Beyond Points and Perks: The Emergence of Sustainable Rewards in Consumer Loyalty Programs

Loyalty programs used to be the holy grail of customer retention.

Swipe, earn, redeem. Rinse, repeat.

But somewhere between the 100th coffee stamp and the never-ending ‘expiring soon’ air miles, customers started asking: Is this really worth it?

For many, it wasn’t.

Today’s consumers—especially Gen Z and Millennials—are driving a new era of loyalty. Some (boomers) might argue that these younger generations don’t even know what loyalty is. As millennials, we’d say: we do — but only when we actually see the value, and when that value shows up consistently. Not just as a one-off gimmick to win us over.

All in all, we value loyalty that’s not just transactional, but transformational. 

The Loyalty Shake-Up

Loyalty programs are everywhere. From supermarkets to streaming services, brands are desperate to keep customers coming back. But the game is changing.

• 72% of consumers are part of at least one loyalty program.
• Yet, 53% say those programs don’t feel rewarding anymore. (Source: Arktic Fox)

Why the disengagement?

Traditional programs are showing their cracks:

• Too complicated. Ever tried redeeming airline miles without a PhD in fine print?
• Too same-same. Everyone’s offering 10% off and free shipping. It’s all… meh.
• Too discount-heavy. Constant markdowns dilute brand value and train customers to wait for the next deal.

Customers today crave more than perks—they want instant gratification, a reward that’s tangible, a reward they can experience, a reward they can brag about. 

Enter: Sustainable Rewards

Sustainable (or green) rewards flip the script. Instead of handing out plastic pens or pointless points, brands are now offering climate action as currency - that’s purpose, experience and gratification all at once! 

Picture this: You buy a product, and instead of earning a coupon, you fund the restoration of a mangrove forest. Or offset the emissions of your parcel delivery (like how Tamarind Chutney does). That’s the new loyalty lexicon.

Why it works:

• 83% of Gen Z expect brands to take a stand on environmental issues.
• Nearly 60% of Millennials are willing to pay more for eco-friendly options. (Source: Growave)

Why Green Loyalty Works (Psychologically Speaking)

Sustainable rewards appeal to emotional loyalty, not just habitual behavior.

• Emotional Engagement: When customers feel like they’re doing good, they associate that goodness with your brand.
• Social Identity: People want to be seen as conscious consumers. Giving them a platform to act on it? That’s powerful branding.

It’s Maslow’s hierarchy meets Mastercard.  

And here’s the kicker — it’s not just good for the planet or your people. It’s great for business.

• Brands that prioritise social good grow 37% faster than those that don’t.
• Activating customers through climate-positive actions builds real, measurable engagement. (See how an international bank did it)

What Can Make a Sustainable Rewards Program Stick?

Design. 

Design is the differentiator that can separate climate champions from the murky landscape of greenwashers.

✅ Design for Transparency

Tell people exactly what their actions are funding. No vague “we plant trees.” Show locations, images, partners, farmers plating those trees, and easy-to-understand impact reports.

🎯 Design for Ownership

Let customers choose which climate project they support. Tree planting in Meghalaya? Clean cookstoves in Kenya? The choice gives them the sense of pride and impact ownership.

🔄 Design for Seamlessness

Don’t make customers jump through digital hoops. Rewards should be seamless—tied to actions they already take, like online purchases, credit card swipes, or ordering a croissant online.

🤝 Design for Partnerships

Work with credible environmental organizations (like, ahem, Climes) to ensure your impact is verifiable and verified. 

🧠Design for Behavioral Change

Design rewards to nudge behavior and break old patterns by pairing them with smart incentives. 

Case in Point: An International Bank x Climes

In one of the coolest loyalty pivots yet, An international bank teamed up with Climes to introduce sustainable rewards for their customers.

💸 Any of their new customers made an 2 FX transactions, they earned 200 Climes—units of climate action they could use to fund real, verified carbon projects. At Climes, we believe in actions that are small enough to do, but big enough to matter.

Those 200 Climes? That’s the climate equivalent of charging 16,169 phones.

🎯 Instead of hoarding points for a branded pen, customers were offsetting emissions. That’s what we call emotional ROI.

Show Me the Numbers: Proving ROI

Sustainable rewards aren’t just a feel-good tactic—they make business sense.

• Customer Retention: Programs with emotional engagement outperform others by 27%.
• Brand Affinity: 91% of consumers are more likely to trust brands that support a good cause.
• Environmental ROI: Brands can quantify their customer-led climate action—hello, annual impact reports.

So… What’s the Future of Loyalty?

It’s clear.

Points are passé. Purpose is powerful.

As climate awareness grows and regulations tighten, integrating sustainable rewards isn't just trendy—it’s future-proofing your brand.

And with a suite of products like that of Climes, it’s never been easier to make climate action part of the customer experience. One click, one reward, one carbon credit at a time.

Ready to turn customer loyalty into climate impact?

Let's build the kind of brand your customers—and the planet—can stick with. Reach out to us at support@climes.io to design a loyalty program with the right sustainable rewards.