When retailers can’t rely on holidays to carry the year, where do they turn?

Almost three quarters of Brits say they plan to spend less for the rest of 2025. According to PwC’s latest Consumer Sentiment Survey, saving rather than splurging is the mood of the moment. For retailers, that’s unsettling. If they can’t count on big shopping moments to carry the year, where can they look for stability?

Many of the most resilient brands are answering that question through loyalty and retention. Instead of relying on short bursts of discount-driven sales, they’re putting effort into longer-term relationships that carry them through quieter months. A strong loyalty program can act like an insurance policy when confidence is low. People naturally return to the brands they already trust. In fact, our data of over 4000 consumers found that 71% of consumers say they’re more likely to join a loyalty program during a period of economic uncertainty – like we’re facing now, with inflation, tariffs and politics all playing a part.

The meaning of value has also shifted. It no longer just means getting something cheaper or a money-off deal. Customers are looking for brands that reward them with experiences, recognise them as individuals and stand for something they believe in. And brands are starting to deliver on these asks - six in ten say loyalty programs now include better experience-based perks, and 56% think they better reflect a brand’s values. Those focussing on recognition, experience and connection have the jump on those still dealing purely in discounts and introductory offers.

That change in attitude has put data at the centre of how loyalty works. For retailers, data isn’t just about knowing who buys what. It’s about understanding when customers are most receptive, what motivates them and how to make every interaction feel personal. Again, the increased focus here is working. Sixty-one per cent of consumers say they get a more personalised experience as loyalty members, and that figure jumps to 73% among millennials. It shows how much scope there still is to use data to build stronger relationships.

Some brands are already doing this well. The Inkey List’s “Insiders Week” is a good example. It’s a promotional event that doesn’t depend on deep discounts but instead rewards loyal customers with exclusive access to products and deals, creates community and delivers a sense of belonging. Plus it is held at a quieter time of year when there’s less pressure on wallets and less brands competing for attention. It keeps shoppers engaged without eroding margins.

Another smart move is linking promotions to product launches. When a brand has something new to share, that’s the moment to spark excitement and give customers a reason to come back. Early access, extra points for trying something new, or small free product thank-you rewards all help to create a sense of momentum. It’s far more effective than constant blanket offers, and it encourages people to talk about the brand in a positive way.

Loyalty is also helping retailers to smooth out seasonality. With 85% of consumers saying a loyalty program influences their decision to buy again from the same brand, rising to 95% of Gen Z, there’s a real opportunity to create steady, repeat business, enhancing customer lifetime value. Regular, predictable touchpoints throughout the year make cashflow more reliable and reduce the rollercoaster effect that used to come from depending on big seasonal spikes.

It’s also a more efficient use of marketing spend. As advertising costs rise and competition for attention grows, chasing new customers becomes expensive and unpredictable. Retention, by contrast, delivers consistency. And it is very achievable. Around 72% of consumers are members of one to three loyalty programs, and 77% say they actively redeem rewards. These aren’t passive audiences. They’re people who already have a connection with the brand, and made an active choice to engage with them, which makes it far easier and cheaper to nurture loyalty than to start from scratch.

There’s also a deeper emotional side to all this. In uncertain times, connection and trust count for a lot. Fifty-seven per cent of people say they feel more emotionally attached to brands whose loyalty program they’re part of, and roughly seven in ten Gen Z and millennial shoppers say they trust those brands to handle their data responsibly. That sense of belonging is what keeps customers coming back long after the sales have ended.

The retailers that will thrive in the current climate are the ones treating loyalty as the foundation of their growth, not just another marketing channel. They’re focusing on making customers feel valued throughout the year, using data carefully and respectfully, and giving people reasons to return even when money is tight.

The old retail rhythm of summer sales, Black Friday and Christmas peaks is losing its power. Shoppers are looking for brands that understand them, reward them, and reflect their values at all times. A thoughtful loyalty strategy offers a way to meet that need while balancing the books. The result is a steadier, more sustainable relationship between retailer and customer – one built on trust, recognition and shared value rather than the rush of the next discount.

‍