There was a time when loyalty programs were simple and easy. You'd go get a coffee at your local cafe, and they'd punch a hole in your loyalty card. After so many punches, you got free coffee. It's called a spend-and-get program.
In 2017, IRI Worldwide did a survey and found that 74 percent of consumers chose a store based on a strong loyalty program. Thus, today, many brands are implementing Omnichannel loyalty programs which are considerably more intricate and nuanced. In this model, not only do customers get rewards in the classic spend-and-get transaction but also just for sharing the brand's content on social media, referrals, and actually reading a promotional email. In effect, they become brand advocates.
Personalization and Exclusivity
Take it a step further and personalize your loyalty program and you've got a win-win for everyone. Forbes writes, "Research reveals a customer is eight times more likely to be satisfied with a customer loyalty program if they’re very satisfied with how personalized it is to them." At Sephora.com they even go so far as to collect data volunteered by the customer about their skin tone and eye color. From there, they can personalize recommendations and promotions, up-sel