Interactive Loyalty Programs

I know it's tempting... but loyalty programs don't have to be the default paint-by-numbers points, tiers, and refer-a-friend. Here are four interesting loyalty plays that have caught my eye in the past week. Adore Beauty Group changed its program from Adore Society to Adore Rewards to move beyond being online-only. Surprise, surprise, it included a quarterly gift box, but the differentiator to the MECCA Brands loyalty masterclass is that customers get to choose their products rather than it being a mystery. McDonald's partnered with Snap Inc. to allow MyMcDonald's users to redeem points for a month of Snapchat+. It's the first time they've done a digital subscription redemption. Very smart lifestyle integration and huge trial opportunity for Snapchat+. Costco Wholesale upgraded its top-tier Executive Membership. It costs $120 USD, but Executive customers can access the store one hour earlier than other customers and an hour later on Saturday. Plus 2% cash back. A brilliant combination of convenience with middle-class exclusivity. Walmart rewarded pre-orders of the Nintendo Switch by ensuring all orders were delivered by 9am on launch day... and included surprise Pringles and Cokes. At such a heightened and anticipated moment, that retailer has left an deep emotional footprint. So next time you think loyalty, don't settle for ordinary. Put yourself in your customers' shoes. Think outside of the normal. Create lasting value and impactful moments. Don't expect to turn tech on and loyalty to happen. If worse comes to worst... add Pringles to all orders.

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🙏

"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

Yesterday a merchant messaged me saying “We launched a loyalty program last year, but customers barely use it. What are we missing?” So I asked her to do one thing. “Open your dashboard and click on Customer Profile for your last three buyers.” Here’s what she saw inside AiTrillion Loyalty: Customer A →Viewed 6 products →Earned 120 points →Never redeemed →Added to cart twice, dropped both times AiTrillion automatically triggered a “Redeem Your First Reward” popup the moment they returned. They came back, redeemed, and placed their first repeat order. Customer B →Bought a $98 bundle →Earned 98 points →Browsed a higher priced item two days later AiTrillion showed a “You’re 40 points away from a discount” banner on that product page. They upgraded. A $98 customer became a $142 customer without a single email. Customer C →Joined the program but never understood the value →Zero actions taken for 14 days AiTrillion sent an automated “How Your Rewards Work” message with a personalized milestone CTA. They engaged, earned points through a social action, and finally made their second purchase. None of this required setup after day one. No manual reminders. No guesswork. Just one connected loyalty engine gently nudging every shopper at the right moment. And at the end of the week, her repeat revenue jumped by 26 percent. Not because she “had a loyalty program.” But because she could see exactly what each customer needed next and AiTrillion executed it for her. That’s the real difference. Not telling. Showing.

Let’s be honest, loyalty programs aren't engaging… at all. Maybe 30 years ago, getting points for purchases that could eventually be redeemed for rewards was novel. Today, when every single brand does it, it’s just noise. Sure, getting a reward for interacting with a brand is better than nothing, but after being a part of 20 programs with the same crappy system, customers are totally desensitized. Why join the 21st program when I haven't gotten any value from the first 20? The system itself is broken. No one cares about points, especially not when it may take months to level up. Until you turn points into a reward, you have essentially gotten nothing. Points are too abstract. It would take a special customer to care enough to count up points as they buy products, pull out a calculator, and match the total against what they can redeem them for. In the absence of the reward itself, the points are worthless, which is why over 80% of customers fall out of the loyalty funnel before ever becoming locked into the program. At Hang, we are bottoms-up in our thinking and build programs that we would actually use as customers. We try to limit analogous thinking, which is why our programs look so different from the standard. That said, sometimes it’s okay to take ideas from other categories when it makes sense. Especially categories that are far better at engagement, excitement, and retention than loyalty. Mobile gaming is a category that has inspired much of our thinking around customer experience. In gaming: • You level up in seconds and minutes, not weeks and months • You get dopamine hits through exciting and memorable animations that reinforce actions • You get rewards that are actually valuable and can be used to enhance gameplay I’m a member of Delta Sky Miles, but it’s really just the airline and me. In a game, it’s more communal, with customers competing against each other and cooperatively playing together. Historically, loyalty programs have been capped by margin – a brand can only give so much out in discounts. Yet, games are incredible at providing rewards that have a high perceived value with little-to-no cost. New levels, skins, status, community –things that are fun and incentivizing to the customer but don’t cost the brand anything. McDonald’s Monopoly did an amazing job of this – you get Park Place and feel like you're halfway to a million dollars, and you start imagining what your life will be like once you acquire Boardwalk, yet this costs McDonald’s nothing. These are the types of things we think about every day at Hang, and it’s why we are seeing such record performance within our existing programs, making it more fun and exciting for the customer while increasing their value to the brand.

Games and loyalty programs are just alike—you get a rush every time you play, it's all about leveling up, and the best ones keep you coming back. After countless conversations with brands, I keep hearing the same thing: "We want to gamify our loyalty program, but where do we even start?" So let me break down the 7 key steps in creating a loyalty program your customers can't help but love: 1️⃣ Know your players First things first—dive deep into your customer data. - What motivates them?  - What are their habits? Your gamification strategy needs to speak their language. Your analytics will show you the patterns. 2️⃣ Set clear winning conditions (for your brand) Your goals shape everything—from reward structures to achievement systems. Focus on bottom-line impact with metrics like customer lifetime value and churn reduction. 3️⃣ Choose your game mechanics This is where it gets fun. Make a live leaderboard where top customers compete monthly for exclusive rewards, or achievement badges that unlock special perks after completing specific purchase patterns. The key to any game mechanic? Make sure they create natural competition (either external or internal) and keep curiosity high. 4️⃣ Make it personal Generic rewards are forgettable. Use AI and predictive analytics to tailor incentives to individual preferences. When rewards feel personal, they mean more. 5️⃣ Be everywhere they are Your gamified program should flow seamlessly across all touchpoints—mobile, web, and in-store. Remove friction at every step of the customer journey. For example, a customer starts a scavenger hunt on mobile, continues in-store, and completes it online - earning rewards at each step. 6️⃣ Reward consistency Create milestone-based rewards to spark regular engagement. Here’s an example: Snowball weekly challenges into monthly achievements, seasonal collector's badges, or special status levels unlocked through consistent participation. 7️⃣ Measure, learn, adapt Track everything. Your data tells you what's working and what isn't. Strong gamification strategies evolve with real customer behavior. Let your metrics guide program improvements. When done right, gamification isn't just about making loyalty "fun"—it's about creating deeper, more meaningful connections with your customers. Thinking about gamifying your loyalty program? Let's talk about turning your customer experience into something worth playing for.

IndiGo (InterGlobe Aviation Ltd) has found a way where even your grocery, dinner bills and hotel stays can turn into flight tickets one day. See, loyalty programs in aviation have traditionally been built around frequent flying. The problem is that for many customers, the points earned either take too long to add up or lose value before they can be meaningfully used. Over time, this has made loyalty programs feel less relevant for the average flyer. But IndiGo BluChip program takes a very interesting approach. Instead of limiting rewards to flights, it links everyday behaviour, like ordering groceries, paying at restaurants, booking hotel stays, and even spending via IndiGo co-branded credit cards, back into travel benefits. What I find interesting is that it doesn't require conscious effort from people. IndiGo BluChips accumulate in the background while everyone goes about their usual routine. And when it comes time to book a trip, there's a pleasant surprise waiting in the form of a usable IndiGo BluChip balance. From a strategy standpoint, this shifts loyalty from being transactional to habitual. By connecting travel rewards to daily life, IndiGo is creating a stickier relationship with its customers, something that doesn't depend on constant reminders or expiry-driven urgency. In fact, IndiGo BluChips never expire. I find that quite interesting. What are your thoughts? #collab #goIndiGo #IndiGoBluChip

Most brands reward customers for what they buy. H&M is rewarding them for who they become! This is the shift we’re seeing in the smartest loyalty programs today. Loyalty is not just about purchases or spends, it is about behavior! Let's take a look at H&M’s Conscious Points model, built into its free membership program. Sure, at H&M, members earn points when they shop. But they also earn rewards for sustainable actions, such as recycling clothes, using eco-friendly delivery, and skipping single-use bags. ♻️ So, why does this approach work? 📌 It turns values into action - Customers don’t just hear about H&M’s sustainability goals. They become an integral part of it, every time they engage. 📌 It drives smarter personalization - The program collects data on members’ sustainability choices, allowing H&M to tailor offers, messaging, and incentives based on what each customer actually cares about. 📌 It deepens emotional loyalty - When your customer believes their actions with your brand are making a positive impact, they stick around for more than just the discount. 📌 It tackles head-on, a key criticism of fast fashion, that it adversely affects the environment. So how do you apply this to your business? Ask yourself: → What actions (not just purchases) do you want to encourage in your customers? → What deeper purpose or value does your brand stand for? → How can your membership program turn the answers to above, into a daily habit for your customer? Because the next era of loyalty programs isn’t about accumulating points. It’s about building a shared identity between the brand and the buyer. That’s how H&M is turning fashion into a movement - one conscious customer at a time. #hm #membershipprogram #memberships #ecommerce

Its refreshing to see the evolving standards of loyalty & reward programs moving from transactional to rewarding attention, interaction and everyday behavior. Traditionally, most programs have been set up to only reward users when they are making purchases directly with the brand/team. But what about all of the time spent interacting with the brand online, cost of traveling to away games, or sweat equity of being an extended marketing mouthpiece for them on socials. Loyalty programs are now evolving - becoming more passive, gamified, and seamlessly embedded into everyday actions. Today, programs are starting to reward actions like: - Spend $5, play a mini-game, unlock a badge. - Buy your morning coffee, earn points toward game day perks. - Walk into a stadium or retail store and receive geo-based rewards automatically. The winning models are starting to meet people where they are and also leveraging new technologies like blockchain, AI and VR to do it. - Blockchain is enabling ownable, tradable, transparent rewards based on real time behavior with smart contract automation. - AI is enabling ultra personalized offers - VR/AR is turning loyalty into immersive brand experiences Whether you’re shopping, gaming, watching, or scrolling. The best programs will begin to reward you for your presence spent with their brand. A few great use cases of these on Avalanche include: Uptop & the Pistons/Cavs: https://lnkd.in/gzFexAbP Ponta Points: https://lnkd.in/gGdGrM4V

In 2018, most loyalty programs were boring "buy 10, get 1 free" schemes. Then one company built a 31 million member empire that knows when you're hungry before you do. Chipotle Mexican Grill turned eating into a game and created the most sophisticated loyalty program in fast food. Traditional loyalty programs were transactional and forgettable. Customers collected points but felt no emotional connection to brands. Restaurant visits were sporadic and unpredictable. While competitors offered simple punch cards, Chipotle built behavioral psychology into burritos: - Traditional programs rewarded purchases - Chipotle rewarded engagement - Others offered static discounts - Chipotle created dynamic experiences - Competitors stayed transactional - Chipotle built community - Others ignored data - Chipotle mastered personalization Chipotle made another contrarian bet: mobile gaming psychology could drive restaurant visits. While others focused on basic point accumulation, they created streak bonuses, extra point days, and a Rewards Exchange with merchandise and charity donations. They turned lunch into a game you can't stop playing. Their Famous Innovation: 2018: Launch with 8 million members 2019: Chipotlanes for mobile order pickup 2021: Rewards Exchange beyond food 2022: AI-powered personalization engine Each upgrade deepened member engagement and spending. Hyper-personalization through behavioral data. They remember your usual order, favorite add-ons, and the exact time you crave them most. Members visit more frequently, try new items, and spend 67% more per visit. AI creates experiences that feel personally crafted. The Results Today: - 14.5 billion annual revenue - 31 million loyalty members drive 37% of total sales - Digital sales grew from 18% to 37% in 5 years - 3,400 plus locations globally - Members became brand evangelists through social integration The community building extends beyond food through sustainability initiatives, college partnerships, and local involvement. Customers buy into values and lifestyle, not just products. - Response Labs - The Digital CRM & Loyalty Marketing Agency is using the next generation of tools and data to deliver personalized messaging at scale -- including paid media. Follow me at Dan Dawes for more stories on CRM & loyalty marketing.