The traditional retail loyalty model is reaching a critical inflection point as evolving consumer expectations collide with economic pressures, creating an urgent need for innovative approaches, according to one of Canada’s leading loyalty strategists.
“There’s pressure on consumer value from both ends. Customers are expecting more and they’re getting less. And that is a perfect storm for something needing to change,” says Lia Grimberg, Principal and Consultant at Radicle Loyalty, in an exclusive interview with 6ixRetail.
Recent data supports this observation. According to the 2025 Global Customer Loyalty Report from Antavo AI Loyalty Cloud, nearly 70% of consumers are actively seeking hard currency benefits – rewards, discounts, or cash back – from their loyalty programs. However, Grimberg notes that this creates a significant challenge for retailers struggling with compressed margins and increased financial scrutiny.
Redefining Value Beyond Points
While conventional wisdom might suggest doubling down on points-based rewards, Grimberg advocates for a more nuanced approach. “Think of things that are valuable to people outside of money that are effective and efficient to deliver to your members to solve a real tangible problem,” she explains, citing examples such as priority access, express checkout, or exclusive services.
This strategic pivot is already yielding results for some retailers. Grimberg points to PC Optimum’s recent innovation that successfully merged digital engagement with traditional loyalty mechanics. “They added yet another layer, which was gamification. It was promotional, it was limited time, and it was a stamp program… The promotion was highly, highly successful.”
The New Partnership Paradigm
Perhaps most intriguingly, Grimberg identifies a fundamental shift in how retailers approach loyalty partnerships. Recent unexpected collaborations – Expedia with Microsoft Bing, WestJet with Skip the Dishes, and Aeroplan with Bell – signal a move toward more experimental, shorter-term arrangements.
“I think we’re starting to get away from traditional marriages into some more unlikely kind of partnerships,” Grimberg observes. “The fact that you can try before you buy and you can date before you marry is probably not a bad thing as far as partnerships in loyalty are concerned.”
This shift toward flexible partnerships offers retailers a lower-risk way to test new markets and value propositions. However, Grimberg emphasizes that successful partnerships require careful evaluation of brand alignment, customer experience capabilities, and data-sharing protocols.
Overlooked Opportunities in Premium Demographics
While many retailers focus their loyalty efforts on younger consumers, Grimberg identifies significant untapped potential in the boomer market. “There’s not enough partnerships in the space of health and financial services and member-only travel catered to the 50-plus, 60-plus universe,” she notes, adding that this demographic often has both substantial assets and time to engage with well-designed programs.
Strategic Guidance for Retailers
For retailers considering launching or revamping loyalty programs, Grimberg offers clear strategic direction: avoid direct competition with established programs like PC Optimum or Sephora Beauty Insider. Instead, she advocates for a focused approach that addresses specific customer needs and leverages unique brand assets.
“Don’t try to outplay them, play your own game,” she advises. “Think about what your customer needs, deliver against what that is, find a way to solve a problem for your target group.”
The Future of Loyalty
Looking ahead, Grimberg sees a landscape where successful loyalty programs will be defined less by points accumulation and more by their ability to solve real customer problems. This might mean offering unique services, facilitating convenient experiences, or creating value through unexpected partnerships.
“It’s not about the system being broken,” Grimberg concludes, “but how we can continuously engage and provide more meaningful value to our customers through loyalty programs.”
For retailers navigating this evolving landscape, the message is clear: success in loyalty will come not from copying existing models, but from understanding and addressing specific customer needs in innovative ways. As economic pressures continue to reshape the retail environment, those who can deliver genuine value beyond traditional points-based rewards will be best positioned for success.
Dustin Fuhs is the founder and Editor-in-Chief of 6ix Retail, Toronto’s premier source for retail and hospitality industry news. As the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication, Dustin brings over two decades of expertise spanning retail, marketing, entertainment and hospitality sectors. His experience includes roles with industry giants such as The Walt Disney Company, The Hockey Hall of Fame, The Canadian Opera Company, Starbucks Canada and Blockbuster.
Recognized as a RETHINK Retail Top Retail Expert in 2024, 2025 and 2026, Dustin delivers insider perspectives on Toronto’s evolving retail landscape, from emerging brands to established players reshaping the city’s commercial districts.