Implementing A Loyalty Program For Shoppers

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 +Transactional systems feel outdated: Point-based rewards for repeat purchases don’t excite this audience.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

Community-led growth is emerging as perhaps the most powerful, flexible and accessible growth lever right now. The CLG flywheel helps you turn customers into champions, and champions into growth. My next guest, mallory contois (Mercury, Cameo, Pinterest) harnessed this flywheel to turn a passion project -- a community called The Old Girls Club -- into a $300k ARR side hustle with a $0 CAC. Here's how she did it & how you can, too. Don't miss the full story in today's Growth Unhinged newsletter: https://lnkd.in/e3zhVdDm 1️⃣ Hone your unique POV Your community needs to be interesting in format, function or fashion. Nobody needs yet another Slack or WhatsApp group that they immediately mute. At The Old Girls Club, Mallory's insight was that as you become more senior, you have fewer peers, and even fewer of those peers are women. That's the problem she set out to address. 2️⃣ Attract early champions Don't focus on scale, focus on alignment. You need your first believers. There are future collaborators and super users. At The Old Girls Club, Mallory started with ~75 women who'd expressed interest in the space. This quickly ballooned to ~1,000 members in 60 days. The tactics: Private beta invites, 1:1 outreach, thought leader meetups, landing pages & waitlists 3️⃣ Enable contribution Once you've built trust and rapport, open the door to participation. Invite early champions to co-create the product, the culture and the behaviors. Mallory curated her Slack space with 6 specific threads, all with a purpose. The most unconventional: yell-in-caps-here (😂). This was a last minute follow-her-gut add, but would turn out to become one of OGC’s pillars of success. The tactics: Creator tools, content prompts & templates, feature voting, focus groups 4️⃣ Repeat to create the new wave The visible and in-public momentum pulls in the next wave of superusers. Each cycle gets easier as your champion base grows & self-sustains. Mallory was nervous about being the only one with eyes on potential joiners, so she spun up member-referrals, adding a public element and additional accountability to referrals that were made. The tactics: Product-led shareables, social loops, invite & onboarding rituals, referral processes & programs 5️⃣ Reward & amplify Shine a light on those who contribute, adopt, advocate and amplify. Social recognition fuels retention, loyalty, sharing and viral growth. At The Old Girls Club, Mallory uses Memberful for subscription management, Disco for new member onboarding, MeetWaves to archive chats, Trova to create rich member profiles, and Curated Connections to help members match with others. The tactics: Community badges or titles, leaderboards & streaks, shoutouts and rewards & loyalty programs --- Hope y'all enjoy this framework (& story) as much as I did 🙏

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.

Notes on a rebrand... Last week we launched the new Bain Capital Ventures brand. A few nuggets of guidance from this and other rebrands for those embarking on a similar journey: 1) More doesn't mean merrier. Venture firms and partnership structures have a uniquely high number of stakeholders, but even at a startup the number of people who want a say in the rebrand can expand to an unmanageable level. Use the RACI (Responsible, Accountable, Consulted, Informed) rubric or something simpler like the below to determine how you will get (but not necessarily incorporate) all the feedback from your organization. Example: - Owner: Marketer - Decider: CEO, Maybe cofounding team - Input: Leadership Team, Key Board Members, Key Customers Otherwise, you'll run into problem number two, in addition to a snail's pace timeline. 2) Learn from Frankenstein. Don't build a Monster. If you accept everyone's copy and design edits, you will end up with something nonsensical at worst and drab at best. Find a way to help people feel heard, but also help them understand that there needs to be a unified vision that flows through the entire project. It can't be a little of this, little of that. 3) Avoid messaging sprawl. It hurts to do this... I know. You should still have brand tenets, but above that there needs to be a SINGLE core brand idea. This will cause pain because you will have to get rid of the 6 good ideas in favor of one great idea. That idea should make your target audience feel something -- safety, inspiration, joy, etc. It can't be purely transactional. If you don't do this, you are living in a world of pure product marketing and brand can never be a moat. 4) What's the context? Your customer will often weigh your brand vs. other options. If you build your messaging without that input, you're missing a key part of the puzzle and building in a vacuum. What brands are formidable in your space? Build a grid of their positioning and make sure yours stands out. If you choose to go head to head on brand, make sure you can out-play them in both your words and your deeds. 5) Talk about it but also be about it. Lots of brands talk. Few brands DO. How will you bring the messaging you've worked on to life? How do you show up? What decisions will you make and what will you prioritize that aligns with your positioning? Without this, your brand is just an empty vessel. -- What's your best brand building advice?

Only 1 in 3 rebrands actually work. Here’s Why: Markets never stop moving, and neither do consumers or competitors. That’s why brands must speak today’s language and stay relevant. But before you swap the logo or pick a new colour, pause. A rebrand isn’t decoration, it’s a business decision with real consequences. Done right, it transforms perception and growth. Done wrong, it wastes millions and confuses everyone. Here are 5 questions to ask before a rebrand. 1. Why now and what problem are we solving? - “It’s been a while” isn’t a strategy. - “Our competitors did it” isn’t a strategy. - “There’s a new CEO” isn’t a strategy. - "We want to be like Apple" isn’t a strategy. Rebrands often start from boredom, fear of stagnation, or a desire to replicate successful stories. According to Bynder, 74% of S&P 100 companies rebrand within seven years, yet most see no ROI because they can’t explain the “why.” Ask: → Has your market shifted? → Has your value evolved? → Are you out of sync with customers? Without a clear catalyst, you’re repainting walls while foundations crack. You can’t fix a weak strategy with better design. 2. Who is this rebrand really for? If your brand still speaks yesterday’s language to today’s buyer, you’ve already lost relevance. About 57% of rebrands aim to modernise identity, 41% target new audiences. Yet most fail because the new look reflects the CEO’s taste, not customer truth. Ask: → Who are we speaking to now? → What do they expect from brands like ours? → Is our story keeping up, or stuck in nostalgia? 3. What do we want to be known for, and will the new identity show it? A new logo won’t fix weak positioning. Branding is about perception, not presentation. People define your brand by what they think and feel, not what YOU say. Ask: → What single idea do we want to own? → Does our identity make that obvious? → Are all touchpoints building one perception? If the rebrand doesn’t make it easier to remember why you matter, it’s not branding, it’s painting. 4. Is our team ready to live the new brand? Rebrands fail more from the inside than the market. If employees don’t understand or believe the change, credibility collapses. Brand starts from the inside. Ask: → Can everyone explain what we stand for? → Are they proud to represent it? → Are we equipping them to deliver daily? If the brand isn’t understood inside, it won’t be believed outside. 5. How will we measure success? A rebrand without metrics is expensive theatre. The top performers report 10–50% ROI, with outliers hitting 150% but only if they measure. Set metrics before you start: Awareness: searches, mentions, recall Perception: preference, NPS Commercial: CAC, CLV, market share Treat your rebrand as a measurable transformation, not a marketing makeover. Rebranding isn’t about looks. It’s about what you mean and why you matter. The brands that win aren’t those that refresh most often they’re the ones that stay relevant and remembered.

I completely rebranded Mutiny with $15,000 using one insight from the best brand book I've ever read: I’ve read every marketing book. Most are garbage. But Contagious by Jonah Berger is different. It takes every viral campaign ever made and synthesizes them into a 2X2 of emotions to explain why some things go viral and some don’t: - Axis 1: Positive or negative sentiment - Axis 2: Low or high arousal Almost every brand focuses on the same thing: Being viewed positively, so nobody is offended. The result ends up being low arousal and positive: delightful, safe, and not memorable. But to go viral, you want high arousal. Positive or negative doesn’t matter. High arousal spreads. (I can't believe I just typed that sentence on LinkedIn.) So when designing Mutiny’s AI-native rebrand: 1. We hired outside of Silicon Valley. If a brand agency has similar logos as customers, we tend to walk away. We source designers in Europe or outside of Silicon Valley and New York. I look for small, founder-led agencies that are doing really good work for consumer brands and physical spaces and give them digital constraints. It's far easier to rein in a creative person who's already different than to teach one who's the same to be different. 2. We started with different. The first thing new marketers at Mutiny hear from me is that if it's not different, it won’t matter. For example, we reinvented the traditional top-of-fold on our website. Instead of an H1/H2, it says MUTINY in giant letters. A bit narcissistic of us, I know, but it works because Mutiny is a call for revolution against the status quo. Instead of the standard image on the right, we feature a builder raccoon implementing user prompts. The H1 is flipped to the bottom. We present the same information as every B2B website, but in a way that’s different enough to make you stop and notice. 3. We made it feel like a throwback. Every AI brand right now chases sleek, futuristic visuals with muted colors. We went the opposite direction: warm, colorful and nostalgic. Partly because our product is so easy to use that we want to bring people back to a simpler, less stressful time pre AI, and partly because I just love the aesthetics of 50s-70s. I wish more founders and marketers would go with what they like versus what is in. 4. We kept our mascot raw and realistic. We refused to let Achoo (our raccoon) get too cute. In our launch video, the raccoons smoke cigarettes, pop champagne, and eat garbage. There’s a rawness that makes people uncomfortable, on purpose. It’s great when people tell us they love the brand, but when someone tells me they don’t, that when I know we went far enough.

Logos don’t move markets. Big ideas do. Design works better when it reinforces something bigger, an idea people already believe in and are ready to champion. When we rebranded a legacy watch brand, we didn’t start with the identity. We began by finding their Idea Worth Rallying Around®. That idea became 'Love Every Second.' And it turned a 50-year-old company’s first rebrand into a revenue driver. How the right big idea changes everything: → The discovery was in the culture Through audits, competitor analysis, and stakeholder interviews, we uncovered something interesting: Armitron’s team didn’t see time as a measurement but as a tapestry of memories, experiences, and emotions. → The idea had to bridge generations Armitron thrived for 50 years with Boomers and Gen X. But they needed Millennials and Gen Z. We needed to honor heritage while speaking a new language. Love Every Second worked because it resonated with a 60-year-old remembering their first watch and a 25-year-old documenting life on Instagram. → Words came before visuals We built voice pillars—Positive, Human, Partnering. That verbal foundation guided every decision: ↳ A logo that nodded to 1975 while feeling fresh. ↳ Photography that celebrated moments over mechanisms. → The idea inspired the organization Their CMO said: “Love Every Second isn’t just a tagline; it’s our internal north star now.” Teams used it in meetings. Customer service adopted it. Product development referenced it. You know you’ve found the right idea when it’s championed across the organization. → Results proved the strategy ↳ DTC revenue grew significantly ↳ Successfully reached Gen Z buyers ↳ Team alignment improved ↳ First rebrand in 50 years positioned them for the next 50 Here's what most rebrands get wrong: ↳ They start with what looks cool instead of what drives business. ↳ They brainstorm taglines instead of anchoring to a deeper truth. ↳ They change the surface without capturing the spirit. Your brand either reinforces your market position or undermines it. The difference? Start with an idea your people love, and your audience will champion.

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🙏

There are 2 ways to build membership in a private club — which is best? The answer is not as obvious as everyone thinks… Option 1: Small + insanely exclusive with $100K+ initiation fees Option 2: Big + approachable with low/no initiation fees Most newcomers treat Option 1 as gospel. It’s not. It’s a preference - and requires a VERY SPECIFIC framework to make the strategy work. Just ask WS NY (they are no longer around...) Here's what you need to consider. Club Financing: Some billionaire-backed clubs can take 3–5 years to slowly curate a few hundred members — and can absorb operating losses the entire time. That’s their game. They can afford it. Size & Usage (this is where 90% of operators screw up): You need energy. You need people to create culture. Too few… and your club becomes quiet, boring, and stale. Club Amenities: Finite amenities = finite throughput. Golf simulators, recovery studios, rare culinary programs… these all cap member usage. Growth has to account for that. Proximity + Real Estate Value: If your club is supporting a larger development + driving value across a district, there may be strategic reasons to grow membership faster. The best clubs find the balance: ✅ Enough members to create vibe + density + community ❌ Not so many that members are waiting 45 minutes for a table or can’t get into their club The “right” model depends entirely on your business model, financing, your capital partners, and what kind of club you’re trying to build. There is no universal formula — but there MUST be a strategy. If you still think exclusivity alone = greatness… you’re already behind. #PrivateClubs #Hospitality #Luxury #BusinessModel #Strategy #ExperienceEconomy #HotTake #MembershipGrowth

Early in my career as a GM at Planet Fitness, my leader toured my clubs. The night before, I'd sold 30 memberships. Walking the floor, I kept pointing to the number. He kept pointing to the facility. "I'm crushing it with sales," I said. He stopped me cold. "How long will they stay members if your club always looks like this?" Sales gets you in the door. The experience keeps them there. Say you started 2026 with 250 members. Sold 20 a month for six months. That's 120 new memberships. If you've only grown by 10, you don't have a sales problem. You had a churn problem, and it is costing you. Run the dollars. 200-member studio, $175/month. Drop churn from 8% to 5% and you keep six more members every month. $12,600/year. Per location. This is easy to call out. Harder to optimize and implement. Areas to focus on: Operators assume it's price. It's not. The best numbers come from staff stability, consistent scheduling, and a first-30-days experience that makes members feel like they belong. Staff stability Every instructor departure is a member departure risk. Consistency Predictable classes equal retained members. First 30 days Welcomed or outsider? That window is make or break. The retention advantage You can't control the economy. You can control whether your staff stays, whether your community connects, and whether members ever have a reason to leave. Control the controllables, and profitability compounds.