Can loyalty be rebuilt with loyalty programs?

Loyalty programs are exploding in reach and popularity: from a local café offering a free hot drink for every 10 you buy to Tesco giving member-only discounts for Club Card holders. Their ubiquity shows how most retailers are convinced of their power to boost sales and build shopper loyalty.

The path to purchase and shoppers’ needs have been transformed by the pandemic, social media, technology, and omnichannel commerce. Retailers are scrambling to ensure their programs are keeping pace with these dramatic upheavals.

They are evolving beyond the simple model of rewarding repeat purchasing into something more complex that creates deeper connections with shoppers and enhances brand story. Most are making them more digital, personalized, omnichannel, and about brand story and community.

Now that all the major FMCG retailers have a loyalty program of some sort, is there really an opportunity to win complete shopper loyalty? What other areas can savvy retailers consider for enhancing loyalty beyond the programs themselves?