WhatsApp Loyalty Program: Definition, Challenges, and Its Impact on Business Growth

In today’s digital era, winning customers’ attention is only half the battle. The rest lies in making them loyal, keeping them purchasing, and turning them into brand advocates, and this is where many businesses struggle.

Customers are tired of ads, weary of constant promotions, and increasingly able to tell which brands truly care and which are only focused on quick sales. According to Zenreach, more than 70% of customers never return after their first purchase. One small mistake in communication can cause them to switch to a competitor instantly. On the other hand, customer loyalty can no longer rely only on discounts or seasonal offers. Customers want experiences that are simple, fast, and relevant without hassle.

This is where WhatsApp becomes the best option. With an open rate of up to 98% and its status as the favorite communication app in Indonesia, WhatsApp is the most ready channel to connect brands with customers directly and personally. When combined with an adaptive loyalty system, it can become a very powerful retention tool.

What is a WhatsApp Loyalty Program?

A WhatsApp loyalty program is the integration of a loyalty engine system with the WhatsApp Business API that allows brands to run loyalty programs in real time directly through WhatsApp, without needing additional apps.

For customers, this means they can:

• • Join the loyalty program just by chatting
  • Receive point notifications, exclusive promos, and membership status
  • Check loyalty program information through chat with chatbot assistance, like a normal conversation

For brands, this means they can:

• • Build warmer two-way communication with customers
  • Broadcast promo messages, available products, and other marketing campaigns
  • Increase retention without forcing customers to learn new technology

Technology Components Behind a WhatsApp Loyalty Program

To run an effective and scalable WhatsApp loyalty program, there are several key technology elements to understand:

1. WhatsApp Business API

Unlike regular WhatsApp, the WhatsApp Business API allows brands to send large-scale automatic messages that remain personal and contextual.

With this API, brands can:

• • Send event-based notifications (for example: “Congratulations, you’ve just been upgraded to Gold Tier!”)
  • Send point and reward notifications and membership status updates
  • Set up messages using Meta-approved templates
  • Send promo reminders based on tier or segmentation
  • Send automatic follow-up messages after transactions
  • Support two-way communication (customers can ask, the system can answer)

Important note: To use WhatsApp Business API, businesses must work with an official Business Solution Provider (BSP) designated by Meta.

2. Loyalty Engine (or loyalty backend system)

This system stores and processes all customer-related data:

• • Transaction activity
  • Point calculations, expirations, and customer levels/tiers
  • Trigger logic for rewards or notifications

A loyalty engine can stand alone or be integrated with your company’s existing POS, CRM, or CDP.

3. Middleware / Integration Layer

Middleware allows various systems (WhatsApp API, CRM, loyalty engine, data warehouse, and others) to exchange data in real time and stay synchronized.

This middleware is usually custom-built using Node.js, Python, or Go depending on scale and integration needs, or provided by loyalty platforms that already have connectors to certain WhatsApp BSPs. Choosing the right BSP and technology integrator is therefore crucial to implementation.

The Benefits of WhatsApp Loyalty Programs for Business Owners

A loyalty program isn’t just about giving points or discounts. The real value lies in a brand’s ability to stay relevant and present at important customer moments. And WhatsApp makes this much easier, more efficient, and impactful.

1. Frictionless Customer Experience

Customers don’t need to download extra apps, create new accounts, or remember usernames/passwords. Everything can start from one chat—as easy as replying to a friend.

2. Real-Time, Contextual Engagement

WhatsApp allows brands to send messages that are:

• • Timely (e.g., “Your points expire tomorrow!”)
  • Targeted (e.g., only to certain tier users)
  • Contextual (based on transaction behavior)

This can significantly boost relevance and customer response.

3. High Open Rates, Real Conversions

Compared to email or app push notifications:

• • WhatsApp has a 98%+ open rate
  • Much higher CTR (up to 5x)
  • Better recall and call-to-action without spam filter issues

4. Cost-Effective, Measurable

• • Reduces CS or marketing blast operational costs
  • Message automation = time and effort efficiency
  • All interactions are recorded; measurable, analyzable, and optimizable

5. Increases Customer Lifetime Value (CLV)

• • Actively engaged customers return more often
  • Loyalty tiers and exclusive campaigns boost repeat orders
  • A connected journey (purchase – reward – interaction) significantly increases CLV

6. Flexible and Scalable

• • Suitable for retail, F&B, eCommerce, even B2B
  • Can integrate with various systems (POS, CRM, CDP, ERP)
  • Expandable to use cases like dormant customer reactivation, product reviews, NPS surveys, etc.

7. Personal and Human

Although automation-based, WhatsApp creates a communication feel that is personal and direct. This builds trust and emotional closeness rarely achieved by conventional loyalty apps.

Challenges and What to Prepare Before Running a WhatsApp Loyalty Program

Using WhatsApp as a main channel for loyalty programs is powerful, but it can’t be activated instantly. There are technical and strategic challenges to address to make sure the program works effectively and doesn’t fail halfway.

1. Choosing the Right WhatsApp BSP

WhatsApp Business API can only be accessed through official Meta partners called Business Solution Providers (BSPs). Choosing the right BSP is critical because:

• • They will be your main technical partner for integration
  • Each BSP offers different extra features (e.g., dashboard, automation, webhook support)
  • Pricing and SLA (Service Level Agreement) also vary

Tips:

• • Make sure the BSP supports integration with your loyalty engine
  • Ask about message template flexibility, opt-in systems, and data security
  • Check the BSP’s track record with loyalty projects and large volumes

2. Customer Data and Loyalty Structure Readiness

• • Are phone numbers validated and active?
  • Do you have tiering, point earning, expiration rules set?
  • Can your backend system calculate and trigger notifications automatically?

If not, a data audit and restructuring phase is needed for smooth integration.

3. System Synchronization (POS, CRM, Loyalty Engine, Middleware)

For WhatsApp to send event-based messages, your backend systems must “talk” to each other in real time.

Example: Customer makes a purchase → data goes to POS → loyalty engine calculates points → middleware triggers WhatsApp API

Without solid integration, automation can’t happen.

4. Managing Templates and Meta Approval

WhatsApp only allows message templates that have been approved by Meta. This means:

• • All automation messages (like point notifications or birthday greetings) must be submitted and approved
  • There are format, language, and content restrictions (messages can’t be too promotional)

Solution:

• • Design templates that are informative, personal, and not hard-selling
  • Use neutral but engaging language

5. Designing a Journey that Balances Automation and Human Interaction

Automation helps efficiency, but too much reliance on chatbots without a human fallback can ruin the experience.

Solution:

• • Create chatbot flows that are friendly and intuitive
  • Provide routes to live agents for complex cases

6. Scalable Infrastructure & Long-Term Maintenance

If targeting tens of thousands or millions of customers:

• • Ensure your server and middleware can handle high volumes
  • Have a team ready to monitor logs, update, and analyze performance

7. Experiment and Iterate

Don’t expect every campaign to work immediately. WhatsApp loyalty programs need time and testing:

• • Test which message copy is most engaging
  • Try different segmentation (e.g., dormant vs active)
  • Measure response rates, CTRs, conversions, etc.

What matters is: you’re not just sending messages, you’re building long-term habits and relationships.

Case Study: Alfamart and Loyalty Transformation Through WhatsApp

Source: WhatsApp Business website

Let’s look at how WhatsApp helped transform loyalty at a large retailer like Alfamart, and why this is relevant for businesses of any size.

Challenges:

With over 18,000 stores across Indonesia and millions of daily customers, Alfamart faced classic challenges:

• • How to build customer loyalty without forcing app downloads?
  • How to simplify membership registration and activation?
  • How to enable personal communication at massive scale?

Solution: WhatsApp as Loyalty Gateway

Alfamart partnered with Meta and a BSP to integrate its Ponta membership system directly into WhatsApp.

Simple flow:

• • Customer scans QR code or clicks link → directed to Alfamart’s WhatsApp
  • Chatbot guides registration in seconds
  • Once registered, customers can check points, receive promos, or view reward catalogs directly through WhatsApp

Results:

• • 2.5 million customers joined the loyalty program in just 5 months
  • Processes that used to require app downloads and manual verification now only need a short chat
  • Engagement surged thanks to automatic reminders, contextual messages, and a seamless experience

Why It Matters:
Alfamart proved that by using WhatsApp, which is already popular among customers, loyalty can grow faster and stronger. And most importantly: this method can be replicated by other businesses—including enterprises that want to scale faster.

Wrap up!

In an era where customers demand shopping experiences that are fast, relevant, and hassle-free, loyalty can no longer be built with conventional programs alone. WhatsApp loyalty programs enable businesses to reach customers in more personal, integrated ways that deliver real impact on retention.

If you’re ready to build your WhatsApp-based loyalty program, Tada is here to help. With the support of BSP partners and cross-industry integration experience, we’ll make sure your program runs optimally from day one. Request our demo today!