AI driven personalization is essential to discovering and creating value for untapped audiences

New York City, Jan. 9, 2025 – As NRF 2025 approaches, new research from SAP Emarsys Customer Engagement has uncovered a significant challenge for United States brands: four in five (83%) consumers feel undervalued by the brands they remain loyal to, with many questioning their loyalty altogether.

The Customer Loyalty Index, which surveyed more than 4,000 U.S. consumers, reveals diverse motivations for brand loyalty: 43% credit it to long-standing reputations, 28% to brand consistency and 24% to iconic branding. Yet, despite this loyalty, only 17% of consumers feel “truly valued,” leaving the majority wanting more.

This disconnect is a wake-up call for brands, as customer acquisition costs continue to rise. Research shows it costs up to five times more to acquire a new customer than to retain an existing one. 

For industries like fashion, where 53% of consumers are loyal to a single brand, this poses a threat to long-term stability.

“True loyalty is built by delivering meaningful connections and value at every stage of the customer journey,” said Meghann York, Global Head of Product Marketing at SAP. “With AI, brands can identify and engage diverse audiences, meeting customers where they are with tailored, real-time experiences across every channel.

“Value can be subjective, so SAP Emarsys empowers brands to understand and deliver what value means to each customer—whether it’s exclusive access, personalized rewards, or tailored recommendations. This creates a fair value exchange, where customers are happy to share something as simple as an email or a birth date because they see clear, tangible benefits in return.”

PUMA: A Case Study in Personalized, Omnichannel Loyalty

PUMA’s partnership with SAP Emarsys shows how brands can address this loyalty gap. Using AI-driven insights, PUMA personalizes customer journeys across its direct-to-consumer platforms, in-store experiences and third-party channels.

Through partnerships like Mention Me, PUMA identifies and nurtures loyal brand advocates. Meanwhile, its F1 sponsorship engages motorsport enthusiasts, introducing collections like the PUMA Speedcat range. By bridging content and commerce through TikTok shoppable videos, PUMA reaches younger audiences, enabling them to shop without interrupting their browsing experience.

Infused with AI, the SAP Emarsys platform empowers marketers to engage these diverse audiences, enabling PUMA to tailor offers, provide exclusive app content and drive early access to launches. According to SAP Emarsys research, app users are 47% more loyal than those on other channels, proving the importance of tailored engagement.

Join SAP Emarsys and PUMA at NRF 2025 from Jan. 12–14 in New York. Experience how PUMA’s loyalty strategies come to life with an exclusive activation at the SAP Emarsys booth, where attendees can design and personalise sneakers using insights from PUMA’s advanced CRM and loyalty data.

For more details, visit www.emarsys.com/NRF.