Content Writer
Content Writer
Retailers across North America are facing intensifying economic headwinds. In both Canada and the U.S, persistent inflation, elevated interest rates, fluctuating currency value, and shifting trade policies are straining consumer budgets and reshaping purchasing behaviours. These macroeconomic pressures extend beyond rising costs; they are also reshaping how customers engage with brands, how they shop, and how they interact with loyalty programs.
Customers are becoming more value conscious, trading down, deferring purchases, and evaluating the relevance and value of loyalty programs that they participate in. Retailers are confronting a critical question: how does one keep their loyalty program as a profitable growth lever when consumer behaviours and cost dynamics are evolving so rapidly?
After a whirlwind few days at CRMC, I’m walking away with more than just notes from keynote speakers and photos of packed ballrooms—I’m leaving recharged, inspired, and reminded of why this event remains one of the most valuable in our industry. Given that Bond is a company that prides itself in being an intelligence-driven organization with our frameworks, data, and studies—such as the recently released Bond Loyalty Report—, this is another data point to consider as we all evolve in our industry.
Yes, the content was strong. Yes, the speakers delivered. But the real magic of CRMC is what happens in-between: the hallway chats, the off-the-record brainstorms, the impromptu couch huddles where ideas are challenged, refined, and sometimes flipped on their heads. While Bond is often at the forefront of a lot of these discussions and changes in the industry, it’s always great to connect with clients and peers to discuss in more detail.
In the retail world, "membership" and "subscription" are frequently used interchangeably, confusing consumers and diluting the value each can bring to the business. However, our research reveals that most consumers perceive a distinct difference between these two types of programs despite brands not trying to differentiate between them. The Bond Loyalty Report highlights each program's unique value based on a survey of over 1,000+ consumers across various age segments. It was found that customers view memberships as distinct from subscriptions. Chief among what makes them distinct is whether or not they provide a sense of community, exclusivity, and relevancy.
Subscriptions operate on the principle of habit formation, encouraging consistent consumer behavior through regular, predictable deliveries of goods or services. For instance, replenishment subscriptions (like Dollar Shave Club) offer routine shipments of essentials, creating a frictionless experience where convenience is key. Predictability is essential here; behavioral science indicates that when customers rely on regular service intervals, they begin to develop a habit, turning subscriptions into an automatic routine.
Discovery or exploration subscriptions (e.g., FabFitFun) offer a more curated experience, introducing subscribers to new products or services that they may not have otherwise discovered, often with an element of surprise and delight. These services engage subscribers with the excitement of discovering new items each delivery, adding an experiential layer to the transactional nature of subscriptions.
When you subscribe to a service or product, you're paying for goods or services delivered at regular intervals, often at a discounted rate. Think of your favorite streaming service, meal kits, or monthly beauty boxes. The primary appeal is ease and predictability—subscribers know what to expect and can rely on consistent delivery without the need to repeatedly place orders.
The transactional nature of subscriptions means that they can often be impersonal. While they may include personalized elements such as tailored recommendations or curated boxes, the relationship between the consumer and the brand remains largely functional. The goal is to simplify life, save time, and, often, save money. Only 58% of customers who consider a program to be a subscription have a likelihood to renew, further indicating the transactional nature of subscriptions (The Bond Loyalty Report).
Content Writer
Over the years, implementing loyalty programs has taught me that success in this space demands more than just technology integration expertise. While system integrators (SIs) firms excel in building and connecting IT infrastructure, loyalty programs live and die on customer experience, emotional connection, ease of use and adaptability (for both customers, and the program operators). Having worked with dozens of brands on complex implementations over two decades, I’ve seen firsthand the nuances that drive successful loyalty initiatives and the pitfalls to avoid. Here are five key lessons that I’ve learned:
Successful loyalty programs begin with clear strategic goals and plans that inform technology choices, instead of the other way around. Working with an expert who bridges expertise in loyalty strategy and technology produces more successful outcomes. First to establish what you aim to achieve—higher retention, increased spending, or brand advocacy with a more scalable, performant and user-friendly platform—then helping select or implement your technological tools based on both strategy and goals. A clear strategy ensures that even the most advanced platforms deliver on your objectives. This strategic orientation should inform both technology platform and implementation partner choices, creating a seamless continuity from strategy to execution from one source.
At Bond we have four promises that we make to our clients: that our solutions are customer-relevant, brand aligned, operationally feasible, and financially incremental. We do this by helping our clients get closer to their customers so they may better understand how to make informed strategies that drive business outcomes and loyalty.
As we head into what’s sure to be another dynamic year, we’ve prepared a list of the top trends and predictions that we anticipate will be at the forefront for 2025.
2024, as outlined in The Bond Loyalty Report, saw a period focused on optimizing loyalty for maximum impact. Loyalty program enrollment saw record highs, with 19 total memberships per person, and the race for share of wallet has never been more intense as consumers seek greater quality experiences (The Bond Loyalty Report, 2024). Not only were customers seeking ways to better budget in 2024, but simplicity and seamlessness were also key. The top loyalty driver? ‘Makes me feel valued/important’, out of a sample of 20k+ consumers across 360+ programs; in a time of self-checkouts and chatbots, customers want to be seen. Carrying over from last year, undoubtedly, will be the power and influence of loyalty programs, with 85% of members stating that programs make them more likely to continue doing business with brands (The Bond Loyalty Report, 2024). As we enter a new era, it’s clear that the momentum built around loyalty and consumer expectations will only accelerate.
From Customer Experience to AI and Analytics, let’s dive into the trends and shifts that we predict will define 2025:
1 - Zooming Out: The Consumer Loyalty Marketplace in 2025
2 - The Age of Artificial Intelligence
3 - The Loyalty Program in 2025
4 - Analytics' New Age & The Value of Human Expertise
5 - Experience Matters: The CX Commandments
Today, senior leaders are moving between a number of competing priorities: stabilizing operations, focusing on customer experience and innovation, human capital and leadership, and digital transformation. From technological advancements to shifting customer expectations, the need for a clear, unified vision is critical. This is where leadership alignment comes into play, serving as the indispensable first step in grounding an organization’s vision and focus. Through targeted workshops— workshops that bring key decision makers together—, leaders can not only set a North Star but also tackle unique business challenges. As McKinsey & Company notes, aligned leadership teams are 1.9 times more likely to achieve above-average financial performance (2024).
Leadership alignment sessions are particularly beneficial for organizations facing the following challenges:
"This strategic alignment is not merely a box-ticking exercise; it's a vital step in amplifying impact and extracting value."
Recently, Bond worked with a global organization to support their leaders in aligning on the technical processes required to identify and drive key business outcomes. In the absence of intentional, strategic alignment, several teams floundered together, lacking the direction needed to collaboratively maximize the ROI of their existing tech stack. We needed to get into the weeds and involve a variety of players to elicit their different viewpoints. As a result of these efforts, leaders were able to maximize opportunities for measurable impact and align their technical processes, accordingly, thereby extracting greater value from their technical investments.
This strategic alignment is not merely a box-ticking exercise; it's a vital step in amplifying impact and extracting value. Being intentional and embracing leadership alignment sessions can make a significant impact. According to Boston Consulting Group (BCG), when leaders are unified on strategy and goals, they are 77% more likely to be successful than those with less cohesion. This alignment is beneficial for several reasons:
Leadership alignment provides a structured environment for leaders to come together, gain clarity on a shared vision, inform their decision-making process, and set clear priorities. Leaders who make quick, decisive decisions and see them through are crucial for success. Companies that prioritize this kind of decisive leadership are 2.5 times more likely to effectively guide their employees' actions and 4.2 times more likely to maintain organizational health (McKinsey, 2024).