How generative AI will completely change the customer loyalty game
In 2015 I pitched an idea to Starbucks for an AI-powered loyalty offering that would deliver gamified nudges that were personalized for each customer. The vision came in large part from behavioral adherence research I was doing with Kaiser Permanente and a workshop with Stanford behavior design professor BJ Fogg. Along with a crack team from BCG, we delivered a compelling pitch to Starbucks leadership and landed a $30m investment to build a new type of loyalty platform. We created a company called Formation and assembled a rockstar team.
We delivered on the promise — we actually blew expectations out of the water. Our offers delivered $250m of incremental value to Starbucks in the first year, and became recognized as a new category and leading example in customer loyalty. Soon after we designed United Airlines' loyalty offering.
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