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 weve 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.