What AI Can Teach Us About Loyalty Program Communications

AI is changing everything—from the way we search the internet to how we operate our businesses. You may already be using it to deliver hyper-personalized offers to loyalty program participants. Customers seeking help are often routed first to a chatbot that can identify and sometimes resolve their issue. And who isn’t amazed that you can now ask Google or ChatGPT a question and instantly receive a detailed answer without ever visiting another website?

Understanding how AI delivers these answers could help you attract new loyalty program participants and more effectively engage existing members.

Searching the Internet for Answers …

Not long ago, typing a few words into a search engine like Google or Yahoo returned a list of websites you could click through to learn more. These search engines ranked results based largely on keywords with backlinks demonstrating expertise on a given subject. Over time, marketers learned how to optimize their sites for search engines (SEO) to improve rankings and drive traffic.

Today, platforms like Google and Bing use powerful generative AI engines built on large language models to interpret questions and provide synthesized, comprehensive responses. This shift to GenAI-driven answers has seen clicks to other websites plummet. According to SparkToro, nearly 60% of Google searches now result in zero clicks. As a result, marketers are scrambling to add Generative Engine Optimization (GEO) skills to maintain digital visibility and ensure their content is cited by AI-driven responses.

GenAI doesn’t just answer questions differently—it also sources information and evaluates credibility differently. Traditional search engines crawl the web and return links based on keywords and popularity signals such as page rank. GenAI, on the other hand, looks for contextual understanding across sources to synthesize an answer. It prioritizes accuracy and authority over popularity.

Accurate content provides verifiable facts supported by evidence or data. Authoritative content comes from established publishers or individuals with demonstrated expertise in the subject area. These signals determine whether GenAI considers a source trustworthy enough to cite.

Tips to Improve GenAI Citations

GEO experts recommend the following best practices to increase the likelihood of being cited in AI-generated responses:

  • Craft content using short paragraphs and concise, clear language
  • Demonstrate expertise, authoritativeness, and trustworthiness
  • Update content regularly to keep it fresh, timely, and relevant
  • Use multiple formats to share information, including blogs, videos, and infographics
  • Clearly state who you are and explicitly define what you know better than anyone else

These practices help machines better understand your content—but, coincidentally, they also improve human understanding. Following them makes it easier for audiences to grasp what your brand represents, what it values, and how it differentiates itself from competitors.

The Loyalty Landscape

The average consumer is enrolled in 15 to 20 loyalty programs yet actively participates in fewer than half of them. Many consumers are hesitant to join new programs, believing most are too complex and require too much effort for too little reward. Sadly, there is often some truth to that perception.

More than 90% of brands across major industries—including retail, credit cards, travel, and hospitality—now operate some form of loyalty or rewards program. Many were launched quickly to achieve parity with competitors, resulting in programs that feel more like clones than thoughtfully designed customer benefits. This may help explain why Boston Consulting Group found that active program engagement among U.S. consumers declined by another 10% between 2022 and 2024.

In a saturated and highly competitive loyalty market, it is critical to clearly define what makes your program distinct and to continually remind participants of its value. Doing so fuels new enrollment and sustains ongoing engagement. However, the day-to-day demands of running a program—combined with limited resources—often make it difficult to step back and refresh core messaging and benefits.

Project GEO

Launching a GEO initiative can help you address two challenges at once:

  • Clarifying your key messages for both prospective and current participants
  • Developing a content strategy that earns GenAI citations and positions you as a loyalty expert in your segment

Simple Steps to Get Started

  1. Identify 10–20 questions your audience might ask a GenAI tool about loyalty programs in your industry.
  2. Create content that answers those questions specifically about your program.
  3. Use an answer-first approach with short, direct responses
  4. Write in a conversational, accessible tone
  5. Develop FAQs that address the most common questions
  6. Build trust and authority by including author bios, citations, and expert perspectives.

Taking these steps encourages you to view your program through the customer’s lens. At the same time, it sharpens your communications to both grow and retain participants—while preparing your brand for the brave new world of GenAI-driven responses.

Editor’s Note: Want to learn more about GEO? Check out the links below, or be in touch with Ric Neely.

Editor’s Note

Ric Neeley is the Principal at R&K Marketing Solutions who specializes in B2B marketing and has worked with Fortune 1000 companies for over 30 years. Visit him at R&K Marketing Solutions to learn more.