AI-driven loyalty programmes to reshape Asia-Pacific retail

The impact of loyalty programs on retailers in the Asia-Pacific region has been highlighted in a recent eBook issued by Eagle Eye, emphasising the pivotal role these programs are likely to play in the retail industry this year.

The eBook titled "Loyalty's Next Chapter: The Forces Reshaping Retail in 2025" explores seven key trends poised to influence the retail sector. Among these, 2025 is identified as the year when early adopters will begin to assess the ROI of their AI investments. Additionally, a shift from AI-driven personalisation pilots to fully implemented programs for all customers is predicted.

Retailers are expected to incentivise digital sign-ups within physical stores through staff incentives, sign-up bonuses, and retail media strategies. The growth of retail media is anticipated to significantly benefit retailers by connecting digital loyalty initiatives to foster in-store personalisation.

The ongoing cost-of-living pressures are prompting retailers to adapt their loyalty strategies. The research indicates that 69% of consumers desire more value through relevant promotions, while 84% value personalised recommendations for cost-saving purposes.

Jonathan Reeve, Vice President of Eagle Eye APAC, stated, "Early adopters have shown that AI can process vast amounts of customer data to predict shopping patterns, automate personalised offers, and create more engaging shopping experiences. Having said that, execution is critical, as even great data is ineffective without actionable strategies."

He further noted, "In 2025, retailers will not only move from pilot programs to scaling personalisation to all customers, but they will also focus on improving first-party data collection, data quality and how well that data flows through the organisation."

The research anticipates a revival of coalition loyalty programs in Asia-Pacific, offering consumers multiple avenues to earn and utilise rewards, thereby aiding retailers in sharing costs and gaining data insights. This resurgence is seen as a response to the shuttering of Flybuys New Zealand, reflecting a shift towards proprietary loyalty programs facilitated by easily available technology.

Reeve explained, "This focus on value is driving innovation in program design, particularly in the Asia-Pacific region where coalition loyalty programs are expected to be reimagined and make a comeback. These multi-brand programs, enhanced by modern technology, offer customers more ways to earn and use rewards while helping retailers share costs and data insights."

For retailers in Australia and New Zealand, the path forward involves leveraging data, personalisation, and AI, while closing the digital engagement gap. Success in 2025 hinges on the ability to deliver value through targeted offers, embrace retail media opportunities, and construct adaptable loyalty schemes.

The eBook is now available, providing a comprehensive analysis on how these strategies are essential for retailers aiming to cultivate customer engagement into sustainable growth.