A brand’s differentiator is built by looking inward
Brands only stand out by looking inward - understanding their culture, purpose, and audience - to create authentic loyalty. Copying competitors leads to sameness; true differentiation comes from within.
In May, two news pieces in Valor Econômico caught my attention: the first announced record revenues for companies that are part of ABEMF (Brazilian Association of Loyalty Market Companies), with R$21.9 billion in revenue in 2024; the second, the result of a survey commissioned by the same newspaper, pointed out that in 2025, only 3% of Brazilians have a strong relationship with any brand.
What this study shows is that, just like consumers around the world, Brazilians are more inclined to try new brands, which is the result of two main factors: a saturated market full of options and an overload of information. On the other hand, according to ABEMF data, the number of registrations in loyalty programs in the country reached an incredible 332.2 million in 2024. Contradictory, isn’t it?
I know correlation is not causation, but in my view, it makes sense that in a world of countless options, companies are investing more in loyalty strategies—after all, these bring positive ROI—and that consumers, in turn, use these initiatives as a deciding factor in choosing one brand over another. The question now is, if everyone is doing it, how do you stand out enough to catch the customer’s attention and not just be another program in the market?
You have to look inward
I start from the principle that a company offers price, quality, and services consistent with its market. These are basic factors; we all want solutions for our needs that fit our budgets. And if all brands in a given sector are equivalent in these aspects, they will seek a differentiator through offers—discounts, perks, etc. Then we have a race to the bottom, with companies sacrificing revenue and copying each other.
This is where I believe the two news items about loyalty in Brazil intersect. Practically every company today knows it needs to invest in loyalty and relationship strategies, and many are doing so—ABEMF’s revenue is proof. However, the consumer, always the consumer, still hasn’t been convinced, given the low loyalty rates.
Why? Because these brands are looking outward instead of inward. Copying a competitor won’t make your company stand out.
Yes, there are initiatives that become models, but just because a competitor’s program worked doesn’t mean copying it will yield the same result. Knowing what the market is doing is essential, but benchmarking should be seen as a starting point, not a map to be copied. Even within the same segment, two companies do not have the same culture, and there are certainly nuances in their audiences that justify a unique approach.
It’s this “looking inward” that should guide loyalty initiatives—ones that are tied to the company’s core business and the values it and its audience uphold.
Escaping the Sea of Sameness
For some time now, experts have warned about the “Sea of Sameness.” Generally, these are herd effects, with everyone jumping on the trend of the moment. Points programs had their boom, then cashback, and so the market goes... Not that there’s anything wrong with these levers—on the contrary. But if the reason to implement them is “because my competitor offers them,” the brand takes a step toward being just another in the sector, without its own identity.
And it’s not about trying to reinvent the wheel. Simplicity is always key. Consumers will prefer recognized benefits, at least until the “strategy fatigue” sets in. But even a familiar lever can bring differentiated elements—benefits that only that brand can provide, whether status, community, etc. Understanding the internal culture and purpose of the company (and thus the brand’s differentiator) and knowing your target audience are the foundation for defining the best loyalty strategy.
A recent Kantar white paper, “Beyond Satisfaction: How Meaningful Difference Drives Brand Growth”, highlights many of the elements I advocate (to which I would only add ‘purpose beyond profit,’ values to share with the public). The author says that brands that invest in creating experiences with meaningful differentiation will not only attract attention today, but will also build lasting relationships. This is the premise of any loyalty strategy. Here are the six key elements presented in the document:
To create meaning:
Effectiveness: Consistently deliver on what was promised;
Ease: Make experiences easy and enjoyable;
Affinity: Build connection through empathy.
To create difference:
Authenticity: Stay true to core values;
Uniqueness: Offer what others do not;
Inspiration: Create memorable moments.
That’s it, folks! I hope you enjoyed it. Comment, send suggestions, and share ideas!
Leading Questions About Looking Inward for differentiation
Why is brand differentiation increasingly difficult in today’s market?
Because consumers face a saturated market with too many options and information overload, making it harder for brands to build strong, lasting relationships.
Why do most loyalty programs fail to create genuine customer loyalty?
Many brands focus on copying competitors instead of aligning loyalty initiatives with their own values and culture, resulting in undifferentiated, ineffective programs.
What does “looking inward” mean for a brand’s loyalty strategy?
It means basing loyalty efforts on the company’s unique culture, core business, and shared values with its audience, rather than simply following market trends.
What is the ‘Sea of Sameness’ and how can brands avoid it?
The “Sea of Sameness” refers to brands all offering similar programs and perks, making none stand out. Brands can avoid it by creating unique benefits rooted in their identity.
How can brands create meaningful, lasting differentiation?
By understanding their internal culture, focusing on purpose beyond profit, and designing experiences and benefits that only their brand can authentically deliver.
