Interactive Loyalty Programs

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

Goodbye loyalty, Hello emotional connection. +81% of Gen Z and millennial consumers have switched brands in the past year. It doesn’t come from punch cards or points, it comes from connection. Gen Z isn’t interested in routine rewards or brand names passed down from previous generations. +22% of Gen Z beauty consumers consider themselves loyal to a single brand. This marks a clear shift away from traditional brand loyalty models. Instead, Gen Z responds to brands that make them feel seen, involved, and emotionally engaged. >>EXPERINCE is the new Loyalty currency<< Loyalty is no longer about repeat purchases, it’s about repeat emotional impact. Brands that offer exclusive events, immersive content, personalized interactions, and community-driven initiatives are building deeper bonds with Gen Z. In fact, these experience-based loyalty programs perform 2.5x better than traditional point-based systems. +87.5% of loyalty program owners plan to engage with customers in non-transactional ways in the next three years, Physical spaces offer a canvas for storytelling, connection, and shared experiences, turning foot traffic into fandom and in-store moments into long-term brand love. +Values over points: Gen Z shops from brands that reflect their beliefs. +Moments over merchandise: Memorable experiences drive loyalty more than discounts. +Emotion over habit: Loyalty now lives where storytelling and interaction meet. >>LUXURY through Experience<< For Gen Z, luxury is no longer defined by price tags or prestige, it’s defined by access, authenticity, and experience. Traditional symbols of luxury are being replaced by intimate, exclusive moments that feel personal and shareable. +62% of Gen Z consumers view luxury as encompassing the buying experience This generation wants luxury they can live, not just own. Brands that offer immersive, emotionally charged experiences are transforming retail into a stage for self-expression and storytelling, making luxury feel less like a transaction and more like a journey. +Limited-edition drop +Secret pop-up +behind-the-scenes invite Concluding: It's no longer about what you own, but what you experience. Traditional loyalty is fading, replaced by emotional connections forged through immersive retail, shared values, and memorable moments. To win this generation, brands must turn physical retail into a stage for storytelling and spark digital engagement that drives lasting impact and online sales. Find a my curated search of examples, and get inspired for your next hit. Featured Brands: Burberry Chanel Fendi Gentle Monster Gucci Moet & Chandon Louis Vuitton Prada Tiffany & Co #beautyprofessionals #luxuryprofessionals #marketingprofessionals #beautybusines #luxurybusiness

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

Not all repeat customers are loyal. Just because someone shops with you regularly doesn’t mean they’re emotionally connected to your brand. That’s the difference between habitual behavior and emotional loyalty. 𝗛𝗮𝗯𝗶𝘁𝘂𝗮𝗹 𝗹𝗼𝘆𝗮𝗹𝘁𝘆 is convenient, automatic, is easy to lose and replicable by competitors. 𝗘𝗺𝗼𝘁𝗶𝗼𝗻𝗮𝗹 𝗹𝗼𝘆𝗮𝗹𝘁𝘆 is intentional, values-driven, sticky, and hard for others to replicate. The problem? Most dispensary loyalty programs are built to reinforce habit, not emotion. Discounts build patterns. Points create incentive. Emotion builds attachment. If you want to turn a regular into a loyalist, start here: ✅ Make recognition personal Celebrate milestones. Say thank you. Make customers feel seen. ✅ Reward more than just purchases Give points for opting in to your messages, adding information to their profile and brand engagement—not just spending. ✅ Design memorable experiences Surprise gifts. Early access. Unexpected perks. Create moments worth remembering. ✅ Align with identity Your customers choose brands that reflect who they are. Speak to that. ✅ Remove friction If earning and redeeming rewards isn’t effortless, it’s forgettable. Make it seamless. Who do you think is doing this well? p.s. Name the movie.