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/ Loyalty

What makes a successful customer loyalty programme

What makes a successful customer loyalty programme

Achieving customer loyalty right is undoubtedly a difficult task. According to a recent study by CapGemini, a majority of current customer loyalty programs are failing, despite the industry’s on-going efforts to digitise the experience. 53% of consumers that join a loyalty program abandon it within a year. The data also shows that the younger generations, in particular, aren’t engaging with loyalty platforms.

Due to the lack of customer engagement, you might be investing time and resources into programs that are failing to meet your target.

So, why are customer loyalty programs unable to engage consumers? Reasons could include the following:

  • There’s no clear value for customers,
  • Offers aren’t relevant or personalised,
  • The customer experience isn’t as seamless as it could be, or
  • There’s a disconnect between marketing and sales data.

Let’s take a closer look at these issues and how you, as a merchant, could resolve them.

Offer customers a unique value proposition


The majority of loyalty campaigns are point-based, giving customers the ability to earn points that they can exchange for rewards. Although such programs are simple enough to communicate about, studies have shown high abandonment rates due to the amount of time it takes for customers to see the value. Your customers can quickly tire of waiting to rack up enough points to get a meaningful reward, or they forget about them.

A potential solution to this issue could be to reward your customers at the point of sale, based on their spending history. This could be an effective way of showing appreciation for loyal customers and making them feel rewarded in a ‘surprise and delight’ moment.

Not quite sure how to implement this type of reward? Consider offering discounts and instant Cashback on Purchase to your most loyal customers. These are tangible rewards that will increase brand affinity and compel customers to return to your store for more.

Offer relevant and personalised rewards


When it comes to the current loyalty programs on the market, the majority of these tend to take a more blanket approach over offering personalised rewards. While this is a simple model, it doesn’t deliver the tailored approach that modern consumers want.

Your customers want relevant offers sent to them to make their individual shopping experience easier and more convenient.

So, how can your businesses deliver this?

A personalised loyalty campaign requires in-depth knowledge of your customers’ spending habits and lifestyle, beyond just what they purchase in your store. Getting access to valuable shopping data can enable you to create more personalised and relevant offers, which are sure to lead to an increase in loyalty.

Provide a seamless and engaging customer experience


To stand out in today’s crowded market, especially online, businesses need to offer their customers simple and convenient shopping experiences. While many store loyalty programs are now digitised, they’re still not connected to the point of purchase.

This disconnect means customers often have to install a separate app to get their reward or check in to their loyalty card when they shop. This can create a clunky shopping experience that leads to dissatisfaction and eventual disengagement.  

So, what’s the solution?

The ultimate solution lies in bringing both the purchase experience and loyalty reward experience closer together. You can implement this using a payment platform that organically integrates into the payment flow. At OMG, we’re looking to offer this opportunity to your customers.

Measure results and take action

Finally, you want to be able to analyse the campaign performance to see if the integration of the loyalty program at the point of purchase achieves the desired level of customer flow.

Ultimately, the real value of a loyal customer comes from repeat purchases based on their emotional and psychological connection with your brand. Such connections can be created by receiving tangible value, having a personal affinity for the brand, and enjoying shopping experience with you every time. And a satisfied customer will go on to raise awareness through word-of-mouth.  


At OMG, we understand and appreciate the challenges discussed above. We’ve developed a set of tools to help you get past them. You can learn more about what we do for Merchants on our website.

Alexey Gutin

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