Today’s consumers are more selective about where they spend their money, and loyalty programs must evolve to meet these shifting expectations. According to a recent survey, 65% of consumers want to be rewarded for their loyalty, and 72% say they’re more likely to remain loyal if offered discounts and rewards. However, traditional loyalty programs—offering points or store-specific discounts—are no longer enough.
According to the same study, 71% of consumers shop around to get the best deal, and 43% plan to increase their online shopping in the next six months. To keep pace, brands are compelled to move beyond limited, points-based models and offer cashback and shopping discounts that customers can use at retailers they frequent every day.
Many loyalty programs are focused solely on retaining customers within the brand’s ecosystem—offering points or discounts on the brand’s products. While this encourages repeat purchases, it often falls short of providing the value today’s consumers expect.
For example, a famous bookstore may offer a loyalty membership that provides discounts on books and store merchandise. While applicable for a loyal customer base, the benefits are limited to what the brand sells directly. By expanding the loyalty program to include cashback and discounts at everyday retailers, the program offers more value. Customers would not only save on books but also on groceries, clothing, and electronics, enhancing the program's relevance in their daily lives.
This approach aligns with the rise of premium loyalty programs, where brands charge a fee for added benefits, delivering value more quickly than traditional programs. For example, Barnes & Noble recently launched a premium tier where customers pay $39.99 annually for discounts and exclusive perks like free shipping and café upgrades. Nearly seven out of ten US online shoppers are part of a paid loyalty program, a significant rise from just over four out of ten in 2021. Paid programs attract shoppers because 36% say they save money in the long run, and 23% say they save time. This demonstrates the growing consumer interest in premium loyalty offerings that deliver immediate, tangible benefits.
Modern consumers expect more flexibility from loyalty programs, especially as rising costs push them to look for more significant savings. With 65% of consumers wanting rewards for their loyalty and 72% more likely to stay loyal if offered discounts, brands need to look at ways to integrate cashback and shopping platforms into their existing loyalty systems.
The advantages for brands are clear:
Imagine if a retailer integrated a shopping platform into their current loyalty program. Customers already part of the program would receive the usual in-store benefits and access exclusive cashback offers and discounts from thousands of everyday retailers.
This transforms the loyalty program from solely focused on the brand’s products to offering broader, more flexible rewards that meet the needs of today’s consumers. Instead of earning redeemable points only at one store, customers could use their loyalty benefits to save on the items they buy most frequently, like groceries, clothing, or household goods.
Brands don’t need to reinvent the wheel to meet these consumer demands. By incorporating a cashback/shopping platform into an existing loyalty program, brands can provide their customers with greater flexibility without overhauling their current systems.
This approach allows brands to:
The key to loyalty in today’s market is flexibility and value. Brands can deliver the real-world savings consumers seek through cashback and shopping discounts. This makes loyalty programs not only more engaging but also more valuable to customers’ everyday lives.
At Exhance, we help brands transform their loyalty programs by integrating cashback and shopping platforms into their existing systems. This enables brands to offer more value to their customers, enhance engagement, and boost profitability without disrupting their current operations.