Retailers are facing increasing pressure where margins are shrinking, customer expectations are rising, and loyalty is more challenging to earn than ever. The reality? Selling products alone won’t cut it. The brands that win think beyond transactions—turning each interaction into a revenue opportunity and strengthening customer retention.
The challenge is clear: Retailers need to diversify revenue streams while ensuring their loyalty strategies don’t just exist but thrive. Here’s how they can do it with three powerful strategies:
Retail Media: The Post-Transaction Opportunity
Retail media has gone from a niche play to a must-have revenue channel. Major players like Walmart, Target, and Kroger have built billion-dollar ad businesses by turning their owned digital properties into advertising platforms. The reason is simple: Retailers have the audience, the data, and the purchase intent—prime real estate for brands looking to connect with shoppers at the moment of decision.
Retail media is projected to account for nearly a quarter of total U.S. digital ad spending by 2025. However, launching a retail media network (RMN) is a considerable undertaking. It requires significant investment in technology, ad operations, compliance with evolving data privacy regulations, and delivering measurable results to advertisers. Many retailers lack the infrastructure or internal expertise to scale an RMN effectively, making it a long-term play rather than an immediate revenue driver.
Post-transaction advertising offers a powerful alternative for brands looking for a more straightforward, faster way to enter retail media. Yet, many retailers still underutilize a key moment in the purchase journey—the post-transaction phase. Instead of letting the order confirmation page be the end of the journey, retailers can leverage it to present hyper-relevant offers, increase basket size, or even drive third-party ad revenue.
The beauty of post-transaction ads is that they don’t disrupt the buying process. They capitalize on customer intent, giving retailers an additional revenue stream without compromising user experience.
Why it works:
- Captures an engaged audience at a high-intent moment
- Creates a new revenue stream with minimal investment and overhead
- Increases the lifetime value of customers by surfacing relevant post-purchase offers
Expanding Loyalty: Increase engagement with non-endemic rewards
Loyalty programs have historically been about points and discounts, but today’s retailers need to offer more. The next wave of loyalty programs is built on exclusive benefits, brand partnerships, and dynamic rewards that go beyond a simple transactional model.
Retailers are increasingly looking for ways to make their loyalty programs more than a cost center. The key to a successful loyalty program isn’t just rewarding purchases—it’s about expanding the value proposition by integrating a wide range of offers from other brands.
By embedding third-party, non-endemic brands into loyalty programs, retailers can provide various rewards, increasing customer engagement and program stickiness. Consumers are more likely to actively participate when they can access rewards and incentives across multiple brands, making the loyalty program more like an ecosystem or marketplace than a single-store initiative. Additionally, introducing external offers enables retailers to create tiered loyalty structures, offering premium rewards to high-value customers and making the program a revenue driver rather than a cost center.
Retailers who integrate diverse brands into their loyalty strategies increase engagement and unlock new monetization opportunities. By allowing brands to participate in their loyalty ecosystem, retailers can generate commission-based revenue or co-fund rewards programs, turning loyalty from an expense into a revenue-generating asset.
How expanding programs with diverse benefits strengthens loyalty:
- Tiering models that reward top-tier customers with premium benefits
- Non-endemic rewards create engagement by expanding benefits beyond in-house rewards
- Non-transactional loyalty goes beyond the traditional “earn and burn” model
Retailers successfully expanding their loyalty programs with broader brand partnerships have seen significant engagement. For example, Qantas Loyalty partners with over 700 brands across travel, retail, utilities, and financial services—allowing members to earn and redeem rewards across multiple industries. This model transforms a traditional rewards program into a lifestyle-based ecosystem, keeping members engaged over the long term.
Why it works:
- Encourages ongoing engagement through diverse rewards
- Strengthens brand affinity by offering exclusive perks
- Expand revenue opportunities
Subscription-Based Loyalty: Capturing Loyalty In-Store
Retailers have long understood the power of subscription-based loyalty programs, but too often, they focus on online sign-ups rather than leveraging the in-store experience. The checkout counter remains one of the most potent points of engagement—where shoppers are already making a purchase decision, making it the perfect moment to introduce a subscription offering.
Research shows that consumers engaged in paid membership programs spend significantly more per visit. Walmart+ members spend a staggering 76% more than the average Walmart shopper.
Retailers that introduce compelling membership options—featuring ongoing discounts, faster shipping, and exclusive deals—secure long-term customer spending. While these programs have thrived in digital spaces, in-store sign-ups offer a critical, often underutilized opportunity to drive adoption.
How to maximize in-store subscription adoption:
- Offer immediate, tangible benefits to drive sign-ups
- Keep programs “sticky” with a mix of in-kind and non-endemic brands
- Integrate into digital and in-store experiences
Consumers are accustomed to value-driven memberships, and when appropriately introduced, in-store subscription programs can drive immediate adoption. Store associates play a crucial role in explaining benefits at checkout, while in-store signage and digital touchpoints reinforce the value proposition. Retailers can turn a routine visit into a long-term customer commitment by offering instant discounts, cashback perks, or free trials.
Why it works:
- Increases customer lifetime value with built-in recurring purchases
- Generates predictable revenue through membership fees
- Reduces friction in purchasing by making benefits automatic
The Bottom Line: Retailers Must Rethink Their Revenue Playbook
The future of retail isn’t just about selling—it’s about recognizing the opportunities for revenue diversification.
Retail media and post-transaction advertising create new revenue channels. Loyalty programs shift from generic point systems to high-engagement ecosystems. Subscription-based models secure repeat purchases and drive predictable revenue.
Retailers who fail to adapt risk falling behind. The ones who move fast and implement these strategies will build stronger customer relationships and unlock new revenue streams. The playbook has changed—now it’s time to execute.
Exhance provides practical solutions that help retailers unlock new revenue streams and enhance customer loyalty. Whether through post-transaction advertising, expanding loyalty program partnerships, or optimizing in-store experiences, Exhance empowers retailers to turn every customer interaction into a revenue and loyalty opportunity.
