Blog | From Clicks to Bricks: Loyalty Programs as the Catalyst for Omnichannel Insights

The fourth masterclass of What’s in-Store for Retail Media Networks began with Ben Reynolds, VP of Business Development at Walkbase, introducing the panel of retail experts: Renee Hartmann, author of NextGen Retail, Frank Trefzer, RVP from Tealium, and Andy Baldauf formerly of Switzerland’s Ex Migros Supermarkt AG. 

These leading experts gathered to discuss the evolving role of loyalty data in the retail landscape, exploring its value as a first-party data source and how it drives personalization, customer experience and retail media strategies. Panelists shared insights on leveraging data to create customer-centric loyalty programs, how best to approach privacy regulations and ways to enhance retail media effectiveness.

Let’s take a closer look:

Loyalty Data as the « New Oil » for Retail

Retailers are increasingly aware of the potential of loyalty data, often viewed as the « new oil » of commerce. This data, especially when gathered with consent, enables companies to personalize customer interactions across touchpoints, from online to in-store experiences. Renee Hartmann, an industry veteran, emphasized that loyalty programs should be centered on what customers find enticing—whether special offers, early access or exclusive discounts. This customer-first approach not only strengthens brand loyalty but also opens pathways to valuable insights that drive decision-making.

Privacy as a Catalyst for Innovation

One of the session’s key themes was how privacy regulations, especially in the EU, can inspire innovation. Panelists noted that regulations like GDPR, often perceived as restrictive, actually encourage brands to devise creative ways to engage customers while respecting privacy standards. Frank Trefzer highlighted the opportunity to build trust by making privacy a cornerstone of customer communication. As a result, privacy becomes a differentiator, providing companies with a « trust advantage » that enhances brand loyalty.

Comparative Global Approaches to Loyalty Programs

In Europe, privacy-conscious consumers require clear value in exchange for their data, while in the U.S., loyalty programs are more widely accepted, albeit with lower privacy expectations. This cultural difference requires brands to tailor their approaches: European retailers may need to invest more in transparent communication and customer education, whereas U.S. brands can focus on convenience-driven loyalty, such as the ease of app-based purchases or discounts.

Retail Media and the Role of Loyalty Data

As retail media networks gain traction, loyalty data becomes integral to delivering targeted and relevant promotions. However, effectively integrating loyalty data into retail media requires overcoming challenges related to data quality, privacy compliance and technology infrastructure. Andy Baldauf underscored that retailers need the right tech stack and talent to fully leverage loyalty data. By doing so, they can maximize the benefits of their retail media networks, attract more brand partners and enhance the customer experience with tailored content.

Innovations and Best Practices in Loyalty Programs

The session showcased innovative loyalty programs from brands like IKEA and Amazon Go, which use app-based and in-store technologies to make shopping experiences more convenient and personalized. Panelists also discussed the potential of smart stores and AI-enabled in-store analytics, which offer real-time insights that can be integrated with loyalty data to create seamless, omnichannel experiences. However, the panelists acknowledged that implementing such technologies is cost-intensive and may be more feasible for high-margin or niche retailers.

Overcoming Barriers to Adoption

The final discussion touched on common challenges in scaling loyalty programs, including omnichannel integration and technology adoption. The panel suggested that, for loyalty programs to truly thrive, retailers must break down silos across online, offline and in-store data sources. This requires a centralized customer data platform that can deliver real-time, actionable insights. Additionally, panelists advocated a « build, measure, learn » approach, where retailers continually test and refine their loyalty strategies based on customer feedback and data insights.

Looking Ahead: The Future of Loyalty Programs

The panel concluded with a discussion on the future of loyalty, particularly the trend toward « co-marketing » where retailers partner with non-endemic brands to extend loyalty benefits. Panelists speculated that partnerships allowing customers to use points across brands, such as redeeming airline points at grocery stores, would enhance value and convenience, making loyalty programs more attractive.

In summary, the fourth masterclass at DMEXCO 2024 provided invaluable insights into how retailers can harness loyalty data while navigating the complexities of privacy regulations, retail media and customer-centric innovation. By focusing on trust, transparency and a customer-first approach, retailers have the opportunity to unlock the full potential of loyalty data, positioning themselves for a future where data-driven insights power meaningful customer relationships and sustained business growth.

You can watch the masterclass here. You can access all of the masterclasses of What’s In-Store for Retail Media Networks, presented in cooperation with DMEXCO here.