Building Loyalty Through Strong Ecommerce Value Propositions

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🙏

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.

Are discounts hurting your brand’s image, and performance? Before you start tossing around discounts just to get customers to buy, take a step back. Are you building a discount brand, or do you want to retain that premium image? I often see brands “train” their customers to only shop with them during heavy discount periods. This is NOT a winning strategy. Often times this dilutes margins and pulls revenue forward at the expense of predictable and stable 30/60/90 days sales. You also attract a different type of buyer (discount shopper), who usually has lower CLV and churns faster. Here’s how to get creative with your offers without slashing prices: 1. Test the Wording Instead of defaulting to percentage discounts, experiment with more strategic language in your offers. For example, if you’re a subscription business, try a "double hit" offer, where customers can bundle two subscriptions to save on shipping or receive a slight added value. This approach keeps the offer compelling without lowering your brand’s perceived value. Wording like “Double Your Order, Save on Shipping” gives the feel of an exclusive offer while still protecting margins. 2. Offer Freebies Instead For premium brands, offering a freebie can be far more powerful than offering discounts. At MANSSION, for example, free ring sizers are provided with each purchase, which adds value without devaluing the product. This approach makes customers feel they’re getting something special and unexpected. This tactic works especially well for building brand loyalty, as customers associate the “extra” with your brand’s generosity. 3. Escalate Offers for Retention Rather than immediately offering a discount to customers who haven’t repurchased, consider using a tiered incentive system. Start with a small offer, like free shipping or a minor add-on, and gradually escalate only if they remain inactive. This gives you a retention lever without conditioning customers to expect discounts right away. It also preserves the brand’s premium positioning, rewarding patience with stronger offers over time. 4. Focus on Value, Not Price Instead of simply lowering prices, focus on delivering additional value. Consider bundling products at a slightly reduced price, offering loyalty program perks, or providing exclusive early access to new products. The goal is to give customers a reason to keep buying from you without eroding your brand image. When value is defined by unique experiences or exclusive access, customers perceive your brand as generous and premium—not discounted. Key Takeaway: You don’t have to race to the bottom with discounts. A well-thought-out offer that preserves your brand’s integrity is far more powerful. Remember: Value > Price.

People value what they create 63% more. Yet most digital experiences treat customers as passive recipients instead of co-creators. This psychological principle, known as the "Ikea Effect", is shockingly underutilized in digital journeys. When someone builds a piece of Ikea furniture, they develop an emotional attachment that transcends its objective value. The same phenomenon happens in digital experiences. After optimizing digital journeys for companies like Adobe and Nike for over a decade, I've discovered this pattern consistently: 👉 Those who customize or personalize a product before purchase are dramatically more likely to convert and remain loyal. One enterprise client implemented a product configurator that increased conversions by 31% and reduced returns by 24%. Users weren't getting a different product... they were getting the same product they helped create. The psychology is simple but powerful: ↳ Customization creates psychological ownership before financial ownership ↳ The effort invested creates value attribution ↳ Co-creation builds emotional connection Three ways to implement this today: 1️⃣ Replace dropdown options with visual configurators 2️⃣ Create personalization quizzes that guide product selection 3️⃣ Allow users to save and revisit their customized selections Most importantly: shift your mindset from selling products to facilitating creation. When customers feel like co-creators rather than consumers, they don't just buy more... they become advocates. How are you letting your customers build rather than just buy?

Stop churning high-value customers. Segment your loyalty programs! You’ve worked hard to build a loyal customer base, but are you maximizing their value? If you're not segmenting your loyalty program, you're leaving money on the table. 💵 Based on the success of ‘000s of Appstle customers,  I truly believe personalization is key for customer engagement, retention, and loyalty! 📌 Here’s why I think segmenting your customers into loyalty based tiers is a game-changer: 1️⃣ Personalization drives engagement Generic rewards don’t cut it anymore. Infact, 56% of customers prefer highly personalized loyalty rewards. 👉 By segmenting your customers into distinct tiers based on key characteristics, you can offer rewards that matter to, and motivate them. The result? Higher engagement and increased CLTV! 2️⃣ Encourage more frequent purchases Everyone loves a challenge, and wants to be at the top! Tiered programs with distinctive benefits motivate customers to level up.  Studies show that customers in tiered programs spend 67% more than those without. 👉 As customers move through the tiers, their incentives grow—making them more likely to continue their relationship with your store. 3️⃣ Reward high-value customers Not all customers are the same. Some are your brand’s biggest advocates—your VIPs. With tiered programs, you can give your most valued customers, rewards that make them feel valued. 74% of consumers believe brand loyalty is about feeling understood and valued. 👉 Focus on your top spenders and offer tailored incentives that will keep them coming back. 4️⃣ Track & improve customer behavior With tiered loyalty programs, you gain a clear view of how different shopper segments behave. Are they more likely to shop during specific days and times? Are they influenced by certain promotions and benefits? 👉This data helps you optimize your strategy and maximize LTV over time. ✅Pro tip: The beauty of tiered programs? They incentivize behaviors! Offer perks that motivate customers to reach the next level, and you’ll have customers for life. ♾ Want to grow your Customer Lifetime Value? Segment, personalize, and reward! It’s how you create customer loyalty—and keep it. #Appstle #subscriptions #memberships #loyalty #bundles #customerretention #shopify #shopifyplus