By Retail Doctor Group, in association with Ebeltoft Group

Loyalty is not a metric you can measure; it’s a feeling. It’s the warmth of recognition, of coming home, that fills you when you step into your favourite store. It’s the anticipation of “What am I going to find today?”, the hunt for a personalised discount just around the next aisle, and the surety of what your buck can buy there. 

In an age where endless options and instant gratification are the norm, creating brand loyalty needs to consist of so much more than just a punch card filled with stickers. Consumers are looking for a deep-rooted connection, an emotional bond built on trust, shared values, and shopping experiences that transcend price tags and gimmicky loyalty programs.  

70% of consumers are influenced by retailer loyalty programs, yet 19% say discounts alone are no longer enough to convince them to spend their dollars. This seismic shift in consumer sentiment signals a fundamental change to the landscape retailers have always functioned in. 

Gone are the days where loyalty could be bought for a few cents’ discount. Loyalty – and the experiences that create this feeling of being loyal – must now be earned. Retailers will need to go beyond the discount model they’ve always relied on to build experiential loyalty in this hyper-connected world. 

What does this mean for retailers down on the shop floor? 


  • ​​From Points to Purpose: The Demise of the Discount-Driven Dollar
  • ​Building Bridges, Not Walls: Emotional Intelligence in Retail
  • ​The Loyalty Landscape: A Five-Year Forecast
  • ​Top Priorities for Retailers in 2024 and Beyond
  • ​Conclusion​

From Points to Purpose: The Demise of the Discount-Driven Dollar 

For over a century, retailers have relied on the tried-and-true formula of points, perks, and promotions to cultivate customer loyalty. But this once-effective approach is no longer enough to retain customers and create brand loyalty.  

The constant churn of discounts has eroded brand value, turning once-cherished relationships into transactional exchanges that customers nowadays are savvy enough to see straight through. Between the devalued points, generic offers, and a one-size-fits-all approach, consumers are left feeling indifferent and jaded. 

That’s not to say that traditional loyalty programs are obsolete or that a points-based system won’t still work. In fact, a well-designed, well-rounded loyalty program can be a powerful tool that builds emotional connections, fosters a sense of community, and drives engagement.  

The key to this kind of “unicorn” experiential loyalty program lies in shifting the focus away from mere rewards and onto meaningful, memorable experiences. 

Building Bridges, Not Walls: Emotional Intelligence in Retail 

Studies show that strong emotional connections to brands drive loyalty far better than any discount ever could. Feeling valued, understood, and part of something bigger are what’s going to keep customers coming back.  

The #1 concern over the next five years? Loyalty and retention. 

The future of loyalty lies in understanding that your customer base consists of more than just faceless numbers on a spreadsheet. Consumers are individuals who have dreams, hopes, and values which align with specific brands that resonate with them. Retailers who can tap into this new-found emotional intelligence will forge lasting bonds with their customers. 

The Loyalty Landscape: A Five-Year Forecast 

In a world dominated by noise, digitisation, and too many competitive options to make any sensible choices from, retailers are ideally placed to help consumers make smarter, more-personalised shopping decisions. Remember, it’s not about the points anymore, it’s about the feeling.  

And at the end of the day, the emotions behind that feeling is what will drive true, lasting, and experiential loyalty for your brand. The next five years are a crucial time for retailers, who need to redefine and reinvent their loyalty strategies to prioritise emotional connections with their customers. 

Here are four key trends in experiential loyalty that will shape the next five years: 

  • Hyper-personalised experiences, where technology plays a vital role in delivering tailored offers, personalised recommendations, and content that’s based on the consumer’s individual preferences and purchase history. 
  • Seamless omnichannel integration, where smooth transitions between offline and online experiences will determine purchasability, and allow consumers to unlock experiential loyalty programs that connect and reward them across all touchpoints in more ways than one. 
  • Purpose-driven brands that actively seek to align themselves with the core values of their loyal consumer base, and choose to make a positive impact on the world. 
  • Meaningful engagement and emotional connections that signal the decline of transactional loyalty, eliminating ineffective discount- or point-based loyalty programs and replacing them with tangible rewards that drive experiential loyalty. 

Top Priorities for Retailers in 2024 and Beyond 

This shift towards emotionally-based experiential loyalty presents an exciting opportunity for retailers, who will need to focus on building meaningful consumer connections.  

Here are five key ways for retailers to ignite emotional loyalty in their customers, while also creating a thriving community of passionate brand advocates who openly share their positive experiences. 

1. Know Your Tribe, Not Just Your Target 

Your customers are not just faceless demographics. They’re unique individuals who all have hopes and dreams, with a life story of values and ambitions to tell, if you simply listen hard enough. Retailers must invest in processes and tools that help them better understand their consumers’ emotional approaches to shopping, and what truly matters to them.  

Step 1: Conduct in-depth research through polls and surveys, host focus groups and mystery shopping events, and create feedback loops that encourage honest reviews through open channels. Listen actively to the feedback, not just to their words, to find the emotions behind what’s being said. 

2. Craft Experiences, Not Just Transactions 

Shopping shouldn’t be just about swiping a card or filling a cart so you can qualify for free shipping. Create personalised experiences that resonate with your customers’ emotional needs. Make the shopping journey worth the time spent to complete it by tapping into your consumers’ need to be valued. 

Step 2: Make every interaction a moment worth remembering by crafting experiences that matter. Develop a curated product selection based on individual consumer interests and previous browsing or shopping history. Host exclusive events or giveaways on social media channels to foster community engagement. These “surprise-and-delight” gestures show your consumers that they’re not just another transaction and that you appreciate their custom and loyalty. 

3. Embrace Authenticity, Not Perfection 

Consumers are sick and tired of manufactured images, corporate speak, and AI-generated content that’s mass-produced. Be genuine, transparent, and show the human side of your brand. Don’t be afraid to make mistakes, but recover quickly and apologise, if necessary. Growth is a core component of authenticity and shows your brand is human and fallible. 

Step 3: Share your stories, whether those are about the startup process, the manufacturing process, the path you took to get to where you are, or just simply the mistakes you’ve learned from along the way. Celebrate your imperfections – but also your achievements – to connect with your customers on an emotional level. Your authenticity will build trust and empathy, foster genuine loyalty, and make your brand wholly relatable to your ideal consumer. 

4. Empower, Don’t Control 

Give your customers a creative voice and a stake in your brand. Let them co-create products, influence product design decisions, and participate in making your journey a success.  

Step 4: Host design or creative contests, set up flavour feedback sessions to launch a new product variation, and connect with influencers and brand advocates to drive active engagement. When customers feel empowered and heard, they feel valued, and that is how a powerfully emotional bond is built between brand and consumer. 

5. Reward for Values, Not Just Purchases 

Loyalty programs should never be just about points and discounts. Reward customers for living out their best lives by embracing your brand values. Clearly articulate what those values are, how they align to your mission and vision, and what path those values have led you to take. Help the consumer understand more about your journey, not just their own. 

Step 5: Encourage actions that align with your mission and vision. Ask for volunteers to help with community work, share positive experiences, or foster participation in community initiatives your brand is part of. Reward handsomely where warranted, and make sure your rewards are tangible and personalised to suit every individual’s needs. When rewards align with shared values, they become badges of honour, not just bargaining chips. Make sure you have digital badges ready to be shared across social media. 

Conclusion: Trend 3 – Experiential Loyalty

Experiential loyalty isn’t a magic trick you pull out of a hat; it’s a lifelong journey of genuine connection. Igniting a real sense of emotional loyalty starts with understanding your customers better so you’re able to create more meaningful experiences for them that go beyond points, discounts, the bottom line, and any other gimmicky solution you’ve used before.  

Remember that consumer loyalty is earned, not bought. Customers who truly feel seen, valued, and part of something bigger will help you foster a community that drives sales, advocates for your brand (unasked), and gets you through uncertain economic times. 

Use customer insights and neuroscientific personality profiling to determine the emotional drivers of loyalty for your core customer segments to tailor your loyalty program to their needs.  Go beyond points to offer a meaningful return.

Contact the Retail Doctor Group, a retail advisory and consulting practice that builds retail channels and increases the performance of retail and FMCG businesses through our customised & transformative “Fit for Business™” methodologies.

Since 2005 we have partnered with our clients to build powerful, award-winning, sustainable, and “fit” implemented retail. Ensuring our clients consistently achieve above benchmarks, build sales and margin results. We stay with our clients to ensure success.

As the Australian elected member of International Retail Experts, Ebeltoft Group, we have more than 20 years of experience as retailers and consultants in all retail channels, segments and regions. Today, members of the Ebeltoft network advise 80 of the 100 largest retail companies in the world.

Want to know more about the Future of Retail and prepare your retail strategies? Schedule an appointment with our Insights division by e-mailing us at or calling 02 9460 2882.


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