AI is revolutionising retail loyalty with real-time data

Retail loyalty programs are experiencing a transformation driven by advancements in data science, artificial intelligence (AI), and cloud computing, according to a new report from technology company Eagle Eye.

The recently released ebook titled "Real-Time Personalisation: Retail's Next Big Thing?" highlights how modern cloud and composable commerce platforms are enabling innovations in the retail sector. These platforms are aiding retailers in managing data, understanding customers, and transforming businesses to meet evolving market demands.

Jonathan Reeve, Vice President for APAC at Eagle Eye, describes composable commerce platforms as "customisable toolkits" for building e-commerce environments. "A composable commerce platform is like a 'customisable toolkit' for building an e-commerce store, which comes in handy for any retailer or brand needing to generate vast amounts of hyperpersonalised offers and challenges," Reeve stated.

Artificial intelligence and machine learning (AI/ML) are at the forefront of this transformation. The ebook illustrates how the capability for retailers to create millions of tailored offers for loyalty program members is now a reality. Notable names like Tesco have already adopted these technologies with beneficial outcomes.

Reeve commented on the trend, saying, "As more retailers and brands embrace hyperpersonalisation, there will undoubtedly be even more evidence that combining customer and product data with AI/ML drives loyalty and sales."

The ebook also addresses the difference between segmentation and true personalisation in loyalty programs.

Traditionally, loyalty schemes have focused on dividing customers into segments and targeting them with relevant offers. However, real-time personalisation is now within reach, allowing retailers to offer immediate and bespoke rewards based on individual customer data.

"Until recently, it would have been impossible to locate and analyse a particular customer's data, first-party or otherwise, and instantly offer them a reward or challenge. (A reward or challenge that will delight the customer and benefit the loyalty program provider)," said Reeve.

"That's no longer impossible. What's more, a growing number of retailers have increased their sales and widened their margins by embracing 'real-time personalisation'. In the very near future, we should expect to see hyperpersonalisation become the standard rather than the exception in retail."

"Customers already expect tailored experiences based on their preferences and past behaviours."