Behavioral Loyalty Program

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🙏

𝗦𝗶𝘅 𝗺𝗼𝗻𝘁𝗵𝘀 𝗶𝗻: 𝘁𝗶𝗺𝗲 𝗳𝗼𝗿 𝗮 𝗳𝗶𝗿𝘀𝘁 𝘁𝗵𝗿𝗼𝘄𝗯𝗮𝗰𝗸 𝗼𝗻 𝗖𝗹𝘂𝗯 𝗟𝗼𝘆𝗮𝗹𝘁𝘆! "Why would you build a loyalty system for clients that are already loyal?" A question I often received, mainly from the retail/FMCG business. I get why, but the answer is simple and complex at the same time. Fans are not customers. They breathe our values, support us when things are rough and have been doing that for years or decades. It's a sensitive relationship that goes beyond anything you can expect in retail/FMCG. It also means that they have a different perception of promotions, gifts, tiers, vip access than you would expect in a traditional loyalty system. And that's where it gets complex. Our fans do like to be rewarded, but they also want recognition for their infinite loyalty. So Club Loyalty had to do two things at once: add real value for fans and move the right match day behaviors. What happened next, provided us with interesting insights: +8% season ticket holders on matchdays (as they are rewarded for showing up to a game) +13.3% spend per fan (with higher attendance / more vouchers are being won and used) +9.2% fans arriving +30min early (we reward early arrivals to lower queues) +17% more ticket releases → +52.71% resold tickets (awarding fans to release tickets when they can't make it, opens up an interesting secondary market) Take away for now: loyalty works when it’s built around behavior and convenience, not around “collecting points”. There's loads to come in this space. Keep an eye out for more updates in 2026! Lotte Denoo, Mattijs Buyck, Bruno De Poorter, Tom Van Regenmortel, Jonas De Corte, Jan Proesmans, Thijs Laurent, Bits of Love, Open Loyalty. Full case study: link in the comments.

"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

I've built and operated loyalty strategies at Nike, Best Buy, and Starbucks and others. With so much discussion recently on loyalty program changes, I built a tool for you to assess your strategy. Here are 5 signs your loyalty "program" might be holding your brand back from growth. 1️⃣ 𝗬𝗼𝘂 𝗿𝗲𝘄𝗮𝗿𝗱 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀, 𝗻𝗼𝘁 𝗯𝗲𝗵𝗮𝘃𝗶𝗼𝗿. Points for purchases is a discount program with extra steps. At Nike, membership was about access. Early product drops. Local experiences. Content. The program rewarded engagement, not just spending. If your only earn mechanic is "buy stuff, get points," that's not loyalty. That's a coupon with a login. 2️⃣ 𝗬𝗼𝘂 𝗰𝗮𝗻'𝘁 𝗱𝗲𝘀𝗰𝗿𝗶𝗯𝗲 𝘄𝗵𝗮𝘁 𝗮 𝗹𝗼𝘆𝗮𝗹 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗱𝗼𝗲𝘀. Not what they spend. What they do. How often they visit. Whether they refer. Whether they engage between purchases. At Best Buy, we mapped lifecycle behaviors to retention curves. That's what told us which levers moved the needle. If your team can't define the behavioral signature of your best customers, the program is running blind. 3️⃣ 𝗘𝗻𝗿𝗼𝗹𝗹𝗺𝗲𝗻𝘁 𝗶𝘀 𝘂𝗽. 𝗥𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗶𝘀 𝗳𝗹𝗮𝘁. Most common trap in loyalty. The program looks like it's growing because sign-ups are up. But if retention is flat, you're filling a leaky bucket. The fix isn't more acquisition spend. It's redesigning the first 90 days of the member experience. 4️⃣ 𝗬𝗼𝘂𝗿 𝗖𝗥𝗠 𝗿𝘂𝗻𝘀 𝗼𝗻 𝗮 𝗰𝗮𝗹𝗲𝗻𝗱𝗮𝗿, 𝗻𝗼𝘁 𝗼𝗻 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗯𝗲𝗵𝗮𝘃𝗶𝗼𝗿. If your messaging cadence is built around what your marketing team planned in Q4 instead of what a customer just did, you're talking at people. Not responding to them. Behavior-driven CRM outperforms calendar-driven CRM every time. 5️⃣ 𝗡𝗼𝗯𝗼𝗱𝘆 𝗼𝘄𝗻𝘀 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗴𝗿𝗼𝘄𝘁𝗵 𝗽𝗶𝗰𝘁𝘂𝗿𝗲. Loyalty in one silo. CRM in another. CX somewhere else. Data that nobody acts on. Dashboards that nobody uses for decisions. This is a systems problem, not a people problem. And it's the one that explains all the others. I've seen this pattern at brands doing $200M and brands doing $30B. The fix is almost never a new cool tech toy. It's building a growth system where membership, loyalty, CRM, CX, and insights actually connect. I built a free 90-second diagnostic based on these patterns. Just an honest read on where your program stands. Take it here: https://lnkd.in/gjwXjMQX

I've talked about what "lifecycle marketing" is and what it's not. So what does a loyalty-powered lifecycle actually look like in a CRM? Simply put, it looks like intentional triggers tied to behavior. Here’s a few simple examples of what that looks like in practice. 𝗟𝗼𝘆𝗮𝗹𝘁𝘆 𝘀𝗶𝗴𝗻-𝘂𝗽 𝗶𝘀 𝗻𝗼𝘁 𝘁𝗵𝗲 𝘄𝗶𝗻. The win is opting in to receive your communications. Without that you have no way to communicate to get those critical early visits. With opt-ins, the CRM should reinforces the relationship early: > Acknowledge the first visit. > Set a 7–14 day window. > Trigger a second-visit message only if they don’t come back on their own. 𝗘𝗮𝗿𝗹𝘆 𝘃𝗶𝘀𝗶𝘁𝘀 𝘂𝗻𝗹𝗼𝗰𝗸 𝗿𝗲𝗰𝗼𝗴𝗻𝗶𝘁𝗶𝗼𝗻. Most programs wait until redemption to say thank you. Instead, your CRM should trigger moments like: “You’ve been in 3 times already and we see you!” Early visit progress messages that feel more encouraging with recognition rather than salesy. This is where habits start to form. 𝗗𝗮𝘁𝗮 𝗱𝗲𝗳𝗶𝗻𝗲𝘀 𝘆𝗼𝘂𝗿 𝗩𝗜𝗣𝘀 Identify your loyalists by: > Spend > Frequency > Consistency over time This segment should get: > Fewer messages > Messages timed to their shopping cadence; not your promo cadence > More acknowledgment, less urgency 𝗜𝗻𝗮𝗰𝘁𝗶𝘃𝗶𝘁𝘆 𝘁𝗿𝗶𝗴𝗴𝗲𝗿𝘀 𝗯𝗲𝗳𝗼𝗿𝗲 “𝗹𝗮𝗽𝘀𝗲𝗱” Waiting 60 days to react is too late. Your CRM should identify: > Missed visit patterns > Slowing engagement > Quiet drop-off And respond gently with: > A value-based message > A reason to come back that isn’t price-based 𝗧𝗟𝗗𝗥: When a customer's individual lifecycle triggers communications: > Marketing gets quieter > Messages get smarter > Discounts get more intentional > Retention improves without feeling forced If your CRM is full but retention is declining you need better triggers. What triggers do you see getting the most traction?

Day 2: What I’d Do as an Analyst – Measuring Amazon’s Loyalty Program Success Hi Everyone! Welcome to Day 2 of my 7-day series, “What I’d Do as an Analyst.” Today, I’m tackling a scenario where Amazon launches a new loyalty program for frequent shoppers. The Scenario Amazon wants to reward frequent shoppers with a loyalty program. The question is: What KPIs would I track to measure success, and how would I evaluate its impact on revenue? Step 1: Understanding the Problem Loyalty programs aim to drive retention and revenue. Key questions include: - Are shoppers buying more often or spending more? - What is the short-term vs. long-term value of the program? Step 2: Key KPIs to Track To measure the success of the loyalty program, I’d focus on: 1️⃣ Customer Retention Metrics - Repeat Purchase Rate: Are loyalty program members shopping more frequently? - Churn Rate: Has the program reduced the percentage of customers leaving Amazon? 2️⃣ Engagement Metrics - Enrollment Rate: How many eligible customers are signing up for the program? - Program Engagement: Are members actively redeeming rewards or benefits? 3️⃣ Revenue Impact - Average Order Value (AOV): Are loyalty members spending more per transaction? - Incremental Revenue: How much additional revenue is directly tied to loyalty members? 4️⃣ Customer Lifetime Value (CLV) - Are loyalty members showing a higher CLV compared to non-members over time? 5️⃣ Program Costs - Are the costs of running the program (e.g., discounts, rewards) sustainable relative to the revenue it generates? Step 3: The Solution Approach Here’s how I’d evaluate the program’s impact: 1️⃣ Segment and Compare - Create separate customer segments (e.g., loyalty members vs. non-members) and compare key metrics like AOV, repeat purchase rate, and CLV. - Use cohort analysis to track how customer behavior changes over time. 2️⃣ Track Behavior Changes - Monitor if loyalty members are increasing their purchase frequency, spending more, or trying new product categories. - Analyze redemption behavior—are members redeeming rewards in ways that drive repeat purchases? 3️⃣ Run Controlled Experiments - Implement A/B testing by offering the program to a test group and comparing their behavior to a control group. - Evaluate the program’s incremental impact on revenue while controlling for external factors like seasonality. 4️⃣ Evaluate Long-Term Sustainability - Use predictive modeling to estimate the program’s long-term impact on revenue, factoring in retention improvements and increased CLV. - Monitor program costs to ensure a healthy ROI. Step 4: Expected Outcome - Retain more customers and increase their lifetime value. - Drive higher revenue through increased purchase frequency and basket sizes. - Ensure the loyalty program remains profitable and scalable over time. What KPIs would you prioritize to measure success? Share your thoughts below! 👇 #DataAnalytics #KPIs #BusinessGrowth #EcommerceInsights

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

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

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

🌶️ but true: If your loyalty program only looks good when you’re throwing heavy discounts at people, it’s not a loyalty program It’s a slow-motion margin leak In my new restaurant loyalty guide, I break down 14 programs that do it differently: KFC UK & Ireland, La Cage Brasserie Sportive, Starbucks, Costa Coffee, Chipotle Mexican Grill, Subway, Panera Bread, Pret A Manger Among this there are Antavo AI Loyalty Cloud customers, and also those who I simply like to eat at (because tasty and great allergene info!) They all have one thing in common: They treat loyalty like a BEHAVIOR ENGINE, not a giveaway Stuff they are good at - Quick-earn, quick-burn rewards to keep people coming back - Rewards that feel big but don’t cost a fortune to deliver - Clear steering toward apps, delivery, kiosks where they have data & control The most interesting programs: - KFC turns every order into a chance to play & win,  but uses probability to keep discounts under control - Costa & Chipotle bake in lifestyle and values (sustainability, charity, early access), not just coupons - Panera Bread & Pret A Manger run hybrid models: free loyalty + paid subscriptions that turn daily habits into recurring revenue There’s also a simple blueprint in the article: 1. Figure out your real margins & repeat behavior 2. Pick ONE main behavior you’re trying to boost 3. Launch a lean MVP, then add fancy stuff later 📌 Comment “FOOD” and I’ll send it to you If you’re in QSR and restaurant space, and want to see what’s next for loyalty, I’d definitely recommend #restaurant #loyalty