Building Brand Loyalty Programs

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 +Transactional systems feel outdated: Point-based rewards for repeat purchases don’t excite this audience.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

If Indian retail wants to win, it must shift its focus from discounts to this, Recently, in a conversation about retail strategy, someone asked me, “Why do so many brands struggle to build long-term loyalty?” The answer is simple: They’re addicted to discounts. Price cuts create a temporary spike in sales. But what happens when the sale ends? Customers move on to the next discount. There’s no loyalty in a race to the bottom. If a brand’s only value proposition is being the cheapest, it’s not a brand, it’s a commodity. And commodities don’t build relationships. The strongest retail brands win on something deeper: ✅ Product innovation: If your product isn’t unique, no discount can save you. UNIQLO doesn’t rely on markdowns, it invests in technology-driven fabrics like HeatTech and AIRism, making its products essential rather than seasonal. ✅ Customer Experience: Shopping isn’t just about the product, it’s also about how customers feel. IKEA built an entire ecosystem around its stores, cafes, play areas, interactive showrooms, turning shopping into an experience people return for, even when they don’t “need” anything. ✅ Community Building: The most powerful brands don’t have customers, they have believers. Starbucks doesn’t just sell coffee; it sells familiarity and personalisation. People go there for the experience of “their” drink, their name on a cup, their place to work or meet. That’s not a transaction, it’s a relationship. + The brands that rely on discounts are playing defense.  + The brands that invest in differentiation are playing to win. So the real question isn’t how much you can lower your price; it's how much value you can create. #retailleadership #beyonddiscounts #brandbuilding

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.

𝗞𝗲𝗻𝘆𝗮'𝘀 𝗥𝗲𝘁𝗮𝗶𝗹 𝗚𝗶𝗮𝗻𝘁𝘀 𝗔𝗿𝗲 𝗦𝗶𝘁𝘁𝗶𝗻𝗴 𝗼𝗻 𝗮 $𝟭𝟬𝟬𝗠+ 𝗗𝗮𝘁𝗮 𝗚𝗼𝗹𝗱𝗺𝗶𝗻𝗲 – 𝗔𝗻𝗱 𝗗𝗼𝗶𝗻𝗴 𝗡𝗼𝘁𝗵𝗶𝗻𝗴 𝗪𝗶𝘁𝗵 𝗜𝘁! 💎📊 After deep-diving into #Kenya's Big 3 supermarket loyalty programs (Naivas Limited, Carrefour, Quickmart Supermarket), I discovered something shocking: We're witnessing the greatest missed opportunity in African retail history. 🤯 𝗧𝗵𝗲 𝗥𝗲𝗮𝗹𝗶𝘁𝘆 𝗖𝗵𝗲𝗰𝗸 📈 🔹 Naivas: 2+ million customers, 5-year purchase histories, yet still relies on MANUAL point capture by cashiers 🔹 Carrefour: Digital-first approach, but basic utilization of customer intelligence   🔹 Quickmart: Traditional program with ZERO data sophistication 𝗧𝗵𝗲 𝗧𝗿𝗶𝗹𝗹𝗶𝗼𝗻-𝗦𝗵𝗶𝗹𝗹𝗶𝗻𝗴 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗧𝗵𝗲𝘆'𝗿𝗲 𝗠𝗶𝘀𝘀𝗶𝗻𝗴 💰 Kenyan supermarkets are missing out on a trillion-shilling opportunity to leverage their loyalty data for hyper-targeted offers such as personalized discounts and product suggestions based on individual shopping habits. Mass customization at scale through predictive replenishment, personalized lists and subscriptions, and advanced revenue optimization strategies like dynamic pricing, waste reduction, cross-selling, and churn prediction, all of which could dramatically boost profitability and transform customer experience through true personalization. 𝗪𝗵𝗮𝘁'𝘀 𝗔𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗛𝗮𝗽𝗽𝗲𝗻𝗶𝗻𝗴 𝗜𝗻𝘀𝘁𝗲𝗮𝗱? 🤦🏾♂️ - Naivas: Customers manually tell cashiers their phone numbers to earn 1 point per KES 100 - Carrefour: Has the tech but uses it like a digital receipt system - Quickmart: Prayer, Vibes & Inshaallah 🙏🏾 𝗧𝗵𝗲 𝗣𝗮𝘁𝗵 𝗙𝗼𝗿𝘄𝗮𝗿𝗱: 𝗪𝗵𝗮𝘁 𝗜𝘁 𝗪𝗼𝘂𝗹𝗱 𝗧𝗮𝗸𝗲 🚀 To truly unlock the value of loyalty programs in Kenya’s retail sector, supermarkets must invest in real-time customer data platforms, AI-powered analytics, mobile money integration, and omnichannel journey mapping, while strategically building teams for data science, segmentation, and personalization; above all, a cultural shift is needed - from simply running 'points programs' to building intelligent customer relationship platforms, allowing for dynamic offers, relationship-driven engagement, and individualized experiences that will drive loyalty and long-term profitability. 𝗧𝗵𝗲 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗰𝗮𝘀𝗲 𝗶𝘀 𝗠𝗔𝗦𝗦𝗜𝗩𝗘 📈: proper loyalty data utilization could deliver 20-30% higher customer lifetime value, 15-25% larger transactions, 40-50% better retention, and 10-15% marketing cost reduction. 𝗧𝗵𝗲 𝗥𝗲𝗮𝗹 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻❓ 𝗪𝗵𝘆 𝗮𝗿𝗲 𝗞𝗲𝗻𝘆𝗮'𝘀 𝗿𝗲𝘁𝗮𝗶𝗹 𝗹𝗲𝗮𝗱𝗲𝗿𝘀 𝗮𝗹𝗹𝗼𝘄𝗶𝗻𝗴 𝗝𝘂𝗺𝗶𝗮, 𝗔𝗺𝗮𝘇𝗼𝗻, 𝗮𝗻𝗱 𝗶𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗲-𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 to master customer intelligence while they collect dust-gathering phone numbers? 🤔 The data is there. The customers are willing. The technology exists. What's missing is vision and execution. 💪🏾 How do we unlock this goldmine? 🔓 #RetailInnovation #CustomerData #AI

Nykaa just launched something at ₹39 that could change how D2C brands think about loyalty. On January 5, Nykaa rolled out Glam Pass - a brand-specific loyalty feature starting at just ₹39. Here's how it works: You pay ₹39 and pick a brand - say, Minimalist. Now you get 10% off on Minimalist products for your next 3 purchases over 3 months. That's it. Simple. This is the opposite of Amazon Prime or Flipkart Black. With Prime, you pay ₹1,499/year and get the same benefits on everything - electronics, groceries, clothes. The platform owns the relationship. With Glam Pass, the brand owns the relationship. Minimalist gets a loyal customer. Nykaa gets the transaction. The brand even pays for the discount, not Nykaa. Why does this matter? This is smart because generic loyalty programs are failing in India. Indian companies spend ₹78,000 crores on loyalty every year. Yet customer retention dropped 23% since 2020. Only 12% of Gen Z will stick with a brand regardless of price. The old model of "collect points, redeem later" doesn't always work. Cred is a great example of what doesnt work. Glam Pass fixes this by aligning with how people actually buy beauty products - replenishment every 4-8 weeks. Three purchases in three months matches that cycle perfectly. For Nykaa, this is also a defense against quick commerce. Blinkit and Zepto grew beauty sales by 160% last year. When 10-minute delivery becomes normal, the only moat left is brand trust. I'm watching this closely. If it works, expect Tira, Myntra, and every major D2C brand to copy this within 90 days.

82.6% of Click's sales came from one thing. Not paid ads. Not foot traffic. Not even their pharmacy offering. ClubCard! (Source: Eyewitness News, 23 Oct 2025) Let me break down what just happened, because this is a masterclass in loyalty economics that every exec should be studying. The numbers that matter: → 14% profit growth in a year where most retailers are in survival mode → 12.6 million active ClubCard members (up from 12.1M just 6 months ago) → 82.6% of total sales driven by loyalty members → 30 years of compounding customer lifetime value That last one; That's the insight everyone's missing. Here's what Clicks actually built: Most brands think loyalty = discount. Clicks built something different: a behavioral data moat wrapped in everyday utility. They didn't just give points. They studied purchase patterns, personalized offers, and created an Affinity programme with partners that actually matter to their customers. The result; Members who've been scanning that card since 1995. Think about that ROI curve. CEO Bertina Engelbrecht said it perfectly: "When you have the kind of loyal customer base that we have, that augurs very well for your continued growth." Translation: Predictable revenue. Lower acquisition costs. Premium customer intelligence. The kind of moat that makes competitors scramble to "upgrade" their own programmes. Why this matters now: In a market where consumers are squeezed, brands that own the customer relationship win. Not the loudest. Not the cheapest. The most trusted. ClubCard isn't a discount card. It's a 30-year trust deposit that's now paying compound interest. What's replicable here: ✓ Make value immediate, not aspirational ✓ Use data to personalize, not just segment ✓ Pick partners strategically (their Affinity model is brilliant) ✓ Play the long game — 30 years of iteration beats copying competitors Massive respect to Bertina Engelbrecht , Melanie Van Rooy Craig Small , Mamusa Stulweni , and your colleagues You've built the kind of loyalty architecture that finance teams love, and marketing teams wish they had. The real question: If 82.6% revenue concentration from a loyalty programme is your STRENGTH and not a risk — what does that tell you about the power of owning customer behavior?

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 you are a brand or creator planning to grow your own community, save this post for your next brand strategy session – Follower counts are overrated. What truly matters for your brand is a community that talks back. In the last 5+ years of building my personal brand along with Like Mind Tribe, I’ve learned this the hard (and beautiful) way. We often chase vanity metrics, namely likes, views, followers. But the brands that actually grow focus on: + trust + conversations + creating spaces that people want to return to My top 3 learnings about community building that most people ignore are👇 1/ Stop broadcasting. Start involving. Don’t just talk to your audience, co-create with them. Ask for their input. Let them choose the next product, workshop, or event theme. Your content should feel like a conversation, not a monologue. 2/ Trust builds in silence. Show up even when it’s quiet. The real connection begins when no one’s clapping. Be consistent with your presence. Show your progress, not just your polished wins. 3/ Give them a space beyond social media. DMs, Zoom rooms, meetups, or even a close friend's story list; These micro-interactions are where loyalty is built. If you want retention, give them a room where they feel seen. ———— I’ve met: → strangers who are now collaborators → community members who became accountability partners → even businesses that were born from casual coffee chats at our meetups That’s what happens when you value: Impact >>>>> Followers Whether you're building a brand or just starting out as a creator – Don’t just aim for attention. Create belonging. What’s the biggest challenge you face in building your community? Let’s tackle it together! #drishtiispeaks #community #branding #strategy #growth #socialmedia #content

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

I just finished reading Flywheel's "The Big Shift" report on redefining ROI with Return on Consumer, and it crystallized something I've been thinking about for months. Here are my key takeaways and what they mean for Amazon advertisers. While ROAS has served us well for immediate conversion optimization, it falls short in identifying and nurturing long-term customer relationships. What's exciting about Amazon's canvas is the quality of identity resolution we can achieve. When customers interact with ads and make purchases, we can connect those touchpoints with much higher confidence than other platforms. This isn't just about tracking sales – it's about understanding the complete customer journey. Amazon Marketing Cloud: A Bridge to the Future The recent expansion of AMC's lookback window to five years is more than just a feature update. It represents a fundamental shift in how brands can understand and activate their customer data. This unprecedented access to purchase history, combined with privacy-safe behavioral insights, allows brands to: • Measure true customer lifetime value • Identify high-potential audience segments • Optimize point of market entry (POME) • Drive sustainable growth through data-driven decisions Beyond Last-Touch Attribution One of the most common conversations I have with advertisers centers around breaking free from last-touch attribution. The reality is that customer journeys are complex and non-linear. With AMC, brands can now see how different touchpoints – from Sponsored Products to Streaming TV – work together to drive both immediate sales and long-term customer value. Real-World Impact The report illustrates this perfectly: a consumer might enter a brand's portfolio with hand soap one year, then purchase detergent and dryer sheets the next year, followed by air fresheners and storage products in the third year. This insight, only possible through long-term customer journey analysis, completely transforms how we should think about acquisition strategy and budget allocation. Looking Ahead • The future belongs to brands that can effectively: • Verticalize their ROI approach within Amazon's canvas • Focus on customer lifetime value rather than individual transactions • Use behavioral signals to fuel sustainable growth • Balance immediate performance with long-term customer value The Question for Advertisers The shift to ROC isn't just about new metrics – it's about fundamentally rethinking how we measure success. Are you still optimizing for short-term ROAS, or are you building for sustainable customer lifetime value? Want to learn more? Read the report: https://lnkd.in/gd2DNBfT Like to listen? Check out the podcast: https://lnkd.in/gPzvS7ci How is your organization adapting to this evolution in measurement and optimization?