Retail
Learn how unattended retail can forge lasting customer loyalty by using personalized, value-driven programs continually improved by data and innovation.
Photo: Adobe Stock
May 20, 2025 by Sandra Carpenter — Editor, Networld Media Group
In an era where grabbing a salad from a smart fridge or a coffee from a high-tech vending machine is increasingly the norm, the human touch in retail can seem like a relic of the past.
But for the burgeoning unattended retail sector — a market valued at over $35 billion and still climbing — fostering customer loyalty is more critical than ever. How do you keep customers coming back when there’s no friendly cashier to build rapport?
The topic was tackled head-on by David Adler, an attorney with expertise in intellectual property, advertising and the strategic growth of entrepreneurial ventures, during a session at the recent NAMA 2025 show in Las Vegas.
His presentation, titled «Beyond Transactions: Building Brand Loyalty,» offers a roadmap for navigating the evolving landscape. While Adler quipped, «I’m not a marketer,» his experience advising clients on the legal and structural frameworks of loyalty programs provided a unique and pragmatic perspective.
«The idea behind loyalty is you want to get customers coming back. That’s the key,» Adler said, setting the stage for a discussion that went far beyond simple points cards. With 66% of consumers now indicating they prefer unattended retail, the opportunity is immense, but so is the need for sophisticated strategies to build lasting connections.
The central theme Adler emphasized was the necessity of strategically engineering customer loyalty programs that deliver tangible value and foster genuine engagement, transforming fleeting interactions into enduring customer relationships.
Here are four core strategies unpacked during the session:
1. Weave convenience and personalization into the fabric of loyalty
In the world of unattended retail, convenience is already king. Loyalty programs must follow suit. «[They] need to be very quick to access, easy to use. Basically . . . frictionless or painless,» Adler emphasized, contrasting the seamless experience of modern apps like Starbucks’ — where pre-loaded cards and star systems keep users locked in — with the often-forgotten traditional paper punch card.
But convenience alone isn’t enough. The modern consumer expects personalization. Leveraging data (responsibly, as Adler would be quick to remind from his legal standpoint) allows businesses to tailor offers and recommendations. Imagine a kiosk suggesting a new snack based on your past gluten-free purchases, or offering a discount on your usual afternoon coffee. «You have an opportunity to collect information from your customers and deliver solutions that are customized to them,» he said, explaining that such targeted approaches make customers feel seen and valued, encouraging repeat visits.
2. Make joining effortless and rewards genuinely valuable
«Reduce barriers to adoption» was a key piece of Adler’s advice regarding program enrollment. Whether it’s scanning a QR code on the kiosk or a quick text message, the process should be intuitive. More importantly, the rewards must offer «genuine value.» This isn’t merely about tracking purchases, but about providing tangible benefits that make customers feel special.
This could manifest as discounts, bonus items, exclusive access to new products or even personalized challenges. «It’s about giving them something of value . . . something that they can’t get anywhere else,» Adler said. He also cautioned against overly complex reward structures, advocating for clear, easily understandable benefits that resonate immediately with the user.
3. Embrace the power of data
«It’s all about the data analytics,» became a recurring refrain. Launching a loyalty program is just the start. Continuous monitoring and adaptation are vital. Adler urged businesses to actively solicit customer feedback via surveys, social media and in-app tools. This qualitative data, combined with quantitative metrics like customer retention rate, repeat purchase rate and customer lifetime value, paints a full picture of program performance.
«You have to take a look at what’s working, what’s not,» he said, suggesting techniques like A/B testing different offers or analyzing heat maps to understand user behavior at physical kiosks. This data-driven approach allows for constant refinement, ensuring the program remains effective and relevant. As an example of innovative platforms enabling such sophisticated loyalty mechanics, Adler mentioned a client, Loyalize, which provides a digital platform for companies to offer cashback rewards and analyze their impact, effectively allowing businesses to «plug in» robust loyalty tools.
4. The imperative to innovate and engage
A loyalty program cannot afford to be static. Adler champions the need for continuous innovation. «Always look for opportunities to innovate,» he said, suggesting businesses keep an eye on competitors and successful brands in other sectors for fresh ideas. This could involve introducing gamified elements like scavenger hunts or trivia tied to purchases, or regularly refreshing the types of rewards and incentives offered.
Customer engagement is also crucial. «Don’t wait for the customer to come to you,» he said. Proactive communication through app notifications or targeted messages about special offers can keep the brand top-of-mind and encourage ongoing participation in the loyalty program, ensuring it remains a vibrant and valued part of the customer experience.
Adler’s message was clear: in the evolving world of unattended retail, loyalty is not an afterthought but a cornerstone of sustainable success. By focusing on convenience, personalization, genuine value and data-driven iteration, businesses can build programs that not only keep customers coming back but also turn them into enthusiastic advocates.
About Sandra Carpenter
Sandra is the editor of Kiosk Marketplace and Vending Times. She has been working in editorial and research roles for over a decade and has experience in print, blog, social media and peer-reviewed publications.
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