In a recent deep-dive into the evolving realm of shopper loyalty, Forbes contributor Catherine Erdly made a nuanced case for a changed understanding of what loyalty means in the retail realm.
“Loyalty has moved from ‘points and percentage-off’ to a broader promise of recognition, access, and community,” Erdly wrote.
“The programs that win in 2025 are purpose-driven—designed to reflect what a brand stands for—and they work because they connect moments, not just transactions,” she added.
One thing to note is that Erdly isn’t making the case that discounts no longer matter — they remain a foundational part of the retail loyalty program strategy — but moreso that price cuts aren’t the end-all, be-all of what the best loyalty programs have to offer in the contemporary market.
The Forbes contributor cited LoyaltyLion CEO Charlie Casey on this score:
“Our research shows that almost 90% of consumers want a financial reward… [but] 85% say the same about free shipping now and free product rewards, and around 70% want early access to sales and early access to new products,” Casey indicated, with Erdly noting that exclusive experiential cues, such as invitations to events or early-access drops, could foster something beyond a merely transactional relationship with each and every shopper.
“Really what brands need to do is… develop deep, meaningful relationships with their shoppers… only through using the loyalty program and weaving in those experiences do they actually get to talk to the customer as a person and appeal to them on the emotional side,” Casey continued.
The author then pivoted to mention two data clusters which reinforced this evolution: a 2025 Deloitte study on U.S. retail which placed loyalty and omnichannel improvements as the most evident growth opportunities, and a Forbes analysis which saw fast-moving retail brands leveraging AI in tandem with emotional cues “to turn loyalty into an ongoing relationship rather than a points ledger.”
Examples provided include VIP tiers which provide exclusive and early access to product (from streetwear brand Represent), and an Insiders Week from The INKEY wherein prizes, promotional offers, and (again) early access to buys. This all ads up to a sentiment of reinforcing “why being on the inside matters,” and that “exclusivity gets attention.”
Friction As the Enemy of Loyalty, Both Then and Now
One thing all of the data points gathered by Erdly coalesced around: Friction is the enemy of loyalty, and that’s perhaps even more relevant as customers become more savvy and discerning in terms of where to park their spend.
“My advice is… make it as friction-free as possible,” Casey said. “The ideal would be that… the person behind the till knows you… ‘How did you get on with the jumper that you purchased?’ That’s what you want.”
A lot of lift is being attributed to the introduction of smarter, more personable AI assistants as well. Not only can more advanced AI models make conversations around the shopping experience more comprehensive, but they’re also capable of noting individual shoppers and marking specific opportunities pertinent to said customers on the fly.
In a similar vein, “loyalty programs are also becoming permission engines for first-party data,” Erdly underscored.
“Customers will share more—preferences, sizes, categories—when the payoff is obvious and the process is smooth,” she added.
With brand loyalists willfully (and in some cases, excitedly) sharing data with retailers, there’s an obvious logic in connecting the dots from there — it’s a great deal easier to make each shopper feel valued, seen, and a part of an exclusive and enjoyable club when an ongoing dialogue is created.
link