The Loyalty Program Law
Loyalty cards don't create new fans.
The desire is understandable. You want to feel loved. You want a meaningful relationship with your customers. Newsflash: they don't want a relationship with your detergent brand; they want to buy it and forget you exist. Your loyalty program isn't driving engagement; it's a glorified subsidy for people who were already going to buy from you. You’re essentially paying your best customers to keep doing exactly what they’re already doing, while your competitors are out there actually growing by talking to people who don't know they exist. It’s a statistical suicide note written in points and rewards. Your CRM is a very expensive digital paperweight, and it's time we talked about why.


THE LOYALTY PROGRAM LAW
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Key Takeaways
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Consequences Of Applying The Law
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|---|---|---|
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Genesis & Scientific Origin
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The Mechanism: How & Why It Works
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Real-World Example:
Major Global Brand
Situation
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Result
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Strategic Implementation Guide
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Frequently Asked Questions
Doesn't it cost 5x more to acquire a new customer than to retain an existing one?
to see the answer
What about Starbucks? Their loyalty app is incredibly successful.
to see the answer
Can loyalty programs work for niche, high-end brands?
to see the answer
If loyalty programs don't drive growth, why does every big brand have one?
to see the answer
Should we just cancel our loyalty program entirely?
to see the answer
Sources & Further Reading
Related Marketing Laws
The Law Of Overclaimed Differentiation
Most brands are less unique than they believe.
The Law Of Over-Optimization
Excessive testing leads to average, forgettable work.
The Brand Purpose Law
Purpose matters more internally than in buying decisions.
The Messaging Law
A slogan is not a strategy.
