Loyalty Lessons from CVS to BFCM

Borrowed

"Invite-only mechanics are also closely associated with creating buzz on social media. People with an invite to an exclusive product will post praise, critiques, and other commentary. People without an invite will ask for it, prompting discussion and sometimes controversy, driven by scarcity and exclusivity dynamics. This in turn attracts more attention and engagement. It works!"

From "The Cold Start Problem" by Andrew Chen [Book]

Learned

I had to laugh at myself last week. Mylo’s been congested for a couple of weeks, then Dana, and by Thursday, it hit me. By the time I ended my day, I had a 101° fever and was in desperate need of meds. I jumped in the car for a quick trip to CVS.

I only needed one thing, but of course, there are 7 million and one options for what to take when you have a cold. As I narrowed down my choices, I pulled out the CVS app to check my rewards, a reflex I picked up while living down the street from a CVS in Brooklyn years ago—and the reason I still shop CVS as my pharmacy.

When I opened the app, I noticed I had a laughable $0.24 in ExtraBucks, but also a random $4 off my order. Sweet. Then I spotted an offer: spend $30 on cold medicine and get $10 back. There was a tag on the shelf showing which products applied. So, naturally, I started stocking up as if it were the end of the world. Just kidding... I bought a few packs and told myself, "Winter is coming, right?"

As I walked out the door, receipt dragging behind me (IFYKYK), I shook my head to myself. But deep down, I’ll admit, I was a little proud. It goes to show how quickly brands can influence our behavior, even when we know the tactics at play. I hadn’t planned to spend more, but the offer made it hard for me to walk away. For brands, the difference lies in being intentional about creating these moments, rather than leaving them to chance.

My trip to CVS was fresh on my mind when I was a guest on a webinar with Okendo the next day on loyalty strategies for Black Friday. Okendo geared the session toward agencies, helping them identify quick tactics to help their clients, but the takeaways were just as relevant for brands.

The same psychology at play that kept me in the CVS aisle longer than I care to admit can also drive loyalty and repeat purchases during the busiest shopping season of the year. Let’s review the three key tactics we covered. They may not be new to you, but they're great reminders to make sure the basics are in place ahead of BFCM.

The first is point promotions, which could be as simple as offering double points for a defined period or setting spend thresholds with bonus rewards. It works because it creates a sense of urgency for the customer and also triggers the goal gradient effect. The goal gradient effect refers to the phenomenon where the closer someone gets to unlocking a reward, the more motivated they become to continue, just like me, grabbing extra boxes of cold medicine. Hence, I meet the threshold for cash back.

• The key for brands is to keep the window tight so urgency stays high, and to set thresholds just above AOV (average order value) so you nudge people to stretch a little further. The often-missed step is following up afterward, showing customers what they earned and nudging them toward their next purchase.

Point reminders are the second tactic. Customers forget about rewards they’ve earned. A timely reminder, especially around BFCM when old points might be about to expire, taps into loss aversion. Nobody wants to lose something they already have. A message saying, “Your $10 reward is about to disappear,” can be enough to bring someone back to shop. CVS is good about sending constant reminders to pick up your prescription via SMS; if they did the same with rewards, they’d likely see even more folks coming through the door and taking advantage.

• The most effective reminders segment customers by who has enough points to redeem, whose points are about to expire, and even those who haven’t fully enrolled but technically have rewards waiting. A few small adjustments to messaging across these groups can make a big difference.

And finally, progressive early access. Instead of giving everyone the same rewards, this tactic involves making your best customers feel loved with exclusive access to sales and product drops. This tactic leverages the fact that we all appreciate feeling recognized. One way to think about this is structuring Black Friday in stages; rather than one big promotion, you’re constantly reminding customers about it. Instead, elite customers shop on Wednesday, insiders on Thursday, and everyone else on Friday. It’s the digital equivalent of skipping the line and being waved inside while everyone else waits at the door. Customers remember that feeling.

• Even a simple two-tier structure can create excitement, and layering in mechanics like password-protected landing pages or hidden product drops adds to the sense of exclusivity. These don’t just drive sales, they build status.

CVS drew me in with a basic promotion, and even in my foggy state, it was effective. I left feeling like I got a deal. For brands heading into Black Friday, the real opportunity is in leveraging these mechanics to not only increase cart size in the moment but also foster loyalty that lasts well beyond the holidays.

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If you're curious about Okendo webinar, you watch it in full here.

Thought

Do the experiences I create for customers make them feel valued?