Your business is far from average—and so are your customers. So what’s stopping them from joining your loyalty program? The strength of a great loyalty program is measured by its ability to influence and attract loyal customers. In fact, 79% of shoppers say loyalty programs make them more likely to continue doing business with a brand.
The days of stamp cards and generic discounts are behind us. Today’s customers want exciting experiences and rewards that matter to them—so it’s essential to put their needs first. After all, a loyalty program is only as good as the customers who use it. So, what exactly makes a good loyalty program? And how can you ensure yours passes the test?
Let’s explore the dos and don’ts of what customers truly want from your loyalty program.
Customers Want Program Clarity
✅ Do keep it simple
The mantra “keep it simple” applies to loyalty programs too. Your rewards structure should be easy to understand. Before joining, customers want to know what they’re signing up for. Be transparent about how to earn and redeem rewards (e.g., 2 points per $1 spent, 100 points = $10 off), and how long points last.
❌ Don’t be too demanding
Avoid making the sign-up process overwhelming. While it’s tempting to collect as much customer data as possible, doing so upfront can lead to drop-offs. Start with just the essentials—name, email, and phone number—and gather additional information like birthdays or preferences later via email marketing.
Keep the program attractive with tangible rewards. Starbucks, for example, offers a free birthday drink and sends a welcome email that outlines how the program works. When you keep things clear and simple, customers instantly see the value.
Customers Want Quick Rewards
✅ Do personalize rewards
Customers crave experiences that feel tailored to them. Use their shopping habits to deliver relevant offers. For example, don’t offer free shipping to someone who only shops in-store. Segment your customers based on demographics, purchase history, or loyalty milestones to keep rewards meaningful and engaging.
❌ Don’t make goals unattainable
If rewards take too long to earn, people lose interest. In fact, 53% of U.S. loyalty members abandon programs because rewards take too long to achieve. Offer special promotions—like BOGO deals or bonus points weekends—to make progress faster and more exciting. When customers see tangible results, they stay motivated.
Making rewards easier to reach can boost retention by 60% or more—and that directly impacts your bottom line.
Customers Want Recognition
✅ Do recognize your VIPs
Loyal customers love being appreciated. Tiered rewards are a powerful way to do this—57% of customers say they’re more likely to engage with a program that offers VIP perks. Reward high-value customers with special benefits like exclusive discounts, early access to new products, or platinum-tier-only codes. Brands like Sephora and Marriott do this exceptionally well.
❌ Don’t generalize your customers
Not all customers are the same, and they shouldn’t be treated as if they are. Rewards should reflect where someone is in their journey. Ask for feedback through surveys and use your data to craft experiences that feel personal. Tailoring rewards boosts engagement and encourages long-term loyalty.
Customers Want to Be in the Know
✅ Do keep your brand top of mind
Customers want to stay informed. Use reminder emails and notifications to update them on promotions and reward progress. Think of your program like a weekly flyer that builds excitement. Automated messages can remind customers how close they are to a new tier, send birthday perks, or announce point-multiplier events.
❌ Don’t assume everyone wants emails
Marketing isn’t one-size-fits-all. An omnichannel approach can boost retention by 90%. Supplement your email campaigns with SMS, push notifications, or even printed flyers if you have a brick-and-mortar store. Understanding where and how your customers engage—whether it’s online, in-store, via mobile app, or social media—helps you communicate more effectively.
Final Thoughts
Whether you’re launching a new program or improving an existing one, the tips above can guide your way. Customers respond best to loyalty programs that are easy to use, transparent, and rewarding. They want to feel seen, valued, and excited every step of the way.
Focus on what your customers want—and what motivates them—and you’ll build a program that exceeds expectations and keeps them coming back for more.
Ready to get started?
Take your customer experience from good to great with Kangaroo Rewards—an all-in-one loyalty solution designed to attract, retain, and grow your customer base.
Book a demo today and see how easy it is to make shopping more rewarding.
