#CONTEXT:
I need to design a customer loyalty program for my business. The program should incentivize repeat purchases, increase customer lifetime value, and make our best customers feel genuinely valued — not just like they're accumulating tokens. I want a program that fits my business model economically, is simple enough for customers to understand immediately, and generates measurable improvements in retention and repeat purchase rates.

#ROLE:
You are a customer retention strategist and loyalty program designer with experience building retention programs for e-commerce, service businesses, SaaS, and hospitality brands. You know that the best loyalty programs are built on emotional connection as much as reward mechanics, and you know how to design programs that are economically sustainable rather than margin-destroying. You build systems that turn customers into advocates.

#RESPONSE GUIDELINES:
1. Start with a program strategy brief: the primary retention goal, target customer behavior change, and the core program mechanic best suited to my business model.
2. Design the full rewards structure including: point/credit earning mechanics, redemption options, tier structure (if applicable), and program economics (cost per point, redemption value, estimated program cost as % of revenue).
3. Map the customer lifecycle touchpoints where the loyalty program should be most visible and engaging.
4. Design the enrollment experience: how customers discover and join the program, what happens in the first 7 days, and what the first reward milestone is.
5. Create the communication strategy: how we talk about the loyalty program across email, in-product, and marketing — including the messages that re-engage dormant members.
6. Define success metrics and a 90-day measurement plan.

#LOYALTY PROGRAM CRITERIA:
1. The reward mechanic must be immediately understandable to a customer in 10 seconds — if they need to read a FAQ to understand how to earn rewards, the mechanic is too complex.
2. The first reward milestone must be achievable within 2–3 transactions for a typical customer — early wins are essential for habit formation.
3. Program economics must be modeled honestly: the cost of rewards issued must be estimated as a percentage of revenue, and the program must be profitable if it achieves its retention targets.
4. The program should reward the behaviors you most want to reinforce — repeat purchase, referral, review, high-order-value — not just activity for its own sake.
5. Tier structures, if used, must have meaningful (not trivial) differences in benefits between tiers — if the top tier isn't significantly better, customers won't aspire to it.

#INFORMATION ABOUT ME:
- My business type and what I sell: [BUSINESS TYPE AND PRODUCT/SERVICE]
- My average customer and purchase behavior: [CUSTOMER BEHAVIOR — e.g., average order value, typical purchase frequency, average customer lifetime]
- My current retention situation: [CURRENT STATE — e.g., most customers buy once, we have 30% repeat purchase rate, churn is 5% monthly]
- My primary customer segments: [SEGMENTS — who my best, average, and at-risk customers look like]
- My budget and resource constraints for the program: [BUDGET — e.g., can allocate 3–5% of revenue to rewards, no dedicated loyalty team]
- My existing tech stack relevant to loyalty: [TECH — e.g., Shopify, HubSpot, Stripe, email platform]

#RESPONSE FORMAT:
Program Strategy Brief:
- Primary goal: [specific behavioral change]
- Target metric improvement: [e.g., increase repeat purchase rate from 30% to 45% within 12 months]
- Best-fit program mechanic: [points / tiered membership / paid membership / cashback / experience-based / hybrid]
- Rationale: [why this mechanic fits this business]

Rewards Structure:
Earning mechanics:
- [Behavior]: earns [value] points/credits/reward
- [Behavior]: earns [value] points/credits/reward

Redemption options:
- [Option]: requires [threshold], worth [value], estimated cost [%]

Tier Structure (if applicable):
| Tier | Qualification | Benefits | Estimated % of Customers |
|---|---|---|---|

Program Economics:
- Estimated cost per active loyalty customer: [amount]
- Program cost as % of revenue: [%]
- Break-even: requires [X]% improvement in repeat purchase rate

Customer Journey Map:
- Discovery: [how customers learn about the program]
- Enrollment: [how they join and what happens immediately]
- First milestone: [achievable in [X] transactions — reward: [what they receive]]
- Engagement: [what keeps them active]
- Re-engagement: [what brings dormant members back]

Communication Strategy:
- Program announcement: [channel + message]
- Enrollment confirmation: [what to send within 24 hours]
- Progress nudges: [trigger + message type]
- Milestone celebration: [trigger + message type]
- Win-back sequence: [trigger + message type]

Success Metrics (90-Day Plan):
| Metric | Baseline | 30-Day Target | 90-Day Target |
|---|---|---|---|

## Information about me

- My business: E-commerce store selling premium prompt template bundles and AI productivity toolkits for business professionals
- My customer behavior: Average order value $67, most customers buy once; about 22% make a second purchase within 6 months; average 3-month customer lifetime for non-repeat buyers
- My current retention: 22% repeat purchase rate, would like to reach 40% within 12 months
- My customer segments: Power users (buy 3+ times/year, evangelize to colleagues), one-time buyers (never return), lapsed buyers (bought 6+ months ago, no further activity)
- My budget: Can allocate up to 4% of revenue to loyalty rewards; no dedicated loyalty manager
- My tech stack: Shopify, Klaviyo for email, no existing loyalty tool