Where loyalty belongs

Nearly every client I’ve spoken to this year has asked about loyalty. It comes up in almost every strategy conversation, whatever the category. Supplements, hydration, skincare: everyone wants a way to reward the customers who stay.

I understand why, but a loyalty programme only helps if it’s built into what’s already working, not layered on top.

Start with what the business runs on. If subscription is the north star and LTV is the goal, the programme should be built around subscription, not bolted on as a generic points scheme.

Brands are also far more confident reading their own retention data than they were a few years ago. Many come to us having already spotted where customers drop off. That’s the right place to start.

The approach we use most often is a rewards ladder: a tiered system of gifts or benefits that customers unlock as they stay. What matters is where the rungs sit.

If your numbers show customers leaving after their second order, the third order is where the ladder should offer something worth staying for. It could be a gift, a new product to try, or a move to the next tier. The reward meets the customer at the exact moment they would otherwise decide to leave. Each order they stay for makes the next one more of a habit.

It also gives you something to work with when someone considers leaving. If a subscriber goes to cancel at order 3, you can remind them what they’re about to miss at order 4.

This is also why no two programmes should look the same. Your drop-off points are specific to your brand, your product and your customers. Copying a competitor’s structure means copying their data, not yours.

A good programme does more than reduce drop-off. It touches the whole customer journey, and most teams in the business have a part to play, from paid and CRO to operations and customer service.

It works at acquisition. A clear, generous programme gives new customers a reason to choose subscription over a one-off purchase from the start.

It supports cancellation prevention. When a subscriber considers leaving, reminding them of their tier and what they’ve built up gives them a reason to reconsider, without pressure or tricks.

It helps win people back. A lapsed customer who can pick up where they left off has a reason to return.

It creates room for surprise. Not every reward needs to be earned. An unexpected gift at the right moment is often remembered long after a discount is forgotten.

There is a trade-off here. Some brands want every personalisation option available, with a programme so detailed that it becomes difficult to run and difficult for customers to understand. Complexity rarely earns its return when you factor in the bigger picture. A small number of well-placed rewards will usually outperform an elaborate scheme that no one quite follows.

As with anything, test it. Start with the drop-off point that matters most, measure what changes, and build from there.

That is the question I ask of every loyalty mechanic, long before it goes live. Loyalty is ultimately about customer experience, and we’re all shoppers. We can tell the difference between a brand that values us and one that is simply trying to keep us. The programmes that work are the ones that make customers feel valued.