By Dhruv Verma
Reward balances continue to rise across cards, wallets, and platforms, yet redemption remains limited. Many customers accumulate points steadily without ever converting them into experiences or services. Eventually, these unused balances lose relevance, becoming background numbers rather than perceived value.
The Limits Of Traditional Loyalty Frameworks
Point-based loyalty structures were designed to reward repeat interaction through deferred benefits. Customers built balances slowly and redeemed them through catalogues, vouchers, or discounts. The loyalty programmes market in India reached an estimated value of USD 3.58 billion in 2025. Yet, this expansion coexists with persistent questions around programme design and actual usage.
These systems generate engagement only when customers perceive clear and immediate worth. But as digital commerce grows and consumer decision-making evolves, programmes that depend on slow builds of value struggle to carry relevance within everyday choices.
Benefits linked to travel illustrate a different pattern of consumer response. Travel-related rewards operate in environments where planning, time sensitivity, and comfort carry high importance. Today, discretionary expenditure is increasingly directed towards experiences, with travel becoming a clear priority.
As spending on leisure travel grows, rewards that support travel planning, transit, and on-ground convenience register as tangible value. These benefits influence recall because they reduce effort during demanding moments rather than offering deferred benefits.
Lifestyle-based rewards extend relevance beyond occasional travel. Spending intentions indicate sustained interest in personal electronics, wellness, and leisure activities, reflecting how consumers allocate surplus income. These categories align with recurring routines rather than one-time indulgence.
At the same time, physical activity levels highlight an opportunity for structured lifestyle engagement. Access to organised recreation, fitness, and wellness experiences supports participation by lowering entry barriers. When rewards align with routine well-being and recreation, engagement builds steadily through familiarity rather than incentive size.
Loyalty programmes perform better when benefits are easy to understand and simple to use. Customers engage more readily when rewards are delivered close to the point of need. Industry analysis shows a clear movement towards digital-first loyalty platforms that offer integrated, real-time benefits rather than delayed redemption journeys.
This approach improves participation by reducing effort. And programmes that prioritise relevance and accessibility see lower levels of unused rewards and higher repeat engagement.
(The author is the Founder and CEO of Thriwe.)
