Exclusivity marketing

Most brands rely on discounts to drive loyalty.

You see it everywhere: sign up for our email list and get 10% off. Get 15% off when you download the app. Spring sale: save up to 50% on all product lines.

I see far less using another kind of incentive; one that drives loyalty with high margins, and drives up the value of your business:

Exclusivity.

The best brands build an exclusive brand experience that shoppers want to be a part of… and will pay extra to be a part of.

Instead of throwing money at the customer to get them to stick around, they start throwing money at you.

Exclusivity is a time-tested loyalty lever, and an incentive that many DTC brands are not using to its full potential.

In this newsletter we’re going to show how your brand can.

Retention Edge E03 w/Omer Hazer (Managing Director, Atlas Studios)

In the latest episode of the Retention Edge podcast, Nihal talked with Omer Hazer, Managing Director at Atlas Studios, about the realities of customer retention in ecommerce today.

They dove into why many brands struggle with retention, despite recognizing its importance, and got into practical strategies to enhance customer loyalty and long-term growth.

Omer shares his first-hand experience working with various ecommerce brands, with some great advice and real-life examples to help brands who might feel like they’re hitting a wall.

A few key nuggets include:

• Why many loyalty programs fall short and how brands can successfully integrate them.

• The retention basics that a surprising number of brands still miss.

• How an RFM analysis is the best way to reveal key retention insights for mid-large-sized brands.

• Common misconceptions about mobile apps and their potential as powerful retention tools.

Listen to the full episode below, or head to YouTube or Spotify to check it out when you’ve got a moment free:

Exclusivity: the value-driven incentive most brands underuse

Most brands are too fast to throw a discount at someone to keep them around.

It’s not hard to see why: discounts are simple. Fast. Easy to track.

Discounting isn’t wrong. It’s a part of doing business. There are some brands out there, the Ferraris and the Chanels and the Louis Vuittons, who never offer discounts. But most will, and offering a discount for a first purchase, an email signup, an app download is worth it.

But an even better play? Build exclusive experiences.

When you lead with exclusivity, you're giving more (not less). You're creating a reason to stay connected, to pay attention, to buy even at full price. You shift the focus from cost to access.

Here’s what exclusivity can look like:

• Early access to new drops or promotions

• Limited-edition products that don’t come back

• App-only offers and gated launches

• Invite-only sales or waitlists

• Exclusive communities for insiders and loyalists

• Perks tied to behavior, not just spending

These aren’t gimmicks. They’re value-driven ways to signal status, deepen engagement, and drive repeat purchases without chopping your margins.

Exclusivity is particularly powerful for your highest-value shoppers. They want something more than just a few dollars off. They want to feel like they’re part of an elite group.

Discounts may get the first order. Exclusivity earns the next five.

The basic human psychology behind exclusivity marketing

The best marketers don’t study marketing. They study psychology; how the human brain works.

Exclusivity works because it taps into several fundamental principles of human psychology.

Scarcity: the fear of missing out

Humans are hardwired to assign more value to things that are scarce. It's an evolutionary survival mechanism: in ancient environments, scarce resources meant survival advantages.

In ecommerce, it plays out the same way:

• A limited-edition drop feels more valuable simply because it’s limited.

• A "VIP Early Access Only" sale creates urgency because people know it won't be available to everyone, or forever.

Exclusive experiences are, by definition, not available forever (or for everyone). This incentivizes action.

Anticipation: building desire over time

The brain releases dopamine (the "reward chemical") not just when receiving a reward, but when anticipating one.

This works with exclusive product launches, waitlists, limited releases.

Customers wait in anticipation for these drops, because they don’t want to act late and miss out (going back to the first principle).

Anticipation heightens excitement and emotional engagement. It makes people care more, wait longer, and act faster when the moment comes.

Your brand sticks in the customer’s mind longer, rather than a typical promo where they discover, shop, buy and forget about you in the space of about fifteen minutes.

Reducing cognitive dissonance (justifying their choice)

When people commit effort (time, money, energy) to access something, they rationalize that it must be even more valuable to justify their effort.

This is why customers who join a waitlist, a VIP list, or compete for an exclusive drop, often become your most loyal advocates.

They’re already emotionally invested. Your brand is not just “another brand” to them, now.

The hierarchy of human needs (connection, status)

Psychologist Abraham Maslow’s hierarchy of needs is a breakdown of what (in theory) all human beings innately need, firstly to stay alive, second to be happy and fulfilled.

Above the basic levels (things like food and shelter are most important, then health, family, employment), we get into things like connection and status.

We want to be part of a community. We also want social standing, things that signal high status amongst our peers.

Maslow’s theory suggests that these needs are hardwired into us.

Exclusive product launches, VIP communities, early access to new product drops or promotions all make your customers feel special.

They feel like they’re part of a tribe, with a level of status above the average buyer.

This is the kind of connection you can’t buy with a promo code.

Why exclusivity delivers long-term results

When you start building your retention strategy around exclusivity, you start building a more sustainable business model.

A store-wide promo might drive a short-term boost in sales that looks nice. But then you’ve got to do it all over again.

Exclusivity compounds. And it’s more profitable. It creates:

• List growth without margin erosion. People sign up to your lists, download your app, because they want the exclusive perks attached (not because they’re getting 10% off).

• Increased engagement. People check your emails, open your app, keep push notifications turned on, out of anticipation of what’s inside.

• UGC + organic buzz. People want to flaunt their status – they’ll post about being first or getting the “drop”. It’s free marketing.

• Higher LTV customers. They opt in for value, not savings. That means they’re not going to just use their discount and disappear.

Brands that excel at exclusivity marketing

The world’s biggest brands are built on exclusivity. So are many smaller, niche (yet hyper-profitable) DTC brands. Here are some examples.

Nike

Nike customers get early, limited access to new drops via the SNKRS app before the general public. This rewards loyalty and fuels FOMO, while building a direct connection between brand and customer via the app.

Supreme

Supreme built its empire by dropping extremely limited inventory, creating weekly product “events” where selling out was part of the brand experience. They don’t just sell clothes, they sell status and access. People flash big Supreme logos everywhere, which is free marketing and brand awareness.

Apple

Apple draws launch day lines and pre-orders… for products that aren’t even limited. Everything about their experience screams “exclusive” and “status”, which is why people wait in line overnight just to be one of the first to get their hands on the new iPhone.

Amazon

Amazon’s Prime membership isn’t just about fast shipping. It unlocks exclusive promos, early access deals, and invite-only sales events. It’s a direct exchange: pay to be part of the club, and the club gets you benefits others can’t touch.

Beekman 1802

Beekman 1802 promotes special deals and early access for shoppers who use their mobile app. This is one of the best ways to boost app adoption, in a way that both preserves margins and incentivizes continued engagement on the app.

McDonald’s

Even McDonald's uses app exclusives to drive downloads and engagement, offering limited-time deals only accessible through their app (the fact that some of the world’s biggest brands are focused on getting customers into their app tells you something about the retention power of mobile apps).

Away

Away regularly releases limited seasonal collections like the Aura Collection, giving customers newness and urgency without resorting to discounts. It keeps their premium positioning intact, while letting repeat customers “collect” exclusives (and drives repeat purchases in a category with traditionally low purchase frequency).

Atoms

Atoms offers limited edition collaborations (like the Atoms x MKBHD sneaker) and heavily promotes early access signups for new releases. These limited drops are built around scarcity and anticipation. Customers feel urgency to grab something rare and a sense of pride when they do.

Obvi

Obvi built a thriving Facebook group where loyal customers get early access to new flavors, secret promos, and insider updates. By giving their most engaged fans a “backstage pass” feel, Obvi taps into both belonging and status – two major psychological drivers – making customers feel part of the brand, not just one end of a transaction.

Practical applications (that get real business results)

Here are five ways you can start building exclusive experiences into your brand today.

1. Exclusive/early access as an incentive for signing up for your list

Frame your email & SMS lists as VIP lists, rather than the typical discount/contact transaction.

2. App-exclusives (exclusive/early access perks for app users)

Build exclusivity into your mobile app. Provide experiences and perks that only app users get access to.

3. Exclusive perks for loyalty tiers

Level up your loyalty program with exclusive perks, rather than boring “points for discounts”.

4. Limited edition product drops w/waitlist signup

Even if it’s just a different label or variant, limit supply. Add a waitlist. Build the hype before the product is even available.

5: Launch paid memberships with exclusive perks.

Like Amazon Prime, you could offer a membership program for your best customers, where a small fee gets access to attractive perks.

Final takeaway

If you’re still leaning cutting price to drive repeat purchases, it’s time to evolve.

Start thinking like a brand people want to be part of, not just the cheapest option.

It might feel strange to limit access in order to grow sales. Shouldn’t you want as many people buying as possible?

Perhaps. But not if it means cheapening your brand and getting by on razor-thin margins.

Exclusivity builds demand before supply. It makes people look forward to hearing from you. It elevates your brand positioning. And it drives higher lifetime value because people buy with intent, not just impulse.

Exclusivity isn’t a gimmick. It’s a growth lever.

It builds loyalty that doesn’t require margin sacrifice.

It turns customers into advocates.

And it makes your brand worth talking about – no coupon necessary.

Quick Hits

There’s a lot of news and content out there right now. Here’s what you should be paying attention to.

ChatGPT + Shopping Results

It’s here - OpenAI officially announced the rollout of shopping results in ChatGPT, ushering possibly a new area in ecom marketing.

There’s a lot of talk right now over just how much is going to change, but the smart play would be to start looking into how you can maximize your products’ visibility in AI search (if you haven’t already).

Read more →

“LLMs will become ad platforms within 24 months”

Are you prepared for ChatGPT to be the big new ad network?

That’s what a lot of people are predicting.

As one agency owner wrote: “This is what Google Ads looked like in 2001”. Think about the times you wished you were an early adopter of something: Bitcoin, Amazon FBA, Google/FB Ads. We might be at that stage pretty soon with LLMs.

Read more →

Will LLMs Change That Much in Ecom?

The debate is still out whether ChatGPT (and related tools) are really going to change the game that much for online shopping.

Some claim search doesn’t have that much impact, and that LLMs will still take a while to put a dent in Google and other search engines.

Yet others disagree; saying the unique interactive nature of AI searches will lead LLMs to dominate the shopping experience before long.

Which side are you on?

Read more →

Winners and Losers of Section 321 Going Away

We’re about to see the end of the Section 321 (“de minimis”) loophole, finally.

Ridge’s Sean Frank gives a quick and insightful breakdown of who this change hurts the most, and who stands to benefit from it.

Read more →

Australian Brand Pauses US Shipments

First of many to come?

Australia-based brand Sylk Swim announced that they’re pausing all shipments to the US due to tariff increases and the removal of de minimis.

Read more →

Meta Facing $7 Billion Advertising Loss

Meta may be looking at a staggering loss in the fallout of the trade war. As many brands pause more expensive acquisition channels (like Meta ads) - as well as Shein and Temu effectively pulling out of the US - experts believe the giant could lose out on as much as $7b in revenue.

Read more →

Will Tariffs Actually Be a Good Thing for US Businesses?

Aaron Rubin thinks it might.

In this excellent video, he breaks down a lot of the shady stuff offshore companies do - and how removing these unfair advantages and increasing enforcement will eventually have a positive impact (and drive higher margins) for brands in the US.

Read more →

Solo Brands Delisted from NYSE

Solo Brands (owner of Solo Stove, Chubbies), continues to trend downwards, as the company looks headed for bankruptcy.

They own some massive brands, and do half a billion in annual revenue - showing you that revenue is not all that matters… and that the era of growth at all costs is coming to an end.

Read more →

That’s all for now.

I’ll be back in touch next week, with more on how successful brands are doing CX and retention right.

Remember to check out our podcast on Spotify and YouTube, and give it a like/comment/sub if you found the content useful.

Until next time,

Pietro and The Retention Edge Team