How do you involve customers to design a loyalty program?

Aug 13
5 min read

Updated: 4 days ago

Introduction

Loyalty programs today are no longer just traditional cards that give the customer discounts or points on every purchase. Strong competition and multiple choices for the consumer have forced companies to develop loyalty programs that are deeper and more closely linked to customers’ reality and interests. But the most important question: Where to start?

The answer is simple but powerful: Start with the customer themselves When you involve your customers in designing your loyalty program from the beginning, you ensure that the system is built on what they really need, not on internal assumptions that may not reflect reality.

In this article, we will review:

Why is customer involvement in loyalty program design important?
Ways and methods through which you can engage customers.
Practical examples of companies that have succeeded in this.
Mistakes to avoid.
Practical steps to build a participatory loyalty program from scratch.

First: Why should customers be involved?

Traditional loyalty programs are no longer enough Many SMEs imitate points or discount systems, but customers are becoming savvier and looking for real value.
The customer knows what they want better than you do Even the best internal studies may not reveal a client's priorities. While the client himself, when he shares his opinion with you, gives you a clear “road map”.
Promote belonging from the beginning When a customer feels like they participated in designing the system, they have a psychological connection and greater brand loyalty.
Reducing errors and failed experiments Instead of spending time and money on software that no one may use, engaging customers ensures you build a practical and effective software.

Second: How do you involve customers in designing the loyalty program?

1. Short questionnaires

Send a 3-5 question survey to your customers about what type of rewards they prefer.
Example questions: What motivates you most: discounts, gifts, special experiences? How many times a month do you use other loyalty programs? What value do you consider to be a fair starting point for loyalty?

2. Focus Groups

Choose 8-10 loyal customers and hold a dialogue session with them.
Discuss rewards ideas, points system, and redemption methods.

3. Social media platforms

Create a poll on Instagram or Twitter with a direct question: “If we were launching a loyalty program, what would you like to get?”

4. Pilot version

Released a limited version of the software to a small number of customers.
Collect their feedback and tweak the system before launching it fully.

5. Direct interaction with notes

After applying the modifications, tell customers: “We've added a new feature based on your suggestions.”
This enhances confidence that their opinions are translated into action.

Third: Different forms of customer engagement

Rewards according to personal preference
Some customers may prefer a cash discount.
Others may prefer a free gift or service.
Solution: Providing more than one option for the customer to choose himself.
Games and challenges (Gamification)
Have customers choose the types of challenges they like.
Example: “Buy twice in two weeks to get double the points.”
Community loyalty programs
Some customers prefer to have their points converted into donations.
You can involve them in choosing the beneficiary charities.
Unique rewards
Ask your customers: “What special experience would you like us to provide?”
It could be: a behind-the-scenes tour, a meeting with the project founder, or an exclusive product.

Fourth: Practical examples of successful companies

Starbucks Rewards
It launched frequent surveys asking customers what types of drinks or offerings they wanted.
Added 'Custom Orders' feature based on customer demand.
Nike Membership
It allowed customers to choose sporting experiences (such as attending exclusive training or seminars with professional players).
It did not impose standardized rewards, but rather let the customer determine what suits him.
Small local stores
A local coffee shop connected the dots by potentially naming a new drink on the menu for a loyal customer.
The result: widespread spread on social media due to customers’ participation in the experience.

Fifth: Benefits of customer engagement

Increase interaction When a client feels like they participated in the design, they become more excited to use the software.
Cost saving Avoid spending resources on an inefficient system.
Build a community around the brand Customers are turning from consumers to “partners”.
Achieving competitive advantage Most competitors impose ready-made software, while you provide software designed according to the customer's desires.

Sixth: Mistakes that should be avoided

Excessive complexity Don't make the program need a long explanation. Make the rule: “Easy to understand and easy to use.”
Neglecting customer reviews after the start The program is not static, but needs constant updating according to the development of customers.
Offering worthless rewards If the reward is unattractive, customers won't bother participating.
Lack of transparency If a customer feels that the system is unfair or ambiguous, they will quickly lose trust.

Seventh: Practical steps to build a participatory loyalty program

Data collection Start with short surveys. Monitor customers' purchasing behavior.
Building the first version Keep it simple (basic points + clear bonus).
Program testing Shoot it at a small sample. Collect customer feedback in multiple ways (live chat, messages, short survey).
Modify and improve Adjust rewards or points based on interaction. Add new items based on customer suggestions.
The big announcement At the final launch, he shared the story: “We designed this software with our customers.”
Continuous evaluation Every 6 months, do a software update survey.

Eighth: A practical scenario for a small project

Status: Local restaurant

Step 1: Send a short survey via WhatsApp to your customers: “Would you like it more: a cash discount or a free meal after a number of visits?”
Step 2: Choose 5 loyal customers and invite them to a dialogue session.
Step 3: Launch a trial (10 visits = free meal).
Step 4: Announce that the idea came from customer suggestions.
The result: increased engagement and word of mouth.

Ninth: The psychological aspect of customer engagement

Affiliation: When a customer feels that they have contributed to building the system, they feel that the brand belongs to them personally.
Estimation: Simply asking a customer for their opinion gives them value.
Emotional reaction: Participatory programs create a relationship that goes beyond buying and selling.

Tenth: Is it really worth engaging customers?

The answer: Yes, strongly.

Customer engagement saves years of bad experiences.
Boosts loyalty from the start.
It creates deeper loyalty because the customer sees themselves in the program.

Conclusion

Designing a successful loyalty program depends not only on offers and numbers, but on... Involve customers themselves. When you give them a chance to be part of the process, you not only get an effective loyalty program, but a... A community of loyal customers Who see your project as a reflection of their needs and preferences.