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 +Transactional systems feel outdated: Point-based rewards for repeat purchases don’t excite this audience.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

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

Web3 & Customer Loyalty: Beyond points and perks From Fortune 500 companies to tech start-ups, one of the most common subjects I get asked about is “Loyalty programs”. Well, the way I see it, Web3 is setting the stage for a radical transformation. Moving beyond the traditional points-based systems, it's reshaping how brands and consumers interact, forging deeper, more meaningful connections. Web3 is shaking up old-school loyalty models, steering away from mere economic transactions to building emotional connections and community engagement. It's a shift from passive consumerism to active participation. Salesforce's research found that 71% of consumers switched brands in 2021, driven not by loyalty programs but by product quality and customer service. This reflects a significant move towards true brand affinity, where loyalty is about shared values and experiences. The report “Future of Loyalty” highlights how Web3 fosters a sense of belonging and shared purpose, turning loyalty into a two-way street. ↔️ NFTs, for instance, are not just digital collectibles; they're symbols of membership in a community, granting exclusive access and a sense of identity. This approach nurtures active participation and contribution, with members playing a crucial role in shaping the community's value and future. In Web3, communication shifts from traditional channels to interactive, community-driven platforms, pivoting a foundational change in how we engage with brands. This is about creating spaces where consumers aren't just buying into a brand, but becoming an integral part of its story. Here are some of the things I’m most excited about when it comes to loyalty in Web3: 🔄 Interactive membership: Loyalty programs are evolving into interactive experiences. Members are not just passive recipients of rewards; they're actively engaged in co-creating value and influencing the brand's direction. 💬 Cultivating community: Community is at the heart of Web3 loyalty, with brands fostering environments where consumers feel a sense of belonging and shared purpose. 💪 Empowered ownership: In this new era, loyalty equates to a sense of ownership. Members become key stakeholders in the brand's journey, significantly influencing its growth and success. 🎯 Shared experiences: The emphasis is on shared experiences, creating emotional connections that go beyond transactions, forging long-lasting brand loyalty. If you want to explore even more about loyalty in Web3, I invite you to dive into the edition #10 of The Wild West of Web3 for an in-depth exploration of various concepts and real-world applications.  Link in the comments. So, what’s your take on this shift? 🔔 Stay tuned for more insights into the digital transformation of marketing and customer engagement by hitting that bell on my profile. LFGrow 🚀 #RightClickSaveAs

I've been reflecting on one major trend from last year that I feel will be hard to ignore in 2025: Gen Z’s relationship with brands and social media. This generation doesn’t just consume content, they drive it. And they do so with a level of authenticity and transparency that demands our attention. For Gen Z, brand loyalty isn’t built on flashy ads or influencer endorsements alone. It’s about values. It’s about knowing what the brand stands for and aligning with causes they care about: be it sustainability, inclusivity, or social justice. Here’s how I’ve been thinking about this shift as an entrepreneur: For Gen Z, being true to themselves is really important. They want brands that embrace uniqueness and support personal expression. To connect with them, we need to be authentic and offer products and messages that let them express who they really are. Social Media is the New Word of Mouth: If you’re not engaging in the conversations Gen Z is having on social media, you’re missing out. They trust their peers and online communities more than traditional advertising, and their feedback is immediate and powerful. Experience Over Projection: For this generation, it’s not just about seeing an ad but engaging with a brand in a meaningful way. Whether through personalized experiences, interactive campaigns, or exclusive content, creating a connection is more valuable than ever. Gen Z is not just shaping the future of business but is redefining what it means to build loyalty and trust. Is your brand ready for this shift?

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🙏

This is a top mistake I see during loyalty program launches: NOT showing members anything about their current status during the ecommerce journey. Sure, we have a landing page, a CRM campaign, and a banner promoting the new program. But after signup, our members don’t see a single thing about loyalty (points, tiers, rewards) until AFTER they make a purchase. This approach leaves a ton of member value on the table. Members don’t understand what they’re getting from the program, and don’t take any incremental actions when it matters most. We need to ensure two things are true: (1) Members know what they have earned, will earn, and could earn (2) Members know what future redemption opportunities they are working toward When these things are true, we get the most out of our program – making it more likely that members will do the things we want them to do. These include: →  Stretch basket size / spend  →  Increase conversion →  Accelerate next purchase →  Increase reward redemption →  Decrease member churn We need to nail four things to maximize the value here. They are: 👀 VISIBILITY Loyalty value needs to be displayed on key journey steps including the product detail page, cart, checkout, order confirmation, and banners. 🔁 CONSISTENCY The frontend display logic and the actual backend earn/redeem logic must be managed in the same workflows (and shown / adjusted in real-time). 🛠️ CUSTOMIZATION We must be able to adjust earn & redeem logic as we see fit – e.g. double points on new drops, bonus points for baskets over $100. 🎯 PERSONALIZATION We must be able to change the value proposition both based on customer data, AND based on in-session behavior. So why do brands so often miss here? The main blocker here is technology. If the loyalty system is slow and rigid, then showing this information is going to be too painful. That’s why we’ve made this such a huge part of how we’ve built Talon.One. We are “cart-native” and offer the most flexible loyalty & promotion engine on the market. That means we can show precise value propositions in real-time at every critical step of the member journey. If your loyalty program is nowhere to be found on ecommerce, we are happy to chat and share a few pointers & case studies to bring it to life.  Send me a DM or grab time with our team here:  https://lnkd.in/dRpstHW9

Club Brugge understood the assignment: even if they lose a game 😨 they can’t lose their paying customers 🤑 Then grew attendance to 140%.. Ok so in sports what happens when a team does not win - fans don’t show up - no merch sales - no F&B revenue - empty seats: bad player experience Downward spiral. the other day I heard Thomas Rypens explaining how they wanted to be less dependent on their team's wins Meet the "Fandom" program: 1. they did conducted qualitative research to understand why fans weren't attending matches, even those with season tickets. Factors included RAIN and poor team performance etc 2. they applied the "jobs to be done" framework, realizing fans weren't just buying a seat but an experience and a sense of belonging 3. To be more independent from team performance, they introduced "The Gold Project." Fans could earn "Gold Membership" by attending 90% of games or reselling their tickets 4. This focused on achieving and earning, making the rewards "priceless" 5. 2 customer segments: in stadium / on the "sofa" (1.2-1.8 million) --- focusing on "behavioral loyalty" for the stadium fans. 6. asked fans what rewards they wanted, including things like giving the kickoff to a game, and considered the impact and effort of each reward in a matrix! 7. Results showed a stronger second year, with a 40% increase in engagement from "fluid fans" (those harder to capture due to online gaming etc.) and an 11% overall increase in attendance, reaching 111%! This led to a better atmosphere, increased F&B revenue, and ultimately, football success. My biggest takeaway? Running a football team is no easy feat 😅 many moving parts, and things can spiral down Any points that surprised you? Comment below! I really liked #3. Come to 90% of games or RESELL your tickets. Thx for the amazing days in Ghent earlier this moth Simon Tavernier, CLMP™ Amanda Fleuridas, Certified Loyalty Expert™ Tom Peace, Certified Loyalty Expert™ Olga Khoubaeva Orlando W. and all! #loyalty #football

Customer loyalty platforms decide whether a brand keeps customers for life or loses them to the competition. What used to be static batch-driven systems is now powered by #DataStreaming with #ApacheKafka. Enterprises across industries rely on real-time #Loyalty and #Rewards platforms to increase retention and boost revenue. Kafka ensures #DataConsistency across all applications and databases while enabling context-specific decisions in the moment. Case studies prove the value: - #Albertsons revamped its loyalty platform to deliver real-time offers across 2200+ stores - #VirginAustralia synchronizes frequent flyer rewards across airline, CRM, and booking systems - #GlobeTelecom moved from batch to event-driven processing for personalized customer rewards - #Disney+ #Hotstar gamifies live events at massive scale with real-time engagement - #Porsche built Streamzilla as its central platform for omnichannel customer experience Kafka provides the backbone for real-time points accumulation, event-driven offers, cross-channel integration, engagement tracking, fault-tolerant transactions, and compliance-ready audit trails. It acts as the integration hub, not only for retail or telco, but also for automotive, aviation, public sector, and media. #StreamingData is no longer a technical nice-to-have. It is a business-critical capability to create meaningful loyalty and rewards experiences at scale. More details: https://lnkd.in/eedeu8SE How is your organization rethinking customer loyalty in the era of real-time engagement and streaming data?

So you’re a digital brand, what’s your physical touch point? Oh… you don’t have one? Listen to this (you might want to make a coffee first)👇🏼 Last year Snap Inc. launched Snapchat+ membership gift cards via Amazon. They saw memberships rise from 5 million in September to 7 million by end of December. That’s a 40% subscription increase in one quarter. I think all of our finance teams would agree that’s the greatest Christmas present of all. So this year Snapchat are doubling down. They’ve just introduced physical gift cards in retail stores marking a strategic move to blend digital experiences with tangible interactions. In an age where 82% of consumers say they feel more connected to brands that offer in-person experiences, digital brands are realising that physical touchpoints not only reinforce loyalty but can also bring a whole new depth to their offerings. Here’s why this approach matters—and how some of the most innovative digital brands are pulling it off ⬇️ 1️⃣ Meeting Customers Where They Are – IRL Digital-first brands are finding that physical experiences resonate in powerful ways. Look at Runna - a running training app that brought its brand to life with a pop-up at the New York Marathont this weekend, offering runners real-world support, community, and connection. These brands turn online experiences into memorable in-person touchpoints, meeting users in the moments where they’ll connect best. Smart! 2️⃣ Tangibility Boosts Brand Loyalty There’s something about holding a product that brings a brand closer to home. Bumble Inc. the networking and dating app, understood this when they launched Bumble Hives—real-life lounges where users could attend dating workshops and networking events. These moments make the app experience feel more personal, building stronger loyalty. 3️⃣ Targeting the Gift-Givers - NOT the receivers While Gen Z is immersed in digital ecosystems, physical products like Snapchat gift cards are designed for their parents and grandparents. These tangible items offer a straightforward way for older generations to gift experiences that align with Gen Z’s digital lifestyles, effectively bridging the generational gap. This is what makes this super smart. 4️⃣ Why It Matters Now – People Want Real-World Experiences Consumers are increasingly seeking real-life interactions with their favorite brands, especially digital-first brands, as 78% of people now say they want brands to connect with them in more experiential ways. Physical experiences, whether pop-ups, branded parties, or beautifully crafted stores, offer a chance for digital brands to deepen relationships, bring their values to life, and connect with audiences in memorable, tangible ways. — As marketers, it’s essential to recognise the value of this intersection - but only when it’s smart, not just for the sake of it. What are some of your favourite examples of digital meets physical? Who’s doing this REALLY well? 👇🏼👇🏼👇🏼