Eagle Eye reveals impact of AI-powered loyalty programs on APAC retailers
Retailers in Australia, New Zealand, and the wider Asia-Pacific region are at a pivotal moment in how they engage with customers. According to a recent ebook by Eagle Eye, Loyalty’s Next Chapter: The Forces Reshaping Retail in 2025, AI-powered loyalty programs could become retail’s most powerful engine for growth this year.
Key Loyalty Trends Retailers Need to Know
The report identified seven key trends set to impact retailers in 2025:
- 2025 marks the year where early adopting retailers will start measuring the ROI of their AI investments
- More retailers will move from AI-driven personalisation pilots into fully scaled programs for all customers
- Retailers will drive more digital loyalty sign-ups from within a physical store, using a mix of staff incentives, sign-up bonuses and retail media
- Retail media will grow significantly and retailers will benefit by connecting digital loyalty programs to drive personalisation in-store
- Retailers will adapt loyalty strategies in response to ongoing cost-of-living pressures, such as with promotions and recommendations
- Reimagined coalition loyalty programs will re-emerge in Asia-Pacific
- Build vs buy debates will continue, and expert loyalty platform developers will win deals with major brands
AI, Personalisation and Retail Media
According to Eagle Eye, Artificial intelligence (AI) has emerged as a major force in the retail space. After years of discussion around its potential, 2025 marks the year where retailers can start measuring returns on AI investments. In fact, retailers in Europe like Tesco and Carrefour are already there, using predictive AI to enhance personalised marketing.
“Early adopters have shown that AI can process vast amounts of customer data to predict shopping patterns, automate personalised offers, and create more engaging shopping experiences. Having said that, execution is critical, as even great data is ineffective without actionable strategies,” said Jonathan Reeve (pictured), VP of Eagle Eye APAC.
In 2025, retailers will not only move from pilot programs to scaling personalisation to all customers, but they will also focus on improving first-party data collection, data quality and how well that data flows through the organisation.
“There is, however, one key obstacle in the way of collecting high-quality data and engaging new customers on digital channels,” Reeve explains. “Currently, most retailers only connect with a small fraction of their customer base through apps and websites. If only one in 20 customers are on the app, most customers are in the dark on the benefits of a powerful, personalised reward program, and retailers are missing a lot of potential to enrich the models driving those programs.”
This digital engagement challenge represents a significant opportunity in the retail media space. In 2025, retail media will play a key role in recruiting shoppers into digital loyalty programs. Furthermore, PwC estimates that the retail media category in Australia will hit $2.6 billion by 2026, driven by retailers who successfully connect their loyalty programs with media networks to create more personal shopping experiences.
One example of success in this area is Woolworths’ Disney Worlds of Wonder collector card campaign, which effectively bridged online and in-store experiences through targeted data use.
Innovation Providing Value in Cost of Living Crisis
Cost-of-living pressures continue to affect consumer behaviour, and retailers are adapting their loyalty strategies. Research shows that 69% of shoppers want more value and relief through more relevant promotions, personalised deals and loyalty efforts, while 84% believe personalised recommendations will help them save money.
“This focus on value is driving innovation in program design, particularly in the Asia-Pacific region where coalition loyalty programs are expected to be reimagined and make a comeback. These multi-brand programs, enhanced by modern technology, offer customers more ways to earn and use rewards while helping retailers share costs and data insights,” Reeve explained.
“The model was shaken across ANZ last year when it was announced that Flybuys New Zealand would close. The pure-play loyalty provider attributed the closure partly due to the underlying technologies now being so readily available that businesses can easily develop their own proprietary loyalty programs.”
For retailers across Australia and New Zealand, the path forward is clear. Success in 2025 will depend on their ability to harness data, personalisation and AI while addressing the digital engagement gap.
Those who can deliver value through targeted offers, embrace retail media opportunities and build flexible loyalty programs will be best positioned to turn customer engagement into sustainable growth in the years ahead.
Access Eagle Eye’s new eBook, Loyalty’s Next Chapter: The Forces Reshaping Retail in 2025 clicking this link.
