By Ellie-Rose Davies, Content Executive at IMRG
Many retailers are moving beyond blanket discounts, creating offers that drive conversion while building loyalty and protecting margins.
In this blog, industry experts share how personalisation, smarter targeting, post-purchase experiences, and data quality are reshaping effective incentives in 2025.
Moving beyond blanket Discounts with personalised and value-driven offers
Many brands are rethinking traditional discounting strategies, replacing them with targeted rewards, payment-linked incentives, and value-driven approaches that resonate with specific audiences.
Magdalena Schmid-Debska, VP of Growth & Marketing at PXP says, ‘Many successful retailers are moving beyond blanket discounts to deliver personalised, payment-linked rewards that boost both acquisition and loyalty.’
‘Instant cashback offers through digital wallets like Apple Pay or Google Pay can drive conversion at checkout, while integrating loyalty schemes encourages repeat purchases.’
Magdalena continues, ‘Retailers are also rewarding the use of specific payment methods, from contactless and mobile payments to Buy Now, Pay Later (BNPL) and open banking, tailoring incentives to customer preferences.’
She reflects on generational personalisation trends, noting that ‘Gen Z may respond well to gamified rewards and social sharing features; millennials favour convenience and cashback; and older shoppers often still value points systems and email offers, though many are adopting newer payment tools.’
Molly Elrington, Retail & Travel Client Partner, Partnership Development Hub at Awin echoes how ‘In 2025, brands are moving beyond blanket discounting and focusing on value-driven strategies that convert without compromising profitability.’
She says, ‘Whilst we’ve seen a decline in the overall discount partner performance, some those offering targeted rewards – such as geo-personalised offers or student-focused deals – have grown.’
‘At the same time, tech, brand collaborations, and CSS partners are helping retailers drive engagement and visibility across the full funnel whilst also playing a big part in conversion.’
Molly exclaims, ‘Strategic offer timing, personalisation, and partner diversity can be key to success – allowing brands to build lasting customer relationships rather than relying solely on short-term promotions.’
Leveraging psychological triggers, bundles, and subscriptions
Retailers are combining traditional psychological triggers such as “free” with modern subscription models and sustainable incentives to build habitual spending and loyalty.
Industry expert Prisync notes how ‘The answer heavily depends on the customers and what the retailers aim to achieve with their discount strategy, whether it is increasing revenue, improving customer loyalty, attracting new shoppers, or creating a holiday deal.’
‘For increasing the average order value (AOV), bundled discounts might be the approach they implemented. Some companies implement this strategy by offering related products in discounted bundles, where individual items may not be available otherwise.’
‘Or, if they had products to offload, they might offer a less popular item for free in a bundle. The word ‘free’ does the trick here, as both free shipping and easy return policies are what consumers expect to receive in 2025.’
Prisync say ‘Numerous holidays and celebrations have helped retailers attract and retain customers so far, especially when communicated via email. Retailers who have aligned their offers with customers’ expectations and psychological triggers tend to achieve better conversion outcomes.’
Amelia Clarkson, CRM Manager at NOVOS provides good examples of brands who are using subscriptions and offers to drive sales.
She shares, ‘Pret A Manger’s subscription model gives members up to five drinks a day for a monthly fee, converting casual customers into daily visitors, encouraging additional sales into other categories.’
‘H&M uses sustainable loyalty incentives, offering points for recycling clothes or bringing your own bag when shopping in store.’
‘Currys also uses sustainable angle, offering £10 off when recycling an item which helps nudge customers towards buying upgrades from them instead of a competitor.’
Amelia concludes that ‘These brands convert by creating relevant, time sensitive and emotional incentives tailored to customer behaviour and lifestyle.’
Behavioural targeting and post-purchase rewards
Smarter targeting and frictionless post-purchase experiences are converting customers at critical journey stages, while branded communications reinforce trust and loyalty.
Dan Bond, VP Marketing at RevLifter says ‘The most effective offers in 2025 aren’t about deeper discounts—they’re about smarter targeting.’
‘We’re seeing retailers like Radley London and IT Luggage succeed by moving beyond blanket promotions to behavioural-based offers. Exit campaigns that trigger when someone tries to leave convert abandoners.’
‘Stretch & Save promotions increase average order value by encouraging shoppers to reach specific thresholds for rewards. Invalid code offers turn discount hunters into buyers by providing exclusive deals when expired codes are entered. Different shoppers need different nudges,’ says Dan
Gavin Murphy, CMO at Scurri reflects on how offers can be used during the post-purchase stage, saying that ‘One key area of innovation is the post-purchase experience.’
‘Smart retailers are using this phase to deliver exclusive offers, such as secure or express delivery upgrades, or other special services for loyalty members, that make customers feel valued and seen.’
‘Another trend is surfacing delivery options earlier in the checkout journey. This reduces friction and prevents abandonment, particularly when shoppers can weigh cost versus speed upfront. But critically, these communications must be brand-led, not carrier-led.’
Data quality as a foundation for effective rewards
High-quality data helps to ensure offers are relevant, communications are efficient, and customer experience is seamless.
Barley Laing, UK Managing Director at Melissa says, ‘If you are keen on taking the offers and rewards route, having access to clean data is critical. It can be effectively analysed to gain valuable customer insight that can be used to keep existing customers happy, with personalised communications and offers, so they return and spend more in the long term.’
‘Remember, in the rush to adopt AI to deliver insight that could inform potential offers and rewards data quality is more important than ever. When AI has access to incorrect data the end result could be gibberish, or worse, biased and inaccurate outcomes. This is commonly called AI induced ‘hallucinations’, which leads to poor results.’
‘For example, irrelevant personalised offers and rewards could be delivered by AI having access to inaccurate customer data, such as an incorrect address, which is likely to have a negative impact on sales and the customer experience,’ says Barley.
From payment-linked rewards and behavioural targeting to psychological triggers and data-enabled personalisation, 2025’s most effective offers share a common thread: understanding customers deeply and aligning incentives to their behaviours and values. Retailers are proving that thoughtful rewards build loyalty and drive conversion more sustainably than blanket discounts alone.
Published 27.06.25
