Course · 14 lessons · 16 min

Loyalty Program Design Grounded in Marketing Science

Name: Loyalty Program Design Grounded in Marketing Science
Availability: InStock
Author: Loyalty Unlocked

After this course you can design coalition loyalty and rewards programs using evidence-based marketing science instead of common loyalty myths.

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Created byLoyalty Unlocked

By the end, you'll be able to

Mastering Loyalty Communication Strategies
Rethinking loyalty myths
Message. Not the Messenger.
Breaking the Known Buyer Bias

Curriculum

14 lessons

01Mastering Loyalty Communication StrategiesThis episode unpacks the key types of loyalty communications, from Lifecycle to Operational and Targeted, and their role in engaging customers. Featuring insights from loyalty expert Mark and a case study on yuu Rewards, we discuss communication gaps, actionable strategies, and how marketing journeys have evolved to reinvigorate loyalty programs.
02Rethinking loyalty mythsEverything we thought we knew about loyalty might just be wrong. For years, marketers have clung to beliefs like the 80/20 rule, the cost of acquisition vs. retention, and the idea that loyalty members are inherently more valuable. But what if these so-called "truths" are not quite what they seem to be. What if loyalty could do more? In this episode we explore how we might need to re-think what loyalty marketing means. Read more at https://medium.com/@marksage/rethinking-loyalty-myths-bbbadefbb7c5
03Message. Not the Messenger.Marketers love to separate “brand” from “performance,” but it’s the message, not the medium, that drives impact. In this episode we'll explore how loyalty programs are more than just retention tools—they’re powerful, first-party marketing channels for both brand growth and sales. We'll also reveal how consistent messaging, reduced “burstiness,” and a strategic approach can turn loyalty into a true brand-building engine. If you’re only using loyalty for transactions, you’re leaving money—and brand equity—on the table. Read the full article at https://medium.com/@marksage/message-not-messenger-fdf70fc42f35
04Breaking the Known Buyer BiasFrom loyalty programs to performance marketing, are we truly driving incremental sales, or just uncovering purchases that were inevitable? Marketers pride themselves on precision targeting, but what if that focus is actually limiting growth? In this episode, we uncover the Known Buyer Bias—the tendency to over-prioritise existing customers while missing the real opportunities in the gaps. With real-world examples and hard data, we’ll challenge conventional wisdom and reveal why balancing Lifetime Value and Potential Value, along with Current and Future Demand, is the key to real, sustainable growth Read the full article at https://medium.com/@marksage/known-buyer-bias-4ddeaf74f4e1
05How Brands Grow (with Loyalty)In this episode, we dive into the real role of loyalty programs - why they don’t drive new customer acquisition but are essential for increasing market share. We’ll explore the difference between market penetration vs. market share, and why, whilst physical availability is the key to brand growth, loyalty marketing can be key to driving mental availability and market share. If you’ve ever wondered how to truly maximise the impact of your loyalty program, this episode is for you. Tune in now! Read me at https://medium.com/@marksage/how-brands-grow-with-loyalty-a69cc237d8c3
06The Points Illusion: How Loyalty Rewards Outsell DiscountsIn this episode of Loyalty Unlocked, we dive into one of the most debated questions in retail and loyalty - Do discounts drive more value or do loyalty points win in the long run? Drawing on experiences from yuu Rewards, Nectar and Tesco Clubcard, we explore why points - despite offering less immediate value - can outperform discounts in driving customer spend and engagement. We break down the behavioural biases at play and share practical takeaways on when to use points, when to use discounts, and how to design offers that truly move the needle. Read the full article at https://medium.com/@marksage/the-points-illusion-how-loyalty-rewards-outsell-discounts-106bd53d5a22
07Why easy redemption isn't always better redemptionIn this episode of Loyalty Unlocked, we discuss a surprising loyalty strategy - why making redemption harder can actually make it better. Diving into the psychology behind Considered Redemption, we see how yuu Rewards strategically added friction to boost customer spend, and why instant redemption at checkout can actually reduce long-term value. Mark shares real data and key lessons for loyalty marketers. If you think easier is always better, this episode might just change your mind! Read me at https://medium.com/@marksage/designing-in-cx-friction-to-drive-customer-value-cbcdd4c9d6fd
08Follow the Crowd: The Science of Predicting Loyalty EnrolmentWhat if you could predict how millions of customers would behave before your loyalty programme even launched? In this episode of Loyalty Unlocked, we explore why enrolment isn’t random — it’s remarkably consistent. From Galton’s bead box to Rogers’ Diffusion of Innovation and the predictive power of NBD-Dirichlet, we break down the behavioural science behind loyalty adoption. You’ll hear how the 4–40–400 Rule has shaped some of the world’s biggest launches, including yuu Rewards, and how you can use it to estimate not just when customers will join — but how many. Because when you understand the crowd, you don’t need to guess.
09Coalition Loyalty: Reinvented, Not RetiredIn this episode of Loyalty Unlocked, Mark Sage is joined by special guest David Parsons, CEO of Ellipsis and one of the most respected voices in loyalty strategy. Together, they take a deep dive into coalition loyalty — a model often declared dead but still thriving in unexpected ways. From Qantas Frequent Flyer to yuu Rewards, Mark and David unpack what truly defines a coalition in today’s landscape. Is it about shared ownership, or shared ambition? Is governance more important than intent? And can a coalition still work when every partner wants their own app and programme?
10Structuring LoyaltyStructuring loyalty isn’t about cost lines or neat P&Ls—it’s about leverage, proof, and being relentlessly customer-led. In this episode, we unpack how loyalty programmes should be designed inside organisations, why orchestration beats ownership, and what it takes to keep CFOs, partners, and customers all on board. With case studies from Boots and Nectar in the UK, yuu Rewards in Hong Kong, and Masan in Vietnam, this is a deep dive into how to turn loyalty into a true growth platform
11The Point of PointsAsda’s bold “Pounds not Points” scheme looked like a runaway success with 6 million members in its first year — but by 2025 it was being called “all but dead.” In this episode of Loyalty Unlocked, we explore what went wrong, compare Asda’s retreat with Tesco’s Clubcard surge and Nectar’s coalition reach, and share lessons from yuu Rewards in Hong Kong. The takeaway? Points aren’t the point — participation is.
12The Hidden Design of LoyaltyMost loyalty programs look the same — points, tiers, discounts — yet some capture our attention while others quietly fade into the background. So what makes the difference? In this episode, we go beneath the surface to uncover the hidden design of loyalty — the psychology that keeps members coming back long after the novelty wears off. From B.F. Skinner’s 1930s experiments in Minnesota to the way our phones “ping” us into action, we explore how reinforcement schedules, habit loops, and smart design choices shape the success of loyalty programmes. You’ll learn: • Why predictable rewards fade — and unpredictable ones endure. • How variable reinforcement drives engagement (and addiction). • The real reason daily offers and notifications work. • Why good design matters more than demographics. • How to layer mechanics that make loyalty stick. The secret to loyalty isn’t more partners or bigger rewards — it’s the psychology beneath the points. Discover how small design choices can rewire behaviour and turn an ordinary program into one people can’t stop using.
13Five Years of yuu Rewards: What We Got Right in DesignIn this episode of Loyalty Unlocked, Mark reflects on the design thinking behind yuu Rewards, five years after its launch. Exploring how constraint shaped every decision and why the real challenge wasn’t launching a loyalty programme, but earning a place in the customer’s day. From card sorting to emotional testing, we reveal how the app was built not just to function, but to connect.
14The Discount Trap: How Brands Create the Behaviours They HateMost marketers think discounts drive behaviour. But what if they’re actually training customers in ways that are almost impossible to undo? In this episode, we dive deep into how brands accidentally shape customer habits — from “wait for discount day” behaviour at Mannings, to the M&S staff quietly advising shoppers to hold out, to Pizza Express becoming synonymous with vouchers. Packed with insights, and practical strategy — this episode will change how you think about price, promotions, and loyalty.16 min

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Loyalty Unlocked

Welcome to Loyalty Unlocked, an AI-driven podcast exploring the creation of yuu Rewards, one of the most ambitious coalition loyalty programs ever launched in Hong Kong. Through expert insights and real-world lessons, we break down the risks, strategies, and innovations behind its success. Whether you’re in marketing, loyalty, or business, tune in to uncover what it takes to build a game-changing program. Intro music by Kabbalistic Village (kabbalisticvillage.com/)

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Loyalty Program Design Grounded in Marketing Science

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Loyalty Unlocked

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