As essential as attracting new clients is to growing a company, long-term success relies on retaining them. One of the most effective ways to do so is through a well-designed loyalty program, a tool that not only encourages repeat business but can also enhance your brand reputation and bottom line. While the concept has changed over time, the goal remains the same—keeping customers engaged and coming back for more.
Loyalty programs can be traced back to either ancient Egypt or the nineteenth century, depending on how you define them. During the former, people received tokens based on their work completed and class status, which they could then exchange for bread, beer, and more. However, since Egypt lacked a fiat currency, some scholars argue that these pieces functioned more like money than a true loyalty program.
Fast-forward to the nineteenth century, and you see perhaps the real origin story. American retailers began giving customers copper tokens when they made a purchase, which they could redeem for discounts on future items. By the end of the 1800s, the concept had further evolved, with companies introducing trading stamps, checks, tickets, certificates, and other collectibles that people could amass and turn in for products.
Then in 1981, the concept of the loyalty program changed dramatically thanks to the launch of American Airlines’ AAdvantage frequent flyer program, the first of its kind to reward customers with miles redeemable for future flights. This groundbreaking approach revolutionized the way businesses handled retention and ultimately led to the widespread adoption of points-based systems across various industries, from hospitality to retail. Today, loyalty programs have evolved further with digital integration, personalized rewards, and data-driven insights, making them more effective than ever.
The primary value of a loyalty program is in its ability to enhance customer retention. It’s widely known that acquiring a new client is more expensive than keeping an existing one, requiring up to five to seven times the cost. So by incentivizing repeat purchases, you can boost customer lifetime value to generate more profit from each person. Additionally, a loyalty program can help create emotional connections with patrons if they enjoy the benefits it provides, fostering a sense of exclusivity and belonging. In turn, this satisfaction can lead to more referrals for your business, organically expanding your clientele.
Beyond retention, these programs often yield valuable consumer data. By tracking behavior, you can personalize your business’s marketing efforts, tailor your product offerings, and even predict future purchasing trends. This can lead to better decision-making and more effective engagement strategies.
To begin this journey, you need to carefully plan your approach to ensure that it benefits both your company and your consumers. The first step is to set a clear goal—whether it’s increasing repeat purchases, growing your customer base, or boosting brand engagement. Understanding what success looks like will help you determine the best type of program and how to measure its effectiveness. Here are some top ones to consider:
When choosing a program, remember that simplicity is key. If your customers find it difficult to understand how to earn or redeem rewards, they may lose interest and take their business elsewhere. A straightforward system with clearly defined rules, such as receiving a specific number of points for every $10 spent, makes participation easy and encourages consistent engagement. Digital tools like a mobile app and automated email updates can further enhance the experience by making it effortless for people to track their rewards.
Additionally, it’s vital to align your loyalty program with your brand and your customers’ preferences. For example, a boutique fitness studio might benefit from a tiered program that rewards frequent visits, while a coffee shop might find success with a simple punch card for tracking bought drinks, which patrons can keep in their wallets. Tailoring your approach to what may appeal most to your client base will ultimately make your program more compelling and valuable, creating the repeat business that you seek. And once you launch it, make sure that your shoppers are aware of it. Put signs up in your store, post to social media, start an email campaign, and have your employees ask clients if they’ve signed up when checking out.
However, your work isn’t done at this point—regular evaluations and adjustments are essential for long-term success. Track participation rates, redemption patterns, and customer feedback to determine what’s working and what needs improvement. A program that feels stagnant or unappealing can be refreshed with limited-time bonus rewards or new tiers to keep people engaged.
When crafted and implemented with care, a loyalty program has the potential to take your organization to new heights. Focus on these key factors, and you can create one that not only rewards your customers but also strengthens relationships and drives consistent growth.
TAKE ACTION:
Review the different types of loyalty programs, and determine which one could work for your business to improve customer retention.
Hayden Crawford, a partner in Collin Street Bakery, discusses the secrets of his company’s longtime success, including what makes its world-famous fruitcakes so sought-after and the next chapter of its growth.
How did Collin Street Bakery begin?
August Weidmann, a German immigrant who settled in Corsicana, Texas, founded it as a small bread and pastry bakery in 1896. A few years later, a local entrepreneur partnered with him, and they soon moved it to another location with a second-floor hotel and bigger production facility.
My business partner’s family, the McNutts, headed a group that bought it from them in the 1940s. In 1951, after many years in the regional bread business, the company moved out of that increasingly competitive industry and shifted its attention to fruitcake. The rest is history.
How did your fruitcakes become so popular?
In the 1890s, Corsicana became the largest oil producer in the world, enticing people and businesses to pour in. Among our hotel’s visitors were celebrities such as John Ringling, who bought our fruitcakes and gave them out as gifts when he traveled with his circus. Those recipients then contacted us for more, and our mail-order business—one of the first in the country—began, allowing people to order from practically anywhere in the world. That was also possible because of the fruitcake itself: it’s dense, so it would last much longer than other foods at the time.
Johnny Carson famously joked about fruitcake. What kind of effect did that have?
The jokes and skits on his show in the 1980s brought in an era of fruitcake negativity. Before then, Collin Street Bakery had a very strong corporate business. But in the years following, we saw such sales continually decline—no doubt because these companies were concerned about how their gift might be perceived.
Here’s how bad it got: even perception was going against us. We’d ask people, “Do you like fruitcake?” and most would say no. But when we asked the same folks whether they had ever tasted it, the answer would also be no. That stigma lasted for years. Luckily, with it a few generations behind us, corporate sales have since returned.
What makes your fruitcakes so special?
Almost a third of every one we produce is pecans, and the remainder is a delicious medley of glacé fruits, including pineapple, cherries, raisins, and papaya, that are bound together by a secret batter moistened with locally harvested clover and wildflower honey. In addition, each DeLuxe Fruitcake—our original version—is hand decorated, making them slightly different and one of a kind.
Has the original recipe ever changed?
Yes, slightly. Gus’s original recipe called for walnuts since they were abundant in Germany. But when he arrived in Corsicana, he no doubt realized that there were few (if any) walnuts around but plenty of pecans, so he used them instead. Also, back in the seventies, we switched from butter to margarine because the former tended to go bad on those long transatlantic trips. However, since travel is light years more efficient today, we’re moving back to butter.
Finally, there’s the matter of citron. For generations, bakers and homemakers would use it in small amounts as a balance to sugar; without it, a cake can taste too sweet. It turned out, though, that some of our suppliers were having trouble getting actual citron and replaced it with specially treated turnips, which delivered a similar taste and texture for a fraction of the price. When we discovered this, we immediately sought a piquant-tasting alternative and found it in papaya, something we were already growing at our farms in Costa Rica.
How many stores do you have?
We have two in Corsicana: the original bakeshop in historic downtown and the newer location on its outskirts on I-45. Initially, some of our execs worried that building the latter would cannibalize the former’s sales since it would be just ten minutes away in the same town, but they are both very popular with a particular audience. Some people like the convenience and beauty of our newer I-45 location, while others still prefer the ambience and coziness of the downtown one.
We also have a bakeshop on I-35 in Waco, just north of Baylor University; it’s our largest store at around 9,000 square feet. And on I-20 in Lindale, near Tyler, we have our fourth location, featuring gorgeous architecture with a smaller, more relaxed footprint.
You started creating different versions of your fruitcake. How did that help your business?
For years, we only offered the DeLuxe, our classic Christmas cake. But the cost of the skilled manpower needed to efficiently hand-decorate it with concentric rings of pecans and carefully placed fruit kept getting more and more expensive. So we recently created our Classic Fruitcake, which is the exact same recipe with a generous helping of pecans just sprinkled across the top. The labor savings are significant, allowing us to sell this cake at a more affordable cost.
You’re also in wholesale. Tell us about that branch of your business:
Funny enough, it was my father—who was the bakery’s marketing guru for years—who came up with the tagline “Never sold in stores” during fruitcake’s heyday. We made it exclusive so you could only buy one of our cakes if you shopped directly with us. Now, with the internet as ubiquitous as it is and reseller shops seemingly appearing on every corner, we offer multiple ways you can find our products, including in your favorite grocery store during the holidays as well as on Amazon’s, Costco’s, and Walmart’s websites.
What’s next for Collin Street Bakery?
I’m excited to say that we’ve started rolling out our foods into grocery stores across the country! We also got interesting feedback from bicyclists, who told us they eat our fruitcake because it’s a calorie-dense product that gives them long-lasting energy; based on this input, we created energy bars. Overall, though, we’re still a nearly 130-year-old family business baking fruitcake that means so much to so many. That’s why we love coming to work every day.
For more info, visit collinstreet.com
Leaders have long been expected to project unwavering authority, always having all the answers and making decisive choices. However, a counterview is emerging: vulnerability. Often misunderstood as weakness, embracing it can actually enable you to foster trust, spark creativity, and build resilience for your company, ultimately unlocking greater potential for growth.
One of the greatest advantages of vulnerability is its ability to help you develop relationships with employees and customers. People naturally tend to gravitate toward authenticity, so when you admit to challenges, share your personal experiences, and acknowledge mistakes, you garner more trust.
For instance, being open about your own struggles or the difficulties your organization has faced may lead employees to be less intimidated coming to you for guidance when they feel stuck. On the client side, many today are eschewing companies that hide behind a faux, polished image in favor of brands that feel more human. Give them a peek behind the curtain and commit to honesty in every interaction, and you may see their loyalty grow.
Beyond trust, vulnerability can be a major catalyst for productivity. When you admit to the fact that you don’t always have all the answers, your team may feel more comfortable contributing ideas and taking risks since they know that they won’t be penalized for imperfection. The result is a more collaborative and innovative environment where you can all work together to try something new and solve problems, viewing missed opportunities as learning experiences.
Be careful, though, to balance vulnerability with confidence—you don’t want to overshare or appear unsure of yourself and your decisions. Rather, the goal is to be honest while also demonstrating a commitment to solutions. By adopting this mindset, you can create a business that’s adaptable, relatable, and more successful.
TAKE ACTION:
Reflect on your leadership style, and assess how embracing vulnerability may strengthen your relationships with your team and customers.
Succeeding in an industry as crowded as health and beauty requires a spritz of uniqueness and a formula directly appealing to what consumers want most. Andrea Lisbona, cofounder and CEO of Touchland, breaks down how her brand of hand sanitizers and other fragrant goods attracts a loyal customer base.
What is Touchland?
Touchland creates sensory self-care on-the-go essentials such as hand sanitizers, uplifting fragrances, and skin-care formulations that bring delight to everyday moments. We have reimagined personal care as a ritual and not just a series of simple daily tasks, empowering our users to infuse beauty, wellness, and excitement into their routines.
What inspired you to found this company, and how did you get it off the ground?
I started this journey over a decade ago with a vision to disrupt a stagnant category with innovation, quality, and aesthetics. I was initially inspired by the idea of marrying great function with great design, so I sought to found a business that bridges fashion, beauty, and personal care all at once. I come from a family of entrepreneurs, which made me feel confident pursuing such an enterprise.
To raise funds for the project, my cofounder, Ruggero Grammatico, and I ran a Kickstarter campaign in 2018. We ended up reaching 450 percent of our initial fundraising goal and receiving more than 1,500 preorders for our initial product in just one month! In our first year of business, we enjoyed what I can only describe as immense success, which was largely driven by our community of social media followers. We also quickly caught the attention of celebrities and influencers, and the brand now counts Kate Hudson, Mindy Kaling, Kesha, Rosie Huntington-Whiteley, and many other famous names as fans. All this led to our brand landing retail distribution in over 2,500 stores nationwide, including Ulta Beauty.
Would you tell us about your products?
Our portfolio spans a variety of products that combine health and beauty. We may be best known for our line of hand sanitizers, which include Power Mists, available in fifteen different scents, and Glow Mist and Gentle Mist, our two premium formulations. In addition, we offer our innovative Power Essence, a nurturing body and hair spray available in eight scents. We also have a curated lineup of stylish accessories like colorful mist cases and decorative pouches that we call Touchettes.
All these products provide little moments of indulgence—what we at Touchland call “microjoys”—that appeal to all generations. For example, each misting hand sanitizer features a lovely scent and nurturing sensation on the skin that lend a unique experience, making the product feel exciting to use.
What makes Touchland distinct from other personal wellness goods companies?
We don’t just manufacture products; we craft beauty-meets-wellness essentials. The designs are intentional, making our products as much a visually appealing fashion accessory as a daily necessity, and we combine innovative form factors, the size and shape of our packaging, to ensure that they stand out from other hand sanitizers.
Further, we focus on creating a multisensory journey—how the product looks, smells, and feels—that seems luxurious yet effortless, leading customers to feel like using Touchland products is an uplifting habit. From the misting technology that provides an ultrafine, refreshing spray to the curated fragrances that elevate the experience, every detail is designed to delight.
At the same time, our formulas prioritize both efficacy and skin care, with ingredients like aloe vera and niacinamide, a form of vitamin B3, keeping the skin hydrated. So they are not only pleasant to use but also offer results for the customer. Our hand sanitizers in particular have become customer favorites thanks to perks in them like our wrinkle-reducing Vitasource technology, which helps skin look smoother and more youthful—especially important when you’re sanitizing your hands often.
How do you express your company’s brand identity in your marketing and goods?
Our packaging is sleek and convenient, which makes our products perfect for taking on the go, and our formulations are all about quality results. We want our offerings to fit seamlessly into people’s lifestyles, whether they’re at the office, traveling, or heading out with friends.
Meanwhile, our messaging is bold and engaging. Because our brand is playful, elevated, and always pushing the boundaries of what personal care can be, we aim to have our marketing reflect that. In other words, we want the public to get excited about Touchland products, especially when compared to less enticing alternatives like generic hand sanitizers.
A great example of this was the launch of our Power Essence line through our “Move Your Mood” campaign. The ads captured the feeling of shifting your mood with a single spritz turning scent into a tool for self-expression and a sensory reset throughout the day. Visually, it was all about skin, motion, and the little moments that feel so important. It marked our next chapter, expanding from just hands to the whole body while staying true to our brand throughout.
How do you gauge consumer feedback and incorporate it into your products and strategies?
Consumer insights drive everything, from the scents we launch to the packaging innovations we introduce, so we are constantly engaging with our community on social media, in reviews, and through direct feedback. For example, after countless requests for a means to clip Touchland products to a handbag, keys, or a belt, we brought the concept to life through our Mist Case accessories. Their sleek, functional design helped turn our hand sanitizers into lifestyle essentials, allowing for even deeper personalization and daily integration.
Another instance is our expansion into new categories. Consumers repeatedly asked us to apply our fragrance-forward sensibility to body care—and that feedback became the foundation of our Power Essence line. We stay closely connected to our community not only as a marketing strategy but also as a creative compass, ensuring that we deliver exactly what they want. And we apply that same listening approach to partnerships, bringing to life collaborations that excite our customers.
Would you tease some upcoming developments?
We’ve been expanding into new retail partnerships with brands like Sephora and have launched collaborations with Disney and, more recently, Hello Kitty. We’re always thinking about ways to push the boundaries of sensory-driven wellness. We have some very exciting innovations coming that expand on our core philosophy—so keep an eye out for them!
For more info, visit touchland.com
