Loyalty programs you're doing it wrong (and how to fix it)

We all love discounts. But the way we typically approach loyalty programs is generic, overused, and feels boring.

Many think "points" represent the pinnacle of loyalty. I disagree. I've been a victim of poorly designed loyalty programs, and I'm sure you have too. Think about these familiar frustrations:

• Being asked to tap for rewards, then tapping again to pay.

• Downloading an app for a one-time discount, only to delete it later.

• "Buy ten, get one free" stamp cards that inevitably get lost or forgotten.

That's not real loyalty; it's simply transactional. A purchase gets you a cashback with extra steps. So, the answer isn't just more personalization, gamification, or other buzzwords. Those often feel like thinly veiled retention traps (which it is).

What Do People Really Want from a Loyalty Program?

Let's focus on what truly matters:

• Recognition: If I'm loyal to a brand, I want to feel seen and appreciated. Give me some form of status or acknowledgment. It’s human nature, the moment something feels forced or required, the appeal disappears.

• Community: "Community" is more than just a buzzword. It's a tribe of people who connect through shared experiences, supporting each other to achieve common goals. A true loyalty program should foster this sense of belonging, and this should include the company being active in it themselves.

• Ease of Use: All of this is pointless if it's overly complicated. I just want a simple reminder of my discount and an easy way to use it.

Beyond Points: Building a Platform for Experience

Let's move past the tired "buy X amount for Y points" model. If you truly believe in loyalty, transform it into a platform for meaningful experiences. Otherwise, it's a missed opportunity.

I’m curious to know what you think.