SAP CX CMO foresees a big shift in customer loyalty in 2026
If Jessica Keehn is right, this holiday season won’t simply be marked by budget-conscious consumers looking for deals to offset ongoing economic pressures. It may be the turning point where loyalty is defined by brands building trust and aligning with customers’ values.
Two months ago, the chief Marketing Officer at SAP CX was on stage at the company’s SAP Connect event in Las Vegas, where she unveiled its Customer Loyalty Management solution alongside other offerings. Now, she is ready to help brands understand how to transcend the emphasis on rewards programs in favor of developing deeper, more meaningful customer relationships.
“(Customers) want to be rewarded for the relationship that they have with a brand, not just a transactional points system,” Keehn told 360 Magazine. They want to feel like the brand understands them, knows who they are and is presenting them with, offers, promotions, recommendations based on exactly who they are and what they value.”
Part of that value is undoubtedly about getting more from their money, and Keehn noted that points programs aren’t going away. According to a recent report from the Wise Marketer and Engage People, nearly 80 per cent of consumers indicated using “Pay with Points” (PwP) directly at checkout, which is double from 2023 data, where only 37 per cent.
However SAP Emarsys research also shows nearly a quarter of Gen Z shoppers are willing to pay more for products from brands that align with their values. Those younger shoppers represent a critical segment for brands who want their customer experience (CX) efforts to translate into long-term growth.
Keehn said SAP’s Customer Loyalty Management solution can help by drawing from a customer data platform (CDP) to rethink incentives and rewards. She pointed to the grocer sector, where a consumer might get five dollars off for spending $100.
That might drive some results, but she suggested a better approach would be using technology to identify a shopper that tends to purchase fresh, organic produce and present them with recipes that encourage them to stretch their budget by offering a discount to buy organic cereals and grains.
“It makes them feel like you understand that they typically purchase these things, and that you’re giving them a complimentary item, that you’re giving them a reason and a way to expand the relationship that they have with you in a really targeted and thoughtful manner,” she said.
That said, there is a dichotomy between the volume of data brands need to develop an effective loyalty program and consumers’ comfort level with sharing it. Keehn said customer concerns about a lack of transparency, understanding about privacy policies and security vulnerabilities all need to be addressed at the outset in order to be successful.
“It’s about educating the customer about what you’re going to do with their data, and being respectful about that in ways that give them a little bit more control,” she said. “If they sign up for loyalty programs and then they get batch and blast emails that aren’t consistent with their expectations, it’s not going to feel like the right type of relationship for them.”
Taking a value-based approach to customer loyalty will likely be an evolution for many brands, and one where they’ll have to continuously assess their progress as they go. Keehn said this may call for prioritizing metrics and thinking about success in ways they haven’t focused on before.
People don’t want to fill out NPS surveys anymore. I think that’s something we’re going to see decline,” she said. “What you really want to measure is the impact. Are you stretching customers to engage with you in new ways? Are you stretching them to build the relationship and expand the depth of the relationship that you’re having with them? That’s all quantifiable.”
