Implementing A Loyalty Program For Shoppers

Loyalty is failing. Gen Z & long-term commitment. 22% of Gen Z consumers consider themselves loyal to one brand is a clear warning for legacy loyalty strategies. Unlike previous generations, Gen Z doesn’t see brand loyalty as a long-term commitment, they’re loyal to moments, not just names. +43% increase in engagement and sales conversions among Gen Z Beauty brands offering "limited-edition drops" and collaborative experiences. +71% Gen Z say they would rather spend money on an experience than a product. >>Loyalty is FAILING, but why<< +Transactional systems feel outdated: Point-based rewards for repeat purchases don’t excite this audience. They expect more than discounts or free samples. +They’re brand-agnostic but experience-driven: Gen Z freely switches between brands if the experience, aesthetic, or values feel fresher or more aligned with their identity. +They buy into stories, not just products: They want to align with brands that represent something, social causes, cultural movements, or communities they relate to. >>DYNAMIC LOYALTY<< What’s this? as it name indicates its a system that rewards interaction, aligns with their values, and constantly evolves. And that is what your brand needs. → Create experience-driven loyalty programs: Offer early access to limited drops, invite-only events, or backstage content. Think like a fan club, not a punch card. +Example: A loyalty tier that unlocks tickets to a pop-up experience or an exclusive AR filter. →Let them co-create: Invite Gen Z customers to co-develop product ideas, designs, or campaign themes. Give them ownership in your brand’s creative journey. +Example: Voting on packaging designs or joining beta tester groups. →Align with their values: Sustainability, inclusivity, and social good aren’t nice-to-haves. they’re expectations. Use loyalty programs to reward actions too, like recycling, sharing causes, or supporting small creators. +Example: “Earn loyalty points by returning empties or attending a sustainability workshop.” →Deliver constant novelty: Rotate limited editions regularly. Use scarcity and surprise to create FOMO and buzz. +Gen Z doesn’t commit to a single brand, but they’ll keep returning if each visit feels fresh and share-worthy. →Go omnichannel but social-first. Should live across TikTok, Instagram, pop-ups, and web. Let them earn or unlock rewards through social engagement, not just purchases. +Example: A user gets exclusive content or perks for creating UGC with your brand. Bottom Line. Loyalty must be earned over and over through experience, relevance, and emotional connection. Think dynamic loyalty: a system that rewards interaction and go for it. Find my curated search of examples and get ready for your next HIT. Featured Brands: Balmain Benefit Chanel Charlotte tilbury Cerave Fennty L’Oreal OGX YSL #beautypackaging #beautybusiness #beautyprofessionals #experienceretail #luxuryexperiences #genz

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.

This visual is worth the zoom! I can’t switch off when it comes to retail. I walk around shops unable to stop myself analysing consumer behaviour, unpicking the tactics of pricing, placement and loyalty, while obsessively trying to connect the dots. I find it fascinating to see how retail brands understand the subtle yet powerful ways in which psychological principles shape consumer decisions. It’s been so interesting to see how membership pricing has spread throughout the industry, reshaping loyalty schemes. Our latest collaboration with Vypr delves into more detail on exactly this subject, exploring concepts, backed by data such as: 🔹 Self-Perception Theory: Loyalty pricing reinforces consumer identity. 59% of members feel emotionally connected to brands due to exclusive member pricing, creating committed brand advocates. 🔹 Scarcity effect: Limited-access deals significantly boost urgency—16% of non-members seriously consider joining schemes upon seeing exclusive member-only prices.  🔹 Anchoring and trust: This works by setting a reference point in consumers’ minds, helping them judge the value of membership pricing more favourably. By clearly communicating comparisons and long-term benefits, retailers can turn sceptical shoppers into loyal members who are confident they’re making the right choice. On average, 12% of members and 62% of non-members feel sceptical about membership scheme savings. 🔹 Social proof: 61% of members actively recommend their preferred loyalty schemes to family and friends, magnifying brand credibility and consumer acquisition. The deeper impact lies in how membership schemes fundamentally alter purchasing patterns: ✅ Frequency and basket size: 70% of members shop more frequently, with 63% more likely to buy impulsively. Membership creates habits translating directly into sustained higher spending. ✅ Segmented personalisation: Tailored rewards are essential. Strict budgeters respond strongly to tangible savings; affluent shoppers prioritise exclusivity and premium experiences, significantly influencing retention. Retailers who integrate behavioural psychology into their loyalty strategies is nothing new. But those that do it well, adapting to the huge number of distracts out there to cut through the noise are securing a competitive advantage. Explore these critical insights and unlock the full strategic potential of your loyalty programmes by downloading the full report: https://lnkd.in/eSrRR3R4 #LoyaltySchemes #RetailTrends #ConsumerInsights #RetailEconomics #Vypr

Loyalty points can be several times more efficient than discounts. Let’s compare two possible incentives we can give a customer for a $100 purchase: → 100 points, redeemable for $5 off a future purchase (5% back) → 20% discount, equal to $20 off today In this simple example, the discount has a 4x higher cost to the business, AND the cost hits immediately. 4x! This foundation of financial efficiency is a big part of why loyalty programs are so promising. Let’s break that promise into three parts: First, efficiency. Loyalty provides mechanisms that are more efficient than discounts. Still true even with generous multipliers: 2x or 3x points are still much cheaper than a discount. Second, personalization. Loyalty gives you marketing opt-in to make very targeted investments to change customer behavior.  Instead of 20% off for everybody, we know what segment we can first approach to drive incremental purchase at a lower cost. Third, delayed cost. Loyalty lets you reward customers on a longer time horizon. We can defer loyalty rewards and get customers excited to work toward something in the future. Of course, it’s not as simple as ripping out your discounts and swapping in a loyalty program. A few complexities: → Loyalty points are typically awarded on every purchase → Loyalty points are a long-term financial liability for the business → Members have to see value in points to be motivated by them → Members have more control over redemption (and may redeem on an item you would never discount) → Immediate discounts are (generally) perceived as more valuable and will drive a bigger short-term response Perhaps most importantly: you should not launch a loyalty program with the primary goal of giving LESS value back to your customers. But… loyalty programs can give you ‘strategic cover’ to retreat from broad discounts. Many businesses have overextended on their discount strategy the last few years. Even if revenue is healthy, margin & profit are battered. And customers have become accustomed to always buying with discounts. We refer to this as the ‘discount death spiral.’ It’s a difficult cycle to break. But loyalty programs are one of the most battle-tested ways to escape the discount death spiral and efficiently reward your customers for profitable behavior. This ‘strategic cover’ is admittedly not the most inspiring reason to launch a loyalty program. But it’s a powerful one. Worth considering (and factoring into your business case for loyalty investment). Talon.One

Employees often miss what #CX is about, so I have an ice-breaker activity I've used at the beginning of #CustomerExperience workshops. Now, I offer this idea to you: At first, this will seem obvious and perhaps unhelpful, but stick with me, please. The activity is to have small groups spend 10 minutes discussing what drove their satisfaction and dissatisfaction with recent air travel. No, the outcomes will not be surprising—but that hides a really important point that will shake up participants' expectations and attitudes. Of course, everyone says the same things in this exercise. "I was satisfied because we arrived on time." "The snacks were better than expected." "The seats were surprisingly comfortable." "The flight attendants were attentive and pleasant." And, on the other side, "I was dissatisfied by delays." "Communications about flight changes were poor." "The seat was cramped and awkward." "The staff was grumpy and indifferent." I'll spend a few minutes collecting the drivers of satisfaction and dissatisfaction. Everyone will nod in agreement. And then comes the point of this exercise: Absolutely no one will say that a driver of satisfaction was that the airline flew them six miles in the air and delivered them to their destination safely. In other words, the CORE experience--and the most important priority of any airline--drives virtually nothing in terms of customer relationships. Getting there safely is expected, not a driver of satisfaction, loyalty, and advocacy. That's the "aha." Whether you're talking to a group of healthcare workers who think their only essential function is reducing mortality and morbidity or a room of telecom execs who feel everything hinges only on uptime, the message is that it's not what we do but how we do it that drives differentiation, satisfaction, and loyalty. We all can become so focused on the delivery of our primary product or service--or achieving the chief KPIs--that we can neglect to understand the experience from the customer's perspective. Forcing people to consider their own experiences and perceptions as customers helps them to perceive that air travelers landing safely (or patients having successful surgeries, or your phone service working) isn't what drives differentiated CX and outstanding loyalty. Don't get me wrong—you can't miss the table stakes. An airline isn't forgiven for lax safety because it has fresh nuts, nor is a telecom company pardoned for unreliable service thanks to rapid call answer times. But delivering table stakes is not what drives the kind of rabid loyalty, sales, and margin enjoyed by brands with differentiated CX. Ensuring people realize this before introducing them to customer-centric concepts and practices opens their minds to new possibilities within their existing job roles.

Them: We’re good, we have 95% retention rate Me: Great! Do you know why they stay? Them: Yes, our switching costs are high” That is the moment my stomach drops… Customers stay for many reasons: → Some stay because contracts trap them. → Some stay because switching feels annoying. → Some stay because they have low expectations. NONE of that signals real customer loyalty… Loyalty lives in a different place: ✶ It survives small mistakes. ✶ It grows when the relationship feels fair and human. ✶ It appears when they recommend you without thinking. ✶ It shows up in customers who could leave but choose you over again The danger of retention is that it looks healthy right until the moment it collapses. Instead of focussing on retention alone, focus on: 1. treating customers as individuals and show you understand them and care. 2. consistency and reliability over time. Good service once helps but great service repeatedly builds trust. 3. giving opportunities for engagement: ask for feedback, respond to it, offer communities or ways to interact. 4. solving painful friction points but also surprise and delight them 5. understanding and fulfilling customer needs across the spectrum: functional and emotional needs If your retention looks strong but your loyalty is weak, you are sitting on silent churn. It will hit the moment a better option appears. ▶︎ I would love to hear your view. what signals true loyalty in your world? #cx #customerexperience #customerrelations

What if loyalty wasn't about collecting points, but about never wanting to leave? Last week, I watched my friend debate between booking through MakeMyTrip or Tata Neu for the same flight. Same price. Same seat. Same airline. But she chose Tata Neu. Why? Because those NeuCoins would work for her grocery run at BigBasket. Her mom's medicines from 1mg. That laptop she's been eyeing at Croma. That's when it hit me. Tata Neu didn't just build a loyalty program. They made leaving feel expensive. Here's what they figured out that others missed: Your flight booking earns coins for your grocery shopping. Your electronics purchase funds your next vacation. Suddenly, loyalty isn't about one brand. It's about your entire spending pattern. The switching cost becomes emotional. It's not just about losing points anymore. It's about rebuilding your entire reward strategy from scratch. Why start at zero somewhere else when you're already winning everywhere here? This is what I call ecosystem capture. While most brands fight for your attention in one category, Tata Neu quietly owns your wallet across categories. The more you use it, the more expensive it becomes to not use it. The genius move? You don't stay because you love Tata. You stay because leaving costs too much. I started thinking about my own behavior after this. Have you ever found yourself trapped in a loyalty ecosystem? What made switching feel too expensive to consider? Because once you see how these webs are built, you realize we're not just loyal customers. We're invested participants.

You don’t build loyalty through rewards—you reward customers for already being loyal. Big difference. Loyalty programs are primarily designed for customers who have already demonstrated consistent engagement and loyalty to your brand. The goal isn’t to create loyalty through rewards, but to recognize and strengthen it. By offering rewards, perks, and recognition, you can maximize their lifetime value, whether by increasing purchase frequency, boosting basket size, or encouraging referrals. Tactics like tiered rewards, exclusive access, and personalized incentives help reinforce their commitment and make them feel valued. 𝗦𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝘆 𝗙𝗼𝗰𝘂𝘀:  For customers with the potential to become loyal, the strategy shifts. These customers have shown higher engagement but haven't fully crossed into the loyal customer category. To convert them, 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 is key. Tailor rewards based on their behaviors and preferences to create a sense of exclusivity and recognition. It’s also crucial to stay top of mind through strategic touchpoints—whether via targeted email campaigns, loyalty app notifications, or personalized offers that speak directly to their interests. Offering a path to higher-tier rewards as they engage more frequently can further motivate them to commit to your brand long-term. 𝗖𝗮𝘀𝘂𝗮𝗹 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀:  Casual customers require a different approach. They won’t become loyal overnight, and the objective here is gradual nurturing. For this segment, it's all about increasing touchpoints and staying relevant. Broader offers, such as discounts, time-sensitive promotions, or entry-level rewards, help keep them engaged without overwhelming them. The goal is to activate them periodically, ensuring they interact with your brand from time to time. By keeping consistent offers flowing, you maintain visibility, and over time, some of these casual customers may transition into the potential loyal customer segment. ----- Ultimately, loyalty is about retention, not conversion. The focus is on maintaining a strong relationship with those who already support your brand and steadily nurturing others to deepen their commitment over time.

Short-term customer preferences ≠ long-term loyalty. 👏🏾 But what’s the difference? According to ADWEEK: 👉🏾 Preference is short-term and influenced by convenience, promotions, and price. 👉🏾 Loyalty is long-term and built on trust, shared values, and a connection with the brand. The problem is, Many brands are chasing quick wins, thinking they’re building loyalty… But in reality, they’re just creating temporary preferences. Take the Pret A Manger £20/month for unlimited coffee that launched in 2020. In theory, they followed Netflix in the subscription game to boost brand loyalty. Subscribers could enjoy five barista-made drinks – including hot and iced coffees, teas, frappes, smoothies and hot chocolates, Every. Day. In practice, customers preferred unlimited coffee for their 1 month free trial, then reverted back to their old coffee habits. 🤷🏾♀️ This confusion can hurt a brand’s ability to develop lasting relationships with customers. Here’s what marketers should do instead to build loyalty: 👉🏾 Understand the difference. To reiterate, preference and loyalty are NOT the same. Preference can be swayed by short-term factors like discounts or convenience. Loyalty is built over time through trust and shared values. 👉🏾 Have long-term marketing strategies. Engage in activities that build brand equity and create connections, such as: Brand storytelling. Content marketing. Customer engagement. 👉🏾 Measure the right KPIs. Pay attention to metrics that reflect loyalty, such as: Churn rates Retention rates Repeat purchases Customer lifetime value Instead of short-term performance metrics like conversion rates. Don’t get these two mixed up if you want to create hype, demand, and legacy with your brand. 💅🏾

Discounts aren’t killing your profit margins. They’re killing your brand. Bold? Maybe! But after working with high level e-commerce clients, I’ve seen this pattern repeat far too often. Here’s why discounting is a trap and what you should do instead: One client of mine was stuck in a "discount or die" cycle Offering 20-30% off constantly. Their sales were decent, but: - Profit margins? Shrinking. - Customers? Loyal only to the discounts, not the brand. So, what did we do? We threw the discounts out the window and Implemented this no-discount blueprint: 1️⃣ Stack the Value →Instead of cutting prices, we built bundles with exclusive perks: Premium products + personalized add-ons. ↳ Result: 45% higher average order value – no discounts needed. 2️⃣ Scarcity That Matters → We launched limited-edition products Based on actual customer demand. No fake urgency, just genuine exclusivity. ↳ Impact: A 167% increase in full-price purchases. 3️⃣ Reward Loyalty, Not Bargain Hunters → We created a loyalty program focused on engagement: Early access, exclusive content, priority service. ↳ Result: 78% higher customer lifetime value. 4️⃣ Premium is a Mindset → Redesigned their brand story to scream exclusivity: - Behind-the-scenes storytelling - Expert-led masterclasses - Premium unboxing experiences ↳ Outcome in 6 months: ✅ Profit margins: +34% ✅ Customer retention: +56% ✅ Brand perception: +89% Discounts train customers to wait for sales. Value trains them to stay for the brand. P.S. - Want to escape the discount spiral? Let’s build a strategy that scales your profits and positions your brand as the premium choice. Drop a “Yes” in my DMs if you’re ready to level up. (And no, this doesn’t include a 20% off strategy.) But you can Follow me to learn more things about SEO. #EcommerceStrategy #MarketingStrategy #BrandPerception