FUTR Europe: Marie Curie UK CTO Mike Cadden on why traditional loyalty is broken and community is key

Mike Cadden, Chief Technology Officer at Marie Curie UK, told delegates at FUTR Europe in London last week that traditional loyalty schemes are ‘broken’ - here’s how he suggests brands can fix it.

Cadden opened his session by noting that more than half of all loyalty scheme memberships are currently inactive. “Most people join for perks, but they will stall for purpose - they almost never find it,” he warned.

“Community is the new loyalty,” Cadden suggested, stating that brands need to work with customers to create a sense of this.

The business case for making loyalty schemes more appealing is clear. Cadden noted that members of Sephora Beauty Insider spend an average of 2.75x as much as non-members at the beauty retailer, while members of Starbucks Rewards spend three times more than non-members in its coffee shops. “Community-powered shoppers spend more,” he added.

Cadden highlighted the success of exercising tracking app Strava, which recently acquired coaching start-up Runna. “It’s more than a brand,” he explained, noting that the apps users are able to log milestones and achievements while also supporting friends. 

He also noted the success he’d previously had with discount retail outlet Bicester Village, which offers a membership scheme. As a retail location rather than a brand itself, the company couldn’t offer discounts at these outlets, however it could invite its members to exclusive events and new launches, using customer profiles it had built up to ensure they were appealing. “We gave them things they couldn’t buy anywhere else,” Cadden said.

Thanks to AI, he stated that this level of personalisation could now be delivered quicker, making it easier for loyalty schemes to appeal. “Use AI to turn customer data into copy that reaches out to them,” he added, suggesting brands use the technology to reach people with information they really want and need, rather than non-specific recommendations. “People can see through generic content now,” he added. 

However, Cadden also cautioned that using AI for this level of promotion should not be an excuse to remove staffing from loyalty programmes. “If you do that, you’ll lose your brand,” he warned. “Your people bring empathy, emotional nuance.” 

He suggested brands put ethical guardrails on AI use and be careful not to create any “creepy moments” where consumers feel they are being watched a little too closely by a retailer. “If people feel you are stalking them, they will leave you and they will not come back,” he warned. 

Earlier this year, the Tesco Clubcard loyalty scheme celebrated its 30th anniversary, shortly after trialing ‘Your Clubcard Prices’ offering lower products based on individual consumer preferences.