#004: Redefining Loyalty — Why Lifetime Value Should Be Your North Star

“Loyalty isn’t about points anymore. It’s about being understood.”

I was catching up with a friend recently—a veteran in retail—and she put it perfectly: “[Loyalty] is less about points and more about actually understanding your customers.”

The more we talked, the clearer it became—loyalty in retail is evolving, and soon, it won’t just be about rewards and discounts.

Instead, it will be about truly knowing your customers and delivering what matters to them.

And the best part? This shift will be driven by something every studio is already creating: content.

Loyalty’s Evolution: From Rewards to Relevance

Brands have forever relied on traditional loyalty programs—points, discounts, memberships—as the main tools to keep customers returning.

Think of Amazon Prime or Costco memberships. These powerful loyalty strategies build consistent customer returns by offering something real and tangible.

But the future of loyalty will go beyond transactions. Loyalty will be created through relevant, personalized content that makes customers feel seen and understood.

When customers feel like a brand “gets” them, they’re not just buying a product but connecting to an experience. They come back because they feel recognized—and that’s worth far more than any points system alone.

Take Sephora, for instance. They’re not just pushing promotions; they’re creating experiences that resonate. From personalized product recommendations to virtual try-ons, Sephora shows customers they are more than a number. They are unique individuals with specific wants and needs. (Source: McKinsey.)

This shift shows that loyalty is changing, emphasizing how crucial it is for retailers to connect more personally with their customers. In the future, loyalty will go beyond products or deals—it will be about creating meaningful experiences that truly resonate.

Why Personalized Content Will Be Loyalty’s New Frontier

It's easy to think a first purchase means customer loyalty. But the truth is, a one-time buyer is rarely a loyal customer. Many first purchases happen impulsively or due to a discount, not because they'll return.

While metrics like Customer Retention Rate (CRR) and Purchase Frequency (PF) are important indicators of success, they only scratch the surface. True loyalty goes beyond repeat transactions—it's about creating a lasting connection with your customers.

These customers aren’t just looking for a deal—they’re looking for meaning. And when that’s in place? It transforms first-time buyers into loyal advocates who stay with your brand.

The Role of Studios: Building Loyalty Through Content

Today’s studios will step up to the role of architects of customer loyalty, not just content creators. They will evolve from producing content to becoming the heart of brand connection, shaping how customers experience and relate to the brand.

But let’s be clear: loyalty won’t just be about producing more content; it will be about crafting content relevant and personalized to each customer. AI has made this easier to scale, of course.

With AI, studios will have insights, allowing them to create a unique journey for each customer, tailoring every interaction as if it were designed exclusively for them. This level of personalization will make every brand touchpoint feel intentional and valuable.

To achieve this, studios will need not just precision but also scale. Hyper-personalization requires a higher volume of content that meets customers wherever they are on their journey.

When studios combine volume with relevance, they will be able to create experiences that aren’t just seen but remembered. Think of it as building a brand that feels like it “gets” its customers on a personal level.

Studios that embrace this shift will redefine the customer journey, with each piece of content they create showing customers they’re seen and understood.

The Big Picture: Are You Measuring What Matters?

It’s easy to default to sales metrics or clicks. But if we only measure the first transaction, we miss the broader story.

The real game-changer in loyalty isn’t just getting customers through the door—it’s about recognizing and nurturing the best, those who return repeatedly and feel a genuine connection to the brand.

For retailers, this means asking: How can we create personalized content that resonates and keeps our best customers coming back? Are we tracking the right indicators that reveal those lasting connections?

So, as we rethink loyalty, let’s focus on what matters most—the connections we nurture, one interaction at a time.

Until next time,