The Future of Loyalty

An expert on strategic business development and growth, Jason Beales, Chief Strategy and Commercial Officer, AIR MILES, brings many years of experience in capital market sales and advisory to his role. Prior to, Jason has been an entrepreneur, founding a venture in corporate planning/facilitation and held roles in marketing and technology.

In his role, he provides executive leadership for Client Services and Business Development teams to drive new strategic direction, engage new brands, and ensure delivery with partner outcomes.

Jason is a CFA Charterholder with an MBA from the University of Western Ontario, and BAH-Soc./BA-Phych. degrees from Queen’s University.

1. What does innovation mean to you? How do you and your team generate new ideas?

Innovation is about consistently searching for ways to bring something fresh and relevant to the market. It's about continually evolving messaging, constantly reinvigorating the brand, and persistently pushing the boundaries of our offerings to consumers – the aspiration to constantly improve in an effort to remain top of mind. That might take shape through new technologies, creative partnerships, or meaningful ways to engage with customers in both physical and digital touchpoints.

Too often, loyalty programs rely on what has worked in the past, without adapting to how customer expectations and behaviors are changing. When that happens, there is a risk of coming across as stale or stagnant to consumers. Our goal at BMO AIR MILES is the opposite: to continuously improve, experiment, and innovate so we can deliver real value to our collectors.

2. Retail is evolving rapidly with shifts in technology, consumer expectations, and economic pressures. From your perspective, what innovations do you see shaping the future of retail loyalty over the next 3–5 years?

Despite AI being a clichéd answer to all questions right now, the retail landscape is evolving quickly, with AI indeed enabling data-driven personalization and targeting. Advances in data and AI will ensure that these promotions feel relevant and welcomed rather than intrusive and misplaced for the individual. Gone will be the days when a dog owner gets sent a discount for parakeet food.

At the same time, coalition loyalty programs will continue to grow and dominate, reflecting how consumers actually shop: across various categories and brands. As coalitions grow their networks, competition for brands, and therefore mindshare, will intensify, which is where frictionless experiences (such as card-linked offers or receipt scanning) will prevail; predominantly due to their ability to seamlessly fit into everyday life.

Ultimately, the future of loyalty lies in delivering effortless value that meets consumers where they are and strengthens the connection between brand and customer in a simplistic, convenient way.

3. How does AIR MILES foster a culture of innovation?

We are constantly striving for a balance between perpetual improvement and channelling the open and flexible nature of the program for our partners. The crux of this hinges upon constant innovation and questioning previous strategies, which become outdated based on consumer preferences. Collectors and partners each require and deserve heightened levels of value and service, respectively, in the competitive retail climate. We continue to explore a wide range of improvements, from new technology deployments, to a relentless focus on delivering more value to customers, all amidst our commitment to leveraging innovation so we can create a better (and richer) customer experience (while strengthening brand loyalty for our partners).

4. Salesforce predicts the 2025 holiday season will be more stressful and cautious for consumers. How do you see loyalty programs like AIR MILES helping shoppers navigate this period and find more value in their purchases?

We are always monitoring the broader economic landscape when making program decisions; especially given the impact of recent economic pressures on household spending. With consumers expected to spend more cautiously this holiday season, loyalty programs like AIR MILES are even more important, especially in discretionary categories, by helping shoppers stretch budgets and maximize value from every purchase.

At the same time, the battle for both wallet and mind share has intensified, making the holiday season a critical period for loyalty programs to help businesses protect or grow market share. In short, Q4 isn’t just the busiest time on the promotional calendar, but it’s the moment where loyalty programs can truly make a difference for consumers and brands alike.

5. Coalition models allow retailers to tap into scale and customer reach instantly. Can you share how they support retail partners during high-pressure shopping seasons, and what advantages they bring compared to building loyalty programs from scratch?

Coalition loyalty models offer a unique advantage because they allow retailers to tap into scale and reach instantly, without having to build a program from scratch. One of the standout benefits is the power of cross-shop incentives, which are the most lucrative offerings of coalition loyalty programs. They encourage shoppers to visit brands they might not ordinarily engage with, often as part of completing the final step of a gamified “scavenger hunt” experience.

This is particularly relevant this year, as we’re seeing Canadians make fewer shopping trips overall. When consumers do shop, they’re recently more likely to visit multiple brands in a single outing. Coalition programs are perfectly positioned to capitalize on this behaviour; helping shoppers “check multiple boxes,” stack offers, and maximize value. For retail partners, this translates into increased traffic, higher engagement, and a means to stand out during highly
competitive shopping seasons without having to reinvent the wheel.

6. Looking ahead, what role do you see loyalty programs playing in shaping the retail landscape over the next few years, especially as consumer expectations around personalization, value, and convenience continue to rise?

Loyalty programs are going to be essential moving forward, as they’re a way to amplify brand messaging and act as another key tool in a CMO’s tool kit. I see the future continuing to favour linked loyalty models, especially within coalition programs. These allow each brands’ individual loyalty program to thrive while staying separate, thus, every ecosystem grows stronger without diluting its unique messaging or identity. In short, it’s an efficient way for brands to deliver value to consumers while keeping each brand’s voice clear and distinct.

7. With advancements in AI and data analytics, how do you see retailers and loyalty programs using these tools to deliver more meaningful experiences to customers while still respecting their privacy?

Privacy will continue to be paramount in the future of tech-driven marketing. Protecting consumer data isn’t optional –it’s the baseline for operating responsibly. At the same time, AI and advanced analytics have the potential to transform loyalty programs by making targeting and personalization more effective and relevant. The ideal scenario we hope to see, is one where these technologies not only enhance the customer experience but also strengthen the security and integrity of the systems that make it all possible.

8. Looking to the future, how will AIR MILES continue to be a leader in innovation?

AIR MILES will keep leading through innovation by bringing in new partners, embracing cutting-edge technology, and creating fresh ways for members to engage with the program. With BMO’s heft, reach, and added footprint, we’re now super-powered to help Canadians make real financial progress in their everyday finances.