Insights from The Loyalty Summit CXM 2023
This year, the Loyalty Summit CXM Americas took place in the city of Los Angeles on November 15 and 16. Over 40 speakers, including directors and managers of significant loyalty programs, as well as consultants and providers of technology and data analytics, presented and discussed the current state of the industry, its challenges, and trends.
Participating in these events is always valuable, especially to firsthand confirm what currently concerns and engages the loyalty industry in North America, which, in many cases, reflects challenges encountered elsewhere.
If you were to ask me which three topics discussed caught my attention the most, I would say:
1. Reflection on the role that artificial intelligence would play in loyalty programs moving forward, especially in the analysis of behaviors, personalization processes, and interaction. In this regard, the case presented by the company Black Tux's stood out, which used AI and robots to write thousands of "handwritten" personalized letters to reactivate customers. What amused me the most about this case is that it used cutting-edge technology to implement classic and traditional direct marketing. This underscores the idea that technology does not necessarily come to replace effective methods but to enhance them.
2. The second noteworthy theme is the need for innovation that most participants highlighted. Loyalty needs haven't diminished, but customers demand more freshness and impact in their programs. This doesn't necessarily require creating new mechanics but rather giving them a twist to focus more on preference rather than transactionality. This translates into the opportunity to create programs with a more emotional and relational focus and less emphasis solely on rewards. To achieve this, it's crucial to leverage the generated data more effectively.
3. Finally, I greatly appreciated the discussion on how to elevate and better argue for loyalty programs in company boardrooms. At this point, Peter Fader, author and Customer Experience expert, presented 13 lessons for loyalty initiatives to be seen more as a strategy than just programs. Among these lessons, I emphasize the idea of not focusing on all customers but on the right ones, meaning the most profitable ones.
Many tips, concerns, and ideas to discuss—some innovative, others classic but with new ingredients and tools to address them. What is clear is that gaining customer loyalty remains the number one strategy for achieving profitability and growth in businesses.