Loyalty used to be simple. You’d offer customers a punch card, maybe a discount on their tenth visit, and call it a day. But today’s consumers are savvier, more selective, and inundated with marketing. They expect more—and they’ll leave faster than ever if brands don’t deliver.
So what does real loyalty look like now? And how do you turn a one-time buyer into a brand advocate in 2025?
That’s exactly what we unpacked during a recent fireside chat hosted by Marsello’s Chief Revenue Officer Rory Moss, joined by David Visser, CEO of Shopify Plus agency Zyber, and Eden Sapich, Account Executive at Klaviyo. The conversation quickly turned into a deep dive into the emotional drivers behind loyalty, the strategic role of AI, and why not every brand should launch a points program.
Here’s what we learned—and what it means for your business.
At the start of the session, Rory framed the issue perfectly:
“People still confuse loyalty with repeat purchase. And they confuse customer loyalty with the loyalty program.”
In other words, if someone buys from you more than once, it doesn’t necessarily mean they’re loyal. It might just mean your product was on sale, or they needed it again. Real loyalty is something deeper—an emotional commitment that goes beyond convenience or discounts.
To bring this to life, Eden shared her own story of brand devotion:
“I can’t eat gluten and it is the bane of my life. I got onto this amazing subscription box… At the first of every month, I get sent a box of new foods to try. I’ve been consistently getting these boxes for about three years, and you will not see me leaving them anytime soon.”
Yes, she gets loyalty points. Yes, she earns discounts. But that’s not what’s kept her loyal for three years.
“They’ve introduced me to so many amazing new foods that I probably wouldn’t have tried otherwise. The loyalty points are a bonus. But I’m emotionally hooked.”
This is a lesson for every brand: loyalty programs may incentivize behavior, but loyalty itself is built on experience, trust, and meaning.
Key takeaway: Focus first on creating emotional value. Programs, perks, and points should enhance—not replace—the foundation of trust and relevance.
This might be surprising to hear coming from a panel of loyalty and marketing professionals: sometimes, a loyalty program is the wrong fit.
David put it plainly:
“There are certain brands where a traditional points-based system makes a ton of sense. But explain to me how I launch a loyalty program with someone like Beds R Us. Okay, here’s some points that you can use the next time you buy a mattress from us in 15 years?”
For brands selling big-ticket or low-frequency items, the traditional model of ‘buy more, earn more’ just doesn’t apply. But that doesn’t mean you should abandon loyalty as a concept.
Instead, David explained, the focus should be on building connection throughout the customer journey.
“Mattresses can cost $300 or $10,000, and they’re a long purchase cycle. That’s where you lean into education, in-store experience, and follow-up. Dyson’s a great example—I got an email after a month saying, ‘It’s time to wash your filter.’ That’s care. That’s retention.”
Loyalty isn’t just about getting someone to buy again—it’s about reinforcing why they chose you in the first place.
Key takeaway: If you’re a low-frequency brand, reframe loyalty around long-term engagement, education, and advocacy—not transactions.
To dig deeper into the psychology of loyalty, Rory asked: “If you took the loyalty program away, would you still be loyal to that brand?”
Eden didn’t hesitate:
“Absolutely. I have such an emotional connection to this brand. The points are great, but they’ve brought so much value to my life. I’d still be with them.”
David offered a more conditional response, sharing his connection to Air New Zealand:
“I’ve flown one and a half million kilometers with them… If they left Star Alliance tomorrow, I’d probably go back to Qantas.”
He laughed, but made a serious point:
“The cool thing about loyalty, and how we use both Marsello and Klaviyo, is to build stronger connections. We’re hitting people with the right information at the right time. That’s actually one of the most exciting things in marketing.”
The goal isn’t just to get people to spend—it’s to get them to care.
Key takeaway: Strong brand affinity can exist with or without a program. The most successful loyalty strategies focus on cultivating connection, not just incentivizing spend.
Many brands still operate in a campaign mindset—sending a newsletter to the full list, launching a flash sale to everyone, and hoping something sticks. But the brands seeing real growth are shifting toward lifecycle thinking.
“Let’s talk to our first-time buyers differently than our VIP customers,” Eden said. “Let’s segment based off purchase behavior—not just geography.”
That shift isn’t just good marketing—it’s respectful. It shows that you understand who your customers are, where they are in their journey, and what they’re most likely to need next.
David warned that sticking to spray-and-blast tactics won’t cut it anymore:
Key takeaway: Modern loyalty is lifecycle-driven. Start small—segment based on order count, product interest, or recency. Then scale your personalization from there.
Learn more: Watch the session on demand.
As the conversation turned to AI, the panel didn’t shy away from its potential—and its implications.
“It’s really expensive to hire a loyalty analyst,” Rory said. “But now, I can ask a model to segment customers, analyze performance, and show ROI from a campaign in minutes.”
Eden gave a glimpse into how Klaviyo’s marketing analytics is transforming personalization:
“We can now predict churn, suggest the next best product, and automate highly personalized flows—all based on customer behavior.”
David offered a broader warning—and encouragement:
“AI isn’t going to take your job. But someone who knows how to use AI might.”
But rather than replacing human marketers, the panel agreed, AI is creating space for more meaningful work. Instead of manually pulling reports or A/B testing copy endlessly, marketers can now spend more time understanding their customers and crafting better strategies.
Key takeaway: AI doesn’t remove the need for marketers—it accelerates the potential of good ones. Use it to analyze, personalize, and experiment faster, but keep the human strategy at the center.
One attendee asked the million-dollar question: “If we’re just getting started with loyalty and segmentation, what do we do first?”
The answer? Go back to basics.
“It depends what you're trying to achieve,” said Rory. “Set SMART objectives first—specific, measurable goals. Then build your loyalty or retention strategy around that.”
David added:
“If you don’t know where you’re going, any road will get you there. Start with the ‘why.’ Why should people care about your brand? Why do they stay?”
Eden shared a final reminder:
“Retention isn’t always good if you’re retaining the wrong customers. Segment to find the right ones—then double down.”
Key takeaway: Define success before defining tactics. Don’t jump to points, tiers, or tools until you know what you’re solving for—and who you’re solving it for.
As the session wrapped up, the panel reflected on what’s next for loyalty in a world of AI, economic pressure, and increasingly savvy consumers.
Rory offered a compelling prediction:
“Personalization is going to become so standardized, it’ll feel like fast food. The brands that stand out will be the ones who still find space for human interaction.”
In other words, the more automated our experiences become, the more powerful human touchpoints will feel. The loyalty leaders of tomorrow will be those who strike the right balance between automation and authenticity.
So whether you’re a scrappy DTC brand or an established retailer, the path forward is the same: build trust, stay curious, and lead with empathy.
Because loyalty isn’t something you install. It’s something you earn—one relevant, human moment at a time.
Marsello can help. Chat with a loyalty and marketing expert about your unique business needs and learn how Marsello can help you achieve your retention goals. Book a demo with our team today.