Loyalty Is the Best Marketing Tool: A Closer Look into Subscription-Like Models
Loyalty is having a moment, not as a points punch card, but as the main driver behind repeat revenue. Marketers are discovering that the most effective “advertising” is a product experience that keeps customers coming back on its own, along with widely popular marketing tools. That’s why subscription-like models, memberships, bundles, credits, auto-refill, and access passes, are spreading far beyond media and software. They do two jobs: reduce the need to get new customers while making revenue more predictable. It’s timely, too. With budgets tight and attention split, programs that turn one-time buyers into regular customers create a safety margin and a base for growth.
A well-designed loyalty system doesn’t just reward transactions; it rewards commitment, habit, and identity over time. And because these models are flexible, they can adapt to seasonal demand, new categories, and changing price sensitivity. In short, loyalty is no longer a “program” on the side, it’s the product. The rest of this piece looks at how subscription-like design works in practice, what the latest data says about its impact, and how to build a modern mix that builds retention over time.
What “Subscription-Like” Looks Like In Practice: Lessons From Online Video Poker
Consider online video poker as a great example in building routine and predictable engagement, exactly what subscription-like models aim to achieve. At its core, the experience is structured around repeatable sessions: players choose denominations and paytables, then play in fast cycles of play governed by a random number generator. That pace matters, and online casinos truly have the understanding of that reality. It creates a consistent rhythm and clear feedback cycles, win, adjust, continue, that fit well with loyalty design in other industries.
Where subscription-like mechanics shine is in the surrounding support of a video poker game and other popular games. Daily challenges and streaks encourage frequent, easy visits. Levels of rewards and status limits turn activity into clear progress. Credit packs or wallet refills allow flexible commitment: customers “commit ahead of time” in small amounts and return to use their remaining balance, which naturally increases session length. Limited-time boosts (for example, a limited window with extra points) act like small promos that don’t discount the core product, maintaining stable pricing while boosting perceived value. Importantly, all of this works without locking people into long contracts, the loyalty loop is optional and constantly reinforced by experience.
In marketing terms, online video poker shows how to blend three ways to keep customers: pace (many chances to return), growing benefit (status, streaks, unlocks), and flexible commitment (credits rather than required subscriptions). Those are the same tools any brand can use to make a membership feel worth keeping. The key idea here isn’t “locking in for life”; it’s “built habit.” When customers feel they’re progressing and getting more out of their next visit than their last, churn naturally drops and long-term value rises, without heavy dependence on paid ads.
What The Data Says About Loyalty-Led Growth
Across industries, recent numbers show the power of ongoing relationships and different ways to make money. In the past two years, companies that use subscriptions grew revenue 11% faster than the S&P 500, partly driven by mixed models that combine subscriptions with use, bundles, or credits. Customer behavior is moving this way too: in 2024, many adults signed up for a service for the first time, and price sensitivity remains the top reason to cancel, which shows the role of strong loyalty benefits instead of across-the-board discounts.
It’s worth noting that the economics of keeping customers still beat pure acquisition. As HBR sums up, getting a new customer can cost five to 25 times more than keeping a current one, a gap in loyalty programs can shrink by turning customers into members and members into repeat buyers.
Selected signals at a glance
Metric or signal | Latest figure | Why it matters |
Revenue growth vs. S&P 500 | +11% (last 2 years) | Recurring models outpace the broader market. |
Unique subscribers growth | +25% (last 2 years) | Expanding addressable base for loyalty upsell. |
First-time service sign-ups | 68% in 2024 | New subscribers to convert into long-term members. |
Top cancellation reason | 47% cite price increases | Emphasize value, not just lower list price. |
Portfolio effect | 4+ revenue models → faster ARPA growth (2.3–4.5% advantage) | Diversification lifts account-level revenue. |
Designing The Modern Mix: Make Loyalty The Product
A loyalty-led mix spreads commitment across levels: basic memberships for casual users, credits or bundles for people who want value, and premium access for heavy users. The main idea is fit. McKinsey’s latest work shows that 71% of consumers expect personal interactions, and 76% get upset when they don’t, so the benefits inside each level must feel personal, not one-size-fits-all.
How people see price is the other key point. Because price increases are now the main reason for cancellations, adding more value, exclusive releases, faster service levels, extra usage features, often beats cutting list prices. That view matches the Subscription Economy Index’s focus on mixed ways to make money and a balanced mix. As Amy Konary notes, “Companies that blend recurring revenue models with smart monetization strategies consistently outperform the market.”
In practice, this means testing benefits that grow with time (status thresholds), encourage a steady pace (streak rewards), and let people commit in flexible ways (credit wallets). Start with one use case customers already love, then add nearby value they’ll unlock by staying active. Measure not just cancellations, but net revenue kept, average revenue per account, and benefit use; improvements here show that loyalty has become the product, not a later add-on.
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