Planning for 2025: Why Loyalty Solutions Should Be Top of the Agenda
For many businesses, loyalty solutions can be the difference between retaining customers and losing out to competitors. Here’s why 2025 should be the year your business focuses on loyalty.
In 2025, businesses will face greater pressure than ever to stand out in a crowded marketplace, and racing to the bottom on price isn’t a sustainable or effective solution. Customers are increasingly drawn to brands that show they care about their needs, preferences, and long-term satisfaction – making loyalty programmes one of the most powerful differentiators available. A well-designed loyalty solution is ideal for keeping your customers engaged, as well as driving lasting brand advocacy, getting you ahead of your competitors.
In this article, find out how loyalty can transform customer relationships, boost retention, and position your business for sustained success.
The Importance of Loyalty in a Competitive Landscape
In a world where customer expectations continue to rise, loyalty solutions offer companies a way to differentiate without falling into endless price-cutting wars. Competing on price alone can hurt profit margins and attract customers who are primarily looking for deals – those who are highly unlikely to stay loyal once another business offers a lower price. On the other hand, a loyalty solution that recognises and rewards repeat customers builds a stronger, long-lasting relationship, giving customers all the more reasons to return.
When customers feel valued and appreciated, they’re far more likely to become repeat buyers, recommend your brand to others, and even develop a sense of loyalty that doesn’t care about minor inconveniences or price fluctuations. The added value of a loyalty programme can be a defining factor in customers’ decision-making process, positioning your brand as one that prioritises customer experience over short-term gains.
Understanding Loyalty Today
To effectively make loyalty solutions a priority, it’s essential to understand what really makes them work. According to the findings in our Digital Loyalty Index, modern consumers want personalised, flexible programmes that deliver relevant rewards. The report highlights several key insights that can guide the development of loyalty solutions for 2025:
1. Get the basics right: Prioritise mobile, simplicity, and ease of use
A loyalty programme’s foundation must be easily accessible and simple to use, and mobile is critical. Our data shows that 91% of users interact with loyalty programmes via mobile, with mobile-friendly programmes allowing brands to offer personalised experiences, localised content, and seamless integration with payment options, reminders, and more. For example, Asda’s 2022 digital-only rewards programme launch was a success because of its mobile-first approach, showing that mobile is the channel you need to get right.
Ease of joining is the second most significant factor encouraging customers to sign up for loyalty schemes, with 45% of respondents noting its importance, just behind saving money (56%). This shows that people tend to gravitate towards loyalty programmes that are simple and straightforward to start. Schemes must also be clear and easy to understand; when Marks & Spencer launched their Sparks programme, customers found it confusing, leading to a complete reboot in 2018. Clarity is crucial – 84% of people state they have a strong understanding of their preferred loyalty scheme, highlighting just how valuable simplicity can be.
2. Offer tangible value: Deliver both variety and meaningful benefits
Customers want more than just points or discounts; they value loyalty programmes that add real value and give them opportunities to try new experiences. Offering variety alongside tangible benefits can encourage customers to try new products or services they might have otherwise overlooked. Loyalty perks that reduce the risk of trying something new are a popular way for brands to showcase fresh offerings while strengthening their loyalty schemes.
Interestingly, the research also indicates that subscription services that offer real value are viewed as loyalty benefits by customers, even if they’re not technically part of a loyalty programme. For example, ASOS’s Premier delivery subscription is a paid service but feels like an added loyalty benefit. Framing subscription services as loyalty offerings can encourage faster adoption, demonstrating that value can take many forms in a loyalty context.
3. Build the relationship: Engage consistently, prove value immediately, and be transparent
A successful loyalty solution goes beyond rewards. It builds an ongoing relationship with the customer. Proving immediate value is essential – more than one-third of respondents remember experiencing an instant benefit from their favourite loyalty programmes, a reminder of the impact of quick wins for customer engagement.
Regular touchpoints also help maintain brand relevance and keep your business top-of-mind, particularly if you’re delivering value during each interaction. Consistency is key; customers want more than sporadic reward opportunities – they want an ongoing connection with the brand.
Finally, transparency matters. The research highlights that surprise rewards are often ineffective; customers prefer to know exactly what they’re getting so they can evaluate whether it’s worth their time and investment. When the value is clear and accessible, customers are more likely to engage regularly and build loyalty to the brand.
Why Loyalty Solutions Should Top Your 2025 Agenda
1. Retaining existing customers is more cost-effective than acquiring new ones
It’s widely known that acquiring a new customer is far more expensive than retaining an existing one. In 2025, with customer acquisition costs on the rise, loyalty solutions give you an attractive alternative. By turning the focus on retention, your business can increase customer lifetime value, reduce churn, and establish a more predictable revenue stream.
2. Loyalty solutions strengthen brand advocacy
Satisfied customers aren’t just likely to return – they’re also likely to become advocates for your brand. With the rise of online reviews and social sharing, customer voices are amplified, influencing potential buyers. Loyalty solutions create extra touchpoints for positive customer experiences, which can inspire them to recommend your brand to others.
Advocacy is especially powerful because it introduces new customers who are more inclined to trust your brand. A well-designed loyalty programme can therefore serve as both a retention tool and a new driver of organic growth through word-of-mouth recommendations.
3. Data-driven loyalty programmes offer deeper customer insights
Implementing a loyalty programme also gives you a rich source of customer data. By analysing loyalty programme metrics, your business can get insights into purchasing patterns, engagement trends, and even product preferences.
For example, tracking which rewards customers redeem most frequently can inform you of the products or services that resonate most. This data can guide future marketing strategies, product development, and personalisation efforts, helping your brand become even more aligned with customer needs.
4. Building loyalty programmes creates resilience in uncertain times
With economic pressures and shifting consumer behaviours, brands face more challenges than ever in predicting sales. A loyalty solution can help buffer against these uncertainties by establishing a consistent base of loyal customers who will likely continue to engage with your brand even during market fluctuations.
By making loyalty a top priority, you’re building a foundation that can support your business through both strong and challenging times. These loyal customers form a more stable revenue base, making it easier to withstand unpredictable conditions and changes in consumer spending.
5. The shift towards personalised experiences makes loyalty programmes essential
As our Digital Loyalty Index shows, customers expect personalised experiences from the brands they choose to engage with. Loyalty solutions are ideal for meeting these expectations, as they provide a framework for recognising individual preferences, habits, and values.
By offering tailored rewards and creating unique experiences, your brand can build a personalised approach that resonates with customers on a deeper level.
Best Practices for Implementing Loyalty Solutions in 2025
If you’re planning to make loyalty a priority next year, there are several best practices to consider. A successful loyalty programme needs to be easy to use, digitally accessible, and constantly evolving based on customer insights. Here are some tips:
- Prioritise personalisation – Use data to understand individual preferences and tailor rewards to match customers’ unique interests.
- Integrate across digital platforms – Make sure your loyalty programme is easy to access and manage through mobile apps, social media, and other digital touchpoints.
- Simplify enrolment and usage – Make it as easy as possible for customers to join, understand, and use your loyalty programme.
- Monitor and adapt based on customer feedback – Use insights and customer feedback to regularly adjust the programme and keep it relevant to your audience.
By implementing these best practices, you’ll be on the right track to designing a loyalty solution that builds lasting connections and helps differentiate your brand in 2025.
Download the Digital Loyalty Index
If you’re looking to make 2025 the year of the loyalty solution, our Digital Loyalty Index offers invaluable insights to get you on the right track. Download it now to explore the benchmarks, trends, and strategies that will help your business build a loyalty solution that stands out and drives sustainable growth.