Building Loyalty Through Subscriptions & Memberships

The loyalty playbook is broken.

Most brands are still stuck on points and perks while their customers shop anonymously, frustrated by generic offers and disconnected experiences.

On a recent webinar, we gathered three experts on the front lines of loyalty and retention to break down what's actually working in 2025.

• Nina Collier, Director of Ecommerce at Third and Grove
• Rick Watson, CEO at RMW Commerce
• Alex Lazoff, CRO at Rivo

Here's what they shared.

The human connection problem

"Emotional connection is not about technology. It's about connection and relationships," says Rick Watson, CEO of RMW Commerce. The challenge? Most brands have forgotten this fundamental truth.

The disconnect is glaring. You walk into your neighborhood coffee shop, and they know your order by heart. But online, even after years of purchases, you're treated like a stranger. That loyal customer who spent $10,000 gets the same "10% off your first purchase" popup as everyone else.

This anonymity problem runs deep. With 98-99% of traffic shopping anonymously, brands are missing massive opportunities to create that in-store recognition experience online.

This isn't just a missed opportunity; it's a fundamental breakdown in how brands perceive and interact with their most valuable asset: their customers. So, how can you bridge this anonymous gap?

The essentials of user generated content (UGC)

“Reviews are part of the Amazon effect,” says Nina Collier from Third and Grove. “Everyone wants to see real products used by real people.”

But UGC goes beyond basic reviews. The most powerful content tells transformation stories. Beauty brands nail this with before-and-after narratives. A skincare line doesn't just need product shots; it needs the story of how it changed someone's confidence level.

Real people showcasing real results beats polished marketing every time. Your customers want to see themselves in your content, not aspirational models they can't relate to. Think beyond product reviews. How can you encourage customers to share their "before-and-after" stories or highlight how your product integrates into their daily lives?

The online loyalty problem

Here's where most loyalty programs fail spectacularly. Alex Lazoff at Rivo painted the frustrating picture we've all experienced:

You get a personalized email: "Alex, VIP platinum customer, you've earned 50% off!" You click through, excited to redeem your reward. The site greets you with "10% off your first purchase." You're forced to log in again, can't remember which email you used, and now you're going through a broken experience despite being their best customer.

"There's a moment of like, 'Oh my God, this is ridiculous,'" Lazoff explains. This "moment of ridiculousness" is where loyalty programs truly die. The fix isn't more perks. It's fundamentally rethinking the digital customer journey. Your website should be an extension of that personal email, not a barrier.

Klaviyo’s reality check

Watson puts it bluntly: "99% of brands are not using Klaviyo the way they should be." Most brands limit it to campaigns, missing the real power of customer segmentation and data ingestion.

True effectiveness requires constant monitoring, testing, and adjustment of email and text flows. It's not a "set it and forget it" tool. The brands winning with email marketing either have dedicated teams or partner with specialized agencies who live and breathe this stuff daily.

What actually drives retention?

The most successful subscription brands see 40% of their orders from subscribers, not 90%. The math matters more than the marketing.

Smart brands identify their churn patterns. Is it month three? Month five? Then they place delight moments right before that drop-off point. A surprise upgrade, a thoughtful add-on, a personal note acknowledging their loyalty milestone.

"These delight moments have a monster impact, especially at scale," Lazoff notes. This isn't magic; it's meticulous data analysis combined with genuine empathy. Start by identifying your own churn points and brainstorm unique, unexpected ways to delight customers just before they might consider leaving.

The future is personal (finally)

After 12 years of brands being "three months away from rolling out personalization," AI might finally make it reality. Not because the technology is magical, but because it makes the execution manageable.

The data collection game is changing too. Instead of forcing customers through dropdown menus and radio buttons, smart brands are using simple text fields and AI to normalize the responses. You get more honest answers and better insights.

What to avoid

The biggest mistakes brands make:

• Set it and forget it: Loyalty programs need constant attention, monitoring, and iteration based on customer feedback.
• Overpriced memberships: That $140/year t-shirt membership with weak perks? It got cut after a year for a reason. Make the value calculation obvious.
• Disconnected programs: Your subscription and loyalty programs should work together, not compete for attention.

The bottom line

The brands winning at loyalty have figured out that it's not about the technology or the perks. It's about recognizing your customers as individuals and treating them accordingly.

At TAG, we help Shopify Plus merchants create authentic content that tells real stories, design signed-in experiences that remember user preferences, and deliver perfectly timed delight moments that prevent churn. Building a brand loyalty strategy is no small task, but we’re here to help.

→ Catch the webinar on-demand here