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.
Advanced AI-driven personalization moves beyond reacting to customer queries with context. The true 'magic moment' is when a brand can proactively identify and resolve a potential issue, contacting the customer with the solution before they are even aware of the problem.
The goal of "always-on" engagement is a seamless, contextual relationship. The best model is interacting with a friend: you can switch from text to a phone call, and they'll remember the context and anticipate your needs. This is the new standard AI should enable for brands.
Investing in emotional connection has a quantifiable business impact. Research from firms like Deloitte and McKinsey shows emotionally connected users are twice as likely to have higher retention, referral rates, and lifetime value compared to users who are simply "highly satisfied."
Viewing customer relationships through a strict Return on Investment (ROI) lens creates a toxic, transactional dynamic. A "Desire to Invest" (DTI) model prioritizes building genuine, long-term connections and empathy, much like a healthy human relationship, rather than tracking a ledger of exchanges.
Brands often misinterpret repeat purchases driven by discounts or points as genuine loyalty. True loyalty is an emotional connection, not a transactional one. This "entrapment" model fails to build lasting customer relationships or brand affinity.
True differentiation comes from "deep delight," where emotional needs are addressed within the core functional solution. This is distinct from "surface delight" like animations or confetti, which are nice but fail to build the strong emotional connections that drive loyalty.
Instead of viewing them as separate efforts, businesses should link customer retention and acquisition. By unifying data to better re-engage existing customers via owned channels like email and SMS, brands increase lifetime value. This, in turn, reduces the long-term pressure and cost associated with acquiring entirely new customers.
While customer experience (CX) focuses on smooth transactions, customer intimacy builds deep, lasting loyalty by fostering closeness. This is achieved through empathetic actions in "moments that matter," creating powerful brand stories that resonate more than any marketing campaign.
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.
Retailers like Tesco use AI to deploy gamified "challenges" at scale. This experiential approach builds long-term loyalty and emotional connections by engaging customers in a way that moves beyond traditional, transactional price-based promotions.