Harvard Business Review Analytic Services and Talon.One: Solving the personalization paradox in loyalty

What used to be seen as tactical or transactional is now recognized as a powerful lever to shape behavior, build long-term value, and differentiate in a crowded market.

To explore how executives are approaching this shift, we collaborated with Harvard Business Review Analytic Services on new research to better understand how loyalty leaders are moving forward—and how businesses still finding their footing can accelerate their impact. 

The report—“Getting strategic about incentives: Building value through promotions and loyalty programs”—is based on a global survey of more than 420 senior executives and other relevant roles across industries. It captures a very clear picture: loyalty and promotions are seen as critical to business success, but many organizations are struggling to modernize their loyalty solution and approach incentives more strategically.

Some key findings stood out:

These numbers reflect what we hear from our initial conversations with businesses. Incentives are no longer just a retention tool, it’s a frontline strategy for growth. But the tech stack powering it is often fragmented, inflexible, or simply not built for today’s enterprise demands. 

In short, the ambition is there—but the infrastructure often isn’t.

One of the most striking insights from the report is what we’ve coined the personalization paradox. While personalization is widely recognized as the key to building loyalty in the modern era, many businesses struggle to deliver it consistently and strategically. This disconnect between personalization efforts and broader business objectives is a critical challenge.

Oliver Page, principal at Deloitte Consulting LLP, who contributed to the report, commented:

Many businesses say they want to personalize their loyalty programs and promotions—but they struggle to turn that ambition into action. Teams are siloed. Data is trapped in systems that don’t talk to each other. And existing tools make it hard to experiment, optimize, or scale.

Yet for the businesses that do overcome those barriers, the results are undeniable.

Among respondents at businesses that personalize discounts:

These numbers are promising, and they point to a clear opportunity. Most businesses already recognize the importance of personalization, but executing it effectively is still a challenge. It’s not just about personalized messages or channels—it’s about personalizing the offer itself. To make that possible, businesses need the right foundation: unified tools, flexible architecture, and real-time access to customer and context data. The brands standing out are the ones making personalization count: where it drives behavior and builds value, not just awareness. 

At Talon.One, we believe loyalty shouldn’t be a siloed program—it should be a connected strategy. That means bringing promotions and loyalty solutions together in a single, flexible incentives engine. As Courtney Adair, senior director of loyalty and life cycle marketing at SiteOne, said in the report:

Encouragingly, the study suggests greater integration is gaining momentum, with 60% of respondents saying their organization plans to increase the integration of their promotions and their customer loyalty program strategies over the next 12 months.

So why this report, and why now?

Because the urgency is real. In a saturated market, every customer interaction matters. But as the report shows, the gap between what businesses want to do and what they’re able to do is still too wide.

This research gives marketing and loyalty leaders the data they need to make the case for change. It highlights the obstacles—but also the opportunities. Most importantly, it showcases how businesses that break free from outdated tools are already seeing results.

We’re proud to sponsor this report and share it with the wider loyalty community. I believe it will resonate with any business leader working to modernize their loyalty marketing strategy.

And if you’re one of the many exploring new ways to connect with your customers—more personally, more intelligently, and more flexibly—I hope this report gives you a valuable starting point.

You can download the full report here.