Why DTC Brands Are Killing Their Loyalty Programs

The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth · Sep 30, 2026 · 11m · transcript

Most direct-to-consumer brands built loyalty programs around points and tiers. It was a simple playbook: spend more, get rewards. But as of late September twenty twenty-six, that model is collapsing under its own weight. In this episode, we look at why top-performing DTC companies are quietly dismantling their traditional reward structures to focus on one metric that actually moves the needle for profitability: gross margin retention. We break down the specific math behind why giving away free product destroys unit economics, and how brands like Casper and Warby Parker are shifting toward…