There’s a growing realization among retailers that their best customers aren’t the ones who walk in once, grab a product, and disappear. The real value lies in the shoppers who keep returning, who choose a familiar brand even when cheaper or flashier alternatives exist. Building a business around these customers isn't just smart — it's necessary for long-term profitability. Yet too many retailers still rely on outdated loyalty schemes, expecting discounts and points alone to anchor deep relationships. They don't. Today's customers expect something different: recognition, relevance, and real reasons to stay.
About six years ago, I worked with a mid-sized apparel retailer that was facing what they thought was a traffic problem. Footfall was dropping year over year, and their marketing team kept pouring money into acquisition campaigns — influencer partnerships, local events, social ads. It wasn’t until we dug into their customer data that it became painfully obvious: they weren’t keeping the customers they already had. Their "loyalty program" was a punch card tucked behind a dusty counter, offering a free hoodie after ten purchases. It wasn’t enough to compete for attention in a world brimming with loyalty options and personalized experiences.
Retail is no longer about mass marketing and hoping someone bites. It’s about building ecosystems where customers want to stay connected. Traditional loyalty programs — buy 10, get 1 free — often reward the behavior but ignore the person. They’re transactional, not relational. And transactional loyalty is flimsy. A better coupon from a competitor can topple it in seconds.
Retailers who shift focus to emotional loyalty — trust, identity, shared values — stand out. And that's where modern loyalty platforms come into play. They offer a way to engage customers meaningfully across multiple channels, not just at the point of sale. They recognize that loyalty isn't a static metric but a living relationship that deepens through relevant, personalized interactions.
One particularly effective method is tying rewards to experiences and values rather than just discounts. Think early access to new collections, invitations to exclusive events, or recognition for eco-friendly choices. Rediem, for example, enables retailers to build loyalty programs that reward customers not just for purchases, but for participating in sustainable actions and community initiatives — aligning perfectly with brands that want loyalty to reflect more than just wallet share.
Most discussions about Customer Lifetime Value (CLV) focus on technical formulas: average purchase value multiplied by purchase frequency, multiplied by customer lifespan. Useful numbers, but they often miss the real drivers behind them.
A high CLV customer feels seen. They feel valued. They believe the brand aligns with their lifestyle or aspirations. CLV grows when a retailer knows what matters to their customers — and then builds offers, communications, and experiences around those preferences.
A friend of mine, who is an avid outdoor enthusiast, continues to buy from a particular gear company year after year, even though competitors offer similar products for less. The reason? That brand remembers her hiking preferences, sends personalized gear recommendations based on her past expeditions, and invites her to community clean-up hikes. She's not a customer because of the product alone; she's loyal because the brand respects who she is beyond the sale.
Retailers who want to boost CLV should look at a few key areas:
Personalized Engagement: Go beyond using a customer’s name. Build loyalty journeys tailored to their behavior, preferences, and values.
Omnichannel Loyalty: Recognize customers across online, mobile, and physical spaces seamlessly. If they check out an item online but buy it in-store, treat it as one conversation, not two.
Value-Based Rewards: Create emotional stickiness by rewarding actions that reflect the brand’s mission and the customer’s identity.
One of the fastest ways to lose customer trust is by creating a loyalty program that feels gimmicky or meaningless. Too many retailers fall into common traps:
Overcomplicating the Program: If a customer needs a calculator or a decoder ring to understand how to earn or redeem rewards, they’ll tune out.
Ignoring the Emotional Connection: Points are fine, but memories are better. Building loyalty moments that customers want to talk about is what drives real retention.
Failure to Evolve: Customers change. Programs that stay static end up forgotten. Brands that listen and adapt stay relevant.
During a recent project, a beauty brand we worked with discovered that while their points-for-purchases model was driving some reorders, it wasn’t inspiring true brand love. By shifting toward rewarding customers for writing honest product reviews, participating in online skincare classes, and sharing their wellness journeys, they saw a 28% rise in repeat purchases over a year. Loyalty wasn’t just tied to products anymore; it was woven into their lifestyle.
When starting or overhauling a loyalty initiative, retailers should think less about the loyalty program and more about the loyalty platform. A true loyalty platform connects systems, data, and human touchpoints.
This means:
Seamless Integrations: Loyalty platforms must integrate easily with POS systems, ecommerce platforms, CRMs, and marketing tools. Customers shouldn't notice the technology — they should feel the results.
Real-Time Data Access: Personalization is only possible when retailers have real-time access to data about customer behaviors and preferences.
Flexibility: A loyalty platform must adapt to the brand’s needs — not the other way around. Whether offering cashback, experiences, charity donations, or exclusive access rewards, the platform should be customizable.
Rediem, for instance, offers brands the flexibility to create loyalty actions that reflect their unique identity, rather than forcing a one-size-fits-all model. By connecting loyalty programs to broader customer engagement efforts — including sustainable initiatives and social impact tracking — it helps brands build a loyal community, not just a customer base.
Retailers often treat loyalty as an afterthought, something to "layer on" once other marketing strategies are in place. That’s backwards. Loyalty isn’t dessert — it’s the main course. Without strong loyalty mechanisms, acquisition becomes a leaky bucket: no matter how many new customers you pour in, profits drip away as they churn out.
Retailers serious about long-term growth need to put loyalty strategy at the center of their business plans. Every product release, every marketing message, every event should have a loyalty dimension — a way to make existing customers feel appreciated, empowered, and connected.
A few years ago, a client in the specialty food sector made loyalty the heartbeat of their brand refresh. Instead of flashy discount promotions, they launched “Flavor Journeys” — exclusive monthly tasting events for loyalty members, storytelling around farmers and ingredients, and early product drops. Revenue per loyal customer nearly doubled within two years, and new customers converted to loyalty members at a 40% higher rate than before. They didn’t just boost CLV — they rewrote their business future.
There’s a growing realization among retailers that their best customers aren’t the ones who walk in once, grab a product, and disappear. The real value lies in the shoppers who keep returning, who choose a familiar brand even when cheaper or flashier alternatives exist. Building a business around these customers isn't just smart — it's necessary for long-term profitability. Yet too many retailers still rely on outdated loyalty schemes, expecting discounts and points alone to anchor deep relationships. They don't. Today's customers expect something different: recognition, relevance, and real reasons to stay.
About six years ago, I worked with a mid-sized apparel retailer that was facing what they thought was a traffic problem. Footfall was dropping year over year, and their marketing team kept pouring money into acquisition campaigns — influencer partnerships, local events, social ads. It wasn’t until we dug into their customer data that it became painfully obvious: they weren’t keeping the customers they already had. Their "loyalty program" was a punch card tucked behind a dusty counter, offering a free hoodie after ten purchases. It wasn’t enough to compete for attention in a world brimming with loyalty options and personalized experiences.
Retail is no longer about mass marketing and hoping someone bites. It’s about building ecosystems where customers want to stay connected. Traditional loyalty programs — buy 10, get 1 free — often reward the behavior but ignore the person. They’re transactional, not relational. And transactional loyalty is flimsy. A better coupon from a competitor can topple it in seconds.
Retailers who shift focus to emotional loyalty — trust, identity, shared values — stand out. And that's where modern loyalty platforms come into play. They offer a way to engage customers meaningfully across multiple channels, not just at the point of sale. They recognize that loyalty isn't a static metric but a living relationship that deepens through relevant, personalized interactions.
One particularly effective method is tying rewards to experiences and values rather than just discounts. Think early access to new collections, invitations to exclusive events, or recognition for eco-friendly choices. Rediem, for example, enables retailers to build loyalty programs that reward customers not just for purchases, but for participating in sustainable actions and community initiatives — aligning perfectly with brands that want loyalty to reflect more than just wallet share.
Most discussions about Customer Lifetime Value (CLV) focus on technical formulas: average purchase value multiplied by purchase frequency, multiplied by customer lifespan. Useful numbers, but they often miss the real drivers behind them.
A high CLV customer feels seen. They feel valued. They believe the brand aligns with their lifestyle or aspirations. CLV grows when a retailer knows what matters to their customers — and then builds offers, communications, and experiences around those preferences.
A friend of mine, who is an avid outdoor enthusiast, continues to buy from a particular gear company year after year, even though competitors offer similar products for less. The reason? That brand remembers her hiking preferences, sends personalized gear recommendations based on her past expeditions, and invites her to community clean-up hikes. She's not a customer because of the product alone; she's loyal because the brand respects who she is beyond the sale.
Retailers who want to boost CLV should look at a few key areas:
Personalized Engagement: Go beyond using a customer’s name. Build loyalty journeys tailored to their behavior, preferences, and values.
Omnichannel Loyalty: Recognize customers across online, mobile, and physical spaces seamlessly. If they check out an item online but buy it in-store, treat it as one conversation, not two.
Value-Based Rewards: Create emotional stickiness by rewarding actions that reflect the brand’s mission and the customer’s identity.
One of the fastest ways to lose customer trust is by creating a loyalty program that feels gimmicky or meaningless. Too many retailers fall into common traps:
Overcomplicating the Program: If a customer needs a calculator or a decoder ring to understand how to earn or redeem rewards, they’ll tune out.
Ignoring the Emotional Connection: Points are fine, but memories are better. Building loyalty moments that customers want to talk about is what drives real retention.
Failure to Evolve: Customers change. Programs that stay static end up forgotten. Brands that listen and adapt stay relevant.
During a recent project, a beauty brand we worked with discovered that while their points-for-purchases model was driving some reorders, it wasn’t inspiring true brand love. By shifting toward rewarding customers for writing honest product reviews, participating in online skincare classes, and sharing their wellness journeys, they saw a 28% rise in repeat purchases over a year. Loyalty wasn’t just tied to products anymore; it was woven into their lifestyle.
When starting or overhauling a loyalty initiative, retailers should think less about the loyalty program and more about the loyalty platform. A true loyalty platform connects systems, data, and human touchpoints.
This means:
Seamless Integrations: Loyalty platforms must integrate easily with POS systems, ecommerce platforms, CRMs, and marketing tools. Customers shouldn't notice the technology — they should feel the results.
Real-Time Data Access: Personalization is only possible when retailers have real-time access to data about customer behaviors and preferences.
Flexibility: A loyalty platform must adapt to the brand’s needs — not the other way around. Whether offering cashback, experiences, charity donations, or exclusive access rewards, the platform should be customizable.
Rediem, for instance, offers brands the flexibility to create loyalty actions that reflect their unique identity, rather than forcing a one-size-fits-all model. By connecting loyalty programs to broader customer engagement efforts — including sustainable initiatives and social impact tracking — it helps brands build a loyal community, not just a customer base.
Retailers often treat loyalty as an afterthought, something to "layer on" once other marketing strategies are in place. That’s backwards. Loyalty isn’t dessert — it’s the main course. Without strong loyalty mechanisms, acquisition becomes a leaky bucket: no matter how many new customers you pour in, profits drip away as they churn out.
Retailers serious about long-term growth need to put loyalty strategy at the center of their business plans. Every product release, every marketing message, every event should have a loyalty dimension — a way to make existing customers feel appreciated, empowered, and connected.
A few years ago, a client in the specialty food sector made loyalty the heartbeat of their brand refresh. Instead of flashy discount promotions, they launched “Flavor Journeys” — exclusive monthly tasting events for loyalty members, storytelling around farmers and ingredients, and early product drops. Revenue per loyal customer nearly doubled within two years, and new customers converted to loyalty members at a 40% higher rate than before. They didn’t just boost CLV — they rewrote their business future.
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