Without a loyalty strategy in play, retailers risk falling behind. In 2025, brands of every size are launching or relaunching loyalty programs, a trend echoed in the many conversations the Marigold team has had at recent retail industry events with marketers preparing new loyalty-based initiatives.

Some of the more notable retail program announcements this year are:

• Relaunch of David Jones Rewards where members can earn both DJ Rewards points and QFF points, plus other benefits like double points for DJ credit cardholders.
• IGA launched a new program offering cash back on specified products, providing discounts on future purchases.
• Myer One has expanded its Virgin Velocity relationship to allow members to redeem their points in-store.
• The Iconic launched its first loyalty program, Front Row. Designed with direct input from customers, its CMO said: “Our customers have been asking for a loyalty program for some time, and doing it well builds trust and fuels growth.”
• Decjuba Insider program added tier-based rewards and 10 per cent off every purchase.
• Platypus Shoes launched Kicks Club, a new loyalty program targeting its Gen Z customer base through community, culture, and music partnerships.
• Peter Alexander and Smiggle are launching new programs.

The surge of activity in the loyalty sector comes down to two words: Growth engine.

These brands are pursuing growth in all its forms and have realised that most of their goals can be achieved more effectively through a high-performing loyalty program. In this context, a program becomes more than a nice-to-have in the marketing mix. It’s a critical driver of commercial success.

Growth metrics can be grouped under three broad categories:

• Financial metrics: Revenue, margin, average order value, customer lifetime value.
• Marketing metrics: Open and click rates, conversion rate, abandoned browse/cart.
• Customer metrics: Active customers, churn/retention rates, recency and frequency, share of wallet, net promoter score (NPS).

Determining the right metrics starts with understanding the problem you’re solving, and often there’s more than one.

Many brands struggle with differentiation, especially where the primary competitive factor revolves around price. Others face high churn and rising acquisition costs. Some have reached a plateau in their market share that limits their full potential.

Defining a coherent business problem provides the north star that aligns teams and external partners around a shared goal. It also provides a clear rationale for the loyalty program investment, making it easier to obtain executive leadership buy-in and board approval.

Growth is a key measure of success, but sustainable growth is the true mark of a strong brand. Leading brands pursue sustainable growth by launching a loyalty program that systematically turns engagement into genuine customer relationships and long-term revenue growth.

Systematically is the key principle. While discounts and short-term incentives have their place in the marketing mix, they can’t form the foundation for sustainable growth. A loyalty program delivers consistent results because it transforms engagement into sales through a repeatable, data-driven business system.

A loyalty program delivers growth in three ways:

• It uncovers customer insights through data and purchase patterns that inform smarter product, pricing, and customer experience decisions.
• It enables targeted, personalised messaging and rewards, making interactions more relevant and valued.
• It provides unique, non-transactional ways to offer value to the most loyal customers.

Brands that want to elevate their market position do so by harnessing these three strategies in a cohesive and repeatable manner that compounds over time.

At Marigold, we’ve seen numerous loyalty clients achieve success against a variety of stated goals.

• A major QSR franchise launched a new loyalty program with a KPI of growing frequency and saw 70 per cent of members returning within 30 days.
• A sports shoe retailer reported a 93 per cent Net Promoter Score after launching a new program.
• A casual shoe brand derived almost half its revenue from its loyalty members.
• Enabling non-transactional points earning helped an outdoor apparel brand grow member-based revenue by 70 per cent.
• A bakery chain’s program members spent, on average, 25 per cent more than non-members.

Beyond financial returns, a strong loyalty program builds resilience. By nurturing a known and loyal customer base, brands can better withstand competitive pressures, adapt to changing behaviours, and innovate confidently. The result is organic, sustainable growth built on genuine customer connections.