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Paid ads are getting more expensive and less effective for eCommerce brands. Owned channels - like reviews, loyalty, and email marketing - offer a more sustainable alternative. Learn how they can reduce acquisition costs, improve retention, and build long-term customer relationships that drive growth.
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If you run an eCommerce brand, you’ve probably noticed two things:

  • Ads are more expensive than ever.
  • Returns are shrinking.

Paid acquisition used to be a growth engine. Now it’s a treadmill. The second you stop spending, growth stops. 

Add privacy restrictions, weaker targeting, and rising competition, and merchants are left asking: what’s the alternative?

The answer: owned channels.

These are the strategies you control, the customer relationships you own, and the levers that drive growth over time.

Summary

  • Paid ads are delivering lower returns. Customer acquisition cost (CAC) has risen dramatically, privacy updates have weakened targeting, and AI search is shifting discovery away from ads.
  • Owned channels are durable, compounding assets that give merchants control over their growth.
  • Reviews, loyalty, and email work best when integrated, creating a cycle that reduces CAC, increases lifetime value, and strengthens brand trust.
  • REVIEWS.io and Influence, with advanced Klaviyo integration, give merchants a powerful, connected system for owned growth.

Why are paid ads delivering lower returns for eCommerce brands?

Paid channels may still deliver customers. But they no longer offer the reliable, profitable growth they once did.

Ad costs are cutting into margins. In eCommerce, cost-per-click (CPC) rates have risen by close to 60% in recent years, directly eating into profit.

Privacy updates are eroding targeting. With Apple’s iOS changes and the phase-out of third-party cookies, merchants can no longer rely on precision retargeting.

Competition is fierce. Platforms like Google, Meta, and TikTok prioritize whoever pays the most. Smaller brands often struggle to compete with big-budget rivals.

Growth stops when spending stops. Paid advertising is rented reach: once the budget stops, so does visibility and sales.

AI-driven search is changing discovery. Increasingly, shoppers aren’t clicking on ads - they’re asking AI tools for recommendations. These models surface trusted brands, strong reviews, and UGC as proof points. 

As a result:

  • Paid placements risk being bypassed.
  • Brands without robust owned assets (reviews, loyalty, email-driven communities) may disappear from AI-generated results.
“Paid ads are losing impact as costs rise and AI shifts discovery. Merchants without strong owned channels risk vanishing from the conversation.”

What exactly are owned channels in eCommerce?

Owned channels are marketing assets and customer relationships you control. Unlike paid, they don’t vanish the moment you stop spending.

  • Paid channels: You rent access to someone else’s audience (ads, search).
  • Owned channels: You build assets that belong to you (reviews, loyalty programs, email lists).

Owned channels are durable

A review collected today can still influence buyers next year. An email subscriber can be reached repeatedly at zero additional cost. A loyalty member has ongoing reasons to stay engaged.

And with the rise of AI-driven search and shopping, they’re only becoming more important.

Forward-thinking merchants recognize this shift. Instead of relying solely on ads, they’re moving from a “paid-first” model to a balanced approach:

  • Use paid for reach.
  • Use owned for retention, profitability, and equity.

Let’s explore the three pillars of this owned-growth strategy.

Reviews and UGC: build trust that converts

Reviews are one of the most valuable assets a merchant can own because they create credibility. Shoppers trust the experiences of other customers far more than brand messaging or ads.

In the background, 3 examples of customer reviews created into shareable graphics. In front of this in the middle, a mockup instagram post sharing one of these reviews.

Reviews also matter for visibility.

As AI search becomes part of shopping discovery, brands with strong review profiles and authentic customer content are more likely to be surfaced in AI-generated answers - delivering exposure without the ongoing cost of ads.

“Reviews are the proof you own - credibility that compounds, content that converts, and trust that puts your brand in AI-driven search results.”

Loyalty programs: keep customers coming back

Loyalty programs turn one-time buyers into repeat customers and encourage them to bring others with them. They shift growth away from expensive acquisition toward profitable retention.

  • Retention economics: Retaining a customer can cost five to 25 times less than acquiring a new one.
  • Bigger baskets: Customers spend more to unlock rewards or maintain VIP status, directly lifting average order value (AOV).
  • Referrals: Incentivised sharing creates a steady, low-cost stream of new customers.

Loyalty also delivers first-party data. Every transaction, reward redemption, and referral gives merchants insights into what motivates their audience. 

That data supports smarter segmentation, stronger personalization, and higher customer lifetime value (CLTV).

“Loyalty is growth you own - driving repeat purchases, increasing lifetime value, and unlocking first-party data that strengthens your strategy.”

Email marketing: the channel that ties it all together

Email remains the most profitable channel in eCommerce, delivering an average ROI of $36 for every $1 spent. Its strength lies in its ability to connect other owned assets into one continuous customer journey.

  • Automation: Review requests, loyalty reminders, referral prompts, and win-backs can all run in the background.
  • Personalization: Campaigns segmented by loyalty tier, review sentiment, or purchase history deliver relevant messages at the right time.
  • Amplification: Email distributes the value of owned assets by showcasing reviews, promoting rewards, and building community.

And unlike paid platforms, email is direct. No algorithms, no bidding wars. Just a channel you fully control, ensuring your brand always has a reliable way to reach its customers.

“Email is your direct line - high ROI, highly personal, and the link that connects reviews and loyalty into a cycle of growth.”

How do reviews, loyalty, and email marketing work together?

Each of these channels brings value on its own. But the real impact comes when they’re connected. 

Together, they create a cycle of growth where every customer action fuels the next:

  • A shopper reads reviews and feels confident enough to buy.
  • A well crafted review invite asks for feedback, with loyalty points awarded on submission.
  • A happy reviewer is invited to refer friends, earning more rewards in the process.
  • Loyalty data then powers personalized email campaigns, offering VIP perks or tailored product recommendations.
  • These are further strengthened by your UGC, dynamically embedded in each email to drive trust and engagement.
  • New customers brought in through referrals repeat the cycle.
a pink to blue gradient square to gain points by writing a review. Leading from this, 4 customer review images of various accessories. Then from here, a example of an email with UGC from reviews in it

This kind of integration isn’t just efficient. It’s compounding. 

Each loop strengthens your customer relationships, adds more first-party data to your ecosystem, and reduces your reliance on paid ads for growth.

“When reviews, loyalty, and email work together, every customer action adds momentum to the next, creating growth that builds on itself.”

What’s the real ROI of owned channels vs paid ads?

The difference between paid and owned growth can be summed up simply:

  • Paid is linear. You spend to acquire a customer, and the moment you stop, growth stops. Costs keep rising as competition intensifies.
  • Owned is compounding. Reviews, subscribers, and loyalty members are assets you keep. Each one adds long-term value, even if your ad spend drops tomorrow.

ROI comparison:

  • Paid ads deliver quick spikes but no residual value.
  • Owned channels reduce CAC over time, increase lifetime value, and keep delivering returns long after the initial investment.

As ad costs continue to climb and AI reshapes search, merchants who stay dependent on paid channels will see diminishing returns. 

Those who build a strong base of owned assets will not only save on acquisition - they’ll be visible, trusted, and competitive in the channels that matter most.

“Paid stops when you stop spending. Owned keeps paying you back long after the initial investment.”

What tools integrate reviews, loyalty, and email effectively?

Owned growth delivers the best results when your tools work seamlessly together. 

That’s exactly what you get with REVIEWS.io and Influence - connected as part of the clearer.io ecosystem and both offering advanced integration with Klaviyo.

A background half blue and half bookcases. In front, 3 phone screens. One shows a video review for REVIEWS.io, one with a mock up email for Klaviyo and the final one is a stampcard reward program for Influence.

With this stack, you can:

  • Trigger advanced review collection through Klaviyo flows - request text, photo, and video reviews at the right moment, building social proof that drives conversion.
  • Reward reviews with loyalty points - incentivise customers to share their feedback, generating more UGC while deepening engagement.
  • Turn positive reviews into referrals - automatically invite happy reviewers to refer friends, creating low-cost acquisition loops.
  • Run sophisticated loyalty programs - with tiers, memberships, and VIP perks that increase order values and foster brand advocacy.
  • Segment with precision - target campaigns by review sentiment, loyalty tier, or purchase history to deliver highly relevant messages.
  • Bring UGC to life in your marketing - showcase reviews, photos, and videos directly in email campaigns, making them authentic and more persuasive.

The result is a connected growth system that reduces reliance on paid ads, strengthens customer relationships, and future-proofs your brand as AI reshapes product discovery.

Shift your strategy from rented growth to owned impact

Paid ads may still have their place, but they’re no longer the foundation of sustainable growth. For eCommerce brands navigating higher acquisition costs, shifting consumer behavior, and the rise of AI discovery, the future belongs to owned channels.

By investing in reviews, loyalty, and email marketing - and by connecting these strategies through platforms like REVIEWS.io and Influence - merchants can reduce reliance on paid traffic, strengthen customer relationships, and build a brand that lasts.

Owned growth isn’t just a tactic. It’s your moat. And the sooner you start building it, the more compounding value you create.

Want to drive more repeat purchases and customer referrals? Launch a loyalty program that rewards engagement, unlocks first-party data, and powers high-performance retention strategies. Book a demo with Influence

Ready to turn reviews into your most valuable asset? Collect text, photo, and video reviews that build trust, boost conversion, and increase visibility in AI search. Book a demo with REVIEWS.io.

Frequently asked questions

Are paid ads still worth using in eCommerce?

Yes, but they should no longer be your primary growth driver. Paid works best for reach, while owned channels build long-term profitability and resilience.

How do owned channels help reduce customer acquisition costs (CAC)?

By strengthening retention and advocacy, owned channels lower your reliance on expensive paid acquisition. Every review collected, loyalty member enrolled, and email subscriber gained reduces your overall CAC over time.

How quickly can merchants see results from owned channels?

The impact is often immediate. Reviews boost on-site conversion as soon as they’re published, while loyalty rewards and automated email flows start driving repeat purchases and referrals within weeks.

Why should I integrate my tools instead of using separate apps?

Disconnected tools create data silos and extra manual work. Integrating reviews, loyalty, and email lets you automate workflows, personalize campaigns, and maximize the compounding value of owned growth.

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