FIS Pushes Brands to Prove Authenticity or Lose Loyalty

Watch more: Locking In Loyalty: Securing Top-of-Wallet Status in a Changing Economy

After decades of copy-and-paste points programs, consumers and enterprises are rethinking what it means to earn and keep loyalty.

Retailers, issuers and brands are under pressure to improve unit economics, differentiate their offerings, and meet consumers where they are digitally, socially and emotionally.

“It’s a very exciting time,” Mladen Vladic, head of product at FIS Payment Networks, told PYMNTS in an interview. “There’s a lot of development happening in both the payments space and the loyalty space, and it’s really a reflection of changing consumer expectations.”

It’s an “inflection point” where all sides, including buyers, sellers, retailers and issuers, are trying to deliver better customer experiences, he said.

“There’s a tremendous opportunity to bring more technology into the ecosystem,” he said, and build a more holistic, personalized approach to rewards that works for everyone.

The push is coming from both directions. Consumers are telling brands they want more relevant offers. Retailers and issuers are listening, realizing that one-size-fits-all loyalty doesn’t work anymore.

“Customers today will not remain loyal by default,” Vladic said. “Just because generations of a family banked with the same institution doesn’t guarantee the next generation will. You have to earn and re-earn that loyalty through authentic interactions and seamless experiences.”

If rewards are going to work, consumers need to be part of the design process.

Customers should be invited into product development, not necessarily to dictate outcomes, but to feel they’ve had influence, Vladic said. Just having an opportunity to have a say in a product’s design means a lot to every human.

“It creates a deeper emotional tie to the brand,” he said.

That’s especially true for young consumers, who expect loyalty programs to reflect their values and integrate with their digital lives.

“You need to lead with authenticity and purpose,” Vladic said. “Align incentives with causes your customers care about — sustainability, social impact — and then prove you’re committed to those causes.”

This means moving loyalty away from simply rewarding spend toward building a relationship that mirrors the customer’s identity.

They also want to access their rewards seamlessly.

“The centerpiece of every strategy should be a strong mobile app or wallet integration,” Vladic said. “Embedded loyalty, delivered through the channels customers already use daily, is key.”

The next wave of loyalty is not about static point balances. It’s about real-time engagement, gamification and personalization.

“Think of loyalty as a journey you can gamify,” Vladic said. “Introduce challenges, badges, even friendly competition. That creates stickiness.”

There will be a growing shift away from transactional loyalty toward a holistic relationship-based model, he said.

“Strategically using loyalty, rewards and engagement as a tool to upsell and cross-sell to deepen the relationship is where the opportunity lies,” he said.

That shift is powered by technology.

“Real-time engagement and real-time rewarding are becoming table stakes,” Vladic said.

Consumers, especially young ones, expect instant gratification, and brands are under pressure to deliver seamless, effortless experiences. These expectations have been set by streaming and social platforms.

“Just think about Netflix, Spotify,” he said. “Algorithms build personalized playlists in real time. That’s now the expectation for loyalty too.”

Consumers are also more willing to share first-party data if they see a clear benefit and trust how it’s used, he said.

That, in turn, opens the door to more personalized offers, delivered at the right time through the right channel.

To deliver that level of personalization at scale, brands are turning to artificial intelligence.

“I feel very strongly about AI’s application in our industry,” Vladic said. “It’s all about segmenting the customer base and personalizing the experience.”

AI won’t replace loyalty marketers, but it will make them more effective, he said. There’s a promise in how AI tools can help with more real-time segmentation and personalization of loyalty offers.

It’s still early days, and the tools are evolving.

“It’s going to be a journey,” Vladic said. “But the promise of being able to deliver the right reward to the right customer in real time is really exciting.”

“Active listening,” not just once a year in a survey, but continuously, is important, he said.

“Customers are giving feedback daily, weekly, monthly,” Vladic said. “It’s critical for brands to actively listen and adjust.”

As the industry grapples with aging technology stacks and rising customer expectations, Vladic said he sees an opening.

“The advancements we’ve made in real-time payment-with-points capabilities over the last few years are just the beginning,” he said.

The loyalty playbook is being rewritten. For those willing to invest in authentic, personalized, technology-driven programs, the payoff could be a win-win-win.

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