Creating A Loyalty Program Within Your Ecommerce App

Way too many e-commerce brands run bare-minimum loyalty programs that don't move the needle. Points. Discounts. It gets old quick. Your top 10% of customers likely drive 40-65% of your profit. But are you treating them like the VIPs they are? Or just sending them the same generic emails as everyone else? Brands that are crushing it right now are building tiered VIP ecosystems that transform transactional shoppers into high-LTV brand advocates. Speaking from 4+ years of experience, I’ve learned a few things that actually work: --> Early access drops that make top customers feel like insiders --> Exclusive product variants unavailable to regular customers --> Private Slack/Discord communities connecting your best customers --> Physical gifts that arrive unexpectedly (not just on birthdays) --> VIP-only virtual events with your founder/designers Data doesn't lie. Well-designed VIP programs consistently deliver 3-5x ROI compared to acquisition campaigns. These programs also cost dramatically less than constantly chasing new customers. Stop treating loyalty like a cost center using discounts, and start treating it like the profit driver it should be, like leveraging experiences, exclusivity, or building relationships. Your competitors are leaving millions on the table with lackluster VIP strategies. The opportunity is massive for brands willing to invest in their best customers the right way. Who's doing VIP programming exceptionally well in your category? Curious to hear some examples.

If the only reward is $5 off after 500 points, you taught customers one lesson: “stay for discounts” Build a Loyalty Loop instead of a points ladder: 1. Moment 1 – Wow: unbox + surprise (hand written note, bonus sample). 2. Moment 2 – Teach: 72h later send a “pro tips” reel tailored to the item. 3. Moment 3 – Spotlight: after their first selfie tag, feature them in Stories → dopamine > dollars. 4. Moment 4 – Unlock: let repeat buyers vote on the next colorway (access, not coupons). 5. Moment 5 – Multiply: reward a referral with an upgrade, not a discount (free engraving, extended warranty). Points change price. Loops change identity.

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.

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🙏

You don’t have a traffic problem. You have a retention amnesia problem. One of my clients was pouring $$$ into Meta ads. New customers coming in hot. But every month felt like starting from scratch. Because they had zero reason for customers to come back. No loyalty system. No retention hooks. Just vibes and discounts. So I implemented LoyaltyLion Set up a points system. Built tiered rewards based on spend. Added a referral bonus with just enough friction to prevent abuse. Synced it all with Klaviyo for clean win-back flows. Within 3 months: → Repeat purchase rate up by 28.6% → LTV grew 19.2% → AOV increased — no extra discounting The wild part? Customers felt like insiders. Not one-off buyers. If you’re scaling a DTC brand and you’re not rewarding your best customers — you’re funding your competitor’s growth. Fix the leaks. Reward the loyal. Scale smarter. You using a loyalty platform right now? Drop a 🔁 if yes — or DM if you need one. #DTC #Shopify #RetentionMarketing #LoyaltyLion #CustomerLoyalty #EcommerceTips #BrandStrategy #Klaviyo #CRO #LifecycleMarketing

Fashion brands give away 15% of their profit to acquisition when they ignore retention. I learned this running eCommerce for a billion-dollar retailer. The real problem isn't your customer acquisition cost. It's your loyalty program (or lack of one). Most brands treat loyalty like an afterthought; basic points for purchases. Smart brands build retention systems that create genuine value. We helped a fashion client increase repeat purchase rate by 47% with: -Tiered rewards based on engagement, not just spending -Early access to new collections for VIP members -Personalized styling recommendations for loyal customers -Community features that build brand connection The result? Customer lifetime value increased by $127 per customer. 23% higher retention rate. 31% boost in average order value. Your loyalty program isn't just customer service. It's your most profitable growth channel.