I am here to challenge the assertion that loyalty programs are a sign of a weaker brand. This claim is not only flawed—it fundamentally misrepresents the role of loyalty programs in modern business.

To argue that a brand with a loyalty program is weak is to overlook the reality of today’s marketplace. It assumes that customer retention happens naturally, that in a world of endless choices and rising expectations, consumers will remain loyal without any effort from brands. But let me ask you this:

• If loyalty programs were only for weak brands, why do the world’s strongest, most admired, and most successful companies invest heavily in them?
• Why does Nike—one of the most iconic brands of all time—offer a membership program that provides exclusive access to products and personalized experiences?
• Why does Amazon Prime—one of the most effective loyalty programs ever created—generate billions in revenue while keeping customers locked into Amazon’s ecosystem?
• Why does Starbucks, a brand with a cult-like following, continue to expand its Rewards program, integrating it into mobile ordering, gamifying purchases, and personalizing rewards?

Are we really prepared to call Nike, Amazon, and Starbucks weak brands?

Clearly, the existence of a loyalty program is not an indication of weakness. In fact, I would argue that a well-executed loyalty strategy is a hallmark of a brand that understands its customers deeply and has the confidence to invest in long-term relationships.

The Role of Loyalty in a Competitive Market

Let’s talk about the realities of business today.

Brands—no matter how strong—are operating in an era of constant disruption. Consumer expectations are higher than ever, competition is fierce, and digital channels have made switching brands effortless.

The strongest brands don’t assume that their customers will stay forever. They fight for their loyalty. They use data, personalization, and engagement strategies—all of which are enabled by well-designed loyalty programs.

This is not a sign of weakness. This is a sign of strategic intelligence.

The Difference Between Strong and Weak Brands in Loyalty

Now, let’s address the real issue: It’s not about whether a brand has a loyalty program—it’s about how they use it.

Weak brands? They become subservient to their loyalty programs. They rely on constant discounts and points giveaways because they have no deeper connection with their customers. They treat loyalty like a cost centre, rather than a growth strategy.

Strong brands? They master loyalty programs. They craft them not as a discounting mechanism, but as an experience. Instead of bribing customers to stay, they use loyalty programs to enhance brand engagement, offer exclusivity, and create emotional connections.

Just look at Sephora. Their Beauty Insider program isn’t about points—it’s about status. It makes customers feel valued, offering VIP experiences, exclusive products, and early access to new launches. This is not a brand struggling for survival. This is a brand building a community of devoted customers.

Loyalty is More Than Transactions—It’s a Brand Strategy

Another false assumption in this debate is that loyalty programs are purely transactional.

Yes, some outdated programs rely on rigid points systems and repetitive discounts. But the best brands go far beyond that. They use loyalty to shape customer behaviour, increase engagement, and build ecosystems that customers don’t want to leave.

Consider Apple—a brand often cited as one that doesn’t need a loyalty program. While it may not have a traditional points-based program, Apple has created one of the most effective loyalty ecosystems in history. The seamless integration between hardware, software, and services—from iPhones to iCloud to the App Store to Apple Music—ensures customers stay within the Apple universe. That is loyalty by design.

Even Tesla, which also lacks a conventional program, relies on referral rewards and exclusive benefits to drive advocacy. The mechanism is different, but the objective remains the same: encourage long-term commitment and emotional investment in the brand.

Final Thought: Loyalty is Not Weakness, It’s Strength

So, does having a loyalty program make a brand weak? Or does knowing how to build and master loyalty make a brand even stronger?

Weak brands depend on loyalty programs because they have nothing else to offer. But strong brands use loyalty programs as a tool to reinforce their strength—to build communities, personalize experiences, and turn customers into advocates.

A loyalty program is not a sign of weakness. It is a sign of a brand that understands the power of customer relationships and the future of brand success.

The strongest brands are not subservient to their loyalty programs—they master them

By gianfranco cuzziol

Keywords: Business Strategy, CRM, Customer Loyalty

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