Most loyalty programs are designed around rewards: points and discounts that give customers a reason to return. That design produces a specific problem. When the incentive expires or another brand matches it, the customer accepts the offer and does not return.

The companies that retain customers year over year treat loyalty as a relationship, not a transaction. Most companies have not made that shift yet.

In this episode of Doing CX Right℠, Stacy Sherman examines that problem with Martin Villanueva, Global Head of Personalization and Loyalty at IKEA. They explain why most loyalty budgets stay underfunded, what that costs in long-term revenue, and the specific steps leaders need to take first.

You will learn how to:

• Position loyalty as a growth engine, not a cost center, when making the financial case to the C-suite
• Use customer journey mapping to align CX, support, personalization, and marketing teams around a single experience
• Design a value exchange that gives customers a clear reason to share their data
• Apply AI to personalization in a way that increases relevance, not just message volume
• Measure customer loyalty through repeat purchase rate, active member rate, CLTV, and whether customers are sharing more data over time as a signal that they believe the brand delivers value

Final Thoughts

Customer acquisition costs rise every year. A loyal customer base reduces dependence on that spending. The leaders who make that investment first hold an advantage that competitors cannot easily replicate.

Have a question or thoughts to share? Leave a voice message: https://www.speakpipe.com/StacySherman

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Imagine you are enjoying dinner at a high-end restaurant, almost finished with the appetizer, when you notice a long strand of hair mixed into the food. What would you expect the restaurant to do?

Well, this really happened.

In this solo episode of Doing CX Right, host Stacy Sherman shares that experience, plus a second restaurant mistake that led to a very different outcome. Both businesses had a chance to recover, but only one response made her feel taken care of and more willing to forgive.

Stacy explains why the moments after a service issue can matter more than the issue itself, and why correcting the problem is not the same as making it right. She also connects both stories to Qualtrics XM Institute research, featured in episode 210 with Isabelle Zdatny, showing how customer emotion influences forgiveness, trust, recommendations, and loyalty.

This episode helps leaders rethink service recovery as a customer retention strategy, not a simple correction.

What You Will Learn

• Why correcting a mistake and making it right are two different actions.

• What Qualtrics research reveals about the business impact of emotion when an experience does not go as expected.

• Why the memory customers carry from a difficult moment can influence whether they return or choose a competitor.

• What generous recovery looks like in practice, and why one small gesture can influence the customer's next decision.

• How one phrase can shift the conversation from care to blame.

• How to assess whether employees are equipped to protect loyalty during difficult customer moments.

Have a question or thoughts to share? Leave a voice message: https://www.speakpipe.com/StacySherman

Learn more at DoingCXRight.com and subscribe to the newsletter for more actionable strategies.

Are you struggling to turn satisfied customers into brand loyalists? Discover how to shift from merely impressing to creating customer obsession in this episode of Doing CX Right.

Join host Stacy Sherman and guest Jon Picoult as they reveal how crafting standout experiences can accelerate ROI growth. They explain innovative ways to build emotional connections that turn customers into vocal advocates. Plus, learn how prioritizing your current customer base can accelerate revenue growth and enhance your competitive advantage. Don't miss out. Listen now to learn how to transform customer satisfaction into deep brand commitment.

Learn more at DoingCXRight.com and subscribe to the newsletter for more actionable strategies.

Book time with Stacy Sherman here.