This year, loyalty programs are facing what some might consider a paradox: the number of loyalty programs is set to increase, yet customer loyalty to brands will decrease by 25%. 

For Experience Designers like myself who’ve worked on a variety of loyalty programs, this isn’t surprising. There is deep value in building a program, from increasing customer retention to enhancing customer engagement to improving brand advocacy, among others. But no matter how hard brands try to inspire allegiance from their customers, it’s simply not reasonable to expect each person will pledge their loyalty to dozens, let alone hundreds, of brands.

Whether clothing, skincare, airlines, or coffee shops–from international powerhouses to the local corner store–people have endless options to choose from. Given this seemingly endless supply, it’s crucial that brands deliver an exceptional customer experience–which, in our increasingly digital world, is generally made up of apps, POS systems, emails, text messages and more.

So how can brands make their loyalty program the one (or few) customers actually want to engage with? 

It all starts with truly understanding the customer and building a strong relationship with them. This approach allows for clearer communication of intent, the right tone over time, and the creation of experiences that authentically reflect the quality of the relationship being developed.

Brands can win at building the highest quality loyalty programs if they focus on clarity, approachability, and authenticity.

Clear

Clarity is the foundation of any good loyalty program–it’s how brands make sure customers understand the basic mechanics of the benefits, requirements, and limitations of what the program offers. What the brand communicates, and how it communicates it, matters. 

For example, vague promises and complex calculations are never helpful: “Sign up today for our exclusive membership program and enjoy a 15% discount on select items, but only if you purchase more than $100 worth of products in a single transaction. This offer is valid only on weekdays, excluding public holidays, and cannot be combined with any other ongoing promotions or discounts." This extreme murkiness creates confusion, and a lack of trust in the brand. For engagement and retention, clarity is of utmost importance. 

To do so, use everyday language, avoid industry jargon, and provide real-world examples. When customers perceive the loyalty program as approachable and easy to understand, they don’t second-guess its benefits–which means they’re more likely to engage and see value in it.

It’s also crucial that clarity is channel agnostic, meaning it’s the same across all brand touchpoints. If email communications are cluttered with program information, while app communications are bare, there will not be consistent messaging. Just as a brand’s logo should translate from phone screen to TV screen to 50-foot billboard, so, too should the information for a brand’s loyalty program seamlessly translate to all mediums.

Approachable

For customers to remain engaged in a loyalty program, it’s imperative that information is paced in a digestible way.

In an initial email about a loyalty program, for example, adding all the fine print about what’s included in each tier could be overwhelming. While it might be exciting or motivating to see what a platinum-status membership entails, it might also feel daunting to see the litany of steps required to get there when a consumer is only at the start of that journey. A key benefit of a successful loyalty program is increased customer retention–and there is no faster way to drive customers away than by overwhelming them from the get-go.

Instead of bogging the customer down with minutiae, start the customer journey by making the first step, signing up, easy. From there, the brand can begin to introduce more details, guiding customers through the program as they engage with it. With the accumulation of points or tiers, the brand can send updates highlighting the benefits of each new step. This gives the customer a sense of accomplishment–rather than frustration–and continuously motivates the customer to invest in the brand. This well-paced rollout makes the loyalty program feel less like a transaction and more like a relationship builder. 

Authentic

Being part of a loyalty program should be a rewarding, positive, and even fun experience. To make sure all customers feel this way, brands must shift their loyalty programs from a transactional relationship to an emotional one–building an experience that speaks to the relationship the brand wants to have with customers. 

One of the best ways to foster an emotional connection is by matching a brand with an authentic personality that understands the customer, meets them where they are, and is consistent in building a relationship that reflects the brand’s values across every touchpoint. 

Brand voice, story, and aesthetics are powerful expressions of authenticity–for they convey personality and, when done well, help build trust. But authenticity should extend beyond these aspects and into the core moments of the customer journey. These “Marker Moments” offer critical opportunities to reinforce a brand’s values. An encouraging message–”Way to go! You’re halfway there!”–might feel inspiring coming from one brand, but patronizing from another. Striking the right tone means understanding the customer deeply—and tailoring the experience to appeal to the audience in a genuine, relevant way.

Conclusion

People don’t join loyalty programs just because they exist. They join–and stay–because a program is clear, accessible, and enjoyable to use. And in today’s competitive landscape, these pillars are more critical than ever. The brands that prioritize them will build meaningful brand loyalty that actually lasts and fosters true brand engagement.