How Leading Retailers Are Evolving Loyalty for the Modern Consumer
This article is provided by BRC Associate Member, Thoughtworks.
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As customer expectations evolve, so too must the ways retailers earn and retain loyalty. What once hinged on rewards points and transactional perks is now shifting toward something deeper: trust, transparency, and personal relevance. A new whitepaper by Thoughtworks, “Loyalty that Lasts: How Retail Leaders Keep Customers Coming Back,” provides a strategic analysis of how modern retailers are reshaping loyalty frameworks, supported by case studies from prominent industry players.
From Transactions to Trust
The whitepaper draws on a recent executive roundtable hosted by Thoughtworks, where retail leaders discussed the future of loyalty in an increasingly complex and values-conscious market. A common theme emerged: loyalty can no longer be treated as a siloed program. It must be embedded across the brand experience.
Consumers today are more informed and cautious about how their data is used. They’re still open to personalization—but only when it’s ethical, respectful, and clearly beneficial. One key insight: brands that succeed are those who offer both transparency and choice.
Purpose Over Points
For younger customers—particularly Gen Z—loyalty is tied to purpose. They expect brands to align with their values and offer rewards that reflect a broader mission, such as environmental responsibility. In response, retailers like OTTO are incorporating sustainability into their loyalty programs, giving customers a chance to make ethical choices without sacrificing value.
This values-driven approach doesn’t just resonate with customers—it’s good business. Companies that align incentives with ESG goals are building deeper, more enduring relationships.
Augmenting Human Connection with AI
AI is also reshaping how loyalty is delivered. The key isn’t to automate everything—it’s to use AI thoughtfully, in ways that strengthen the human connection. Whether it’s surfacing the right recommendation at the right time or enabling customer teams with better insights, AI should serve the customer journey without overwhelming it.
Designing with Flexibility and Control
Retailers must also recognise that not all customers want the same experience. Some want maximum control over their data and preferences; others just want frictionless, relevant engagement. Offering that flexibility is now crucial. Successful brands are building systems that let customers decide what personalization looks like—while delivering consistent value in return.
The Technology Behind the Strategy
None of this works without the right tech foundation. From data governance to omnichannel orchestration, loyalty today relies on a seamless backend. Retailers need strong data architecture, AI guardrails, and customer-centric design to turn insights into action.
Looking Ahead
“Loyalty that Lasts” makes one thing clear: building long-term customer loyalty is no longer about handing out rewards. It’s about creating experiences that feel personal, ethical, and aligned with customer values—powered by data, but driven by purpose.
For retail leaders looking to future-proof their customer relationships, this whitepaper offers a practical, strategic lens.
