The Redemption Rethink: Loyalty Must be More than Automatic Discounts

Why timing, flexibility, and choice matter more to customers than points or perks

With the average consumer enrolled in 14+ loyalty programs, and actively participating in only half on an annual basis, loyalty program operators need to ensure that the redemption experience is as rewarding as the reward. Often focus is placed solely on differentiating factors that allow customers to earn and accumulate points and there is a miss on the benefits that come to those brands that provide a redemption experience that reinforces their brand and loyalty promises.

Roger Williams, Head of Marigold’s Loyalty Centre of Excellence (CoE), shares his perspective on how and why leading loyalty brands are benefiting from focusing on key considerations to differentiate their redemption experience.

Key Takeaways from this discussion are:

  • Defining a Scalable Redemption Strategy that reflects the shift away from automatic discounts toward a more flexible, intelligent approach to redemption that can scale across customer segments and channels.
  • Discussing Behavior-Driven Incentives that focus on rewarding meaningful customer actions rather than blanket discounts—driving loyalty through engagement and value exchange.
  • Leaning into Lifecycle Loyalty to emphasize long-term relationship-building, from onboarding through retention, using timely, relevant touchpoints beyond the initial welcome.
  • Defining Flexible Rewards Architecture that highlights customizable, choice-driven reward structures adaptable to different customer behaviors.