A satisfied customer is a loyal customer. Perhaps. But, then again, maybe not.
The conventional wisdom that all a merchant must do to keep customers coming into stores or clicking through sites and pulling out wallets (digital and tangible) is to keep them satisfied is conventional, yes, but not wise.
In an interview with PYMNTS, Mladen Vladic, general manager of loyalty solutions at Fidelity National Information Services (FIS), said bridging the gap between a satisfied customer and a loyal one is a matter of urgency for firms across all verticals, but especially for retailers.
He said the global economy had been marked by the emergence of new technologies and social media, eCommerce platforms and all manner of promotions delivered across smartphones and tablets.
“Retailers are under constant pressure to evolve and innovate,” he told PYMNTS, “and they have to make sure the user feels good about the whole experience on an ongoing basis.”
The engagement cycle is shortening as customers spend relatively less time searching for, choosing and buying what they want.
One way for retailers to offer a differentiating experience can be at the point of sale, said Vladic. That’s the very last point of engagement, and shopper rewards programs can transcend the payment method and traditional means of rewards points redemption.
As Vladic told PYMNTS, the days of consumers visiting websites, calling 800 numbers and waiting on hold for seven minutes, entering an alt ID phone number so they can be rewarded for spending with a plastic card are over.
That’s especially true with the continued rise of millennials, who seek instant engagement from the brands with which they interact.
For financial institutions and merchants, he said, there is a true value to be realized — if they work together to integrate their loyalty efforts and monetize their loyalty currencies in real time.
To realize that value — which benefits all stakeholders, from the merchant to the financial institution and most importantly to the consumer — he said it is crucial to abandon at least one of the ways loyalty offers have always been done.
He noted that card-linked and merchant-funded offers had been a staple of retail for more than a decade. Yet consumers are nonplussed by the friction of activating offers before they go to a store or uploading receipts after purchase is completed.
By way of contrast, he said, real-time redemption solutions let customers find out they can redeem existing points as currency for instant savings. And, he said, much of the friction is eliminated as there are no websites to visit, security questions to answer and no multi-factor ID requirements, entering phone number or apps to download — thus conquering the hurdle of what he termed “app fatigue.”
“In 2020, a typical millennial doesn’t want to go to the website/mobile app to activate the offer to walk into the store to save 5 or 7 percent,” he said. That’s just not engaging.”
The Mechanics
In terms of the mechanics of a successful point-of-sale (POS)-driven rewards program, Vladic said upon checkout (say, with the swipe of the consumer’s payment card), FIS facilitates dual authorization to the payment network to authorize transactions. At the same time, the firm will send an inquiry to the loyalty host. An inquiry is made upon recognizing the consumer as to whether they have enough loyalty currency for an offer to be presented.
“If that currency is there,” he said, “then we present them with an offer and they get to make a choice in real time.” Technology also provides a benefit as geo-fencing can help drive traffic to the store — and even push offers across email, SMS and other conduits.
For financial institutions, he said, there’s the advantage of burning off accrued liabilities at low cost, while still boosting revenues, as incremental spend across cards increases.
To create a rewards ecosystem that benefits all stakeholders — across merchants, FIs and consumers — a holistic approach is necessary, Vladic said.
The success is in the data, he said, noting that in the fuel space, for example, the average American pumps gas 1.4 times a week. Through rewards offered at the pump, the ability to monetize that currency in real time for everyday spending helps consumers with their budgets.
This is the reason why such programs have a 37 percent acceptance rate, said Vladic, and the reason 50 percent of individuals who make a redemption initially are going to make two or more redemptions in the 12 months following that first redemption.
The loyalty engagement is part of a broader consumer engagement strategy journey with brands that Vladic said has to be identified as a part of the two- to four-year strategy and then executed in phases.
“The traditional loyalty rewards model, as it exists in the financial institution space, needs some help — some evolution, if you want to call it that,” he said.
What do the movies “Blade Runner,” “2001: A Space Odyssey,” “Back to the Future Part II” and Spike Jonze’s “Her” all have in common?
These science fiction movies, each depicting various versions of a future full of fantastic technologies, all take place in the year 2025 or earlier.
Though some of the high-tech gadgets and futuristic innovations seen in these films, such as hoverboards and flying cars, haven’t quite materialized in everyday life, they have sparked imagination and set the stage for the very real innovations. As the dozens of groundbreaking products and wacky gadgets that debuted at the 2025 Consumer Electronics Show (CES) this week reveal, the future is certainly now.
CES, after all, rarely disappoints when it comes to providing a first-look at some truly strange gadgets that might just represent the ultimate showcase of tomorrow’s technology.
From artificial intelligence (AI) being embedded into everything and smarter than ever home devices, to autonomous robotic companions and wearable tech that both bends and blends reality, many of the inventions that once seemed out of reach in Hollywood films are now being unveiled on the convention floor.
See also: The Five Not-So-Obvious Things That Will Change the Digital Economy in 2025
It’s becoming clear that today’s technological advancements are increasingly bridging the gap between what was once imagined and what’s now becoming real.
For example, smart home robots are no longer a futuristic fantasy — they are being positioned as potentially indispensable components of modern households.
CES 2025 saw the debut of the Roborock Saros Z70, a robot vacuum with a telescopic, five-axis arm. Rosey the Robot from “The Jetsons” has nothing on this little gadget, which its maker describes as “a mechanical arm that sees and thinks,” and is able to pick up and put away items like socks, shoes, tissues and more.
For more serious household tasks, the SwitchBot Multitasking Household Robot K20+ Pro was also unveiled at CES 2025. “Whether it’s delivering objects, vacuuming, monitoring pets, purifying the air, providing home security, or even mobilizing smart tablets, the K20+ Pro juggles household management with ease … from delivering food and drinks to carrying small packages,” said a company release.
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The K20+ Pro’s core is designed for customization and flexibility, serving as a modular foundation that allows users to create, adapt, and personalize the robot for a wide variety of innovative applications, and can connect with third-party smart devices like Alexa, Google Assistant and Siri, ensuring integration into any smart home ecosystem.
Elsewhere, TCL premiered its “AI Me” (Amy) concept companion robot, complete with animated eyes, autonomous movement and an AI-powered camera on its head; while Dreame showcased its X50 Ultra robot vacuum that has legs to avoid obstacles.
As smart home technology continues to evolve, the integration of robots designed to assist in daily activities could significantly alter how we interact with our homes, manage tasks and even shape the future of work.
TomBot, for example, debuted an emotional robotic lap dog, Jennie, an AI robot therapy dog designed to keep seniors company. On the more playful side of things, Tokyo robotics startup Yukai Engineering introduced the Nékojita FuFu, a portable cat-shaped robot that can blow air to cool hot food or drinks.
It wasn’t solely robotics for use at home being showcased at CES. John Deere used the Las Vegas event to reveal its own autonomous agricultural products. The fully autonomous machines were on display from Jan. 7 to 10, and were a bit bigger in size, if equivalently less cute, than the TomBot puppies.
Read more: Google Reportedly Bringing Gemini AI to TV Sets
Behind the strangely futuristic convenience of a robot picking up your laundry and taking out the trash while it vacuums and interfaces with the rest of your household appliances lies a much larger story: the rise of the smart economy.
As CES 2025 showed, augmented reality (AR) glasses are the eye candy of the smart economy. A host of futuristic specs were unveiled, capable of a range of tasks that turn the wearer into a high-tech superhero.
Halliday showcased “the world’s first proactive AI glasses with invisible display,” while freshly debuted Loomos.AI glasses offer a ChatGPT-4o integrated AI assistant.
But other appendages remain up for grabs, and innovative products from smart rings to apps like WowMouse, which allows smartwatch wearers to control devices using just their gestures and fingers, are vying for market share in ways that aim to make daily life more convenient, efficient and secure.