Retail Merchandiser - Volume 66 Issue 1 | Page 16

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A successful example is Sephora’ s Beauty Insider challenges, which use progress tracking, goals and surprise rewards to delight customers and encourage repeat engagement.
The key is relevance. Gamification is most effective when it reflects the brand’ s identity and delivers clear value to the customer. When done well, it creates non-transactional touchpoints that deepen brand connections and a sense of belonging.
This year, I hope to see more retailers adopting this approach, designing experiences that invite customers to have fun, explore and return.
Promotional messaging becomes more selective and purposeful
At the same time, retailers are taking a harder look at how they communicate. With average email click-through rates sitting around two percent, it is increasingly clear that sending more messages does not translate into better engagement or stronger loyalty.
In the year ahead, many brands will move away from blanket promotional emails in favor of fewer, more considered interactions. Loyalty data will play a critical role here, helping marketers tailor messages based on behavior, preferences and intent rather than broad segments.
Brands that shift their focus from frequency to relevance will be the ones building genuine, lasting connections – and increasing return on investment.
Taken together, these shifts show why a smarter loyalty-first mindset will be one of the defining drivers of retail growth in 2026. As C-suite executives increasingly adopt a more holistic approach to promotions and loyalty and focus on the ways to drive real engagement through gamification and relevant communication touchpoints, loyalty programs will become more sophisticated, data-led and strategic. ■
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