Retail strategy is getting more complex, but the customer journey isn’t necessarily getting better. As brands invest in new channels, emerging tech, and reimagined experiences, many are still falling short on the fundamentals that actually drive discovery, conversion, and loyalty.

From overengineered loyalty programs to overreliance on owned channels, the gap between what brands prioritize and what consumers value continues to widen. At the same time, newer opportunities like social commerce to AI-driven discovery are proving more impactful than many expected.

Here’s a look at what’s overrated and what’s being underestimated.

Loyalty programs remain undervalued, but only when done right

“There's a lot to be learned from loyalty programs when they’re done right,” said our analyst Arielle Feger on a recent “Reimagining Retail” episode. “It's incredibly useful for both the brand side and the consumer side. It’s a win-win.”

But brands overcomplicate loyalty programs in pursuit of experiential perks. In reality, the most effective programs are rooted in simple, tangible value. Consumers consistently respond to clear rewards over abstract benefits like exclusive access.

“I think most people like to get something free for showing their loyalty,” said Sonal Gandhi, chief content officer at The Lead. “When you get your 10 manicures and you get your 11th one free, that is why you keep going back.”

Direct-to-consumer as a sole channel is overrated

Brands can no longer rely exclusively on direct-to-consumer channels. While D2C remains valuable, particularly as a means of collecting first-party data, it is not sufficient on its own.

Consumers prioritize convenience and immediacy. If a product is available faster or more easily through another retailer or marketplace, they will choose that option without hesitation.

“If they want your brand, and they go to your website and it says five to seven days to ship, and they can find it on Amazon, get it right now, you've made that consumer happy and that's all that really matters,” said Gandhi.

A strong D2C presence still plays an important role in building first-party data and deepening customer relationships, but it works best as part of a broader, omnichannel strategy.

“I think having a strong D2C channel is a really, really good way to build up that data,” said Feger.

Agentic commerce is overhyped for transactions, underrated for discovery

AI-powered commerce is already reshaping how consumers search and discover products, particularly through its conversational interfaces.

"Even if you never use an agentic engine, the way you talk to the computer has changed," said Ghandi.

But for transactions, however, Feger expressed skepticism.

"I don't think that at least for the next foreseeable future, we're going to see a meaningful adoption of true agentic commerce, where agents are buying on behalf of consumers," she said.

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We prepared this article with the assistance of generative AI tools and stand behind its accuracy, quality, and originality.

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