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Beyond Transactions: The Bigger Role Loyalty Can and Should Play

By Fouad el Maouchi, 25.05.2025


This is part 1 of a two-part series on human loyalty.

Marketers have been using loyalty programmes for years to retain customers and boost spending, mostly through personalised discounts and rewards. But in a world where customer expectations are changing rapidly, loyalty is no longer just about points and perks — it’s about purpose, personalisation, and emotional connection.

Consumers are increasingly seeking out rewards programmes, and they continue to find them valuable. According to the Merkle Loyalty Barometer (2024), 77% of respondents are members of up to five programmes, and 93% have recently earned a reward. Discounts remain the main reason for joining, and the short-term benefits are clear. But in 2025, loyalty has a much bigger role to play.

To stay relevant, brands need to look beyond the traditional, transactional approach. Customers are looking for experiences that help build meaningful relationships, create emotional bonds, and solve real-life problems.

The Two Sides of Loyalty: Customer and Brand

Customer loyalty is about ongoing engagement — repeat purchases and long-term transactional relationships. Brand loyalty goes deeper. It’s an emotional connection built on trust, shared values, positive word-of-mouth, and brand experience. This means customers often stay loyal even when competitors offer lower prices.

The Need for Meaningful Value Exchange

A successful loyalty strategy depends on building a sustainable, mutually beneficial relationship between brand and consumer. People are more aware than ever of the value of their personal data, and privacy concerns are growing. That makes delivering a meaningful value exchange more important than ever.

While discounts and transactional rewards are still popular and can encourage initial sign-ups, brands need to offer more. They must create an elevated value exchange that goes beyond transactions and delivers long-term value. At dentsu, this is guided by the Sanpo Yoshi philosophy — sustainable growth comes from work that benefits not just businesses, but also customers and society as a whole.

Looking Beyond Transactional Programmes

To build a loyalty strategy that works in 2025 and beyond, brands need to offer more than just discounts and rewards. Today’s customers want emotional connections and authentic value exchanges that meet real needs. That means delivering personalised experiences that reflect their values, lifestyles, and preferences.

By focusing on deeper interactions, brands can build long-term relationships, strengthen loyalty, and stand out in a competitive market.

Ways to enrich loyalty programmes include tapping into cultural trends, hosting exclusive events, launching gamified experiences, and partnering with causes that matter to customers. The key is to be authentic, align with the brand message, resonate with the audience, and spark emotional engagement.

A Future-Proof Loyalty Strategy

A future-proof loyalty strategy requires a holistic, end-to-end brand experience built on deep customer insights. By combining those insights with a strong loyalty approach, brands can create impactful programmes, platforms, and activations that do more than drive repeat purchases — they foster long-term growth and engagement.

Brands that focus on emotional connection and meaningful value exchange will have a clear advantage.

Author

Fouad el Maouchi headshot

Fouad el Maouchi
Head of Strategy, Merkle Netherlands

Our series

Human Loyalty: Our two part series

This article is part of a two-part series. The first article delves deeper into the larger role that loyalty can and should play.

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