The Truth About Customer Loyalty: Why Most Retention Strategies Fail

Customer Loyalty: One-Night Stand or Long-Term Thing?

Most brands treat customer loyalty like a one-off hook-up: flash a discount, hope for the best, and wonder why customers never call back. But building customer loyalty isn’t as simple as setting up a points program. In this episode, Sarah Welsh, Co-Founder and CPO of HANX, shares what really keeps customers coming back, why traditional loyalty programs often miss the mark, and how HANX is driving repeat purchases without gimmicks.

We also dive into:

• Why traditional loyalty programs are the equivalent of a bad pick-up line

• The real reason customers stay loyal (hint: it’s not discounts)

• How to create an experience so good, they keep coming back for more

• The emotional vs. habitual side of customer behaviour

• Why sex ed for adults is part of their customer experience (and why it works so well)

• Personalisation, UGC & community – when it works and when it’s just creepy

• What brands get so wrong about community-building

If you’re running an eCommerce brand and looking to retain customers without annoying them, this episode is a must-listen.

In This Episode, You’ll Learn:

✔️ The real customer behaviors that drive repeat purchases

✔️ How to use surprise & delight tactics for retention

✔️ When subscription models work (and when they don’t)

✔️ Why DTC brands should rethink traditional loyalty programs

✔️ How UGC, reviews & brand collaborations impact retention

✔️ The biggest mistakes brands make in customer loyalty

Tools & Strategies Mentioned:

• Lifetimely – For tracking LTV & retention insights

• Personalized Email & SMS – Why brands should focus on relationship marketing

• Subscription Retention Tactics – Why HANX doesn’t lock in customers

• Brand-Led Events – How they engage customers beyond the purchase

• AI & Data Segmentation – When AI helps, and when it crosses the line

Time Stamps:

00:00 Welcome to the eCom Collab Club Podcast00:42 Introducing our guest: Dr Sarah Welsh03:15 From Doctor to DTC Founder – Sarah’s Journey07:45 What does customer loyalty REALLY mean?12:58 The subscription dilemma: Habit vs. Emotion18:32 How HANX personalises customer experience23:50 Why they don’t have a traditional loyalty program30:21 The impact of brand collaborations & partnerships37:10 How they use customer reviews & UGC41:24 Customer psychology & segmentation for retention47:36 AI, personalisation & ethical data collection53:15 Sarah’s take on eCommerce loyalty myths01:02:42 Final thoughts & biggest takeaways

Shoutouts & Sponsors:

Omnisend – Email & SMS marketing so good, it’s boring

Retail Fest 2025 – Australia’s must-attend eCommerce event

Connect with Us:

📢 Subscribe & Follow: 🔗 Listen on Spotify, Apple Podcasts & YouTube 🎧 Join the Ecom Collab Club Community 👉 www.ecomcollabclub.com/community 🔗 Follow us on LinkedIn: Peter Gardner⁠ | ⁠Adam Pearce | Rich Evans

Connect with Our Guest:

Sarah Welsh – Co-Founder and CPO @ HANX

HANX – HANX

📩 Follow Sarah – Sarah Welsh

Watch More eCom Collab Club™️ Podcast Episodes Here:

https://www.youtube.com/@eComCollabClub

Loved this episode? Drop a comment and let us know your biggest takeaway! 📊