Why loyalty matters even more when times are tough

Forrester’s predictions suggest brand loyalty is in for a rough ride this year, with a potential drop of 25%. With prices going up and budgets getting tighter, it’s no wonder people are shopping around a bit more.

But interestingly, Forrester also points out that loyalty programmes aren’t fading into the background – they’re stepping into the spotlight. As customers rethink where they spend and why, these programmes are evolving into something much more than just points and perks. 

Why loyalty strategies matter more in a downturn

When the economy is shaky, people aren’t just more careful with money – they also rethink what ‘value’ really means.

With the cost-of-living crisis, inflation, and Trump’s tariffs adding to the general sense of uncertainty, many customers are feeling the pressure. 

The brands that can ease that pressure – by being trustworthy, understanding, and genuinely helpful – are the ones building stronger, longer-lasting relationships.

Instead of cutting prices and hoping for the best, the smart brands are:

• Listening more.
• Supporting more.
• Delivering better value – without cutting corners.

How people’s idea of ‘value’ changes

During tough times, people think differently about what they buy. Decisions are more cautious and emotional. Loyalty programmes that once just offered rewards need to become something bigger: a way to offer reassurance, confidence, and community.

Your customers are typically:

• Re-thinking what they really need.
• Wanting more value for every pound they spend.
• Looking for brands that match their values.
• Sticking with brands they trust.

How to shape your loyalty programme for tougher times

1. Lead with empathy

• Keep your messaging human and helpful, not salesy.
• Recognise the challenges people are facing – your loyalty scheme should feel like a helping hand, not just another discount.

2. Bring in purpose and community

• Let people donate points to good causes or support local initiatives.
• Create community spaces – online or offline – where your customers feel like part of something.

3. Focus on everyday value

• Highlight practical rewards – think essentials, not luxuries.
• Make it easy to redeem points, even in small amounts.

4. Be clear and honest

• Make sure people know what their points are really worth.
• Keep benefits simple and clear – no hidden catches.

5. Personalise the experience

• Use data to tailor offers based on what people actually buy.
• Use apps to deliver relevant, thoughtful rewards at the right time.

6. Reward more than just spending

• Recognise eco-friendly behaviour – like recycling or choosing sustainable options.
• Reward things like referrals or engagement too. Loyalty isn’t just about purchases – it’s about people feeling connected to your brand.

Who’s getting it right in 2025?

Asda
Through its Baby & Toddler programme – developed with our team at INGAGE – Asda offers more than discounts. The Baby & Toddler hub provides parents with expert advice, helpful tips, and support when they need it most. 

Morrisons
Morrisons has updated its More Card to let customers donate points to charity. One option is Marie Curie, a charity providing end-of-life care. It’s a small gesture, but it adds emotional weight to a weekly shop.

John Lewis
After a successful trial, John Lewis launched a repair and alteration service with the Timpson Group. It’s all about sustainability and quality over throwaway fashion. Loyalty members also get 5% off repair services – rewarding people for caring for what they already have.

Fisher Investments
Fisher is ramping up how it supports clients – offering webinars, one-to-one advice and practical content. In uncertain financial times, they’re using knowledge and transparency to build trust and provide genuine support that customers will value.

Loyalty is more than retention

In uncertain times, loyalty can be one of your brand’s biggest strengths. It’s not just about holding onto customers – it’s about showing up for them, building trust, and creating real connections that last longer than the latest promotion.

The brands that will come out strongest in 2025 will be the ones that:

• Focus on people as much as profits.
• Deliver clear value with warmth and empathy.
• Use loyalty to build lasting relationships – not just repeat purchases.