Promotions and Loyalty: how to integrate them? Our key takeaways from the 25th Conference of the Parma University Loyalty Observatory
Two strategic levers that, when integrated into an ecosystem centered on consumer behavior, reinforce each other and enhance the brand-customer relationship over the long term
On October 16th, the 25th Conference of the Loyalty Observatory of the University of Parma took place, the annual event for loyalty professionals shedding light on the state of customer retention in Italy and worldwide. On its 25th anniversary, the Conference sought to assess current loyalty trends and, above all, outline the visions and strategies driving the future of loyalty.
The event offered a rich opportunity for debate, featuring research presentations on the state of loyalty in Italy and international scenario analyses led by Prof. Cristina Ziliani.
As a long-standing partner of the Observatory, Advice Group was right at the heart of this milestone event, contributing to one of its most innovative sessions: the Speed Round Tables.
How to reconcile promotions and loyalty?
One of the most pressing and strategic topics for brands today is managing customer relationships, a process that often leverages two seemingly distinct strategic drivers: promotional pushes and long-term loyalty building.
Discussing this during the round table "How to reconcile promotions and loyalty" was our Senior Business Developer, Alessio Di Rini, alongside a high-level panel featuring Roberto Quadrelli (E-Commerce Director, LEGO), Mirco Stefanoni (Customer Experience & CRM Manager, Cisalfa Sport), and Francesca Moroni (Managing Director, TLC Worldwide).
While the discussion highlighted a unanimous consensus on moving beyond siloed approaches (as summarized by LEGO: "loyalty is the direction, promotion is the speed"), it also underscored the need for integrated, measurable, and organizationally aligned strategies (Cisalfa), as well as experiential levers that unify brand perception (TLC).
Advice's Perspective
Alessio Di Rini's speech highlighted Advice Group's vision, turning the traditional perspective on its head: promotions and loyalty are not mutually exclusive; rather, they are two levers that reinforce each other when properly integrated.
"Promotions often drive consumers toward discounts," emphasized Di Rini, "but the real challenge for companies is transforming promotions from one-to-many into one-to-one."
How is this integration achieved? Through a paradigm shift affecting both concepts:
- Loyalty goes beyond purchasing: loyalty isn't measured solely by transaction. There are a thousand reasons to remain loyal to a brand. "We manage programs open even to prospects, users who have yet to make a purchase", explained Alessio. This approach extends to the concept of Ghost Loyalty: treating customers with the same care and attention given to loyalty program members, even if they aren't formally enrolled, to build engagement across every stage of the customer journey.
- Promotions go beyond pricing: the second pillar of our vision relies on emotional and value-driven levers. A promotion doesn't necessarily have to be a price cut which, as highlighted during the debate, risks devaluing the brand. Alessio Di Rini brought attention to two strategic drivers:
- Gamification: when used intelligently and contextually, gamification is a powerful tool. "There can be no single program using the exact same levers for all consumers", he specified. "Differentiation is key: price-based incentives will work for some customers, emotional ones for others, and that's exactly how it should be."
- Education: brands have the opportunity to leverage customer relationships to "educate" users, becoming a true partner in their everyday lives. "Consider a utility company educating consumers on responsible usage, or encouraging the adoption of digital tools like e-billing to prevent waste. That is a form of value-driven, rather than price-driven, promotion that builds long-term loyalty."
The 25th Conference of the Loyalty Observatory confirmed that the future of customer retention lies in integration, personalization, and the ability to generate mutual value. For Advice Group, this future is already an operational strategy built on listening to customers and engaging them far beyond the simple act of purchase.
