September 18, 2023

4 Things Every Loyalty Program Needs


Customer Loyalty programs have always been worthwhile investments for brands across a large swath of industries. At it’s loud, “LOOK AT ME!” core, marketing is all about one thing: making connections. The truth is, even a decent loyalty program can establish a deeper connection between customer and company (or product), even as far as simulating a friends-with-benefits type of thing. Or pals-with-perks? Lovers-with-loyalty? 

 What really got us fired up on loyalty is the upcoming launch of LEGO’s Insiders loyalty program. Well, and the fact that DBM has been specializing in building out comprehensive, white-glove loyalty programs for a while now (we’ve even won a few technology awards to prove it). Alas, let’s explore all the crooks and nannies of a well-done loyalty program below, because let’s face it – they make a difference.  

 Starting a loyalty program seems simple enough, but there are certainly good and bad ones out there. These 4 insights are key considerations for any program worthy of your email address:  


1. Commence with Customer Experience

A robust loyalty program can amplify the impact of a positive customer experience, but it can’t remedy a negative one. Consequently, companies need a reliable method to gauge customer experience, which should constitute the cornerstone of any loyalty initiative.

2. Harness Data Proficiently

The distinction between a good loyalty program and an exceptional one lies in how well it leverages customer data. Brands must seamlessly integrate data across their entire operational spectrum, extending beyond just loyalty programs.

3. Freshen Up the Rewards

While loyalty programs require consistency, consumers also crave novelty. By deftly employing testing and personalization, a loyalty scheme can frequently introduce innovative and distinct perks that surprise and excite customers without incurring excessive costs. Also, regular analysis will identify unpopular or unprofitable benefits, enabling the removal of deadweight while captivating attention with novel concepts.

4. Pioneer a Business Model

Prior to budgetary concerns, conceptualize the desired program and formulate a business model aligned with it. This approach cultivates greater creativity in funding strategies and loyalty incentives that payoff almost immediately, and further down the road. 


Final Thoughts

Crucial to success is comprehending what holds value for customers, which doesn’t always mean the most cost savings. According to a recent KPMG survey, half of respondents engaged in loyalty programs expressed willingness to “undertake substantial actions to accrue more rewards in at least one program.” In other words, consumers really do care about their connection to these loyalty programs, especially when a scrumptious incentive is within reach. 

So, how is LEGO implementing these savvy strategies into their new program? They promise their loyalists easy account sign-up, exciting rewards, discounts, activities, and a point system that pays off. If you’re a fanatic for tiny plastic construction toys like myself, then this program is an easy build!  

We like to think that we’re loyalty program experts at DBM, so check our blog and LinkedIn regularly to stay in the loyalty loop, and more.  


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