In a world with a seemingly endless supply of choices, why do so many shoppers return to their favorite brands again and again? 

To answer this question, let’s first consider the now-legendary S&H Green Stamp program: Launched in 1898, these stamps — which could be collected and redeemed for products in the store’s catalog — are considered one of the earliest examples of brand loyalty programs in the modern era. 

For such a straightforward idea, the campaign became enormously popular — as both an economic and cultural force. At its peak in the 1960s, demand was so high for S&H’s little green stickers that the company was, for a time, producing more stamps than even the U.S. Postal Service. The campaign ultimately drove 35 million catalog subscriptions and gifted more than $10 billion in merchandise before finally ending in the 1980s. Even Andy Warhol was impressed

Of course, S&H didn’t give away 11 figures worth of merchandise just to be nice — they were simply leveraging the numerous and often snowballing benefits of a successful brand loyalty program.

Indeed, loyal customers are more likely to not only engage in repeat business with your company but also try new products, spend more money, and even promote your brand to other shoppers. 

Bain & Company, famous for creating the net promoter score (NPS), says that a 5% reduction in customer churn rate could increase a business’s profitability by 25% to 95%. Though this stat is almost a decade old, it is referenced time and again. 

Intrigued? Here’s a closer look at the power of fostering brand loyalty among your customers, as well as some simple best practices that can help make it happen. 

Brand Loyalty Across Generations

Of course, a lot has changed since S&H’s green stamp campaigns. As a result, It’s worth noting that — perhaps unsurprisingly — each consumer generation holds slightly different takes on brand loyalty, each informed by their unique experiences and…

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