By layering a series of high-value offers, you dramatically increase customer lifetime value. This higher LTV allows you to afford a much higher customer acquisition cost, effectively pricing competitors out of advertising platforms and starving them of new business.

The goal is not just to drive another purchase with a discount, which is described as a "drug." Instead, brands should foster an emotional attachment through superior product, experience, and personalization, making customers genuinely happy to engage with the brand.

Instead of offering direct discounts, which can devalue products, consider a double or triple loyalty point event. This strategy incentivizes customers to spend more to earn future rewards, effectively driving sales while encouraging repeat visits and fostering long-term loyalty. It costs little while giving customers a strong incentive.

Brands often see premium CX and low prices as a trade-off. However, consumers expect both. A Five9 report shows 72% value support quality while 45% are motivated by deals. The key is to see them as complementary expectations that build loyalty, not an either/or choice.

CFOs are often skeptical, viewing loyalty as a cost center for customers who would buy anyway. To overcome this, brands must move beyond vanity metrics and use attribution models that directly tie every loyalty campaign and strategy to incremental revenue on the P&L statement.

Modern loyalty programs should go beyond transactional rewards. By 'gamifying' the experience, brands can incentivize and reward a wider range of valuable customer behaviors, such as social media comments, product feedback, or wearing merchandise.

Advanced retailers are moving beyond treating retail media as an ad channel for short-term sales. They integrate it with loyalty programs to deliver personalized value, which strengthens long-term customer relationships and retention, making it a strategic lever for growth.

Coterie achieves high customer retention without a traditional points-based loyalty program. Instead, it builds loyalty through concierge-level services like text-based order management and proactive, personalized 'surprise and delight' moments, such as sending flowers for a new baby's birth.

CLTV isn't just a metric; it's a strategic map. Understanding purchase frequencies and the entire customer lifecycle should be the foundation for creative choices, promotional timing, and messaging. Many brands neglect this, but it's the key to balancing acquisition with profitable retention.