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ProductDecember 20, 2025schedule3 min read · 581 words

Building Anchor: What We Learned About Loyalty Apps

N7

No7 Engineering Team

Growth Architecture Unit

Product — Building Anchor: What We Learned About Loyalty Apps — illustration

When we started building Anchor Loyalty, we'd already integrated dozens of loyalty apps into client stores. Most worked fine. None felt great. So we set out to build something better.

What's Wrong with Most Loyalty Apps

Performance Impact

Most loyalty apps load heavy JavaScript on every page. Points balances, tier badges, widget pop-ups—all nice features, but not when they add 300ms to your page load time.

Generic Experience

Points for purchases, discounts for points. That's the entire feature set of most apps. It works, but it doesn't differentiate your brand or create genuine loyalty.

Difficult Integration

Getting loyalty data into email campaigns, displaying points in custom theme sections, or connecting to headless frontends—these range from difficult to impossible with most apps.

How We Built Anchor Differently

Technical Approach:

  • speedMinimal frontend footprint: Core functionality loads async, doesn't block rendering
  • apiAPI-first design: Everything is accessible via API for custom integrations
  • codeNative Hydrogen support: Built for headless from the start
  • psychologyBehavioural triggers: Rewards based on actions, not just transactions

What We're Still Learning

Building a product is different from building for clients. With client work, you build what they need. With a product, you have to decide what everyone might need—and that's harder than it sounds.

We're iterating based on feedback from early users. Some features we thought were essential barely get used. Others we considered nice-to-haves turn out to be critical.

Common Mistakes We See Merchants Make with Loyalty

  • Launching with too many tiers. Three tiers is plenty. Five or six confuse customers and dilute the aspirational pull of the top tier.
  • Points-to-discount ratios that look bad on a receipt. If 500 points equal £2.50, the perceived value is poor. Smaller-sounding conversion rates (100 points = £5) consistently land better, even when the underlying economics are identical.
  • Rewarding only purchases. The loyalty programs with the highest engagement also reward content — reviews, referrals, profile completion, community participation. These are nearly-free rewards with strong behavioural payoff.
  • Ignoring dormant members. Members who haven't engaged in 6+ months are the ones most likely to churn permanently. A targeted re-engagement offer (time-limited, tier-preserving) works where a generic discount does not.
  • Not connecting loyalty to operational systems. Customer support should see loyalty status before the conversation starts. Without that, a VIP gets treated like a first-timer and the whole programme feels hollow.

What Genuinely Moves Retention (From the Data We See)

Across the Anchor stores we watch and the client implementations we've audited, the patterns are consistent. Retention lift comes from experience differences, not from points maths:

  • A personalised "welcome back" moment after an account's first 90-day dormancy.
  • Unlocking early access (not just discount) to new launches for top tiers.
  • Post-purchase handwritten-feel emails at specific lifetime-value milestones — not generic thank-you messages.
  • Referral programmes where both sides get something immediately valuable. Single-sided referrals perform 3-5x worse.
  • A visible loyalty surface in the account page — not buried three clicks deep.

Where Anchor Is Now

We're live with a handful of stores, refining the experience based on real usage. It's not ready for the App Store yet—we want it to be properly good, not just good enough.

If you're interested in trying it early, or just want to give feedback on what you'd want from a loyalty app, we'd love to hear from you.

Interested in Anchor?

We're working with select stores during our beta period. If you're looking for a loyalty solution that doesn't compromise on performance, let's talk.

Learn more at AnchorLoyalty.comarrow_forward