Most brands are lying to you about loyalty

They’ll tell you it’s about points, apps, and rewards programs. 

I’ve spent 15+ years in marketing for big brands, and I can tell you — that’s bullshit. Not to say you should not use points, apps and reward programs though, but we’ll touch on that in a sec.

Want to know why most loyalty programs fail?
Because they treat humans like walking safety vaults, find a code and get access to a money.

Here’s what nobody wants to admit: 
77% of loyalty programs fail within two years
(*1 Source: The Drum, Nov 24th, 2023)

Brand loyalty programs often feel a bit forced on to consumers.

Why do brand loyalty programs fail? 

They focus on bribing customers instead of connecting with them. Let me be controversial: Points programs are just lazy marketing, it’s starting with a solution to a problem you did not tackle.

I learned this the hard way at a retail company. We had the fancy tools —points, tiers, exclusive deals. But you know what actually worked? Making people feel like they belonged.

The Uncomfortable Truth About Loyalty: 

• It can’t be bought

• It can’t be automated

• It can’t be programmed

• It can’t be reasoned with (…oh no that’s from Terminator).

When you try to buy loyalty, what you’re really doing is holding on to bargain hunters for longer. If you’re aware of that, and see it as a means to increase lifetime value, fine. But it’s not loyalty.

Here’s what actually builds loyalty:

1. Emotional Connection
   Most loyal customers don’t just stick around for product quality (even though it might be exceptional). They stay because that quality is something that ties a community, a sense of knowing what will come and what can be expected, which gives them piece of mind and comfort. People like to avoid insecurity. 

2. Authentic Interaction
   During my time at Heineken and at Sound United as well, we discovered something fascinating: personal responses to customer messages, invites to talk about product development, sneak peaks, it all created word of mouth. Tell me, what’s shows more loyalty than someone promoting you, in your absence, without getting a reward for it?

3. Consistent Experience
   In my D2C adventures, I always noticed that customers who had consistent experiences across all touchpoints were way more likely to recommend us. So not giving them amazing promises before purchase and then messing up any issues with a delivery. Not rocket science, but most brands still screw this up.

What Kills Brand Loyalty (And Why You’re Probably Guilty): 

❌ Inconsistent messaging

❌ Making empty promises 

❌ Treating customers like metrics

❌ Prioritizing new customers over existing ones

This is something you might not want to hear, but: Building real loyalty takes time, effort, and genuine human (or really good AI) connection. There are no shortcuts. 

See how this is not just points, apps, and rewards? It can be a part of it, but the groundwork needs to be covered first.

So what if you just focus on those apps, points and programs?

Your loyalty program might be driving customers away. Why? Because forced engagement feels fake. 
Those points you’re pushing? They’re training customers to wait for discounts, not love your brand.
The app you’re pushing to gather data? Takes storage on their phone, is not opened besides for any bonus or discount code.

So, you want real loyalty? Do this:

1. Make your points program a bonus, not the main focus

2. Talk to customers like humans, not just before purchase

3. Fix problems immediately, and if you can’t? Communicate it, compensate it.

4. Share real stories (including failures)

5. Build community (not databases)

The Future of Brand Loyalty: 

While everyone’s rushing to automate everything, the brands winning at loyalty are focussing on (not doing) the opposite — they’re getting more human. Automate where you can, cause we all love:

• Faster customer service replies

• Consistent messaging

• …

Just don’t do it, if it messes up the message, if it makes it impossible for people to get answers, if it shows people you’re just there to take their money.

Here’s a hypothesis that might make some marketers uncomfortable: In five years, the most successful brands won’t have traditional loyalty programs at all.

Just to open your mind to the idea. Look at brands like Apple, Tesla (until Musk wanted to start playing a little coocoo world dominator), or La Marzocco. No points. No rewards. Just fierce loyalty based on shared values, quality / innovation, and consistent experiences.

Now let me ask you: 

→ Are your customers loyal to your brand, or your discounts? 

If you need to bribe customers to stay, you don’t have loyalty — you have hostages.

Need some help on your brand?