{"id":84995,"date":"2025-10-01T11:02:58","date_gmt":"2025-10-01T15:02:58","guid":{"rendered":"https:\/\/www.mytotalretail.com\/?post_type=article&p=84995"},"modified":"2025-10-01T11:02:58","modified_gmt":"2025-10-01T15:02:58","slug":"why-loyalty-not-discounts-will-define-this-years-black-friday-winners","status":"publish","type":"article","link":"https:\/\/www.mytotalretail.com\/article\/why-loyalty-not-discounts-will-define-this-years-black-friday-winners\/","title":{"rendered":"Why Loyalty, Not Discounts, Will Define This Year\u2019s Black Friday Winners"},"content":{"rendered":"

For years, Black Friday and Cyber Monday (BFCM) have been known for deep discounts and deals. Brands fought to outdo each other with bigger promotions, steeper markdowns, and one-time offers designed to create a frenzy. Shoppers ran to stores and online platforms, treating the weekend as the biggest shopping event of the year.<\/p>\n

However, the rules of peak season have changed. 2024 showed that margin-eroding flash sales are no longer the most effective way to really get your brand ahead of the competition. Instead, loyalty has emerged as the real currency of Black Friday and Cyber Monday<\/a> — a currency that creates a foundation for long-term, profitable growth. Retailers that embrace loyalty as the new currency of peak season won’t just enjoy short-term spikes; they’ll build resilience, relevance, and revenue that lasts long after the sales banners come down.<\/p>\n

Loyalty is Becoming Spendable Currency<\/strong><\/h2>\n

In 2024, loyalty program enrolments increased by 119 percent during BFCM compared to normal trading periods, according to LoyaltyLion data. Shoppers earned 206 percent more loyalty points and redeemed 45 percent more rewards — not to mention the free shipping rewards uptake that soared 304 percent compared to an average weekend.<\/p>\n

These behaviors point to a clear shift and show that customers aren’t just chasing discounts, even when the economy is a bit rocky. They’re treating loyalty points, perks and exclusive rewards as spendable currency. In doing so, they’re reinforcing a value exchange that benefits both sides. Shoppers get more meaningful, lasting benefits than a one-time markdown, while brands keep value circulating — and indeed growing, as existing customers spend more and cost less per transaction — within their own ecosystem.<\/p>\n

When loyalty points are spent like currency, they keep shoppers engaged, build emotional connection, and protect brand equity in a way that heavy discounting simply cannot.<\/p>\n

A Generational Shift in Expectations<\/strong><\/h2>\n

This change is even more noticeable when looking at younger shoppers. Research of 2,000 U.S. consumers shows that 71 percent of 16-24 year-olds\u00a0 and 76 percent of 25-34 year-olds plan to redeem loyalty points during this year’s BFCM. Nearly as many say they’re more likely to join new loyalty programs during peak season.<\/p>\n

Contrast this with baby boomers, of whom only 65 percent plan to redeem points. The generational gap is clear and it highlights a long-term risk for brands that fail to provide younger shoppers with the experiences they’re expecting. Boomers might have discretionary spending power at the moment, but Gen Z and millennials have the potential to be loyal to brands for much longer.<\/p>\n

Gen Z and millennials want recognition, relevance, and a sense of belonging. They respond to experiences, values and community as much as they do to material rewards. Consider that 64 percent of 35-44 year-olds join for access to exclusive events, and 69 percent of 25-34 year-olds want the opportunity to contribute to future products and give feedback. If retailers aren’t tailoring loyalty strategies to meet these expectations, they risk alienating the very consumers who will form their future core audience.<\/p>\n

Brands that show they understand younger shoppers by offering perks like early access, gamified challenges, personalized recommendations, or even cause-based rewards can lock in relationships that last far beyond the holiday season. Imagine the customer lifetime value of retaining an 18-year-old shopper today. That loyalty that will reap rewards for both customer and retailer.<\/p>\n

The Economic Context<\/strong><\/h2>\n

Economic uncertainty is another driver behind the rise of loyalty. Inflation, cost-of-living pressures, tariffs and unpredictable consumer confidence are reshaping how people spend. In times of turbulence, shoppers are cautious. They want to feel that their money is working harder for them, and loyalty programs provide a sense of reassurance.<\/p>\n

In fact, 55 percent of consumers say they’re more likely to join loyalty programs during uncertain times. Rewards like free shipping, bonus points, or exclusive discounts can help alleviate the financial stress of shopping today. By meeting cost-consciousness with meaningful rewards, retailers turn hesitation into retention.<\/p>\n

Loyalty helps brands, as well as consumers, weather volatility. Instead of relying on unpredictable spikes in consumer confidence, they can build more stable, reliable revenue streams anchored by repeat customers. And unlike discounting, which eats into margins, loyalty creates a virtuous cycle: shoppers come back, spend more in order to earn points and redeem rewards, and bring others with them through points-incentivized referrals.<\/p>\n

Black Friday Builds Relationships <\/strong><\/h2>\n

Beyond the sales figures lies something more important. Black Friday isn’t just about transactions and deals anymore; it can be a moment when brands and shoppers start to build real relationships.<\/p>\n

During BFCM last year, referrals driven by loyalty programs rose by an astonishing 746 percent, as shoppers turned into advocates. Social follows grew 128 percent and newsletter sign-ups jumped 330 percent. Interactive touchpoints such as quizzes, profile completions, and sustainability initiatives saw increases of more than 450 percent. People want to have fun with their favorite brands and tell their friends about them. They want to feel part of a community.<\/p>\n

These aren’t just transactions; they’re moments of connection. They show that customers are open to engaging more deeply with brands during peak season — if those brands offer the right incentives.<\/p>\n

By treating BFCM as a launchpad for long-term engagement rather than a one-off rush, retailers can transform short-lived excitement into lasting loyalty. Every referral, every sign-up, every redemption is a brick in a stronger relationship that carries into the new year and beyond.<\/p>\n

It’s the Little Things That Matter Most<\/strong><\/h2>\n

One of the most telling insights from recent BFCM seasons is that small, practical rewards often outperform flashy discounts. The data suggests that free shipping rewards were more influential on some shoppers than the discount offers that many brands put all their budget behind. Convenience, reliability and peace of mind often mean more to shoppers than a short-lived 40 percent off banner. People want to feel supported. That can be done in small ways that also retain margins.<\/p>\n

Small, sustainable rewards are easier to deliver profitably and consistently. They also build everyday loyalty, the kind that matters in February and March just as much as it does in November. By focusing on what customers truly value rather than chasing headlines, brands can build engagement that lasts and powers revenue growth throughout the year.<\/p>\n

The Lesson for 2025 and Beyond<\/strong><\/h2>\n

The takeaway for retailers is simple: The era of relying on discounts alone to carry Black Friday is over. The retailers that will win in 2025 and beyond are those that recognize BFCM as a loyalty moment, one that can convert bargain hunters into long-term brand advocates.<\/p>\n

This doesn’t mean ignoring discounts altogether. Price promotions will always play a role in peak season, however, they should be part of a broader loyalty strategy, one that emphasizes emotional connection, recognition and sustainable value.<\/p>\n

Black Friday and Cyber Monday are evolving from sales spectacles driven by mass retailers into strategic opportunities that sellers of any size can benefit from. Black Friday may end in a weekend, but retailers that focus on loyalty can turn fleeting sales into lasting customer relationships and long-term growth.<\/p>\n

Charlie Casey is CEO and co-founder at\u00a0<\/em>LoyaltyLion<\/em><\/a>, an e-commerce loyalty platform.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

For years, Black Friday and Cyber Monday (BFCM) have been known for deep discounts and deals. Brands fought to outdo each other with bigger promotions, steeper markdowns, and one-time offers designed to create a frenzy. Shoppers ran to stores and online platforms, treating the weekend as the biggest shopping event of the year. However, the […]<\/p>\n","protected":false},"author":12486,"featured_media":75491,"comment_status":"open","ping_status":"closed","template":"","coauthors":[131727],"class_list":["post-84995","article","type-article","status-publish","has-post-thumbnail","hentry","category-customer-retention","category-loyalty-programs","tag-2025-holiday-shopping-season","tag-black-friday","tag-customer-loyalty","tag-customer-retention","tag-cyber-monday","tag-loyalty-programs","tag-promotional-strategy","editorial_type-tips-and-tools","collection-today-on-total-retail","vertical-retail"],"yoast_head":"\nWhy Loyalty, Not Discounts, Will Define This Year\u2019s Black Friday Winners<\/title>\n<meta name=\"description\" content=\"By treating Black Friday and Cyber Monday as a launchpad for long-term engagement rather than a one-off rush, retailers can transform short-lived excitement into lasting loyalty.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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