Retailers face growing challenges in retaining customers as consumer expectations shift. While competitive pricing remains important, loyalty now hinges on personalised experiences and emotional connections. More than half (52 per cent) of Australian consumers say they only shop with brands that align with their values, highlighting the need for retailers to adapt.
Traditional loyalty programs often fail to meet these expectations, according to Loyalty Now. Outdated systems offering delayed rewards and generic benefits leave consumers feeling disconnected.
“Customers want their loyalty to matter right away,” said Anurag Vasisth, co-chair and group CEO of Loyalty Now. “Modern consumers aren’t willing to wait weeks or months for rewards. True loyalty is about showing customers they’re valued in real time.”
Retailers also face operational inefficiencies with systems that operate in isolation, creating barriers for both businesses and consumers. Vasisth explained, “Retailers are juggling multiple systems that don’t talk to each other, leading to operational headaches. Loyalty solutions must integrate seamlessly into existing technology stacks to simplify operations and deliver a better customer experience.”
Modern loyalty platforms address these issues by linking customers’ existing payment cards to loyalty programs, eliminating the need for separate apps or cards. Rewards are applied in real time, giving consumers flexibility in how they use them—such as making donations or earning cashback. These platforms also prioritise data security, meeting rigorous standards like PCI DSS Level 1 certification to protect customer trust.
“Secure, payment-linked platforms make loyalty effortless,” said Vasisth. “They eliminate barriers that discourage engagement, like remembering a separate card, while driving real-time interaction and simplifying operations for retailers.”
Advanced loyalty systems also harness customer data to deliver personalised offers, enhancing satisfaction and fostering long-term loyalty. “Retailers need solutions that address delayed rewards, impersonal offers, and operational challenges,” Vasisth said. “Payment-linked loyalty platforms tackle these issues head-on, creating deeper consumer connections and raising the bar for loyalty programs.”
As the retail landscape evolves, adapting to these modern solutions is becoming essential for businesses aiming to differentiate themselves in a competitive market.
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