Loyalty and Retail Media – A Match Made in Heaven?

Loyalty and Retail Media Integration

Let’s be real—most brands are leaving value on the table. Why? Because they’re keeping loyalty programmes and retail media in separate silos.

That’s a mistake. A BIG one. But also, a difficult problem to solve.

If you're serious about growth, it’s time to think bigger — more connected, more strategic. When loyalty and retail media join forces, brands don’t just see incremental improvements. They unlock exponential performance.

Retail Media’s Rise—and Loyalty’s Role

Retail media has gone from being a buzzword to a boardroom priority. In the U.S., retail media ad spend is set to exceed $106 billion by 2027 (Insider Intelligence). In the UK, investment will hit £1 billion by 2025, excluding Amazon (IAB UK).

Why the surge? Simple. Retailers own the data. Every time a shopper scans their loyalty card or checks out online, they’re revealing intent; and that is GOLD for brands.

Retailers like Tesco, Sainsbury’s, and Boots are leading the charge. Tesco’s Media & Insight arm uses Clubcard data to deliver targeted ads across digital, in-store, and connected TV. Sainsbury’s Nectar360 allows brands to activate loyalty-powered campaigns across owned channels. Boots Media Group leverages Advantage Card insights to personalise media with precision.

But here’s the real power move: behind every great retail media campaign is loyalty data — the engine of modern targeting.

Precision Marketing Starts with Loyalty

Loyalty programmes today are more than points and perks — they’re identity systems that unlock customer behaviour, preferences, and purchase history.

Want to find gluten-free snack buyers? Loyalty knows. Want to target high-value shoppers by spend or frequency? Loyalty’s your guide.

ASDA and Morrisons, offer brands access to data-led advertising solutions across their digital and in-store ecosystems. These retailers are turning transactions into targeting.

Retail Media Fuels Engagement, Not Just Acquisition

Most loyalty programmes struggle with ongoing engagement. Members join, get their welcome perk, then drift. Retail media solves that.

Imagine:

• A skincare shopper sees a banner with Gold Tier beauty perks

• A customer with expiring points gets a tailored checkout ad

• A frequent buyer is served a personalised homepage spotlight featuring their most-loved products and a surprise bonus offer—just for them!

• 
  

That’s not just advertising—it’s behavioural science at its best.

Just look at Amazon Prime. It’s a masterclass in blending loyalty, content, and media into a seamless flywheel of spend and retention.

Building the Closed-Loop Flywheel

When loyalty and retail media unite, you create a closed-loop system:

1. Segment audiences using loyalty data.

2. Activate campaigns across retail media channels.

3. Track transactions tied to media exposure.

4. Follow up with personalised loyalty content.

5. Optimise using real-time performance data.

   
   

This isn’t a campaign—it’s a self-sustaining customer journey.

Final Word: The Connected Future

So, is loyalty and retail media a match made in heaven?

Absolutely! But only if you break silos, invest in connected platforms, and shift your mindset from isolated tactics to integrated ecosystems.

Because when you connect identity, media, and loyalty—you don’t just market.

You build relationships at scale – Isn’t that what we want?

Written By

Mrinalini Chowdhary