Insights On Building Brand Loyalty Through Consumer Behavior

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🙏

The world preaches loyalty, but how many brands actually live it? Last month, I got an invite to something called Summer Smash, 1st Phorm International's invite-only community event in St. Louis. Think three days of HQ tours, private pre-parties, high-energy workouts, rides, and live music from artists like Ludacris, Lil' Jon, Pitbull, and Steve Aoki. The whole thing sells out in under a minute each year. Pure community building at it's finest. I couldn't make it due to personal obligations, but here's what blew me away: they still sent me a surprise box packed with over 10 of their top products (proteins, apparel, energy drinks, protein sticks), plus a handwritten note that felt genuinely personal, not like a marketing ploy. We've gotten so caught up in digital tactics that we've forgotten about the power of high-touch moments that forge actual emotional connections. This kind of follow-through is almost unheard of in today's brand world. Most companies would've moved on to the next person on their list. But 1st Phorm gets something that a lot of brands miss: real loyalty isn't built through campaigns or offers, it's built through experiences that make people feel like they belong to something bigger. That's where lifetime value really takes off. Summer Smash is far beyond just an event; it's the kind of experience that flips the loyalty script entirely, where customers don't just buy, they simply belong. Here's what I think other brands can learn from this approach: ➟ Send unexpected value for no reason. A surprise product or handwritten note shows customers they matter beyond their purchase history. ➟ Build exclusive communities around shared values, not just products. Whether it's in-person events or virtual experiences, give your best customers something they can't get anywhere else. ➟ Create moments people actually talk about. A few hours with A-list talent or behind-the-scenes access beats another discount code every time. ➟ Lead with gratitude, not growth metrics. When thank-you moments drive your strategy instead of the other way around, authenticity follows naturally. The bottom line: loyalty is earned through emotion, experience, and belonging. If your brand isn't building that, you're just another transaction in someone's day. When did you last surprise your customers with something that wasn't even on your roadmap?

Every delightful customer interaction begins with the marketer, and it can only be as powerful as the #CRM and #metadata underpinning it. With agents supporting them at every step of the customer journey creation process, marketers and #customerengagement teams can now create superior experiences shaped by intelligent and emotionally resonant conversations. At a cognitive level, the human brain no longer perceives AI as a “chatbot.” It perceives a relationship. This emotional shift fundamentally changes how consumers relate to brands, fostering deeper loyalty and trust. When customers interact with agents in a way that feels natural, their engagement deepens. The implications go far beyond engagement. Every AI-driven interaction generates a wealth of contextual data, far richer than what brands could ever collect from a single web form or survey. In one conversation, an agent can gather insights about a customer’s preferences, behaviors, and intent, building a more complete, dynamic customer profile. This continuous intelligence loop allows brands to maximize the value of every interaction. Let’s bring this to life with an example... Imagine Melanie, one of your many potential customers. She’s been thinking about joining Posh Fitness, a popular gym chain in her city. Instead of filling out a form, she decides to engage with the agent on their website. As they chat, it quickly feels more like a friendly exchange than a transaction. Melanie shares her fitness goals, whether she wants to lose weight, gain muscle, or improve flexibility, and the agent listens closely, asking the right questions to understand her needs and intent. The agent gathers valuable insights through this conversation that a simple web form could never capture. Melanie mentions her dietary restrictions, her preference for a supportive personal trainer style, and that she loves outdoor workouts but needs a flexible schedule due to her busy life. In just a few minutes, the agent collects a wealth of data about Melanie: her goals, preferences, and availability—all essential to crafting a personalized experience. And because the conversation feels human-like and emotionally resonant, it creates an immediate connection to Posh Fitness. By collecting this richer data early in the relationship, Posh Fitness can offer tailored recommendations and build Melanie’s loyalty well before she signs up. This isn’t just about closing a sale. It’s about building trust and delivering personalized experiences that evoke emotions and feel deeply human. Brands that will thrive in the era of #Agentic #AI are those that recognize the shift from transactional interactions to relationship-driven engagement. This isn’t just about personalization; it’s about creating experiences and dialogues that feel alive—where AI and marketers co-create journeys that adapt in real time, amplifying the impact of every customer moment.

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.

Behavioral psychology offers insights into the subconscious drivers behind consumer decisions. By incorporating principles like social proof, reciprocity, and scarcity, one can craft campaigns that align with human behavior, driving more impactful results. One psychological principle we’ve successfully integrated is loss aversion. Research shows that people are more motivated by avoiding losses than by gaining rewards. We’ve seen that framing offers around what customers might lose by not acting (“Don’t miss out on X!”) drives higher engagement and conversions. Harvard Business Review reports that emotional connections influence up to 95% of purchasing decisions, reinforcing the importance of tapping into emotional triggers. Another effective tool is anchoring. In one of our client’s campaigns, using this tactic improved the conversion rate by 18%, as customers felt they were getting a better deal. We also use reciprocity to build stronger customer relationships. Offering free content, trials, or bonuses creates a sense of obligation, increasing the likelihood that customers will engage with your brand and return the favor with purchases or sign-ups. By understanding how psychology shapes consumer behavior, one can craft more strategic, emotionally driven campaigns that resonate on a deeper level and drive action. #BehavioralPsychology #MarketingStrategy #ConsumerBehavior #EmotionalMarketing #PsychologyInMarketing #MarketingTactics #SocialProof #Reciprocity #ConversionOptimization #MarketingScience

𝗕𝗿𝗮𝗻𝗱 𝗟𝗼𝘆𝗮𝗹𝘁𝘆 𝗜𝘀𝗻’𝘁 𝗔𝗯𝗼𝘂𝘁 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝘀—𝗜𝘁’𝘀 𝗔𝗯𝗼𝘂𝘁 𝗧𝗵𝗶𝘀 𝗢𝗻𝗲 𝗣𝗼𝘄𝗲𝗿𝗳𝘂𝗹 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 Think about a brand you love—one you return to without hesitation. Maybe it’s Starbucks or your go-to car brand. Is it just about the product? Or is there something deeper that keeps you coming back? The truth is loyalty isn’t just built on quality but also on emotion. The most successful brands don’t just sell products. They tell stories that make you feel something. They tap into emotions—such as belonging, aspiration, nostalgia, or empowerment—and make you see yourself in their narrative. And when a brand masters that? They don’t just gain customers. They gain lifelong advocates. 𝗧𝗵𝗲 𝗣𝗼𝘄𝗲𝗿 𝗼𝗳 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗦𝘁𝗼𝗿𝘆𝘁𝗲𝗹𝗹𝗶𝗻𝗴 Great brands don’t leave an emotional connection to chance. They engineer it through storytelling. 𝗛𝗲𝗿𝗲’𝘀 𝗵𝗼𝘄: ✔ They tap into universal human truths. The best stories resonate because they reflect our desires, struggles, and values. ✔ They create a narrative more significant than their product. Apple doesn’t just sell computers—it sells innovation and thinking differently. Airbnb doesn’t just rent rooms—it sells “belonging anywhere.” ✔ They make their audience the hero. The best brand stories aren’t about the brand. They’re about the customer’s transformation and journey. ✔ They use storytelling to drive results. Research shows that messages delivered as stories can be up to 22 times more memorable than facts alone.   𝗔 𝗦𝘁𝗼𝗿𝘆 𝗧𝗵𝗮𝘁 𝗖𝗵𝗮𝗻𝗴𝗲𝗱 𝘁𝗵𝗲 𝗚𝗮𝗺𝗲: 𝗔𝗶𝗿𝗯𝗻𝗯 Years ago, Airbnb could have focused on selling bargains and unique stays. Instead, they launched “Belong Anywhere”—a campaign that tapped into something far more powerful: the human need for connection and community. It wasn’t about beds or bookings. It was about “people feeling at home”—no matter where they traveled. That simple yet profound message struck a chord. Travelers weren’t just booking places to stay—they were buying into an experience, a movement, and a feeling. 𝗧𝗵𝗲 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆 𝗳𝗼𝗿 𝗬𝗼𝘂𝗿 𝗕𝗿𝗮𝗻𝗱 If you want to build brand loyalty that lasts, ask yourself: ☑️ What emotions do I want my audience to feel? ☑️ What universal truths can I tap into? ☑️ How can I make my audience the hero of the story? Mastering storytelling isn’t just a marketing tactic—it’s a brand superpower. You don’t just attract customers when you craft a story that resonates. You create a movement. 𝗪𝗵𝗮𝘁’𝘀 𝗬𝗼𝘂𝗿 𝗕𝗿𝗮𝗻𝗱 𝗦𝘁𝗼𝗿𝘆? What’s a brand story that stuck with you? Drop a comment below! Need help crafting a story that turns customers into loyal fans? DM me—I’ll show you how. #BrandLoyalty #BrandStory #Storytelling #EmotionalConnection