Businesses and organizations work hard to attract new customers in every way possible - through social media marketing, sales campaigns, and more. The investment of time and money in customer acquisition is only beneficial if the company invests in customer retention.

Customer retention refers to the actions taken to keep as many customers as possible. The most common customer retention initiatives are loyalty programs due to their efficiency. Recent reports have found that loyalty program members drive between 12 and 18% revenue growth each year. Customer retention is often way more cost-effective, faster and easier than customer acquisition, because it doesn’t always make sense to spend the big bucks on marketing, advertising, or sales outreach since long-term success usually occurs when businesses prioritize their relationships with existing customers. The customers are already engaged in it, they have expressed an interest in the product and the company doesn’t need to present itself again and again. In fact, retention is a more suitable business model that is key to sustainable growth.

This year, the key trend in loyalty program development will be hyper-personalization. Brands will prioritize creating exclusive and memorable experiences tailored to individual customer needs, rather than just offering discounts. How is this possible, you ask? The answer – artificial intelligence (AI) and big data. These technologies enable companies to deliver personalized rewards and experiences in real-time, significantly enhancing the customer journey. Here are a few examples of innovative campaigns designed to boost customers engagement:

• Qatar Airways’ Travel Campaign “Star in your own adventure” – Qatar Airways' AI Adventure campaign leverages artificial intelligence to create an immersive, aspirational experience for users while maintaining the brand's premium image. The campaign invites customers to upload photos of themselves and places them in luxurious scenarios, like attending a red carpet event or boarding a flight in Doha, as part of a three-minute film. This approach enhances engagement, attracting new customers and reminding current ones why Qatar Airways is their airline of choice. The sharable, interactive nature of the videos allows customers to become brand advocates, promoting the airline through word-of-mouth. By combining innovation with emotional appeal, the campaign strengthens brand loyalty and creates a more inclusive, relatable experience for all.
• Nike Membership program – Nike's 2024 loyalty program takes personalization to the next level by combining digital and physical experiences. Using data from its fitness apps and connected devices, members receive custom-designed products and personalized fitness plans through the “Design Your Journey” feature. This approach has led to a 20% increase in retention and a 35% rise in repeat purchases. Nike also introduced “Member Days” in stores, offering one-on-one sessions with fitness experts, product trials, and exclusive workout classes. This initiative has driven a 50% increase in foot traffic and a 30% rise in in-store purchases, strengthening loyalty and engagement.