SAP has announced plans to launch a new loyalty management solution in the latter half of 2025, aimed primarily at retailers and consumer packaged goods companies. This initiative seeks to enhance customer experience by providing teams with tools for developing innovative and personalised loyalty programmes featuring real-time offers.
The new solution, which has yet to be officially named, is set to include a feature known as “Loyalty Profiles.” This feature will allow customers to connect with a cloud-based “loyalty wallet,” enabling them to track rewards, redeem tailored offers, and view their entitlements. Businesses will benefit from advanced analytics capabilities, such as real-time basket analysis, which can help in understanding customer behaviour and enhancing programme effectiveness.
Another significant aspect of the solution is its potential for organisations to centralise loyalty programmes across various regions and markets. This will also facilitate shared programmes with partners, enhancing collaboration and customer engagement. Furthermore, the solution is designed to support omnichannel promotion planning, enabling brands to send offers, provide gifts, and accept digital payments through any channel.
In addition to these functionalities, SAP will embed quantifiable metrics to allow businesses to monitor the effectiveness of their loyalty programmes, promotions, and initiatives. It will also integrate with existing financial systems to track return on investment and streamline settlements. The solution is expected to seamlessly connect with other SAP systems such as SAP Emarsys Customer Engagement, Commerce Cloud, Service Cloud, and the recently launched S/4HANA Cloud for Retail, Public Edition.
While some industry observers may point out that SAP already offers a loyalty solution through Emarsys, which includes similar features, the new offering aims to create a distinct identity by concentrating specifically on the retail sector. Emarsys Loyalty permits businesses to allocate rewards and statuses based on customer interactions and spending habits, yet the spin-off could appeal to businesses seeking a more focused solution without the broader features of a complete customer engagement platform.
This strategic move comes amidst findings from Emarsys research, which show that a significant proportion of consumers—83 percent in the United States—report feeling undervalued by businesses they remain loyal to. This revelation underscores the increasing need for companies to cultivate strong customer relationships, a factor that SAP appears keen to address.
Alongside the loyalty management solution, SAP is also poised to unveil an AI-based shopping assistant in the first half of 2025, as part of its SAP CX AI Toolkit. This autonomous assistant is designed to engage customers with questions that guide them to relevant products. The AI Agent will integrate into any eCommerce storefront, thanks to its API-first design, facilitating a flexible user experience.
SAP's recent announcements also include the general availability of the SAP S/4HANA Cloud for Retail, Public Edition. This industry-specific Enterprise Resource Planning (ERP) solution aims to support retailers in transitioning away from customised, legacy on-premise systems towards a unified cloud solution that eliminates the need for extensive customisations. The cloud option provides comprehensive capabilities, underpinned by sector-specific data models that analyse various business aspects such as finance, merchandising, operations, and procurement.
As SAP continues to innovate and respond to the evolving needs of the retail industry, these forthcoming solutions highlight the company's commitment to enhancing customer engagement through advanced technology and analytics in a rapidly changing market landscape.
Source: Noah Wire Services