If you’ve spent any time in digital loyalty over the past few years, you’ve probably heard it: “We need more personalization.” Customers expect it, leadership demands it, and now with generative AI in the mix, it feels like every touchpoint can be customized in real time.
But personalization without trust? That’s a recipe for churn.
I’ve spent over two decades building loyalty programs and digital retail experiences for brands like Sobeys, Safeway, LCBO, and Petro-Canada. I’ve seen firsthand how customers engage when a loyalty experience feels personal… and how quickly they pull back when it crosses a line.
With generative AI, the possibilities are exciting. But the risk of getting it wrong is just as real.
Customers Want Personal, Not Creepy
It’s tempting to assume that more data equals more loyalty. But that’s not always the case.
At one brand I’ve spoken with, an experiment ran where AI-driven product suggestions were pushed in the loyalty app. The logic was sound: combine purchase history, real-time weather, location data… and surface timely, relevant offers.
The problem? Customers didn’t understand how or why the system was making these recommendations. A few loved it. Many found it invasive.
That’s the tension at the heart of GenAI in loyalty: the more tailored the experience, the more you need to explain the value exchange.
People will give you their data, but they want to know what you’re doing with it, and they want the option to opt out when it feels too much.
Generative AI Is a Trust Exercise
Trust in loyalty programs has already taken a hit in recent years, mostly due to point devaluation, poor transparency, and rising account fraud.
Adding generative AI to the mix doesn’t fix that. In fact, if you’re not careful, it can make things worse.
The moment a customer sees a hyper-personalized message they didn’t expect, or gets an offer that seems a little too targeted, they stop and wonder “What else do they know about me?”
And once that question surfaces, the loyalty shifts from emotional to transactional. Or disappears altogether.
The antidote…
