Message. Not the Messenger.

Ms Chan

Welcome back to Loyalty Unlocked! An AI-driven podcast that deep dives what it takes to launch and run a successful loyalty program.

Ms Chan

For full transparency, the voices and script you hear within this podcast are totally AI generated and are based on chapters from the forthcoming book on loyalty marketing by my co-host, Mark Sage.

Ms Chan

Okay, so I wanna kick things off with something that, honestly, makes my head spin a bit.

Ms Chan

This whole distinction between brand-building and performance marketing? Like, do I run a big, splashy TV ad, or focus entirely on targeted promotions? It’s always felt like two totally separate worlds, right?

Mark Sage

You're absolutely right, and this is such a common misconception in marketing. For years, we've said that brand-building is all about awareness.. big bold ideas on TV.. and performance marketing is all about immediate response such as social media ads or email campaigns.

Mark Sage

But the reality, and what the recent Profit Ability 2 report really drives home, is that it’s not the channel or the medium that defines the campaign. It’s the message itself. You can do brand-building on performance channels, and you can drive activation on TV. The boundaries aren’t as fixed as we’ve made them seem.

Ms Chan

Wait, wait. So you’re saying it’s the message that decides, like, what direction the campaign takes?

Mark Sage

Exactly. It’s the message, not the messenger. If your message is about reinforcing emotional connections or creating preference for your brand—boom, that’s brand-building. And you can do that through loyalty emails, app notifications, you name it. It doesn’t have to be on TV.

Ms Chan

Wow. That’s such a mindset shift. Because loyalty marketing always—well, okay, not always, but mostly—it feels like it gets lumped into, you know, this idea of driving customer transactions. Like, spend fifty bucks, get fifty points.

Mark Sage

That’s very true, and it’s exactly why marketers need to change the way they think about loyalty programs. These programs are like an owned channel to reach your light buyers—those folks who don’t shop often but still represent a huge chunk of your sales potential.

Ms Chan

Right—

Mark Sage

—And here’s the kicker: those light buyers? They’re also the least exposed to your competitors while engaging with your loyalty content, so you have a clear lane to build awareness and emotional connections without interference.

Ms Chan

And those light buyers are, what? People who are like, in-between purchases?

Mark Sage

Exactly. Take a DIY retailer as an example. Maybe a customer painted a room a month ago. They’re not in-market now, but they will be eventually—maybe for their next kitchen overhaul. And loyalty marketing lets you stay top-of-mind when they’re ready to buy.

Ms Chan

That’s so smart. Instead of waiting around, you’re making sure your brand is part of their life—even when they’re not shopping.

Mark Sage

Right, and when you look at programs like Nectar in the UK or yuu Rewards in Hong Kong, that’s what they can do. It can be more than just adding points or offering deals, it can also be about building lasting emotional ties. You’re not just a transactional outlet; you’re a trusted brand they recognize and keep coming back to.

Ms Chan

And yuu has like, what, 65% of the population signed up in Hong Kong? That’s incredible reach, and you’re saying the messaging there could be just as powerful as a massive TV campaign?

Mark Sage

Absolutely. When you have that kind of audience, the potential is enormous. Loyalty isn’t just about retention; it’s a branding powerhouse when you use it right. To really unlock that potential, it just needs clarity in the message. It’s really all about separating message from medium.

Ms Chan

So, this idea that loyalty programs can actually be a branding powerhouse—it kinda blows my mind. Like, it’s not just keeping customers, it’s about making your brand unforgettable, right?

Ms Chan

I mean, it feels like we, as marketers, are constantly trying to shake things up, keep it fresh, you know?

Mark Sage

Absolutely. But here’s the thing—that urge to keep things “fresh” can actually work against us. There’s data that shows sticking with consistent creative assets—think slogans, colors, even tone of voice—can have a huge impact.

Ms Chan

Wait, huge, like how huge?

Mark Sage

Well, research from System1 found that brands in the top 20% for consistency achieved on average, a 28% increase in very large business effects. We're talking sales value, profit gains, market share—it’s all tied to staying consistent.

Ms Chan

Woah. That’s nuts. So, like, why aren’t more brands doing it?

Mark Sage

A big part of it is impatience. Marketers get bored of their own messaging and assets long before their audience does. We start looking at a slogan or a campaign and think, "This again?" But for the customer, it might still feel fresh because they're not exposed to it nearly as much as we think.

Ms Chan

Right, like, they’re not sitting around comparing six different campaigns side-by-side like we are.

Mark Sage

Exactly. And that’s why consistent communication isn’t just about creative assets—it also extends to timing. Regular, predictable interactions create what you might call a “drumbeat” for your brand. Think about a loyalty program that sends out up dates or offers at the same time every month. Customers start to expect it, and that expectation builds connection.

Ms Chan

Ohhh, I love that idea—a drumbeat. It makes it feel like the brand becomes part of their routine, right?

Mark Sage

Thats the aim. But it’s not just about frequency or timing—it’s also a matter of consistency in the message itself. You want to build and reinforce what Byron Sharp terms mental availability, so that when a customer is ready to enter the market—whether that’s for groceries, a DIY project, or a vacation—your brand’s already top of mind.

Ms Chan

So you’re saying this isn’t just about staying visible, but also... staying steady?

Mark Sage

Steady is a great way to put it because it’s not about overwhelming people with bursts of interaction. In fact, there’s research suggesting that “bursty” communication can actually confuse customers rather than engage them. Consistency, on the other hand, helps the brand feel reliable and trustworthy.

Ms Chan

Okay, yeah, that makes so much sense. I mean, think about all the emails we get—when it’s sporadic or feels all over the place, it’s easy to ignore. But if you, you know, start to expect it—

Mark Sage

—Exactly, then you’re more likely to engage. The trick is finding the balance: consistent timing, a unified message, and creative assets that work together over time. It’s all about making your brand resonate deeply, not just stand out for a moment.

Ms Chan

So, Mark, building on what we talked about before—the drumbeat and staying steady—it’s got me thinking. If loyalty programs can drive real brand equity by creating that sense of routine and connection, how do you even start making that shift? I mean, how do you go from just rewarding points to really building those emotional ties?

Mark Sage

It does sound like a leap at first, but honestly, it starts with a change in perspective. You’ve gotta stop thinking about loyalty programs as purely transactional tools—what I call the "earn and burn" model—and start seeing them as platforms for storytelling and brand building.

Ms Chan

Storytelling through loyalty programs? That’s not the first place my mind would go, but I’m intrigued.

Mark Sage

Well, let me give you an example. When I was working on the loyalty program relaunch for LVMH duty free retailer, DFS, we deliberately moved away from simply focusing on discounts or points. Instead, we built in regular brand-building content—not just for DFS but also for our partners. Think beautiful visuals, compelling stories about the brands, and even exclusive experiences for our members.

Ms Chan

Okay, but how does that translate into actual sales? Because, you know, the CFOs of the world are gonna ask that question.

Mark Sage

Fair question. The impact was measurable—month over month, we saw consistent increases in incremental spend. By the end of the first year, that translated into double-digit growth. And here’s the key thing: it wasn’t just heavy buyers spending more. We also saw lift from the light buyers, the ones we’ve talked about being so crucial for market growth.

Ms Chan

Wow, and that’s from combining brand-building with loyalty messaging?

Mark Sage

Exactly. But it’s not just about the content; it’s also about being consistent. We set a clear cadence for these communications—same time every month, like clockwork. That regularity creates a sense of anticipation and trust. Members started to see our messages as reliable and worth their attention.

Ms Chan

So you’re saying the strategy here was twofold: storytelling for emotional buy-in, and then predictable timing to reinforce trust?

Mark Sage

Spot on. I'd also add consistency of brand messaging. So you're telling customers a consistent story over a regular cadence.

Mark Sage

It's also where the separation of "message" from "medium" comes into play. We weren’t limited by the fact that it was an email, a WeChat post or an app notification. What mattered was the message itself—how it made members feel about the brand. That’s what drove the success.

Ms Chan

That’s such a good point. It’s like, once you stop thinking of loyalty marketing as just... loyalty marketing, the possibilities kinda explode, right?

Mark Sage

They do. The potential is massive, but it requires loyalty marketers to think more like brand marketers—and brand marketers to stop dismissing loyalty channels as purely tactical. Combining the reach of loyalty marketing with the emotional resonance of brand campaigns unlocks so much untapped value.

Ms Chan

Okay, so for our listeners out there, what’s one takeaway they can act on right now to head in this direction?

Mark Sage

Start with your light buyers. Look at your loyalty audience and think about how you can use regular, consistent communications to build emotional connections—not just drive transactions. Think long-term brand equity alongside short-term sales.

Ms Chan

That’s such great advice. Mark, this has been such an eye-opening conversation. I feel like my whole view on loyalty marketing has shifted.

Mark Sage

Love it! It’s such an exciting space, and there’s so much opportunity to innovate. Loyalty programs can truly be transformational if we approach them the right way.

Ms Chan

Well, on that note, I think we’ll wrap it up for today. Thank you so much for sharing all your insights, Mark. This was amazing.

Mark Sage

It was a pleasure. Thanks for the chat.

Ms Chan

And to everyone listening, thanks for tuning in to "Loyalty Unlocked." Don't forget to deep-dive into your own loyalty strategies—maybe start by separating that message from the medium.

Ms Chan

And remember, you can subscribe via Apple or Spotify so you don't miss out on future episodes. If you want to deep dive this topic further, checkout the link to the full article in the show notes.

Ms Chan

Till next time!