Fundamentals of modern loyalty

The keywords are not necessarily prestige and exclusivity but identity and belonging.Membership is micro. To prevent reverse network effects and maintain a high signal-to-noise ratio, brands often focus on specific customer sub-segments and overdeliver for them. This works particularly well for brands that sell easily commodified products. For exam... See more

Membership is meet-ups. Groups that do a good job of connecting members with one another — virtually or in person — are sticky and grow stronger over time. For example, Poshmark’s Posh ’N Sip local events give sellers the opportunity to share their experiences in inventory management, customer service, photography tips, and other areas and learn fr... See more

in oneself: access, belonging, taste, experience, privacy, knowledge, self-actualization.

Membership is maintenance. Research shows that consumers prefer small repeated gains and incremental rewards over big infrequent ones

True loyalty is emotional and irrational and leads to customers feeling like they’re part of an exclusive membership group which then leads them to become loyal subscribers or consumer network participants. People appreciate being part of a club

some companies allow you to earn points for following them or writing a product review. This sort of bribery usually attracts the least loyal and least valuable audience — people mostly interested in claiming the reward not invested in the brand.

So membership programs need to offer a steady stream of touchpoints.

Any brand can cultivate a select group of people who are passionate about what it stands for and seeks to do in the world. Your focus might be hobbies like coffee making, running or self-care rituals; issues like gender equality and sustainability; or simply certain aesthetics.