditional loyalty structure to this digitized approach. Almost 65% of brands from various industries are already on this transition and have started seeing impressive results for their business.

Also Read: How to Enhance Fuel Retail Experience with Loyalty Programs

The Rise of Mobile Apps in Fuel Retail

Capillary has worked with several fuel retail players over the years and observed a dynamic shift in the fuel retail loyalty space recently. Digitized loyalty solutions will play a huge role for these fuel retailers to adapt to the changing mobility landscape. Asia alone has seen a significant rise in the number of fuel retailers like switching to a digitized loyalty program model.

This transformation is a part of the broader trend shaped by several key factors. Firstly, the rise of Electric Vehicles (EVs) has prompted oil and gas companies to reevaluate their strategies, recognizing the need to adapt to changing consumer preferences and environmental concerns. Secondly, technological advancements have paved the way for innovative solutions in the fuel retailing sector, revolutionizing the way customers interact with fuel stations. Moreover, consumers’ behaviors are undergoing a paradigm shift, with a growing demand for convenience and personalized experiences.

Helping fuel retailers adapt to these shifting dynamics are mobile apps. Mobile apps give an option for fuel retailers to compete for a larger wallet share of customers by offering them convenient options for fuel and non-fuel purchases (such as lubricants, car-washing facilities, F&B at the stations) and offer personalized experiences using data analytics.

Taking a closer look, here is how mobile-based loyalty programs are changing the way fuel retailers engage their customers and drive their business:

Improving Non-Fuel Retail: Fuel retailers can expand their offerings beyond fuel, providing customers with a one-stop shop for various products and services.
Easy Reward Redemption: Mobile apps simplify the process of redeeming rewards, making it hassle-free for customers.
Gamification: Games and other interactive features within the app enhance customer engagement.
Localization: Customizing the app’s content and offers to match local preferences and market nuances.
Brand partnerships: Collaborating with other brands to offer exciting incentives and cross-promotions.
Streamlining Data Collection: Gathering valuable customer data to inform marketing strategies and enhance the overall customer experience.

Capillary’s platform equips fuel retail loyalty apps with all these features (and more!) for customer engagement. By bringing in the best of advanced technology and customer-focused loyalty solutions, Capillary enables fuel retailers to craft individualized and gratifying experiences for their customers.

Checkout more about Capillary’s Fuel Retail Solutions

With Capillary’s Partnership a Global Fuel Retailer in Added Around 2Mn New Users with Mobile App – Case Study

A prominent fuel retailer in Indonesia with whom Capillary has a long-standing partnership wanted to address some challenges in their existing loyalty program. They were looking to:

digitize their approach
gain a unified understanding of their consumers, and
transition from a vehicle-centric to a consumer-centric brand.

With Capillary they co-developed their loyalty app, thus smoothly shifting from a traditional card-based loyalty program to a mobile-based one. And the results?

Within nine months, the mobile app onboarded 1.7 million users, with over 60% active members.

Here’s how Capillary’s partnership made a difference for the brand:

Fully Integrated Mobile App: The success of the mobile app was attributed to its customer-centric approach, offering user-friendly interfaces, a versatile reward catalog, and store locators.

Customer Segmentation and Communication: Additionally, Capillary’s advanced data-driven insights and analytics were used to identify valuable customer segments, create personalized journeys, and implement effective communication strategies. Capillary’s Promo engine was critical in identifying the right communication strategy for the customer cohorts. It identifies the right next action and nudges the customer to initiate a purchase.

Enhancing Convenience: Local language support and a focus on non-fuel retail further endeared the brand to its customers and contributed to business growth.

The mobile app that the fuel retail brand co-innovated with Capillary, effectively unified fuel and non-fuel retail streams, streamlined the purchase experience and enhanced loyalty engagement.

Interested to know more about this client of ours? Just hit us up here and we would love to share more details with you on how we are helping our clients redefine their loyalty solutions.

Future of Mobile App-Based Loyalty

The shift towards mobile apps for fuel retail loyalty is not isolated but part of a larger trend. Other fuel retail brands worldwide are recognizing the potential of mobile apps to redefine customer engagement and loyalty.

By providing convenience, personalization, and seamless experiences, mobile apps are revolutionizing the way fuel retailers connect with their customers and drive business growth.

Contact a Loyalty Expert

Travel & Hospitality in 2024: AI Leading the Way in Trends & Opportunities

Posted on January 15, 2024 by Lars Parmekar

The travel and hospitality industry has always been quick to adopt cutting-edge technology and innovations to drive operational excellence and enhanced guest experiences. Naturally, this industry is no exception to the increasing prevalence of artificial intelligence across aspects of everyday life. According to the International Air Transport Association, there will be a significant increase in passenger traffic in 2024 and the number of passengers traveling by air may reach 4.7 billion this year, a jump from the 4.5 billion passengers in pre-pandemic 2019. With this increase of expected travelers in 2024, it is imperative that travel and hospitality brands are equipped with advanced technologies to retain and drive operational excellence while still focusing on the guest experience. In this blog, we take a look at the top emerging trends and opportunities in ML & AI in this industry for 2024:

Chatbots & Virtual Assistants

Smarter, conversational artificial intelligence will be integrated into various platforms to provide enhanced customer experience and satisfaction with improved booking processes, customer service and 24/7 assistance at every step of the guest’s travel journey. These ‘smarter’ chatbots help travel & hospitality brands save time and reduce costs, offer personalized travel recommendations, real-time trip updates and quick resolutions. Guests will know that they are communicating with AI, so companies must ensure these chatbots are providing valuable, efficient and convenient insights.

The intelligent concierge concept takes chatbots and virtual assistants a step further, offering the most sophisticated and personalized concierge experience for guests. The emergence of Large Language Models created the capability to leverage highly conversational, personalized experiences that rivals a traditional, physical concierge. Responses and inquiries are deeply personalized, timely and via any channel the guest prefers.

Augmented and Virtual Reality (AR/VR)

AR and VR technologies can be leveraged to enhance the guest’s travel experience, offering the ability to preview destinations, virtually tour accommodations, or even experience local attractions before they make a reservation or booking decision. Virtual reality cannot replace the experience of a true vacation, but it can certainly provide a realistic expectation of the destination. This capability is also growing in popularity in the hotel space, with virtual tours of rooms and amenities to stand out from competing hoteliers. Booking.com released a recent study that showed that 43% of global travelers say that virtual reality inspires their vacation choices and that another 46% say they are more likely to travel to unfamiliar destinations after experiencing it virtually.

Hyper-Personalization at Scale with AI

Evolving the user experience with personalization is no new trend for any industry, but artificial intelligence takes personalization to an entirely new level. AI algorithms and integrations enable hotels to get a 360 view of the guest in minutes, giving them the opportunity to deliver unique, exceptional experiences to each and every one of their guests. The new term ‘web of one’ has been introduced recently as a segmentation of data so deep and specific to the individual guest that it has the potential to transform how all hotels communicate with all guests.

Imagine a guest checking into a hotel for their favorite team’s game at a nearby stadium. AI could enable the hotel to know about this particular guest’s plans in their city so they could offer a room that has stadium views, share gameday tips or even recommend the local team’s pub where fans gather. The hotel can easily offer that unique, tailored treatment to the guest which has the potential to drive extreme loyalty and memorable experiences with the brand.

Doubling down with Generative AI & loyalty programs

The Generative AI market is expected to grow to $1.3 trillion over the next 10 years from a market size of just about $40 billion in 2022, according to a recent report by Bloomberg Intelligence (BI). Generative AI that is baked into loyalty programs is a complete game changer for brands, especially those in the travel & hospitality space. Guests enrolled into a company’s loyalty program are already providing consent and access to their zero and first party data, so coupling that data with a powerful generative AI framework is truly a program and company differentiator.

Ending Thoughts & Conclusion

There are still some aspects of AI in the travel and hospitality industry that have shown to be adapted at a slower rate. Some of these technologies may be further out from being the ‘norm’ – technologies like customer service robots at check-in or the lobby, robotic bartenders taking drink orders and even mixing cocktails, or AI-robots directing congestion in a busy airport terminal. These aspects may seem like a ways out of being accepted at scale, but they are already being tested and used with some of the bigger brands in the industry.

The Capillary team traveled to the Skift Global Forum in NYC in September 2023 to connect with industry leaders and discuss what trends were making their way into travel and hospitality. The rise and acceleration of AI was obviously the major theme in most sessions covering marketing, operations, and IT – reflecting the industry’s keen interest in the rapid evolution of technology. Previous fears that “AI will replace me” have transformed into a mindset that“ another company may be utilizing AI more effectively and will end up ahead of us.”

Capillary has extensive experience in leading and innovating in the travel and hospitality industry. Not only was the loyalty platform (Loyalty+) specifically designed to inspire and delight travelers throughout their entire lifecycle with embedded ML & AI, but we’ve now incorporated generative AI into our technologies. Reach out to us today to learn more about Capillary’s travel & hospitality experience and how we stay ahead of trends and deliver memorable experiences across their entire travel lifecycle.

Top 5 Successful Gamified Loyalty Programs From Asia

Posted on January 9, 2024 by Anjali Pillai

As we look ahead to another exciting year in customer loyalty, one standout trend takes center stage, and that is gamification. Brands are realizing that by adding gamified elements to their loyalty strategies, they can stand out, engage customers, and boost customer loyalty. Gamification makes routine tasks thrilling, encouraging customers to interact more frequently, spend more, and willingly share valuable data. In fact, according to Formation, a striking 81% of consumers are ready to share basic personal information for a more personalized experience.

Gamification also offers an excellent strategy for brands to target GenZ and millennial customers, who are going to be significant contributors to the brands’ overall business in the coming future. To succeed with gamified loyalty programs, brands need to go beyond the ordinary and create something innovative and exciting. In this article, we explore the top 5 Asian loyalty programs that have mastered gamification, reshaped customer loyalty, and driven impressive business growth.

1. ‘The 1’ by Central Group

The Central Group, a conglomerate based in Thailand, understands the importance of keeping customers engaged. Their loyalty program ‘The 1‘ takes loyalty to a whole new level. By combining big data, technology, and customer relationship management, they have created a digital lifestyle platform that connects customers with their business units and partners. Gamification is at the heart of ‘The 1,’ with the ‘The 1 Mission’ feature offering interactive challenges that unlock digital badges and points. This not only incentivizes engagement but also makes the program enjoyable for tech-savvy, value-conscious, and online shopping enthusiasts in the region.

2. KrisFlyer Singapore Airlines

Singapore Airlines’ KrisFlyer program has elevated the online shopping experience with “KrisFlyer Spree.” This feature enables program members to accumulate miles while making online purchases via the program’s portal, transforming each transaction into an engaging and rewarding experience. Additionally, the airline runs contests and games, such as quizzes and interactive campaigns, to keep members excited and motivated. These gamified elements make loyalty more than just accumulating miles, but creating a thrill in the journey.

3. GrabRewards by Grab

Grab, a prominent ride-hailing and delivery headquartered in Singapore, has integrated gamification seamlessly into its GrabRewards program. Gamified challenges and missions, such as completing a specific number of rides or transactions within a timeframe, encourage users to engage more with the platform. Users are further incentivized with tiered levels, each offering its own set of benefits. Limited-time promotions, interactive in-app games, and partnerships with restaurants and retailers add a layer of excitement to the entire experience. GrabRewards ensures that every interaction with the platform is an opportunity to earn rewards and progress.

4. Master Painter Loyalty App by Jotun

Jotun, a leader in the paint industry, recognized the potential of gamification and made it a part of their loyalty marketing strategy for the Vietnam region to reach and engage their targeted segment- the painter community in Vietnam. Their Master Painter loyalty app uses AI-based transformation to run gamification-led marketing campaigns. This approach has resulted in a remarkable increase in loyalty sales. By offering personalized offers and gamified interactions, Jotun successfully tapped into the loyalty of painters in the region.

5. Blue Rewards by Al Futtaim

Al Futtaim is a very reputed Dubai-based conglomerate and their loyalty program, Blue Rewards has harnessed the power of gamified customer experiences during special events like FIFA and seasonal holidays. These initiatives led to a significant 15% increase in monthly active users. In-app skill-based games allow users to earn rewards, driving cyclical actions and purchase behavior. The delightful experience provided by these games keeps users engaged and loyal.

Conclusion

These Asian brands have embraced gamification as a potent tool to engage customers, foster loyalty, and drive remarkable sales. By integrating gamified elements into their loyalty programs, these brands have transformed routine transactions into exciting adventures. Whether it’s earning points, collecting stamps, or participating in challenges, gamification strategies have become the driving force behind customer engagement and loyalty in the region.

Now, the question for brands is not whether to embrace gamification, but how to do it effectively. And that’s where Capillary Technologies shines as a trusted partner. We have worked with 400+ enterprises around the globe to create successful loyalty programs that incorporate all the latest trends and technology in the loyalty landscape, including gamification. Our expertise in the domain has resulted in remarkable results for these brands and we can help you with the same.

So, take the leap and trust in Capillary to drive your gamified loyalty programs to new heights. It’s time to captivate your audience, foster unwavering loyalty, and elevate your brand’s success.

Get in touch with our partner now.

What are gamified loyalty programs?

Gamified loyalty programs incorporate game-like elements such as points, levels, challenges, and rewards to engage customers. These programs aim to make the customer experience more fun and interactive, encouraging repeat engagement.

How do gamified loyalty programs benefit businesses?

Gamified loyalty programs benefit businesses by increasing customer engagement, enhancing user experience, and driving higher participation rates. They can also boost brand loyalty and encourage more frequent interactions with the brand.

What are some successful gamified loyalty programs in South East Asia?

Successful examples include Shopee’s Shopee Coins, GrabRewards by Grab, and Lazada’s games and challenges. These programs use gamification techniques to engage customers and reward their participation.

How can businesses implement gamified loyalty programs?

Businesses can implement gamified loyalty programs by integrating game mechanics into their loyalty platforms, designing engaging challenges and rewards, and using technology to track and reward customer interactions.

What are the key elements of a successful gamified loyalty program?

Key elements include clear and achievable goals, meaningful rewards, social sharing features, and regular updates to keep the program fresh and engaging. Ensuring that the gamification elements align with the brand’s overall strategy is also essential.

Top 10 Customer Loyalty Trends for 2024

Posted on January 4, 2024 by Jubin Mehta

The landscape of customer loyalty is rapidly evolving, and 2024 is set to witness some significant trends driven by advancements in AI and changing consumer behaviors. At Capillary, we’ve played a role in designing or redesigning 500+ loyalty programs for 400+ brands over the last 15 years. Through this blog, we bring you the top 10 customer loyalty trends to keep an eye out for in 2024:

1. Generative Loyalty and AI’s Impact

Generative AI has changed the paradigm in technology over the course of 2023. A truly watershed moment for the world, 2023 will be remembered as the year when AI went mainstream with ChatGPT. At Capillary, we’ve been at the forefront of AI in the customer loyalty space with the Nudge Framework and now, we’re incorporating generative AI towards building a loyalty LLM. Read more on how is generative AI changing the future of loyalty programs.

2. Hyper-Personalization through AI

AI is elevating the personalization of customer experiences to unprecedented levels. It enables brands to tailor experiences precisely to customer preferences, from product recommendations to marketing communications.

Highly effective customer segmentation through predictive analytics helps in communicating the right message at the right time and having the right customer loyalty platform is the key to that. Through Capillary’s partnership with Yawye, deliver real-time emotional sentiment to clients at every touchpoint of the customer journey.

3. CPG Brands will double down on loyalty programs

The Consumer Packaged Goods (CPG) industry is expected to focus more intensively on loyalty programs, leveraging AI to better understand and engage customers. The entire D2C wave has shifted the landscape for CPG brands and with the need to connect directly coming in, more and more CPG brands will focus on doubling down on loyalty marketing. Learn more about the industry here.

4. Rise of SaaS in Loyalty Management

Software as a Service (SaaS) platforms are disrupting the loyalty management space, offering scalable and sophisticated solutions for personalizing and managing loyalty programs. At Capillary, we offer Managed SaaS solutions where a brand gets end to end loyalty management- right from expert consultancy to begin with, a highly advanced tech platform that powers the loyalty program and downstream digital services to complete the loop.

5. Regulatory Changes with AI

Earlier this month, The Times sued OpenAI and Microsoft over AI use of copyrighted work.

There will be several such concerns with fine tuning LLMs and usage of data in general. AI is marching forth and regulations are playing catchup at the moment but it’s inevitable for regulatory forces to come in more strongly as we move towards policies defining ethical usage of AI. It is a superpower which the world needs to safeguard and use for the good.

6. AI/ML in Prescriptive Models continue to develop

AI and Machine Learning (ML) are advancing towards more prescriptive models, predicting customer behavior and preferences to enhance loyalty and personalization strategies. AI has been a key part of our product roadmap at Capillary from 2016 and before generative AI, the primary focus and benefit has been on prescriptive models through the Nudge Framework. Developments in this direction will continue in parallel with Generative loyalty over the couse of 2024.

7. Younger Generation’s Influence in B2B buying

The buying persona is quickly shifting in the B2B software space as a younger generation takes up leadership roles in the new technology environment.

According to Forrester, buyers aged 25 to 44 will make up three-fourths of business buying teams in 2024. As per this Forbes article, when engaged in face-to-face buying, Forrester’s data shows that these buyers find personal interactions with product experts more meaningful than all other in-person activities. What are the implications for B2B marketers? “Millennials find that when they get to talk to the experts sooner, they can make the decisions faster,” said Ramos.

8. Gamification and Experiential Rewards

We all know the power of gamification- increased engagement and stronger brand recollection are two aspects that immediately come to mind. If we look at data- brands have seen upto 47% rise in engagement and a 22% rise in brand loyalty through gamification tactics. Here’s a comprehensive guide on incorporating gamification into your loyalty strategies.

9. Role of UGC in Customer Service and Loyalty Metrics

Brands increasingly use user-generated content (UGC) in loyalty programs, and this trend is expected to continue into 2024. UGC could include customer reviews, photos, social media posts, and more, which can be key to the brand’s loyalty marketing and customer engagement strategy. UGC can grant the brand a greater sense of authenticity for new customers.

10. Metaverse in Loyalty Experience

While AI is changing the narrative, the metaverse continues to play a significant role in expanding the loyalty experience, offering immersive and interactive platforms for customer engagement. Progressive brands are testing waters with Metaverse in the form of NFTs like Lufthansa’s recently launched Web3 NFT loyalty program.

We expect this trend to continue in 2024 but we’re still some distance from reaching a point where Metaverse starts showing up in early discussion stages when considering a loyalty program.

That rounds up the top 10 customer loyalty trends that we foresee and as a follow up, later in the month, we’d also be launching a 50 Trends report which will go into the granularities and unlock insights for loyalty marketers across the globe, stay tuned!

Contact a Loyalty Expert

Top 10 Customer Loyalty Trends for 2024

What are the top customer loyalty trends for 2024?

The top customer loyalty trends in 2024 include personalization, omnichannel engagement, sustainability rewards, AI-driven insights, mobile-first programs, tiered memberships, experiential rewards, real-time loyalty, blockchain for transparency, and community building.

How will AI-driven insights impact loyalty programs in 2024?

AI-driven insights will enhance loyalty programs by enabling more precise personalization, predicting customer preferences, and optimizing reward offerings. This technology helps businesses create more engaging and effective loyalty strategies.

Why is sustainability important in customer loyalty programs for 2024?

Sustainability is crucial as consumers increasingly prefer brands that demonstrate environmental responsibility. Loyalty programs that offer sustainability rewards, such as eco-friendly products or carbon offset points, resonate more with eco-conscious customers.

What role will mobile-first programs play in 2024 loyalty trends?

Mobile-first programs will play a significant role by providing convenient and instant access to rewards and program information. As mobile usage continues to rise, these programs ensure seamless engagement and enhance the overall customer experience.

How can Capillary Technologies help businesses adapt to 2024 loyalty trends?

Capillary Technologies can help businesses adapt to 2024 loyalty trends by offering advanced customer loyalty software for personalization, omnichannel engagement, AI-driven analytics, and mobile-first program management. Their loyalty program ensures businesses stay ahead in the evolving loyalty landscape.

Capillary Technologies’ CEO Sameer Garde accepted into Forbes Business Council

Posted on January 2, 2024 by Capillary Marcom

Capillary Technologies, a global managed SaaS loyalty solutions provider, is proud to announce the acceptance of Sameer Garde into the Forbes Business Council, the foremost growth and networking organization for successful business owners and leaders worldwide.

Sameer Garde was selected by a review committee based on the depth and diversity of his experience. Criteria for acceptance include a track record of successfully impacting business growth metrics, as well as personal and professional achievements and honors.

“I am delighted to join the esteemed network at the Forbes Business Council,” said Sameer Garde, CEO of Capillary Technologies. “Forbes is one of the most respected voices in the business world, and being part of this community is truly an honor. At Capillary Technologies, we power some of the most well-known loyalty programs globally, and in this exciting age of AI, we’re proud to be pioneers in shaping generative loyalty. I am eagerly looking forward to sharing insights with brands that aim to ramp up their customer loyalty efforts and transform it into a profit center.”

Through Capillary’s managed SaaS approach, brands have seen upto 60% increase in customer retention, 50% improvement in customer satisfaction or emotional loyalty which has driven up sales by upto 20% across verticals like CPG, Travel & Hospitality, Retail, Conglomerates, BFSI, Telco & Healthcare. Follow Sameer’s profile on Forbes where he’ll be sharing some of the key insights from the world of customer loyalty- how brands can leverage loyalty to increase marketing RoI and how AI is changing the modern loyalty landscape.

About Forbes Councils

Forbes Councils is a collective of invitation-only communities created in partnership with Forbes and the expert community builders who founded Young Entrepreneur Council (YEC). In Forbes Councils, exceptional business owners and leaders come together with the people and resources that can help them thrive.

About Capillary Technologies

Founded in 2008, Capillary Technologies is an end-to-end customer loyalty SaaS platform. Powering 500+ loyalty programs across the globe, Capillary works with 400+ brands including the likes of Tata, PUMA, Shell, Al-Futtaim, Petron, Domino’s, Kanmo Group, and Marks & Spencer. With a massive reach of 1Bn+ consumers and processing 5Bn+ annual transactions, the company has the backing of marquee investors like Sequoia Capital, Avataar Ventures, and Filter Capital.

Related posts:

What is Capillary’s Managed SaaS approach? Watch Video.

What is Generative Loyalty?

How is generative AI shaping the world of customer loyalty?

5 APAC Loyalty Trends That Will Rule 2024

Posted on January 1, 2024 by Anjali Pillai

Now more than ever, people buy most from brands that drive the highest affinity through digital media. And there is no region more mobile-friendly and digitally agile than the APAC region. 92% of shoppers in the SEA countries agree that they would be more enticed by loyalty programs while making purchase decisions. Marked by a permanent shift in lifestyle choices, Indian, Chinese, and Japanese consumers are particularly more loyal towards brands that generously and consistently reward them due to long-term retention strategies.

Over the past two years alone, there’s been a proliferation of loyalty-driven brand success stories from the overall landscape. Covering a diverse set of Asian loyalty programs, let’s dive headfirst into 5 APAC loyalty trends that promise ever-lasting value.

1. GENERATIVE LOYALTY FOR ENHANCED CUSTOMER EXPERIENCE

According to an Adobe survey, APAC consumers exhibit an unparalleled level of enthusiasm when it comes to the potential of Generative AI to enhance products and services, surpassing the interest of consumers in other regions like the US and Europe by nearly threefold. This unique regional fervor for AI-driven solutions presents a golden opportunity for brands to harness the power of generative loyalty. Generative loyalty, at its core, leverages artificial intelligence and machine learning algorithms to create personalized and dynamic customer experiences.

Brands will reap a lot of benefits by jumping onto the AI bandwagon for their loyalty program. Firstly, they can employ AI-driven chatbots and virtual assistants to provide real-time assistance and personalized recommendations, making shopping experiences more convenient and tailored to individual preferences. Secondly, brands can utilize predictive analytics to anticipate customer needs and offer proactive solutions, thus fostering a sense of anticipation and satisfaction among their clientele.

Capillary’s AI-powered technology is already helping several APAC brands get the most out of their loyalty programs, bringing in substantial revenue for the brands. Read more about how Capillary was able to drive sales for these brands here.

2. PAID OR SUBSCRIPTION-BASED LOYALTY

With the ultimate retail takeover of e-commerce, paid or subscription-based loyalty continued to rule the roost. McKinsey reported that 42% of consumers are bound to buy again once they pay the initial fee, and 50% are likely to be more loyal to the brand over competitors. In fact, paid loyalty programs have become not only fundamental determiners but also key competitive differentiators for the strongest brand-consumer relationships. Across the APAC region, Amazon Prime is the biggest success story in terms of paid loyalty for offering a whole host of benefits with a single, one-time yearly subscription. Beauty brands like Sephora and popular fashion-retail brands like H&M also championed the paid membership with exclusive insider access and customized discounts.

3. GAMIFICATION

Gamification is riding high and is here to stay for long. To make loyalty programs more interesting and engaging at once, Shopee – a leading e-commerce platform in the SEA region and Taiwan – launched an exclusive tier-based rewards system that offers its shoppers customized vouchers for all their needs. Based on the total number of orders completed every 6 months, each customer achieves a unique loyalty tier on the gamified Shopee app. Each tier implies earning a virtual card simultaneously – Classic, Silver, Gold, and Platinum.

While all Shopee users start off with the classic tier, they can be upgraded to earn privileged customer vouchers easily as they continue to shop more. The first 10 completed orders mean moving on to the Silver tier, and so on.

The exclusive vouchers are spread over exciting brand deals, normal everyday essentials as well as cashbacks and discounts on overseas deals. Through its holistic, cycle-based approach, loyal customers are allowed to assess their purchases as per the rewards they generate and, thereby, continue to remain engaged but in an informed manner. This is a win-win situation for the brand and its customers, generating a long-term relationship that’s fulfilling.

4. EXPERIENTIALLY EXCLUSIVE LOYALTY

The airline giant, Emirates, is running its most successful premium subscription model that gives members access to free upgrades and generous discounts on tickets among other benefits. These include exclusive experiences such as the Emirates business lounge access, extra baggage allowance, and electronic passes which customers can avail to make their traveling more luxurious and at ease. This program is called Skywards+ and it can be paid for through an annual fee-based subscription. The premium model offers the cash+miles option for availing earned credits on the next flight, while also opening lounge access across 10 countries across the world. If you’re a frequent flyer on Emirates who books paid tickets, the 20% bonus Skywards miles will add up, as will the 20% bonus Tier Miles for the most expensive subscription.

Crafting unique rewarding experiences that address the varying socio-cultural nuances of consumers is another major trend that’s taken the region by storm. Indonesia’s innovative telecom device-distributor, Erajaya, recognized the value of offering different devices and plans for its customer base by designing an experience-based rewards ecosystem. With the introduction of Era Club, they disrupted the sector through an award-winning loyalty program that builds loyalty one customer at a time through multi-tier points earned and redeemed for different devices and their accessories. Beyond persona-based personalization, this also looks into the differences in mobile preferences based on culture trends that are required to craft unique purchase experiences. The focus is on optimizing the end-to-end customer experience (CX) through a points-based mechanism that facilitates not only the ease of choice but also experiential satisfaction – driving brand loyalty significantly.

5. INSTANT GRATIFICATION

This is probably the most lasting trend to ever come about in the space of loyalty. All consumers in India for instance are constantly looking for instant rewards at their easy disposal. A standout loyalty program in the country is the Landmark Rewards Program. It offers all its customers the luxury of instantly redeeming a range of rewards such as flat savings across the apparel category the brand caters to. This award-winning program is a huge success for the brand as it also offers cardless rewards that can be redeemed across 250+ locations with exclusive offers pouring in at all times of the year. After an effortless and easy sign-up, customers are encouraged to spend to earn more benefits, explicitly tagging the program as ‘Earn and Spend’.

Often a cultural day of large-scale significance can also drive loyalty. In China, for instance, most food and beverage retailers offer samples of their products for free during festive occasions like the Chinese New Year. The special treatment through instant gratification meted out as free gifts allow for seamless and long-lasting connection with existing and new consumers. This is actually expected a lot more in China due to high cultural standards and demands from brands. To commemorate their members using the concept of a topical day, the Chinese Watson’s loyalty program celebrates every 5th day of the month with a special Member’s Day campaign when points are worth 5 times more than usual. This keeps consumers coming back long after the program ends.

The above APAC loyalty trends indicate the innovative changes made by agile brands to sustain their customers’ faith and reliability alongside engagement. They are likely here to stay, with companies progressively overcoming organizational, cultural, and technical challenges. Moreover, digital transformation steadied its course as consumer behavior changed forever during lockdowns. Under these challenging post-Covid circumstances, only those APAC brands that can bypass their traditional marketing siloes to make greater leaps in terms of improving loyalty are, ultimately, growing the fastest. Get in touch with the experts at Capillary Technologies to know more about how our loyalty solutions can implement them.