December 22, 2025

Why CMOs Are Replacing Loyalty with Community Commerce

TL;DR

  • Loyalty programs optimize transactions; community commerce builds leverage through participation and trust
  • Rising CAC forces CMOs to replace rented attention with owned, customer-led distribution
  • Community-engaged customers deliver materially higher LTV and repeat purchase velocity
  • Community commerce turns customers into a scalable growth channel, not a retention tactic

For most of my career, brand growth followed a familiar playbook.

Acquire customers through paid channels.
Optimize conversion rates.
Rely on loyalty programs to drive repeat purchases.

That model no longer works.

Today, the hardest problem CMOs face isn’t creativity or tooling — it’s efficiency. Customer acquisition costs continue to rise. Paid channels are saturated. And most retention programs fail to create meaningful differentiation.

The result? Growth that’s increasingly expensive, fragile, and difficult to defend.

What’s emerging in its place isn’t a new channel, but a new growth system: Community Commerce. From a CMO’s perspective, the shift is straightforward.

Obsession pays off.

The CAC Problem CMOs Can’t Ignore

Paid media is no longer a lever you pull — it’s a tax you manage.

Most DTC and omnichannel brands remain dependent on rented attention from platforms they don’t control. You can optimize spend, test creative, and rebalance budgets, but the underlying problem doesn’t change: brands don’t own a scalable, high-intent relationship with their customers.

Traditional loyalty programs were supposed to fix this. Instead, many have trained customers to wait for discounts.

Points-based systems reward transactions, not advocacy. They offer little insight into who’s actually driving growth and almost no leverage beyond the next purchase.

From a CMO lens, the issue isn’t loyalty.

It’s leverage.

What Community Changes for Growth Leaders

At TYB, we don’t think about community as content.

We think about it as infrastructure.

The insight that led to TYB was simple but powerful: customers who actively engage with a brand — through feedback, content, referrals, and participation — are dramatically more valuable than customers acquired passively through paid channels.

When we measured it, the difference was undeniable.

Community-engaged customers delivered 4x higher value than customers acquired through Instagram or Facebook alone.

For a CMO, that changes everything.

Community stops being a “nice to have” and becomes a measurable growth channel — one that compounds over time instead of resetting every month.

Community Commerce: Loyalty Rebuilt for Modern Brands

Community Commerce isn’t a rebrand of loyalty.

It’s a rebuild.

The goal isn’t to incentivize purchases with points. It’s to design systems where customers earn status, identity, and belonging by contributing to a brand’s success.

From a growth standpoint, this unlocks three things:

  • Lower CAC through customer-led distribution

  • Higher LTV through deeper engagement

  • More durable demand driven by trust, not ads

At TYB, we often say: every brand needs a multiplayer game.

When customers feel like participants — not just buyers — engagement becomes intrinsic.

Customer as Distribution

One of the most underutilized assets in modern marketing is the customer themselves.

Creators have had tools to monetize their influence for years. Customers — who are often more trusted and more aligned — haven’t.

Community Commerce closes that gap.

Through TYB, brands activate customers through structured challenges that prompt high-impact actions, including:

  • Creating authentic UGC

  • Providing product feedback

  • Sharing products with friends

  • Participating in launches and experiences

As customers complete challenges, they level up — unlocking early access, exclusives, and real-world experiences.

This is what we mean by customer as distribution.

It’s organic growth, engineered.

Platform Capabilities Powering Community Commerce

From a CMO standpoint, tooling only matters if it drives outcomes.

Here’s how we see it working in practice:

Obsessions: Authentic UGC at Scale

Obsessions prompts verified purchasers to create reviews and content that are shoppable and attributable. This isn’t generic UGC — it’s customer-generated content that drives conversion while building long-term trust.

TYB Shop

TYB Shop allows brands to activate community demand instantly through early access, exclusives, and co-created products. In the past year alone, over $25M in GMV has flowed through TYB Shop, validating community as a real revenue channel — not an engagement experiment.

Obsessions Plus: Customer Affiliate

Obsessions Plus enables brands to pay customers cash for driving sales of products they already love. For CMOs, this introduces a performance-based, trust-led alternative to traditional affiliate and influencer programs.

The Metrics That Matter

Community Commerce works because it aligns incentives across marketing, product, and brand.

In the last year alone:

  • TYB grew 330% year over year

  • Millions of members actively participated across the platform

  • Over 25 million challenges were completed (10x YoY growth)

  • Community members purchased 2x more frequently

  • Their LTV grew 6x faster than non-community customers

These aren’t vanity metrics.

They’re signals of channel maturity.

The Next Advantage: Experiential, IRL

As digital channels become more crowded, the next growth advantage will feel human.

Experiential, in-real-life moments are emerging as a powerful CAC unlock. When brands create events their community genuinely wants to attend, amplification becomes organic.

Customers show up.
They capture the moment.
They share it — not because they’re paid, but because they’re proud to belong.

From a marketing efficiency standpoint, IRL experiences are among the highest-leverage investments brands can make.

The CMO Mandate Going Forward

The future of growth isn’t about choosing between brand and performance.

It’s about building systems where customers help drive both.

Community Commerce gives CMOs a way to reduce dependence on paid media, increase LTV, and build defensible growth rooted in trust and participation.

Obsession isn’t a soft metric.

When designed correctly, it’s the strongest growth engine brands have.

Frequently Asked Questions

Why are CMOs moving away from traditional loyalty programs?

Traditional loyalty programs rely heavily on points and discounts that erode margins and fail to build lasting emotional connection. CMOs are shifting toward community commerce because it drives retention, advocacy, and lifetime value without increasing incentive costs.

What problems do CMOs see with legacy loyalty programs?

Legacy programs are expensive to maintain, easy for competitors to copy, and difficult to tie to real business outcomes. They often reward transactions rather than trust, participation, or belief.

What is community commerce from a CMO perspective?

Community commerce is a strategy that turns customers into participants and advocates. Instead of rewarding spend alone, it rewards engagement, contribution, and influence—creating a more durable growth engine.

How does community commerce improve loyalty ROI?

Community commerce lowers CAC, increases retention, and boosts CLV by relying on organic advocacy and repeat participation. This allows CMOs to grow revenue more efficiently than discount-driven loyalty models.

Why is community better aligned with modern brand strategy?

Modern brands compete on identity, trust, and experience—not just price. Community reinforces these elements by creating shared culture and many-to-many connection, which traditional loyalty programs can’t replicate.

How does community commerce perform during economic pressure?

During periods of rising CAC and budget scrutiny, community commerce provides resilience. Owned audiences, referrals, and advocacy reduce dependence on paid media and stabilize growth performance.

Can community commerce be measured as effectively as loyalty programs?

Yes. Modern platforms track participation, advocacy, referral impact, retention lift, and revenue influence. Community commerce becomes measurable when it’s treated as infrastructure rather than a campaign.

How does TYB help CMOs replace loyalty with community commerce?

TYB provides the infrastructure to activate fans, reward engagement, and connect community participation directly to measurable outcomes like CAC efficiency, retention, and CLV—giving CMOs a scalable alternative to legacy loyalty programs.