Founders using loyalty points programs to retain customers usually end up being a quick, one-off transaction, where customers simply buy and leave. This happens to be the reason why product brands struggle to create repeat, meaningful engagement beyond the point of sale. Without it, Customer Lifetime Value (CLV) stagnates or falls.

Customer Lifetime Value (CLV or LTV) is the total revenue a business expects to earn from a single customer over the entire relationship, focusing on long-term profitability beyond a single purchase.

Points expire. Identity doesn’t.

Loyalty points programs increase transactions in the short-term but don’t create attachment in the long-term. That’s why brands like Tracksmith, Rapha, Swarovski, invested in hobby-driven experiences such as clubs, places, and activities instead of loyalty points programs.

Hobbies are a habit-forming activity that people genuinely connect with.

By using recurring, hobby-driven experiences such as a club, place, or activity, customers keep coming back, because your brand becomes known for authentically and consistently helping its customers connect with their passion and with others who share their hobby. Brands like Titleist, Rapha, and Swarovski have proven it.

If your are a founder and your brand disappeared tomorrow, would customers miss the product—or the experience around it?

Our resource section shows you the way brands offer experiences to their customers beyond their product, moving from a transactional relationship to a relational one. You will get repeat customers because they care about what’s in it for them, not because they are being incentivized for what’s in it for you.