Loyalty Program Expansion Tactics

I analyzed 100+ loyalty programs in the last 30 days. Most brands still run loyalty like it’s 2009: Earn points, get a discount, repeat. The top 10%? They’re using loyalty to change behavior- not just reward it. If I were Head of Loyalty at a $10B+ brand today, here’s exactly what I’d do to build a program that drives LTV, repeat purchases, and real retention: 1. Stop Giving Away Loyalty - Make Them Pay for It Costco, RH, Barnes & Noble. When customers pay upfront, they buy in - literally and psychologically. Forget free points. Paid memberships = commitment, retention, higher LTV and emotional sunk cost. 2. Make Loyalty Required, Not Optional - Integrate Directly into Payments Starbucks preloads!!! When rewards are embedded in how people pay, behavior shifts faster, and for longer. This is probably the biggest opportunity in loyalty right now. 3. Forget Delayed Points - Instant Gratification is More Important Immediate dopamine beats theoretical future savings. Slow accumulation = slow engagement. Instant offers = repeat behavior. The 2nd purchase matters more than the 10th. 4. Make Loyalty Emotional, Not Transactional REI, North Face, Sephora. Customers want to belong, not just save. Identity, community, and shared values are outperforming cashbacks and discounts in driving long-term loyalty. Loyalty isn’t just a discount strategy, it’s a brand strategy. 5. Invest in Status + Experiences, not Generic Perks This isn't just theory – with companies like Rapha and Lululemon offering loyalty members exclusive product drops, community events and behind-the-scenes experiences. Lean into waitlists and exclusive product drops. Less financial. More status + psychological “being in the club.” 6. Reward Engagement, Not Just Transactions MoxieLash, Pacifica, Lucy & Yak. UGC. Reviews. Referrals. Loyalty now means participation. The modern flywheel starts before checkout - and lasts far beyond it. ~~ Bottom line? If your loyalty program is still playing a game from 15 years ago, your customers are going to find better options. Today, the best brands in 2025 aren’t just rewarding loyalty- they're engineering it. PS: We analyzed 100+ programs across QSR, retail, travel, and fintech. Next week I’ll share the Top 30 loyalty programs leading the way. Stay tuned🙏

If the only reward is $5 off after 500 points, you taught customers one lesson: “stay for discounts” Build a Loyalty Loop instead of a points ladder: 1. Moment 1 – Wow: unbox + surprise (hand written note, bonus sample). 2. Moment 2 – Teach: 72h later send a “pro tips” reel tailored to the item. 3. Moment 3 – Spotlight: after their first selfie tag, feature them in Stories → dopamine > dollars. 4. Moment 4 – Unlock: let repeat buyers vote on the next colorway (access, not coupons). 5. Moment 5 – Multiply: reward a referral with an upgrade, not a discount (free engraving, extended warranty). Points change price. Loops change identity.

👀 𝗧𝗵𝗲𝘀𝗲 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗹𝗼𝘆𝗮𝗹𝘁𝘆 𝗵𝗮𝗰𝗸𝘀 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗳𝘂𝘁𝘂𝗿𝗲-𝗽𝗿𝗼𝗼𝗳 𝘆𝗼𝘂𝗿 𝗯𝗲𝗮𝘂𝘁𝘆 𝗯𝗿𝗮𝗻𝗱 The brand loyalty game is changing. Gen Z swipes, samples, unsubscribes — then repeats. ❗ BUT: 𝙂𝙚𝙣 𝙕 𝙘𝙤𝙣𝙨𝙪𝙢𝙚𝙧𝙨 𝙖𝙧𝙚 𝙨𝙤𝙢𝙚 𝙤𝙛 𝙩𝙝𝙚 𝙢𝙤𝙨𝙩 𝙡𝙤𝙮𝙖𝙡 𝙩𝙤 𝙩𝙝𝙚 𝙗𝙚𝙖𝙪𝙩𝙮 𝙨𝙚𝙘𝙩𝙤𝙧, 𝙬𝙞𝙩𝙝 60% 𝙬𝙞𝙡𝙡𝙞𝙣𝙜 𝙩𝙤 𝙠𝙚𝙚𝙥 𝙗𝙪𝙮𝙞𝙣𝙜 𝙛𝙧𝙤𝙢 𝙩𝙝𝙚𝙞𝙧 𝙛𝙖𝙫𝙤𝙧𝙞𝙩𝙚 𝙗𝙧𝙖𝙣𝙙𝙨. So let's look at the bigger (loyalty) picture: 📉 Beauty brand loyalty is down 20% in the last two years. 📉 90% of Amazon beauty purchases? Unbranded. In a category obsessed with newness, retention is now the most underrated growth lever. Now what's the winning playbook? Connection > Coupons. Ritual > Rewards. Participation > Points. Here’s what smart brands are doing: 🪐 OSEA Malibu reduced churn by 40% just by improving its subscription UX based on customer feedback and conducting frequent A/B testing to optimize the customer journey. 🪐 REFY doesn't just reward customers — it recruits them. Its product development strategy invites the community to shape the brand's future, creating co-ownership through direct engagement. 🪐 Medalist Skin rewards customers for real-life actions like attending women’s sports games or signing up for a 5k run — loyalty as lifestyle. 🪐 Face Reality focuses on strategic product bundling to successfully increase loyalty among their B2B partners and B2C customers simultaneously, resulting in 90%+ B2B retention rates. 🪐 Charlotte Tilbury Beauty turned loyalty into lore. Its “Beauty Universe” rewards fans with surprise gifts, quizzes, and access to the mysterious Magic Vault — a program that feels more like a fantasy game than a transaction. 🪐 Glow Recipe knows loyalty lives on social. “Glow Rewards” rewards referrals, shares, and follows — treating community actions as valuable as purchases. 🪐 Aveda leans into accumulation. Its paid “Plus Rewards” program unlocks everything from robes to spa days, doubling down on experiential aspiration. Across the board, the brands winning on loyalty all share one trait: ❗ 𝙏𝙝𝙚𝙮 𝙩𝙧𝙚𝙖𝙩 𝙡𝙤𝙮𝙖𝙡𝙩𝙮 𝙖𝙨 𝙖 𝙧𝙚𝙡𝙖𝙩𝙞𝙤𝙣𝙨𝙝𝙞𝙥, 𝙣𝙤𝙩 𝙖 𝙧𝙚𝙩𝙚𝙣𝙩𝙞𝙤𝙣 𝙩𝙖𝙘𝙩𝙞𝙘. So what should you be doing? 🔺 Design community into your product, not just your Instagram. 🔺 Design your loyalty program like a universe, not a discount bin. 🔺 Reward values, not just volume. 🔺 Swap point-hoarding for co-creation, access, and honest reward. 🔺 Make engagement feel like access, not effort. ❗ 𝘽𝙚𝙘𝙖𝙪𝙨𝙚 𝙞𝙣 2025, 𝙩𝙝𝙚 𝙗𝙧𝙖𝙣𝙙𝙨 𝙩𝙝𝙖𝙩 𝙠𝙚𝙚𝙥 𝙩𝙝𝙚𝙞𝙧 𝙘𝙪𝙨𝙩𝙤𝙢𝙚𝙧𝙨? 𝙒𝙞𝙡𝙡 𝙗𝙚 𝙩𝙝𝙚 𝙤𝙣𝙚𝙨 𝙩𝙝𝙖𝙩 𝙠𝙣𝙤𝙬 𝙩𝙝𝙚𝙢. Thoughts? Drop them below! 😍 #BrandLoyalty #BeautyMarketing #RetentionStrategy #CommunityBuilding #BrandStrategy #BeautyIndustry #BeautyTrends #MarketingStrategy #BeautyBusiness #GrowthMarketing

"Points for purchases" is killing your brand. That's what Phil C., CEO of Upzelo, told me during our recent Chew On This episode. And after seeing the data from 4,000+ brands, I believe him. Here's what's actually working in loyalty and retention → Phil's journey is fascinating. Before Upzelo, he built the world's largest fitness platform with a 1.45% churn rate. Now he's helping brands reimagine loyalty programs. What he taught us: While most DTC brands are still playing the points game, they're bleeding customer value and watching CAC skyrocket. Instead, here are 3 strategies to ensure your loyalty program brings value to your customers and your brand: 1. Stop Chasing Transactions Traditional approach: Points for purchases Modern approach: Reward customer success Phil shared how one UK brand connected health data to their loyalty program. Every workout became a reason to engage, not just every purchase. 2. Meet Customers in Real Life Your customers don't live inside your Shopify store. One of Phil's clients, a motorcycle gear company, built their entire program around Saturday group rides. The result? 3,500 new program members in 3 weeks. No email blasts. No ads. Just organic sharing between riders. 3. Measure Real Impact Drop these vanity metrics: - Program signups - Points earned - Reward redemptions Instead, track what drives growth: - Purchase frequency - Category adoption - Real-world sharing 4. Goal achievement At Obvi, we're already seeing the impact of this approach. When we shifted from points-based rewards to focusing on customer fitness goals and results, our retention impact transformed. The Big Revelation → The best loyalty programs don't feel like programs at all. They feel like a natural extension of why customers chose you in the first place. Want to build real loyalty in 2024? Stop trying to buy it with points.  Start earning it by helping customers succeed. Huge thanks to Phil Carr for sharing these insights from his work with over 4,000 brands. Want the full playbook? Check out our Chewonthis DTC episode where we break down: - Moving beyond transactional loyalty - Building retention through real-life connections - Measuring what actually drives growth

Is a recession coming? Maybe.   But one thing’s certain: your points program won’t survive it — unless it feels like cash.   At Kalder, we work with retailers, fintechs, brands, and sports teams navigating this shift in real-time.   Here’s what we’re seeing across the board:   Margins are thinning. Budgets are tight. And your customers? They’re not spending like they used to... So what’s next?   1. Loyalty points are turning into cash equivalents. Consumers aren’t chasing “cute” rewards anymore. They’re chasing value. Utility. Relief.   Expect grocer dollars, gas points, mobility credits, and travel miles to outperform every other loyalty currency — because they stretch real budgets.   In inflationary cycles, customers don’t want to feel rewarded. They want to cover the bill.   2. Consumers will hunt harder — because they need to, not just want to. Recessions rewrite behavior. In high-trust categories like grocery, gas, mobility, and discount retail, we’re seeing a surge in offer engagement.   Why?   Because consumers are actively searching for ways to stretch their income. They’ll dig, they’ll click, they’ll link a card. Friction that used to kill the funnel? They'll push through if the upside feels real.   More time. Tighter wallets. More value sensitivity.   3. Partner rewards are becoming a core revenue line, not a side project. Sales alone aren’t enough anymore. Every brand exec is asking:   “How do we monetize our existing audience?”   Partner rewards now sit at the intersection of loyalty and retail media.   We're seeing brands: → Sell their loyalty currency to partners (airlines, grocers, mobility apps) who want access to their top customers → Monetize their best users — turning reward-loving shoppers (think TJMaxx Moms, Macy’s Stars) into a new line of revenue → Run offer marketplaces where partners pay to issue cashback and commission deals — driving their own acquisition   This isn't just retention anymore. This is a business model.   4. Subscription-based loyalty programs will be the first to get cut. If your rewards don’t tie to daily life, expect churn. Shoppers are reprioritizing essentials: groceries, gas, travel, transit.   They’ll stick with brands whose rewards feel liquid — rewards that help them pay for a meal, a ride, or a bill.   If your subscription tier offers soft perks, light discounts, or early access? You may not make it through the next quarter.   5. Rewards that feel like real money will win. Loyalty isn’t dead — it’s evolving. And the brands that win will be: → Earned daily – tied to frequent, everyday spend → Used broadly – not just “10% off next time,” but real currency → Sought after – so valuable, other brands want to issue them   Imagine this: Hobby Lobby Cash earnable at a gas station 🛍️ Macy's Stars earned on your Uber ride 🥫 ALDI USA Points stacked from your travel booking   When rewards feel unlocked, not locked-in — they become currency.

Building loyalty through generosity NOT discounts. Claire Waring recently shared MECCA Brands's guiding principle with me, and I believe it’s something every brand should take to heart. We are now modelling the lifetime value of our customers based on discount codes. However, we have observed that the majority of customers who shop using discounts tend to continue doing so, creating a cycle that is difficult to break. It’s essential to recognise that loyalty should not—and cannot—be built solely on discounts. While discounts may drive short-term revenue, they do not cultivate genuine loyalty. Instead, loyalty stems from forging an emotional connection with your community. To drive this emotional connection, consider the following strategies: Authentic storytelling: share your brand's story, values, and mission. Sandradee Makejev from St Frock is a great example of this. Engage with your community: foster open communication with your customers through social media and other channels. No one does this better than Julie Mathers from Snuggle Hunny in Australia. Create memorable experiences: host events, both online and offline, that allow customers to engage with your brand in meaningful way. Henne's Sydney launch party was the place to be and months later you have to queue to get in. Personalisation: tailor your communications and offerings to meet the individual needs and preferences of your customers. There is a real gap in the market when it comes to this and we have seen Pace Athletic make real strides here. Show appreciation: recognise and celebrate your loyal customers through gestures of appreciation that don’t involve discounts. It's hard to beat Mecca when it comes to this! Which brand offers your favourite loyalty program?

What if one app rewarded you for everything you buy and made leaving feel impossible? Last week my friend had to book a flight. Same price on MakeMyTrip and Tata Neu. Same airline. Same seat. Guess which one she chose? Tata Neu. Not because it was cheaper. Because the NeuCoins she earned could be used for groceries at BigBasket, medicines from 1mg, or that laptop she’s been eyeing at Croma. Not later. Not after earning more points. Immediately. That’s when it hit me. Tata Neu didn’t build a loyalty program. They built a lifestyle ecosystem where leaving feels emotionally expensive. The shift in thinking Most programs ask: “How do we get customers to buy more from us?” Tata Neu asked: “How do we become essential to how people live?” Instead of competing in one category, they reward behavior across many. Flights. Groceries. Medicines. Electronics. Bills. You shop anywhere, you earn everywhere. Why this works in India 🇮🇳 People shop across brands. They want simple, instant value not complicated points. They don’t want to be loyal to one brand but love maximizing rewards across their lifestyle. Lessons for product leaders ✔ Map how customers live, not just how they use your product ✔ Design for flexibility, not exclusivity ✔ Make switching cost emotional, not just financial ✔ Think wider, not deeper The catch It works because it locks you in. Rational choices give way to habit and emotion. Competitors struggle to break ecosystems. One weak link, and the network weakens. What’s next? Loyalty is evolving from points To subscriptions To ecosystem capture. What’s your experience? Have you ever felt trapped in a rewards ecosystem even when it’s helping you save? What made switching feel too expensive? Share below #LoyaltyStrategy #EcosystemThinking #CustomerRetention #IndianMarket #GTM #ProductLeadership #BehavioralEconomics

One of the biggest takeaways I spotted from Intuit Mailchimp’s analysis of the 2024 holiday shopping season is that the new year is ripe with new opportunities to drive loyalty. Here’s why → 64% of orders from Mailchimp customers with connected stores came from new customers during Cyber Weekend 2024. That's a huge opportunity to grow your loyal customer base! And research we produced with Canvas8 tells us that the best kept secret to driving loyalty is actually grounded in science. Our Loyalty Wheel reveals 4 key drivers of loyalty: 1. Reward: Our brains love rewards. Create a sense of reciprocity by offering exclusive deals, personalized discounts, or early access to new products. 2. Memory: Make it easy for customers to remember (and repeat!) positive experiences with your brand. Design a frictionless customer journey, offer subscriptions for frequently purchased items, and send well-timed reminders. 3. Emotion: Foster an emotional connection that goes beyond transactional exchanges. Align your brand with causes your customers care about, share authentic stories, and build a sense of community. 4. Social Interaction: Encourage customers to share their love for your brand with friends and family. Create opportunities for user-generated content, run refer-a-friend programs, or host exclusive events. And here's how to put it all into action: 🎉 Surprise and delight: Gift your customers with unexpected rewards. And just not generic discounts. Offer exclusive experiences or partner with like-minded brands to create unique offers. 🛝 Streamline every touchpoint: Remove friction in the customer journey with automation. From browsing to purchasing to post-purchase support, make it easy and enjoyable to do business with your brand. 🎯 Prioritize personalization: Craft your messaging and build authentic connections. Use data and AI analysis to understand your customers' values and preferences and use those insights to create content that resonates. 🤗 Give VIP treatment: Make your customers feel like VIPs. Give them early access to new products, invite them to exclusive events, or feature them on your social media channels. Download Mailchimp and Canvas8’s The Science of Loyalty and The Strategic Loyalty Playbook for a deep dive into the science, complete with actionable strategies and inspiring examples: https://bit.ly/49FJayO Make 2025 the year of the loyal customer. You got this.

Stop churning high-value customers. Segment your loyalty programs! You’ve worked hard to build a loyal customer base, but are you maximizing their value? If you're not segmenting your loyalty program, you're leaving money on the table. 💵 Based on the success of ‘000s of Appstle customers,  I truly believe personalization is key for customer engagement, retention, and loyalty! 📌 Here’s why I think segmenting your customers into loyalty based tiers is a game-changer: 1️⃣ Personalization drives engagement Generic rewards don’t cut it anymore. Infact, 56% of customers prefer highly personalized loyalty rewards. 👉 By segmenting your customers into distinct tiers based on key characteristics, you can offer rewards that matter to, and motivate them. The result? Higher engagement and increased CLTV! 2️⃣ Encourage more frequent purchases Everyone loves a challenge, and wants to be at the top! Tiered programs with distinctive benefits motivate customers to level up.  Studies show that customers in tiered programs spend 67% more than those without. 👉 As customers move through the tiers, their incentives grow—making them more likely to continue their relationship with your store. 3️⃣ Reward high-value customers Not all customers are the same. Some are your brand’s biggest advocates—your VIPs. With tiered programs, you can give your most valued customers, rewards that make them feel valued. 74% of consumers believe brand loyalty is about feeling understood and valued. 👉 Focus on your top spenders and offer tailored incentives that will keep them coming back. 4️⃣ Track & improve customer behavior With tiered loyalty programs, you gain a clear view of how different shopper segments behave. Are they more likely to shop during specific days and times? Are they influenced by certain promotions and benefits? 👉This data helps you optimize your strategy and maximize LTV over time. ✅Pro tip: The beauty of tiered programs? They incentivize behaviors! Offer perks that motivate customers to reach the next level, and you’ll have customers for life. ♾ Want to grow your Customer Lifetime Value? Segment, personalize, and reward! It’s how you create customer loyalty—and keep it. #Appstle #subscriptions #memberships #loyalty #bundles #customerretention #shopify #shopifyplus

The biggest myth in loyalty programs is that discount coupons are the only way to drive repeat purchases. Here's what actually works: A flexible commerce catalog can help your brand build loyalty programs that don't erode margin by default. Think about the typical scenario: You buy something, then receive a 20% off coupon to come back. That 20% comes directly from your margin. But there's a better way. With a flexible commerce catalog like Elastic Path offers, you can: • Build a catalog specifically for loyalty/VIP customers • Do exclusive drops where the value is first access, not discounts • Charge appropriate prices without discounting • Create value through exclusivity and limited inventory Research shows Gen Z and millennial customers respond more positively to this type of exclusivity in loyalty programs than to traditional offers like free shipping. The real value isn't in the discount - it's in the exclusive access. #ecommerce #composablecommerce #loyalty #digitalcommerce