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Is Loyalty Stuck, Set to Take Off, or Already Dead?

A debate on the risks posed to the future of loyalty by Artificial Intelligence

Early in 2025, Phil Rubin, Founder, Grey Space Matters, shared a point of view in this article published in The Wise Marketer that for way too many brands and companies, loyalty is stuck.

Research conducted pre-COVID revealed that 83% of consumers consider themselves loyal, which they defined as a willingness to pay a premium or go out of their way to do business with a brand. Today, as COVID fades into memory, nearly half of Millennials and Gen Z (45%) report feeling no brand loyalty.

Customers are increasingly apathetic towards brands with little or nothing more than a homogenous loyalty program focusing solely on transactional value. As Phil notes, Loyalty is not a program. It never was. A “me too” loyalty program is hardly brand-building or differentiating, especially without any connection to a good, or ideally, a better customer experience.

The warning signals to marketers should be clear. It’s time to take a close look at how brands connect with customers, deliver an appropriate customer experience, and build valuable long-term relationships with them that contribute to the enterprise in a meaningful way.

The Loyalty Unstuck Series

It’s for that reason that we are launching the “Loyalty Unstuck” series on The Wise Marketer. To kick this off in earnest, we hosted a debate about the future of loyalty. Phil Rubin hosted the debate between two well-recognized industry personalities, Steve Bocska, CEO of PUG Interactive and Denis Huré, Founder and CEO, Reward the World.

The debate was inspired by an article written by Steve, who suggested that loyalty is more than stuck; it’s been killed by Google Gemini, which drew a sharp rebuttal from Denis. Links to all the articles that formed this series are below.

This loyalty cage-match contests competing viewpoints from Steve and Denis around the potential impact the new Gemini AI-powered shopping assistant could have on loyalty marketing. According to Steve, Google unveiled what could be the loyalty industry’s extinction-causing event as the new technology disintermediates brands from their customers.

Denis holds a view that brands have ample opportunity to compete effectively in this new environment and that consumers will continue to make purchase decisions and form loyalty to the brands they patronize based on a holistic assessment of the brand marketing approach.

This thought-provoking conversation will challenge your current thinking, awaken you to the promise of artificial intelligence and help you to craft your own competitive strategy to win in the new world of data-driven marketing.

Time Stamps for the Time Starved (with some notable sound bites)

Start: Bill introduces the Loyalty Unstuck Series

2:55 – Phil introduces the topic and our presenters

4:20 – Denis Huré opening statement

6:48 – Steve Bocska opening statement

8:35 – The debate rages

10:14 – “The starting point of everything is behavioral science.” (Denis)

16:33 – “You call it the Zero Click search, I call it the collapse of the customer/brand relationship” (Steve)

20:32 – “VML Future 100 report said that 72 percent of respondents fail to see any differentiation among brands” (Phil)

23:40 – “The antidote to algorithmic decision-making lies in the human memory” (Steve)

31:26 – “AI as an intermediary or agent is playing the role the brand should play, which is understanding the customer.” (Phil)

41:58 – The role and importance of Trust

46:20 – What businesses are most/least susceptible to the threat of AI?

51:30 – “There are people who are worried and those who see opportunity.” (Denis)

52:45 – Phil wraps up the discussion

55:50 – Final thoughts from Steve and Denis

Phil Rubin, Founder/CEO, Grey Space Matters (GSM)

Phil is recognized worldwide as a loyalty leader and trusted advisor for leading global brands. Prior to GSM, he founded and led rDialogue, an independent loyalty strategy and insights “boutique” that was acquired by Bond in 2020. GSM is an innovation and growth advisory that works clients in a variety of roles to drive profitable organic and inorganic growth.

His current focus is on “getting loyalty unstuck,” which includes additional attention on leadership and organizational challenges. This has resulted in expanding GSM’s offering to include organizational design and retained executive search.

Steve Bocska, CEO, PUG Interactive

Steve is an award-winning engagement designer, brand-customer relationship orchestrator, and business strategist. He has 25+ years of direct experience in the video game industry, having designed and produced AAA games for Disney Interactive, Electronic Arts, Sega, and Ubisoft that have generated sales in excess of $650 million.

PUG Interactive is an award-winning company that helps enterprises build unbreakable brand-customer relationships using advanced online technologies and gameplay principles to drive important business outcomes. Steve has spoken at a variety of premier events and is a faculty member of the Loyalty Academy.

Denis Huré, Founder & CEO, Reward the World™

Denis is a seasoned entrepreneur with a passion for innovation and technology. With over two decades of experience in the tech industry, he has established himself as a visionary leader. Denis co-founded his first startup after over 15 years of corporate experience, where he honed his skills in product development, marketing, and business strategy.

Throughout his career, Denis has been at the forefront of cutting-edge technologies, from artificial intelligence to blockchain. He has a knack for identifying emerging trends and transforming them into successful ventures.

Resources

Three-part series: