Leaders in Customer Loyalty, Powered by Loyalty360
Leaders in Customer Loyalty, Powered by Loyalty360
Leaders in Customer Loyalty Industry Voices: Maritz’s Mary Luckey on Reward Strategy, Personalization, and the Future of Loyalty
For brands aiming to deepen engagement and create meaningful loyalty experiences, the traditional "earn and burn" model is no longer enough. In today’s Industry Voices, Mary Luckey, Reward Strategy Director at Maritz, shares her perspective on how loyalty programs must evolve to remain relevant — and why reward strategy is at the heart of that transformation.
With more than two decades at Maritz — and experience across both consumer and B2B loyalty programs — Luckey focuses on what she calls "the really fun part" of loyalty: shaping the rewards members earn. "My role is about working with account teams and clients to ensure they offer the right rewards — whether it's merchandise, gift cards, travel, or experiences — and crafting redemption experiences that truly drive loyalty," she explains.
At Maritz, the approach to customer loyalty goes well beyond points and transactions. Luckey describes loyalty as a relationship, not a straight line, emphasizing that customer engagement must be seen as a living journey rather than a single outcome. "Since Maritz has always focused on people and behavior change, we design loyalty journeys that tap into emotions," she says. For example, encouraging members who redeem for a major travel reward to create a photo book afterward helps them savor memories and dream about the next trip — subtly pulling them deeper into the brand experience.
Good afternoon and good morning. This is Ethan Perry from Loyalty360, welcoming you to another episode of Leaders in Customer Loyalty Industry Voices. In this series we talk to the leading agencies, technology partners and consultants in customer channel and brand loyalty about what they're seeing in technology trends and best practices that impact the ability of brands to drive unique experiences, enhance engagement and, most importantly, build customer loyalty. Today we have the pleasure of speaking with mary lucky, reward strategy director at maritz. Welcome, mary, I'm so glad you could join us today hey, ethan, I'm glad to be here.
Speaker 1:To start off, can you just tell us a little bit about yourself, your role with Maritz and your background?
Speaker 2:Sure, I've been working in the workforce for like a million years, let's face it. I started at Maritz in the mid-90s and then I spent some time at a couple of Merit's competitors and then, about 20 years ago, the mothership called me home and I joined Merit's and I've been the last 20 years been working on both consumer loyalty and B2B loyalty programs, and my area of expertise is reward strategy and basically what that means is I get to focus on the really fun part of loyalty programs, so what the members get for participating in the program. So my job is to work with account teams and clients to make sure that they're offering the right rewards, whether it's in-kind, gift cards, merchandise, travel experiences and creating a reward and redemption experience that really drives loyalty and helps clients grow their business. So it's a really fun job.
Speaker 1:Amazing and you kind of touched on it a little bit there. But for those who may not be familiar with how Moritz supports brands' customer loyalty efforts, can you give us a brief overview of what you guys do and the industries that you work with?
Speaker 2:Sure. So our motto is we engage people to elevate performance, and we've been doing that for like 130 years, so this is a kind of going on, a fifth generation family-owned company. We focus on channel, employee B2B and consumer loyalty programs and our emphasis is really developing and delivering powerful reward experiences, and we work across a really broad range of industries, including financial services, automotive, pharma, manufacturing, airlines and hospitality airlines and hospitality.
Speaker 1:So when you're talking about loyalty, how do you define customer loyalty and what does it mean to your organization?
Speaker 2:So customer loyalty really refers to the relationship that develops between a consumer and a brand, and the stronger the relationship, the more loyal the customer. If the relationship is not strong, guess what? People stop being loyal. So since Merits has always been focused on people and changing behavior, we're really looking for ways to make that bond stronger. And in many programs what we have seen over the years is there's a really familiar pattern People enroll in a program, they earn, they redeem and then what happens?
Speaker 2:Right. So we think about loyalty as not a straight line, but as more of a living journey. So, for instance, if a customer redeems let's say they're in a hospitality program and they redeem for a five-night hotel stay, they may be using up the bulk of their points. Right, they've been saving for a long time. We might subtly suggest that they redeem for a Shutterstock gift card so they can make a book of their trip, so they can savor the memories, they can start dreaming about their next vacation, and then they start performing in the program. So we're looking for ways to tap into people's emotions so that we can create that journey as opposed to a linear experience.
Speaker 1:So in our most recent state of customer loyalty report, 79% of the brands we surveyed had an interest in updating, enhancing or completely redoing their customer loyalty offerings. What enhancements or changes are brands most interested in incorporating into their programs right now?
Speaker 2:So you know, what's interesting is people don't join loyalty programs to improve a brand's KPIs. They actually want to get value from the program and they want to feel valued by the brand. So that's why they're joining. So many clients are realizing that they can create more value when they think beyond in-kind rewards. You know many clients are saying, oh, we've been doing our own rewards for a long time, but maybe we need to be, you know, offering other rewards time, but maybe we need to be offering other rewards. We also are seeing more of our clients add more experiential rewards. So in the the past year, the average American has attended 14 live events and Gen Z Americans have attended 24 live events, which just shows you that experiences are really for everyone.
Speaker 2:And one of the experiences that we offer our clients is we call it a personal shopper service and it's a concierge service that's designed for high point earners and allows them to use their points to redeem for anything they want, even if it's not in the reward collection. So we've had people use their points for an engagement ring, an RV, a new outdoor kitchen. We've even had a couple that have redeemed four times for ghost hunting equipment. So these are really niche things that people are, you know. Talk about personalized. Who would think to offer ghost hunting equipment in a loyalty program? Right, but because of the service they can, they can get that. So what we're finding is, the more personalized we can make the rewards, the more we can tap into positive emotions. Members are then going to feel value and feel valued by the brand, and that's going to drive stronger loyalty.
Speaker 1:Amazing. So are there any specific industries you see leading the charge in loyalty program innovations, and which ones? What are they doing differently that you're seeing out there?
Speaker 2:So what I'm seeing, as I'm sure a lot of people are, is the two industries with the most innovation right now is in retail and hospitality. And with retailers, it's kind of obvious they have so much data at their fingertips and AI is changing that the game every day at their fingertips and AI is changing that the game every day. And since their rewards are typically in kind, but it's kind of a different in kind with retail because they can be driven down to the SKU level. So you know, this is where you're going to see a lot of creativity, that I can see what you're doing, where you are throughout the whole experience, and I think that's going to be a big deal.
Speaker 2:And then in the hotel and airline industries, there's a lot of things that brands can do to provide members enhancement during their travel experience. So instant upgrades, priority boarding, those kinds of things keep things very fresh and relevant, so that those kinds of things keep things very fresh and relevant. And then also some very high end exclusive experiences where you have to be in the top, top tier and you know, in order to even get an invitation. That's when people feel like they're really in the tribe. So you know, personalization and real time rewards. You know personalization and real-time rewards. It allows these brands to, you know, reward people based on their individual behavior and preferences, because it really isn't a one-size-fits-all anymore. You have to think a lot more deeply than you used to.
Speaker 1:Yeah, and that kind of leads me into my next question for you about. You know we have a lot of new technologies that are emerging in loyalty right now AI, gamification, new ways of getting zero and first party data collected for those personalized experiences. What do you believe will have the greatest impact on loyalty programs in 2025?
Speaker 2:And why do you think that is so? There's obviously there's tons of new technologies popping up, but I, you know, I think AI is the one that's going to make the biggest splash, because it's just evolving so fast and people can't even keep up with how to use it. I mean, obviously, you can use it to analyze purchase history and preferences, but brands can also use it to spot when customers might leave and they can step in before they do. It can also, you know, help offer instant rewards based on where people are and what they're doing. You know you can even use it to prevent fraud. And to me, again, it's just so exciting because you know, if you can dream it, you can probably make it happen. So I think that you know, if you can dream it, you can probably make it happen. So I think that you know this is the time when really creative marketers in you know, working with data people are going to be able to come up with some very exciting things.
Speaker 1:Awesome. Well, to shift gears a little bit. What do you think are some common reasons that loyalty programs are failing to meet their goals right now, and how do you think brands can address those kind of issues?
Speaker 2:So obviously there's lots of reasons that programs fail, like simple things, like upside down economics, program complexity, you know people can't understand what to do. There's not enough value in my, you know, in the rewards to get my attention. But one of a couple of things that I have been following lately really are programs that don't have a compelling reward offer. For example, I'm in that hotel loyalty program and I earn a lot of points for business travel, but the last thing I want to do in my downtime is redeem for more travel. Right, I want to stay home. You know I might want to use my points for a TV or a grill, so don't keep telling me about more points to travel. So choice is really important in rewards to make sure you really appeal to a wide range of customers. And then the other thing that I've been watching and you'll probably be able to relate to this everyone should is that I call it omni-channel overload. So omni-channel marketing is really important, right, but during times of economic and social uncertainty and a lot of stress, customers are becoming overwhelmed with information and they're starting to feel fatigued and stressed, and it can cause customers to just quietly fade away. They block your emails and you don't even know it right. So I think that marketers really need to read the room and deliver what people need in the current environment. And a couple ways to combat this, I think, is to focus on bringing value to members, maybe introducing gift cards for everyday restaurants. If people are concerned that they don't know what's going to happen with should they save or should they spend, you can use your points for restaurants or you can take your family out to dinner. That's a way for you to do something special without being worried about spending your money. Or you could provide a surprise and delight to top members or do a promotion, a sale, something that makes people feel like, oh wow, I can use these points for me, right?
Speaker 2:I also think that people are responding to nostalgia. They want to go back to happier times, using things like humor in your messaging, if your brand allows it. But I think about those Jardian commercials where people are dancing around in the streets about, you know, diabetes, drugs, but people are laughing. Or the Will Ferrell commercial, levity and humor Bringing back print. So you know that has 100% open rate right now, because we don't get print right. But who opened the Amazon catalogs this holiday season? Everybody did. Kids did, adults did, and even getting back to basic human beings, like with customer service. So you know, you may love your airline app and you use it all the time, but when your flight gets canceled, you do not want a chat bot. You want to talk to a live human being that can help you, right? So these are ways that we can help people feel valued and, you know, combat some of this omni-channel overload that we're all feeling.
Speaker 1:Awesome, some of this omni-channel overload that we're all feeling Awesome so within those programs, and you know when, we're employing a lot of those tactics. Those are all great suggestions and examples that you gave there, but what are the most critical metrics that brands should be looking at to measure the success of loyalty programs?
Speaker 2:So obviously there's. You know the ones, we all know retention, engagement, lifetime value, loyalty. Makers, marketers need to pay attention to all that. But I think something that's overlooked are metrics that can help you identify ways to improve those core measurements, like which redemptions drive the best long-term behavior. In our experience we found that not all rewards are created equal. So over the years we've done some analysis and found that members that redeemed for more memorable items, like experience or merchandise, actually performed better in their program than those that redeemed for more transactional rewards, like gift cards or cash, than those that were deemed for more transactional rewards like gift cards or cash. So we have all this data at our fingertips, and if we could do those types of analysis and not just make it at the high level, what can you do to improve the program that would affect those metrics? So I think it's just something that gets overlooked, but I think it could really help improve program performance looked, but I think it could really help improve program performance.
Speaker 1:So, on a more personal note, are there programs that you admire or that you're loyal to, from a customer loyalty?
Speaker 2:perspective and what do you like about their offerings? So there's a couple that I'm loyal to that's going to make you laugh, and then I'll tell you the one that I find compelling. So Aldi doesn't have a program, but I'm absolutely loyal because there's a culture there. I don't know, have you ever been to an Aldi Ethan? I have, yes. So the fact that you have to have the quarter and you have to walk up and I always leave my cart, you know, without a quarter so that somebody can get a free, you know just the way that you interact in the store. So Kentucky fried chicken has gotten me, five o'clock on a Tuesday, $10 for eight pieces of chicken. I've stopped and Apple paid and gone and picked it up. So, but those are a couple of my favorite, just because they're so creative and different, just the way they capture my attention.
Speaker 2:But I came across a really interesting program a few months ago out of the UK and it's called the Rafa Cycling Club and it's basically a program for the world's most popular cycling apparel. Now, I haven't, I really don't. I'll occasionally ride a bike when I go to a park or something, but I'm not a cycler. But what's so cool about this program is. It's it's more like a community than it is a loyalty program, and it's a it's an. It's a worldwide community, and you're you're not just entering a relationship with Ralph with Ralph, excuse me but you're not just entering a relationship with ralpha, with rafa, excuse me, um, but you're entering a global community of cyclists, and their website says that it being a part of this program means being a part of something bigger a riding community with a friendly local spirit.
Speaker 2:They have clubhouses and, um, you go on rides with an app where you can connect with people all over the world while you're cycling. There's no points, it's all status and you actually have to pay a membership fee, but you get real, really cool perks out of doing it. But to me, this is an example of how you can take marketing and the creativity that I was talking about and really create this strong brand. And what I imagine is if you could have a program that's this strong without points. Imagine if, on top of that, you earn points. So that's the kind of inspiration that I find from programs that just are doing something different. And how can we take those things and, you know, put them into more traditional, points-based programs?
Speaker 1:amazing. Yeah, that's a great uh little case study there look it up.
Speaker 2:It's really interesting.
Speaker 1:It makes me want to go right um, so we've touched on a lot of different things today already, but what do you see as the next big thing in customer loyalty?
Speaker 2:So you're going to be surprised. Personalization, I mean it's just hand in hand with AI, with all the rich data sets. The more data you can have, the more creative you can be about this personalization, and then I think that that's going to be the best way to connect with, with the brand cool um.
Speaker 1:Do you have any closing advice or thoughts for our audience?
Speaker 2:um. So we're just going to be focusing on you know how to create the best reward experience. But specifically, some things that we're going to be doing over the next year is we're going to work on a few new reward offerings that should be available soon. More to come Advancements to fraud mitigation processes. That is not fun, that's not creative, that's not sexy, but it's really important to clients. And then we're going to be working on enhancements to our personalization on our e-commerce sites. That's going to make the redemption experience more rich. We're going to be providing a shopping experience that's tied directly to your point balance. So when you come to our site, you'll see what's within your point range without having to click anywhere. It'll be brought to you. So we're just going to really be focusing on keeping that earning and burning experience less linear and more of a journey and creating the best experiences we can.
Speaker 1:Awesome. Well, that all sounds amazing. We'll have to have you back on the podcast later this year to hear about your new offerings and get updates on all of that stuff.
Speaker 2:Love it.
Speaker 1:So that brings us to our world-famous quickfire questions section. We like to keep the answers to these to one word or short phrase, so we're going to jump right into it. How would you describe your work life Fun? If you have a day or a week off from work, what are you doing? Going on a road trip. If you could live in any city or country, where would you live?
Speaker 1:You may think this is boring, but it's St Louis Missouri, it's home and I love it. If you could go back to school, what would you study? Philosophy.
Speaker 2:What facet of your job would you like to know more about? What's happening?
Speaker 1:in loyalty and reward programs in parts of the world where I don't have a lot of exposure.
Speaker 2:What facet of your job would you like to know less about? Performing manual tasks that AI is?
Speaker 1:soon going to take over what motivates you when tackling challenges at Merits.
Speaker 2:There's so much potential with the people that I work with at Merits that we can help our clients. It's very exciting, awesome. What is your favorite sport or hobby? Reading well-written books. I googled what books does Stephen King read? And that's what I've been reading.
Speaker 1:Awesome, and what do you typically think about at the end of the day?
Speaker 2:What's the funniest thing I've heard today?
Speaker 1:Nice Well, mary. Thank you so much for taking the time to speak with us today. We loved having you on Leaders in Customer Loyalty. This episode of Industry Voices was awesome. It was great getting your perspective on customer loyalty. This episode of industry voices was awesome. It was great getting your perspective on customer loyalty and we look forward to learning more from you and the team at Merit's throughout the rest of this year.
Speaker 1:I want to thank everyone for tuning in today to leaders and customer loyalty. If you haven't already, please subscribe to our leaders and customer loyalty podcast and follow loyalty 360 on YouTube and LinkedIn. Please join us every Tuesday for another edition of Industry Voices. And Mary, thanks again. We look forward to having you back on soon.
Speaker 2:Thanks, ethan, take care.
Speaker 1:Alrighty.