What should modern marketers do to drive impactful customer loyalty programs? Meghann York, Global Head of Product Marketing at SAP weighs in with proven tips:

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Hi Meghann, tell us about yourself and your role at SAP?

I’m Meghann York, and I lead the Product Marketing team at SAP. My role focuses on empowering businesses to create meaningful and lasting customer relationships. At SAP Emarsys, we provide brands with the tools they need to deliver personalized, real-time experiences that resonate deeply with their audiences. This includes leveraging AI to understand and anticipate customer needs across every touchpoint.

What in your view and based on SAP’s recent research drives customer loyalty in today’s marketplace?

Customer loyalty is built on a foundation of trust and value. SAP Emarsys’s recent Customer Loyalty Index found that while 43% of consumers credit their loyalty to long-standing brand reputations and 28% to consistency, only 17% feel truly valued. This reveals a significant gap: brands must focus on delivering personalized and meaningful experiences that make customers feel seen and appreciated. AI-driven personalization plays a crucial role by enabling brands to engage customers with precisely the right message, at the perfect moment, through their preferred touchpoint.

Against this backdrop, SAP recently announced it will launch a new loyalty management solution later this year to arm brands with the technology backbone they need to create programs that truly understand customers and deliver meaningful experiences and offers at just the right moment. The solution also aims to help marketing and commerce teams justify the expense of these programs, another pitfall that has plagued loyalty initiatives for years.

What do most brands still get wrong about customer loyalty?

Many brands focus heavily on acquisition but overlook the importance of nurturing existing customer relationships. Research highlights that it’s five times more expensive to acquire a new customer than to retain an existing one.

Another common mistake is assuming a one-size-fits-all approach works for loyalty. Value is subjective, and brands must invest in understanding what it means for each customer—whether that’s exclusive access, tailored offers, or personalized rewards. Without this insight, loyalty strategies often fall flat.

Can you highlight some known or new-age SaaS brands who boast of above-par customer loyalty experiences?

PUMA stands out as a prime example. Its partnership with SAP Emarsys showcases how brands can excel in loyalty by combining AI-driven insights with innovative engagement strategies. Through personalized customer journeys, omnichannel experiences, and targeted content, PUMA has built strong connections with diverse audiences.

Other SaaS leaders, like those in the direct-to-consumer and subscription spaces, are also excelling by leveraging data to create seamless, tailored customer experiences.  For instance, Gibson expanded its DTC strategy by employing multiple engagement tactics, including a mobile app, to foster loyalty among guitar enthusiasts.

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What should brands do more of to drive better loyalty experiences in a phygital-first commercial world?

Brands need to focus on blending physical and digital experiences seamlessly. This includes offering consistent value across online and in-store interactions. AI-driven personalization can help brands meet customers where they are—whether through an app, a physical store, or social media.

For example, the SAP Emarsys Mobile Wallet solution enables brands to create a direct link between in-store and online experiences. It allows customers to save loyalty cards, personalized offers, or event invitations in their mobile wallets, providing instant updates and reminders. In-store associates can leverage this information to offer tailored recommendations, while customers benefit from exclusive promotions and early access to new launches—all of which foster deeper loyalty.

Take us through the highlights of SAP’s and PUMA’s partnership and how it has enabled better loyalty cycles for PUMA’s customers?

PUMA’s partnership with SAP Emarsys is a fantastic case study in creating personalized, omnichannel loyalty experiences. Using AI, PUMA tailors customer journeys across platforms, including its app, in-store experiences, and TikTok shoppable videos.

They also leverage joint partnerships like Mention Me to nurture brand advocates. Additionally, PUMA’s focus on connecting with niche audiences, such as motorsport enthusiasts through its F1 sponsorship, demonstrates how a targeted approach can drive engagement. App users, who are 47% more loyal, benefit from exclusive content and early access, making it clear that personalization drives loyalty cycles effectively.

What should brands be careful about when using AI to drive customer loyalty workflows today?

AI is incredibly powerful, but it’s essential to use it responsibly. Brands must prioritize transparency and data ethics. Customers need to know how their data is being used and must see the value of sharing it. Moreover, personalization shouldn’t feel invasive; it should feel intuitive and helpful. Balancing automation with a human touch is also critical to ensure that AI-driven interactions remain authentic.

A few thoughts on the future of customer loyalty?

The future of customer loyalty will hinge on hyper-personalization and omnichannel integration. AI will continue to evolve, enabling brands to anticipate customer needs even more accurately. Loyalty programs will move beyond transactional rewards to focus on building emotional connections. Understanding where customers are shopping is becoming increasingly critical.

For instance, as more consumers turn to growing channels like TikTok and Instagram for shopping, brands must keep up with these trends to remain relevant and engage customers effectively. Additionally, as younger generations prioritize sustainability and social responsibility, brands that align with these values will see stronger loyalty from these audiences.

Five daily habits or best practices you’d share with customer loyalty teams before we wrap up?

1. Prioritize Data Insights: Regularly analyze customer data to identify trends and personalize experiences.
2. Engage Continuously: Stay in touch with your customers through relevant and timely communications.
3. Test and Learn: Continuously refine your loyalty strategies through A/B testing and feedback.
4. Focus on Value Exchange: Ensure every interaction delivers tangible value to the customer.
5. Be Authentic: Build trust through transparency and consistent brand messaging.

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