Understanding What Customers Want from the Loyalty Program

Many brands are eager to launch a loyalty program, but here’s the hard truth: the average consumer is enrolled in 15 programs, yet only actively engages with half of them. Why? Because too many loyalty programs are built from the brand’s perspective, not from the customer’s.

If you are a business owner, this should be a wake-up call. Customers don’t just want another membership card, another app to download, or another set of complicated rules to follow. What they want is simple: ease, relevance, and genuine value.

A loyalty program should not feel like extra work for the customer. It should feel like a natural extension of their shopping or service experience.

The ultimate goal is not only to get sign-ups but to keep customers engaged and increase their lifetime value. That happens only when your loyalty program makes their lives easier and more rewarding in ways your competitors don’t.

Loyalty Fatigue: Why Customers Sign Up but Rarely Engage

Let’s start with the elephant in the room: loyalty fatigue.

When consumers sign up for a program but stop engaging, it usually comes down to two core problems:

• • • Complexity
      Most loyalty programs are simply too complicated. Customers are asked to download a new app, fill out long registration forms, or keep track of confusing point systems. What should be an incentive ends up feeling like work.
    • Lack of relevant rewards
      Discounts alone don’t cut it anymore. Modern customers want rewards that fit their lifestyle, feel instantly valuable, and recognize them as individuals. A free coffee or birthday surprise often has more impact than an abstract promise of “points” they may never redeem.

This fatigue explains why programs with high enrollment often show low engagement. It’s not that customers don’t want loyalty programs; they just want programs that respect their time and deliver value without friction.

Beyond Discounts: The Shift in Customer Expectations

For decades, loyalty programs were mostly about discounts. The formula was simple: spend a certain amount, earn points, and eventually redeem them for savings. But in today’s competitive landscape, discounts are no longer enough to inspire true loyalty.

Why? Because discounts are easily replicated. Your competitor can undercut you tomorrow with a flash sale or a slightly bigger coupon. Price-based loyalty is fragile at best. Real loyalty requires something deeper: an emotional connection.

Modern customers, especially Millennials and Gen Z, expect more than just transactional perks. Surveys show:

• • • 78% of Millennials join programs primarily for discounts, but that’s just the entry point. (Geomarketing)
    • 28% prioritize convenience; like skipping queues or enjoying faster checkout. (Geomarketing)
    • 75% of consumers say they prefer brands that recognize them personally, for example with birthday rewards. (SmallBizGenius).

The message here is clear: customers are no longer satisfied with “buy 10, get 1 free.” They want loyalty programs that save them time, simplify their lives, and make them feel recognized as individuals.

The Hidden Barrier: App Fatigue

One of the biggest challenges for modern loyalty programs is app fatigue.

Think about it: every brand wants customers to download their own loyalty app. But consumers already juggle dozens of apps on their phones, from banking to food delivery to e-commerce. The idea of downloading yet another app just to track points or redeem rewards feels overwhelming.

For many customers, the thought process goes like this:

• • • “Do I really need another app?”
    • “Will I even use this often enough to justify the space on my phone?”
    • “Is this going to be another login and password to remember?”

The result: even if customers sign up, engagement plummets because accessing the program feels like extra effort.

Forward-thinking brands are no longer pushing customers to download yet another app. Instead, they’re meeting customers where they already are; on the platforms people use every single day. And leading that list is WhatsApp.

With WhatsApp loyalty programs, there’s no app to download, no new interface to learn, and no friction in accessing rewards. Customers can check points, claim rewards, or receive personalized offers in the same chat app they use to talk to friends and family every day. It’s convenience in its purest form.

What Customers Truly Want From a Loyalty Program

So, what exactly do customers expect from a loyalty program in 2025 and beyond? Let’s break it down.

1. Simple Enrollment and Easy Access

The first impression matters. Customers don’t want to fill out endless forms or share excessive personal details just to sign up. A few clicks should be enough. Better yet, joining should be possible directly from platforms they already use; like a quick registration through WhatsApp or a single sign-on from email or SMS.

Equally important is accessibility. Customers expect to check their rewards instantly, without jumping through hoops. Programs that make it difficult to track progress or redeem rewards will quickly lose relevance.

2. Transparency and Control

Unclear terms and hidden conditions erode trust. If customers don’t know how points are calculated or when they expire, they’ll disengage.

Programs should make the value system transparent: “1 point equals $1” or “Buy 5, get the 6th free.” Straightforward systems inspire confidence and usage.

3. Instant Gratification

Long-term point accumulation is fine, but customers also crave immediate wins. That could mean a free shipping voucher upon signup, a complimentary dessert on the first visit, or an instant discount on accessories. These small, fast rewards set the tone and encourage engagement from day one.

4. Personalized Recognition

Loyalty is emotional. Customers want to feel like more than just a transaction. Personal touches; birthday offers, personalized recommendations, or VIP invitations; show that the brand sees and values them individually. This recognition builds a stronger bond than any discount ever could.

5. Flexibility and Choice

No two customers are the same. Some prefer discounts, others want exclusive experiences, and some value practical perks like free delivery. Offering a diverse set of rewards allows customers to choose what matters to them, increasing the likelihood of redemption and satisfaction.

6. Omnichannel Integration

Customers move seamlessly between online and offline channels, and they expect loyalty programs to do the same.

Whether they’re shopping in-store, on an app, or via chat, their rewards should follow them. Omnichannel loyalty ensures that no matter how customers interact with your brand, their experience is consistent.

7. Simplicity Above All

The best loyalty programs are the least complicated. Customers don’t want to jump through hoops, download multiple apps, or navigate clunky systems. That’s why solutions like WhatsApp-based loyalty programs are gaining traction: they remove friction entirely and fit naturally into daily life.

A Strategic Framework for Business Leaders

For business owners or executives, designing a loyalty program that works requires a shift in mindset. Instead of asking, “How can we lock in customers?” the better question is, “How can we make our loyalty program so easy and rewarding that customers never want to leave?”

Here’s a strategic framework to guide you:

1. Customer First Design: Start by mapping out what your customers actually value — convenience, recognition, or flexibility — and build the program around that.
2. Remove Friction: Every barrier (downloads, long forms, unclear rules) is an obstacle to engagement. Strip them away.
3. Leverage Everyday Platforms: Meet customers where they already are; WhatsApp, SMS, or email, instead of forcing them into new systems.
4. Balance Short- and Long-Term Rewards: Offer instant gratification to hook customers early, and layer on bigger rewards for sustained engagement.
5. Personalize with Data: Use purchase history and engagement behavior to tailor rewards and offers. The more relevant, the stronger the bond.
6. Integrate Omnichannel: Ensure customers can earn and redeem rewards no matter how they interact with your brand.
7. Measure and Adapt: Track engagement, redemption rates, and customer feedback. Loyalty is not static; programs must evolve as customer expectations change.

Wrap up!

At the end of the day, loyalty programs succeed when they put the customer first. Simplicity, accessibility, and relevance are the pillars. Instead of asking “how can we lock in customers?” ask, “how can we make our program so easy and rewarding that customers never want to leave?”

That’s where platforms like Tada can help. Tada enables businesses to build loyalty experiences that are not only rewarding but also effortless; whether through omnichannel integration or WhatsApp-based solutions. With the right strategy, you don’t just give rewards; you create meaningful connections that turn customers into advocates. Request our demo now!