A loyalty strategy is one of the most effective ways to drive repeat purchases, move beyond transactional relationships, and build lasting bonds that reduce churn. Here are some of the key ways loyalty helps you reduce churn.

Leverage First-party Data

First-party data can be a great source to analyze customer behavior and purchase patterns. Data and analytics can help you identify customers most likely to churn along with their in-depth purchase preferences. Annex Cloud’s Loyalty Experience Platform™ collects zero- and first-party data at scale.

Access a Unified Customer Profile

Equipping all customer-facing teams with a robust, consistent, accurate customer profile enables them to deliver a seamless, personalized experience across every touchpoint. Loyalty provides the data and insights you need to know more about, connect more with, and sell more to your customers over their entire journey.

Create Data-led Engagement

Loyalty creates a mutual value exchange where customers willingly share their personal data in exchange for you delivering a unique, meaningful experience. This value exchange is on-going, meaning you create timely, relevant engagement based on their data, they share more data, which enables you to deliver even more value-based interactions across their entire journey. Loyalty technology, integrated into your robust tech stack is the most effective way to manage the value exchange and enable data-led engagement at scale.

Reward Profitable Actions & Behaviors

Who doesn’t like to be rewarded? Loyalty provides the opportunity to incentivize customers for taking specific actions and engaging in certain behaviors. There are plenty of ways to reward customers aside from discounts—including gift cards, travel, charitable donations on their behalf, merchandise—even exclusivity, such as early access to new products.

Offer Feedback Mechanisms

Gathering customer feedback is essential to reducing churn. Loyalty provides various ways to gain customer feedback—including Ratings & Reviews, contests, and surveys. And, of course, you can reward customers for these actions, which sweetens the pot.

Provide a Community

Loyalty membership is the foundation for an ongoing value exchange—a give-and-take for both brands and members at multiple touchpoints across the customer journey. Each engagement increases the value of the member to the brand, and the value of the brand to the member. The brand receives value through ongoing engagement, transactions, and valuable customer data that creates a richer ”golden record”. The member receives value through truly personalized experiences, recognition, special benefits, and rewards.

Here’s an overview of what a value-based relationship might look like between a brand and its loyalty members. The value of membership and the ultimate loyalty of a customer starts with the first interaction. The value exchange moves the customer along their journey through membership to advocacy—adding more and more value over time.

Brand Action
Brand Action

Importance of Personalization Actions for First-time Purchasers

Before the digital age, store managers developed and maintained customer relationships. Today’s consumers still expect that same connection and experience, no matter where they engage or shop. McKenzie & Company research shows how your customers look at, and what they expect, when it comes to personalization.

Importance of Personalization Actions for First-time Purchasers
Importance of Personalization Actions for First-time Purchasers

Personalization goes way beyond including a customer’s name in communications or marketing efforts. Research shows 72% of shoppers expect the businesses they buy from to recognize them as individuals and know their interests, likes and dislikes, motivations, and more. This type of hyper-personalization takes a lot of good data.

Personalization directly influences buying behavior across the customer lifecycle

Loyalty enables the level of personalization your customers expect by pushing robust first-party loyalty data across your tech stack, enabling you to deliver unique, personal experiences and promotions at the customer level at scale. This puts the focus on building a relationship rather than just getting the next transaction. McKinsey reports even small shifts in improving customer intimacy create a competitive advantage and these benefits grow over time. On-going engagement creates more data, enabling even more relevant experiences that build lasting emotional bonds and boosts customer lifetime value.

Likelihood to Purchase, Recommend, and Repurchase Depending on Personalization

76% purchase
78% recommend
78% Repurchase

Source: McKinsey & Company

Loyalty In Action

Annex Cloud’s Loyalty Experience Platform enables brands to personalize every touchpoint across the customer journey, create data-led engagement that builds lasting emotional bonds, and reward customers for specific actions and behaviors—reducing churn by delivering value customers can’t find anywhere else.

Here’s an example of how the various touchpoints and value exchanges in a loyalty program might look:

Brand Action
Brand Action

An Annex Cloud client in the telecommunications industry reduced churn by 12% in the first ten months. We’ve seen similar, even greater, results across many industries.

Here are a few examples of how Annex Cloud clients have integrated loyalty as a key part of their strategic growth plans.

Philip Morris
Loyalty Objectives

  • Move new customers from starters to adopters more effectively
  • Establish an emotional connection between the user and the product
  • Create a tiered loyalty program with unique benefits for members of each tier

Program Features

  • Custom rewards program that precisely fits their objectives
  • Identify boutique customers, actions they’ve taken, and level to enable a personalized conversation
  • Ability to guide people to a specific channel to get them to experience the brand

Nu Skin
Loyalty Objectives

  • Reduce their high churn rate
  • Engage customers from their first interaction/purchase
  • Gain new customers by rewarding existing customers for referrals

Program Features

  • Engage referred customers from day one
  • Reward new customers for trying new products
  • Tiered program that includes a range of rewards, including points, charitable gifts, coupons/vouchers, and more

Loyalty Next Steps

Here are a few important steps you can take to assess how loyalty can help you reduce churn:

Loyalty Next Steps
Loyalty Next Steps



Annex Cloud Can Help You Turn Churn into Lasting Customer Loyalty

Annex Cloud is the market leader in loyalty solutions. We are loyalty technology specialists, our solution is recognized by leading analysts, and we’re continually driving innovation to deliver new value. Globally we support multiple currencies and languages. Our largest implementation is Phillip Morris which is spread across 56 different countries.

Annex Cloud’s Loyalty Experience Platform is purpose-built, enabling you to deliver a meaningful, data-led value exchange:

Loyalty Experience Platform Loyalty Experience Platform

feature1 For any and every member

feature2 Built for innovation, change, and scale

feature3 Offering any reward— personalization, experience, recognition, financial, or product

feature4 At any touchpoint

feature5 Collecting and leveraging zero- and first-party data

feature6 Through virtually any tech stack

What makes Annex Cloud different?

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Modular, extensible platform lets you buy what you need and add features & functionality as you grow

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Our proven success process has built effective loyalty programs for a wide range of industries

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125+ pre-built integrations and massive partner network makes it fast and easy to go to market, and enable a truly omnichannel experience

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Widest range of engagement modules to add value across the customer journey, power personalization, and build trust

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Maximum flexibility to mix and match program types and reward types to fit your various customer segments and optimize for changing preferences

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Collect and leverage zero- and first-party data by pushing it across your entire tech stack to elevate every interaction

To learn how loyalty can reduce your churn rate and drive lasting growth, talk to one of our experts.

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