Creating Successful Loyalty Programs: Meeting Customer Expectations and Defying Conventional Rules


Hatched by Glasp

Jul 23, 2023

3 min read


Creating Successful Loyalty Programs: Meeting Customer Expectations and Defying Conventional Rules


Loyalty programs have become an essential tool for businesses to retain their customers and foster a sense of loyalty. However, simply offering rewards is not enough to captivate customers in today's competitive market. In this article, we will explore what customers expect from loyalty programs and delve into some unique strategies that have proven successful in creating rewarding experiences. Additionally, we will discuss the importance of starting small and defying conventional rules to achieve sustainable growth.

Meeting Customer Expectations:

When it comes to loyalty programs, customers expect more than just discounts and promotions. They desire a sense of exclusivity and personalization. Jimmy Joy, a renowned nutrition brand, excels in meeting these expectations by offering secret rewards and even involving their loyal members in decision-making processes. By providing a platform for customers to vote for limited flavors, Jimmy Joy ensures that their customers feel valued and engaged. This approach not only motivates customers but also allows them to be part of the brand's evolution.

Starting Small and Defying Conventional Rules:

The path to success often begins with starting from zero and defying conventional rules. This holds true for both online communities and startups. For instance, when Reddit was just a one-man community, the focus was not on maximizing numbers but on providing exceptional content that would attract genuine users. By prioritizing quality over quantity, Reddit was able to foster a strong and engaged community.

Similarly, startups like Airbnb and Wimdu found success by thinking outside the box. Airbnb utilized Craigslist for distribution, leveraging an existing platform to reach a wider audience. Wimdu, on the other hand, prioritized quantity over quality by targeting hosts with hundreds of units. While this initially seemed promising, it led to a mediocre guest experience and a heavier reliance on paid marketing. Therefore, it is crucial to balance growth with maintaining a high-quality user experience.

Finding Unique Niches:

In crowded markets, it may seem challenging to find untapped opportunities. However, by starting small and staying focused, it is possible to identify powerful niches that can make a significant impact. Giants in the industry often struggle with adapting to new trends and submarkets due to their existing structures. This leaves room for agile startups to discover unguarded spots and create niche markets that cater to specific customer needs.

Actionable Advice:

  • 1. Prioritize customer engagement: Loyalty programs should go beyond traditional rewards and discounts. Involve customers in decision-making processes, seek their opinions, and make them feel valued.
  • 2. Focus on quality over quantity: While rapid growth may seem enticing, it is crucial to prioritize the quality of the user experience. A smaller, highly engaged user base can be more valuable than a large but disengaged one.
  • 3. Identify untapped niches: Research the market thoroughly to find unexplored areas that align with your business goals. By starting small and staying focused, you can create a niche market that caters to specific customer needs.


Creating successful loyalty programs requires a deep understanding of customer expectations and a willingness to think outside the box. By offering unique rewards, involving customers in decision-making, and defying conventional rules, businesses can create rewarding experiences that foster loyalty. Additionally, starting small and identifying untapped niches can lead to sustainable growth and make a significant impact in crowded markets. Remember, it's not just about the rewards; it's about the overall experience that keeps customers coming back for more.

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