Implementing A Loyalty Program For Shoppers

𝗡𝗲𝘅𝘁-𝗹𝗲𝘃𝗲𝗹 𝗹𝗼𝘆𝗮𝗹𝘁𝘆: 𝟱 𝘁𝗿𝗲��𝗱𝘀 𝘀𝗵𝗮𝗽𝗶𝗻𝗴 𝟮𝟬𝟮𝟱+ 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 As customer expectations evolve, loyalty programs are undergoing a major transformation. I recently came across the Talon.One “𝗟𝗼𝘆𝗮𝗹𝘁𝘆 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗳𝗼𝗿 𝟮𝟬𝟮𝟱” 𝗿𝗲𝗽𝗼𝗿𝘁 (or even beyond 2025, why should trends just change from December to January? 😉 ) - an insightful resource offering a deep dive into best practices and emerging trends. 𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝟱 𝘀𝘁𝗮𝗻𝗱𝗼𝘂𝘁 𝘁𝗿𝗲𝗻𝗱𝘀:  💳𝗦𝘂𝗯𝘀𝗰𝗿𝗶𝗽𝘁𝗶𝗼𝗻-𝗯𝗮𝘀𝗲𝗱 𝗹𝗼𝘆𝗮𝗹𝘁𝘆: The subscription economy has grown 435% in the last decade - and loyalty is catching up. Brands like Adore Me and The RealReal are using tiered memberships to drive recurring revenue, deepen engagement, and collect richer customer data. 🎮𝗚𝗮𝗺𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗴𝗼𝗲𝘀 𝗺𝗮𝗶𝗻𝘀𝘁𝗿𝗲𝗮𝗺: From Chipotle’s “Burrito Vault” to Burger King’s nostalgic “Balloon Burst,” gamified experiences are turning transactions into entertainment. Expect more leaderboards, sweepstakes and interactive challenges that boost engagement and brand love. 🌱𝗚𝗿𝗲𝗲𝗻 𝗹𝗼𝘆𝗮𝗹𝘁𝘆 𝗶𝘀 𝘁𝗵𝗲 𝗻𝗲𝘄 𝗴𝗼𝗹𝗱: Sustainability is no longer optional. With 62% of Gen Z favoring eco-conscious brands, programs like H&M’s garment recycling and The RealReal’s consignment rewards are turning green behavior into loyalty currency. 🎁𝗠𝗲𝗺𝗯𝗲𝗿𝘀-𝗼𝗻𝗹𝘆 𝗺𝗼𝗺𝗲𝗻𝘁𝘀: Brands are creating buzz with exclusive “member weeks.” Think Amazon Prime Day, Target Circle Week, or Walmart+ Week - high-impact events that drive sales, sign-ups, and long-term loyalty. 🤖𝗔𝗜-𝗽𝗼𝘄𝗲𝗿𝗲𝗱 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻: AI is finally delivering on its promise. Starbucks’ Deep Brew engine tailors offers in real time, boosting redemptions by 20%. Expect smarter, more predictive loyalty programs that adapt to individual behaviors. 👉 Loyalty is about more than just points - 𝗶𝘁’𝘀 𝗮𝗯𝗼𝘂𝘁 𝗽𝘂𝗿𝗽𝗼𝘀𝗲, 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗽𝗹𝗮𝘆. Is your brand ready?   #CapgeminiInvent #GetTheFutureYouWant #Loyalty #CustomerExperience   Download the full report here: https://bit.ly/3IH61AG

Consumers are so value-seeking they are willing to accept & do things that would've been unimaginable 2-3 years ago. One of the most destructive arms races in ecommerce was the rise of free shipping & free returns. This is a huge financial & logistical burden, but merchants felt they had to offer it in the pandemic ecomm boom to stay competitive. But fast forward to today and consumers are much more willing to change behavior to save cash, including accepting slow delivery. Speed of delivery has fallen from the #1 preference driver in 2022 to #5, with cost taking the top spot. This story extends beyond shipping. Consumers are pinched, and they’re doing all kinds of things to save. That includes: → Holding Off → Trading Down → Stocking Up → Hunting for Deals The tricky bit for businesses is how to meet that expectation for value without aggressive discounting (which risks cannibalizing revenue, conditioning customers to expect more deals, and tarnishing the brand). The winning playbook comes down to thoughtful, transparent value exchange. Letting consumers choose a cheaper & slower option (or framing it as a discount, like Amazon often does) is one form of that transparency. Ultimately, the best way to structure transparent value is a good loyalty program. Through loyalty, customers can take a wide range of actions (both transactional & non-transactional) to earn future value. And valuable perks like shipping & returns can be given out more strategically, or even unlocked as one-time rewards instead of an evergreen promise. Times are tough, and spend is tight. But loyalty can & should be a primary way to change behavior, deliver value, and steer your business based on changing market signals. If your program isn’t meeting the moment, we at Talon.One are here to help… 

This isn’t a loyalty launch. It’s Lazada quietly telling the market where SEA commerce is heading next. Lazada rolling out a tiered membership programme across six Southeast Asian markets isn’t about perks, free shipping, or discounts. It’s about one thing most people still underestimate in SEA: "Retention is now more valuable than reach". For the last decade, SEA ecommerce was built on: - acquisition - campaigns - GMV spikes - subsidies That phase is ending. The e-Conomy SEA 2025 report is clear: the region has entered its monetisation and optimisation era — where growth comes from repeat behaviour, not just first orders. From the trenches, this Lazada move lines up with three shifts happening right now across SG, MY, TH, ID, VN and PH: 1️.  Marketplaces are competing on habit, not traffic ECDB and Forrester data both show that once consumers default to a platform for everyday purchases, price becomes secondary. Tiered membership is how platforms: - lock in frequency - surface higher-margin SKUs - stabilise demand outside mega-campaigns This isn’t “loyalty marketing.” It’s behaviour design. 2️.  Platforms are moving upstream — from sellers to systems Earlier, we saw Shopee allocate billions into SME enablement for 2026. That wasn’t charity — it was supply-side discipline. Lazada’s membership move is the demand-side mirror of the same strategy: - better buyers - more predictable orders - cleaner cohorts - higher lifetime value Together, these moves signal that platforms are now engineering both sides of the flywheel. 3️.  SEA consumers are ready for this — but only if value is real DataReportal and National Retail Federation research show SEA consumers are not anti-membership — they’re anti-empty membership. They reward: - faster fulfilment - clearer returns - exclusive access - consistent experience Not points for the sake of points. That’s why tiering matters. It aligns benefits with actual behaviour, not just sign-ups. What this means for brands and retailers in SEA If marketplaces are shifting from GMV to member-centric economics, brands need to rethink how they win inside these ecosystems: - You don’t optimise just for campaigns anymore - You optimise for repeat, rank, and retention - Your product, pricing, fulfilment and creator strategy now determine whether you benefit from the membership flywheel — or get buried by it   Bottom line: Lazada’s tiered membership isn’t about loyalty. It’s about who owns the daily shopping habit in SEA. And the next phase of competition won’t be louder. It’ll be stickier. Disclaimer: Views are my own and based on publicly available insights from Retail Asia, e-Conomy SEA 2025, ECDB, Forrester, NRF, Cube, DataReportal and on-ground operator experience. This does not represent any employer, marketplace or partner. #ecommerce #onlineshopping https://lnkd.in/g97vcxiX

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🙏

82.6% of Click's sales came from one thing. Not paid ads. Not foot traffic. Not even their pharmacy offering. ClubCard! (Source: Eyewitness News, 23 Oct 2025) Let me break down what just happened, because this is a masterclass in loyalty economics that every exec should be studying. The numbers that matter: → 14% profit growth in a year where most retailers are in survival mode → 12.6 million active ClubCard members (up from 12.1M just 6 months ago) → 82.6% of total sales driven by loyalty members → 30 years of compounding customer lifetime value That last one; That's the insight everyone's missing. Here's what Clicks actually built: Most brands think loyalty = discount. Clicks built something different: a behavioral data moat wrapped in everyday utility. They didn't just give points. They studied purchase patterns, personalized offers, and created an Affinity programme with partners that actually matter to their customers. The result; Members who've been scanning that card since 1995. Think about that ROI curve. CEO Bertina Engelbrecht said it perfectly: "When you have the kind of loyal customer base that we have, that augurs very well for your continued growth." Translation: Predictable revenue. Lower acquisition costs. Premium customer intelligence. The kind of moat that makes competitors scramble to "upgrade" their own programmes. Why this matters now: In a market where consumers are squeezed, brands that own the customer relationship win. Not the loudest. Not the cheapest. The most trusted. ClubCard isn't a discount card. It's a 30-year trust deposit that's now paying compound interest. What's replicable here: ✓ Make value immediate, not aspirational ✓ Use data to personalize, not just segment ✓ Pick partners strategically (their Affinity model is brilliant) ✓ Play the long game — 30 years of iteration beats copying competitors Massive respect to Bertina Engelbrecht , Melanie Van Rooy Craig Small , Mamusa Stulweni , and your colleagues You've built the kind of loyalty architecture that finance teams love, and marketing teams wish they had. The real question: If 82.6% revenue concentration from a loyalty programme is your STRENGTH and not a risk — what does that tell you about the power of owning customer behavior?

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.

👉 The Affordability Crisis Just Rendered Your Loyalty Program Obsolete. With inflation and economic uncertainty, customers are becoming ruthlessly price-sensitive. If your retention strategy still relies on generic, high-cost discount programs ("Spend $100, get $5 in points"), you are training your users to love the discount, not the brand. This transactional relationship is a financial drain and will fail under pressure. The old model of simply outspending the competition on Customer Acquisition Cost (CAC) is dead. The only way to achieve sustainable, crisis-proof growth is through an aggressive, strategic pivot to efficient retention. The Solution: AI-Powered Customer Loyalty As an expert of scaling companies like Roku and IMVU, I believe the current economic environment demands a shift from reactive loyalty to proactive, predictive retention using Lean AI. We must stop rewarding customers who would have purchased anyway and focus resources on those at risk. The AI Advantage is Clear: - Prediction over Points: Machine learning models calculate a real-time Propensity-to-Churn Score for every user. - Hyper-Personalized Value: When a user crosses the churn threshold, AI triggers a customized value proposition (e.g., exclusive access, premium service, or a targeted cash-equivalent reward)—maximizing LTV while minimizing the Cost of Retention. This approach transforms a lost customer into a highly profitable, re-engaged super-fan. A Roadmap for Growth Leaders: Four Pillars of AI Retention In my new article, I outline the non-negotiable strategy for building this efficient retention engine: 1. Build a Unified Customer Data Platform (CDP): AI is only as good as the clean, 360-degree data fueling it. 2. Product-Led Retention: Use AI to accelerate the "Aha!" moment during onboarding. 3. Continuous Automation: Automate experimentation to find the optimal reward, incentive, and timing. 4. Prioritize Exclusive Access: Build an emotional moat through community and VIP experiences, not just just price cuts. The companies that survive and dominate the next decade are the ones that strategically deploy AI to build unshakeable, hyper-personalized relationships. Read the full analysis and technical roadmap here: 👇

Most loyalty programs fail because founders skip this question: what specific behavior are we trying to change?   Not "engagement" or "retention" - those are outcomes, not behaviors.   I mean specific behaviors: buying monthly instead of quarterly, trying new products instead of the same SKU, referring friends, staying subscribed longer.   The program you build depends entirely on that answer.   First, understand your baseline: What's the purchase frequency now? AOV? How many products does a typical customer buy? What's the LTV difference between your best customers and average ones?   Once you know that, you can identify what's preventing customers from doing more of what you want. Usually it's friction (shipping costs, minimum thresholds), lack of awareness (they don't know about other products), or motivation (no reason to consolidate purchases now vs. later).   Then match your program to the barrier:   → If you're optimizing for purchase frequency:   This works when customers naturally want to buy often but something's preventing them. Amazon Prime removes friction with free shipping, fast delivery. Your version needs to remove your friction - maybe that's minimum order thresholds, shipping costs, or decision fatigue.   Do the math first: If someone buys 2x/year at $50 margin each, you're working with $100 AOV. A $99 membership fee leaves $1 to cover perks. That's why frequency-based programs fail below 6-8 purchases annually.   → If you're optimizing for order value:   Stop training customers to expect discounts. Reward large purchases with things that don't erode margin: early access to new products, free samples of premium SKUs, priority support.   The question: What would make someone consolidate their purchase right now instead of splitting it across multiple orders?   → If you're optimizing for product adoption:   This works when trying multiple products predicts retention. Reward exploration directly (points for first purchases in different categories, samples of complementary products).   The math: What's the LTV difference between single-SKU customers and multi-product customers? If it's significant, you can afford to invest in getting people to try new things.   → If you're optimizing for emotional connection:   Stop paying customers to like you. Build experiences they can't get elsewhere: community access, founder conversations, input on product development, behind-the-scenes content.   This works when customers already have high intent but you're competing on commodified features. The program creates switching costs through belonging, not economics.   The framework:   • What's preventing customers from the behavior you want? (friction, awareness, or motivation) • What's the LTV difference if you successfully change that behavior? • Can you afford to invest that difference in the program? • What reward actually removes the barrier you identified?   Figure out your barrier first. Then build the program around removing it.

💡 What do shoppers really value in a loyalty program (beyond discounts)? We get asked this all the time, and after assessing hundreds of retailers and hearing from thousands of shoppers over the past 3 months, we figured… why gate keep? Here’s what they told us they truly value. While discounts and freebies still top the list, humii’s latest insights reveal there’s a lot more driving customer engagement and retention: 🔹 Instant gratification - 84% say they’re more likely to engage when rewards feel immediate. 🔹 Early access to sales - 74% love feeling “in the know” and getting a head start. 🔹 Exclusive access to new products - 67% enjoy being first to explore. 🔹 Birthday perks - 66% still look forward to them (though slightly trending down). 🔹 Surprise rewards - 61% love unexpected bonuses that build emotional stickiness. 🔹 Flexible redemption options - 59% want choice in how they use rewards. 🔹 Limited-time bonus offers - 48% respond well to urgency-driven incentives. 🔹 Community-driven benefits - 41% feel more valued when their opinions are sought. 🔹 Social/environmental contributions - 32% are motivated by sustainability-led rewards. 👀 The takeaway? The best loyalty programs mix emotional connection with tangible value, creating a reason for customers to keep coming back that goes far beyond 10% off.

Loyalty & Reward Co recently designed and implemented a loyalty program that increased repeat transaction spend by 40%. The secret? We looked outside the industry for inspiration. Most companies designing a loyalty program look at what their competitors are doing and copy it. The best brands use their loyalty program to differentiate. Here's how: 1. Where is the blue ocean? �� Look where competitors aren't playing • Use brand positioning to create a strategically defensible design that fits in that space 2. Find inspiration outside the industry • Research best-practice programs in other industries • Borrow elements that can be adjusted to create a unique design within your industry 3. Prepare to evolve • Launching the loyalty program is not the end, but the beginning • Use data analytics and customer feedback to evolve and optimise the program The result? A program that captures attention, inspires engagement and drives repeat spend behaviour. How can your brand learn from loyalty program success in other industries? #LoyaltyPrograms #CustomerRetention #Differentiate