5 Must-Haves for a Successful Brand Loyalty Program Launch

To stay one step ahead of their competitors, convenience stores and restaurants are investing in brand loyalty programs—and it’s paying off. Consider these findings from the Paytronix 2024 Loyalty Report, which surveyed businesses on the impact of their brand loyalty programs:  

• Convenience stores experienced a 14.3% increase in the average number of customer visits  
• Full-service restaurants saw a 17.8% increase in loyalty spend per visit  
• Convenience store loyalty customers spent 12% more than non-loyalty customers  
• Restaurant loyalty members spent 5%+ more than non-loyalty members 

Developing the right brand loyalty program can set your business apart from your local competitors if you nail the launch. Keep reading for tips and tactics to help you build and launch a successful loyalty program.  

1. Establish Your Loyalty Program Goals 

We can’t stress this enough: You must have clear goals for your loyalty program from the beginning. 

Before you start planning rewards, functionality, or design, decide why you want to create the program and what you want the brand loyalty program to accomplish. Establishing clear loyalty program goals will provide you with focus and direction as you build out your loyalty program. 

The best loyalty program goals are SMART goals: Specific, Measurable, Achievable, Relevant, and Time-Bound. For example, important goals for brand loyalty programs include increasing: 

• Guest visits  
• Customer purchase frequency  
• Per-customer spend  
• Average order value (AOV)  
• Customer engagement 
• Customer lifetime value (CLV) 
• Customer engagement and strengthening customer relationships 
• Customer insights through data collection 

For each of your loyalty program goals, you’ll set a timeline for reaching the goal. Also crucial is establishing KPIs and corresponding metrics to measure against initial benchmarks, including:

• Usage rate 
• Retention rate 
• Rewards redemption rate  
• Purchase frequency 
• Repeat purchase rate 
• Average order value 
• Churn rate  
• Engagement rates (i.e., customers take surveys, provide feedback, share offers, or take some other requested action) 

If you aren’t measuring your loyalty program’s performance, you’ll have no way of knowing if it’s worth your investment. Additionally, you’ll have no way of knowing if the rewards, discounts, and programs you’re offering resonate with customers. 

The key to your success is being able to pivot as needed to keep customers satisfied, and that starts with an intuitive technology platform that makes the job simple. Paytronix offers a user-friendly dashboard that makes it easy to track key metrics and ensure your program aligns with your overall business objectives. 

2. Decide on a Loyalty Program Structure and Rewards 

With your goals decided, your next step is to determine the structure of your program and to establish the loyalty program rewards you’ll offer. Common loyalty program structures include: 

• Points-based loyalty program. For each purchase, customers earn points they can redeem for free products or merchandise. Customers must perceive your points as valuable. If it takes them years or hundreds of dollars before they can redeem points, most people won’t see the value in it. Ensure they can start experiencing rewards after a few purchases. 
• Tiered loyalty program. Upon signing up, customers receive a reward, but as they continue to frequent the business, they move up in “status,”  earning more or better perks.  
• Combinable/stackable loyalty program. Customers can combine rewards from their program with other loyalty rewards or coupons. 
• Mobile app loyalty program. Such programs use a mobile app for enrollment, reward tracking, and mobile ordering and payment. 
• Gamified loyalty programs. This type of loyalty program includes challenges, games, surveys, badges, or social media engagement. 
• Subscription-based loyalty programs. This structure requires guests to pay a subscription fee to receive ongoing perks and offers.  
• Frequency-based loyalty programs. This brand loyalty program rewards guests based on the number of times they visit your business versus how much they spend. 

Once you have determined the structure of your program, you can establish your loyalty program rewards, which could include: 

• Earning points (i.e., for joining the loyalty program, prompting others to enroll, making a purchase, or engaging with the brand in some way)  
• Free items (i.e., for joining the loyalty program, birthdays, and notable milestones like their 100th order) 
• Discounts or coupons sent out periodically (i.e., percentage or dollar amounts) 
• Entry to an exclusive customer event  
• ​Gift cards 

We recommend you offer a variety of options. While some customers love earning points, others appreciate coupons and discounts. Providing options will encourage more customers to join and continue to engage with your loyalty program. 

That’s why segmentation capabilities are so integral to a successful brand loyalty program. When you can capture loyalty data and segment customers based on their purchase history and behavior, you can offer personalized rewards that resonate with different customer groups. 

Our customers benefit from robust segmentation tools, which enable them to create highly targeted campaigns based on demographics, purchase history, behavioral patterns, and preferences. A perfect real-world example of this is Toastique, a growing QSR brand. After just four months, its revamped loyalty program grew by 87.5%. 

A larger membership base has enabled the brand to leverage behavioral data and fine-tune their loyalty offers. That personalization is driving visit frequency too, as guests receive offers for what they want, when they want it. 

After you’ve established the structure and rewards, you can begin working with designers and developers to provide an intuitive interface that enables customers to easily see offers and rewards and redeem them.

3. Plan Your Launch Around an Early Adoption Program 

An early adoption program generates initial buzz around your brand loyalty program. Equally as important is the fact you can gain valuable feedback from customers about what is working and what needs improvement early in the process. With those insights, you can adjust your loyalty program.

A successful early adoption program at the highest level is two-fold. First, you need to give customers a reason to sign up early, engage, and refer your loyalty program to others. That requires offering them something of value for signing up (i.e., a free item) and points for answering surveys or providing feedback. 

Second is spreading the word about your brand loyalty program, specifically the early adoption program. Highlight your loyalty program on your website. Hang promotional materials throughout your location so people can see them. 

Market the early adoption aspect of your program across all your social channels, and email or text customers if you’ve captured that data through other opt-in forms and digital promotion efforts. Make sure you highlight the best parts of your brand loyalty program, being clear about the value customers receive when they sign up and become early adopters. 

As you consider customer loyalty software vendors with which to build and launch your program, find one that offers flexible tools for creating an early adoption program, including customizable sign-up bonuses, referral rewards, and exclusive offers to incentivize participation, like Paytronix.  

4. Measuring Your Progress With a CRM 

You should think of your loyalty program as an extension of customer service because if done correctly, it can provide insights that enable you to better serve customers. It’s wise to choose a platform that integrates with your Customer Relationship Management (CRM) system. When your CRM and loyalty program are connected, you can analyze data and uncover actionable insights to drive smarter marketing decisions. 

When pulling data from your CRM and loyalty programs, you’re able to: 

• Create detailed customer profiles  
• Identify trends and opportunities by consistently analyzing your CRM and loyalty program data  
• Segment customers by demographic, behavior, and preferences 
• Send personalized offers that resonate with customers via email, text, or app notifications to boost engagement and loyalty 
• Automate rewards tracking  
• Collect feedback from customers to ensure your brand loyalty program is meeting their expectations 
• Track customer interactions across all your marketing channels, including your loyalty app, email, social media, and text  
• Use predictive analytics to forecast future customer behavior to adjust and avoid customer churn 
• Measure your loyalty program's progress toward your goals by tracking key performance indicators (KPIs) and objectives and key results (OKRs)

Fully integrating your CRM and loyalty program can help ensure the success of your program, providing you with the data and analytics required to make necessary improvements and keep customers happy. 

5. Making Iterative Improvements to Your Loyalty Program 

Once you launch, the work has just begun. It's crucial to always be thinking about how to improve customer loyalty programs. It’s important to continuously analyze the data you are capturing to look for areas that are underperforming and make improvements. 

Start tracking performance upon launch, because the sooner you have meaningful data, the sooner you can develop more effective marketing campaigns and sales forecasts. The loyalty platform provider you work with should play a role in helping you interpret the data and identify how you’re tracking against your goals, at least initially.

They should also pinpoint issues and offer guidance for how to improve your loyalty program design. As you analyze your key metrics, you’ll be able to make iterative updates.

Improving your customer loyalty program starts with the right technology platform. Paytronix's reporting tools empower you to identify challenges and opportunities—and act fast to keep loyalty members happy and engaged.

Frequently Asked Questions About Brand Loyalty Programs 

What is a brand loyalty program? 

A brand loyalty program is both a tech solution and a guest experience that rewards customers for repeat activity and encourages long-term purchases. Customers typically earn points (which they can redeem for rewards), discounts, or exclusive perks when they make purchases or engage with your brand.

Loyalty programs aim to deepen your business’s connection between your customers and your brand by providing incentives that make customers feel truly valued. These programs boost customer retention, drive sales volume, and differentiate your brand in a competitive market.

What are the most successful loyalty programs? 

Successful loyalty programs include Starbucks Rewards, Subway’s MVP Rewards, and McDonald’s MyMcDonald's® Rewards. These programs succeed because they offer tangible, frequent benefits that resonate with their customers.

Starbucks Rewards, for instance, allows members to earn points with every purchase, redeemable for free items. Subway’s MVP Rewards offers perks and discounts on future orders, rewarding frequent visits and reinforcing customer loyalty. MyMcDonald's® Rewards gives members access to exclusive deals and the ability to earn points toward free food, adding extra value to every purchase. These programs excel by providing consistent, meaningful rewards that strengthen customer commitment to the brand.

How do you create and sustain brand loyalty? 

To create and sustain brand loyalty, focus on consistently delivering value and exceptional experiences: 

• Understand your target audience’s preferences and tailor your offerings to meet their needs.  
• Offer quality products and outstanding customer service, both of which encourage repeat business.  
• Implement a loyalty program with relevant benefits, like discounts, early access, or personalized offers.  
• Engage your customers through email, social media, or personalized messages. 
• Listen to customer feedback and use it to continuously improve.
• Recognize and reward loyal customers to make them feel appreciated.

Over time, these strategies build trust and deepen the customer-brand relationship, creating long-term loyalty. 

What is the strongest form of brand loyalty? 

The strongest form of brand loyalty is emotional loyalty. This occurs when customers develop an emotional attachment to your brand, viewing it as an extension of their identity.

In this level of loyalty, customers consistently choose your brand over competitors, regardless of price or convenience. This type of loyalty goes beyond functional benefits—it’s driven by shared values, a sense of belonging, and a positive lifestyle association.

Brands that foster such emotional connections include Starbucks, Chick-fil-A, and Coca-Cola. These brands achieve this deepest loyalty level by aligning with their customers’ beliefs and delivering unforgettable experiences. 

Learn More About Paytronix Loyalty Solutions 

If you’re ready to launch a brand loyalty program or refresh an existing one, we can help. Not only can we provide you with a powerful platform to deliver loyalty solutions your customers love, but we are also available to help you set goals, measure KPIs, provide benchmarking, help with analytics, and uncover overlooked opportunities that increase your revenue. 

Schedule a ​​live demo now to discover our loyalty platform for restaurants and c-stores.