9 Loyalty Program Features You Need for Rapid Growth

This year, Newsweek published its fourth annual America's Best Loyalty Programs 2024 to help consumers cull the options and find the programs “most worthy of repeat business,” according to the publication’s Global Editor in Chief, Nancy Cooper. 

To establish the rankings, Newsweek surveyed more than 4,000 U.S. customers who are members of loyalty programs on criteria, such as value of the rewards, overall satisfaction, likelihood to recommend the program, values of the perks, security, and customer support. 

The list covers a wide range of businesses. For example, QuikTrip and Sheetz ranked among the top convenience store loyalty program leaders and Dunkin’ and Firehouse Subs were among the leaders for restaurant loyalty programs. It’s worth browsing the list to see where your competitors land and the loyalty program features they offer, especially if you plan to launch or revamp a loyalty program. 

There’s no doubt a well-designed loyalty program can boost customer retention, increase order frequency, and drive long-term revenue, but what makes a loyalty program worthy? And what are the key loyalty program features you must include in your program? Keep reading for our list of must-have loyalty program features.

4 Features Loyalty Program Providers Should Offer Out of the Box 

When it comes to finding a loyalty program service provider, you have options. That’s the good news. 

The bad news is not all loyalty program service providers are created equal. At a bare minimum, you want the platform you choose to offer these four loyalty program features  out of the box:

1. Intuitive, comprehensive dashboards. You must have a central location where you can see high-level key metrics, including new members added, average spend per visit, and reward redemption. You also need the ability to filter and take a deep dive into the data for richer insights. Paytronix, for example, provides four dashboards in addition to its main dashboard:  
   1. The Spend by Time-of-Day Dashboard shows correlations between revenue and what time visits occur. 
   2. The Enrollment Detail Dashboard provides insight into how people are signing up and where they’re signing up, as well as key demographic information. 
   3. The Visit and Spend Dashboard offers key information about total dollars spent, including important year-over-year data. 
   4. The Mobile Dashboard enables you to monitor mobile performance, including mobile app downloads over time. 
2. Customer segmentation. Of all the loyalty program features, this one might be the most important. If done right, your loyalty program will enable you to capture in-depth consumer data on behaviors and preferences. You can use that data to send hyper-personalized messages and offers which are more likely to convert, but only if you have advanced segmentation capabilities.  
3. Automated campaigns. Face it, you simply don’t have the time to manually send personalized messages to your large customer base. For your loyalty program to succeed, you must be able to send personalized messages at scale, and that requires automation.  
4. Omnichannel integration. You need a fully integrated platform that enables you to provide a consistent experience across all your marketing channels while collecting valuable data you can use to increase customer satisfaction and revenue.  

While those are the mandatory loyalty program features required to give your loyalty program the best chance to succeed, the following additional capabilities will take your program to a whole new level. 

Present Options with a Loyalty Rewards Catalog

A well-built loyalty rewards catalog entices customers to sign up for your loyalty program and keep loyalty members happy and engaged. A loyalty reward catalog is a list, flipbook, or other digital repository that informs customers of all the items or experiences they can redeem with their loyalty points.

As you research loyalty program providers, look for ones that enable you to easily create a visually appealing loyalty rewards catalog that includes high-quality images and well-written descriptions. Present a wide range of rewards options, including discounts, gift cards, free items and exclusive events, and let your customers choose the rewards they want.

Most important is making the catalog user-friendly. Customers must be able to effortlessly redeem their rewards.

Unlock the Secrets of Your Customers’ Purchase History

When you develop your loyalty app, you’ll be able to collect massive amounts of data on customers that offer actionable insights you can use to make smarter business decisions.

One of those pieces of data should be customer purchase history. Choose a loyalty program solution that enables you to capture, access, and analyze customer purchase data, so you can pinpoint patterns, identify your best customers, and, most importantly, tailor your marketing messages and offerings. 

For example, you could send customers a coupon for their favorite free dessert on their birthday or a buy-one-get-one free on their favorite convenience store snack. Personalized rewards—based on the things customers are already buying—resonate with customers, drive loyalty, and increase customer lifetime value.

Elevate Your Revenue with Convenience Store and Restaurant Special Events 

Customers love to feel appreciated. They also love to feel like they’re part of an exclusive club. Convenience store and restaurant special events are a great way to help them feel both. A well-executed event that offers experiences they can’t get anywhere else can even get them pumped to talk about and refer your business. 

That’s the key though: the convenience store and restaurant special event must be well executed. The best loyalty program providers offer solutions that help you plan, promote, and execute an event that will be meaningful to your customers. Being able to tap customer purchase history data for insights into what type of convenience store and restaurant special event will most appeal to them is also crucial.

Offer Loyalty Tiers That Drive Repeat Business 

A tiered loyalty program lets customers move up a tier (and earn better and more rewards) based on their level of spending and engagement with your brand. Because customers strive to reach the next level, their increased loyalty becomes more effective at driving visit frequency and repeat purchases. In fact, one report found programs with loyalty tiers can be 80% more effective than those without loyalty tiers. (Antavo) 

As you develop your loyalty program, you’ll want a platform that offers the flexibility to offer loyalty tiers, based on criteria you customize. Also choose a solution that enables you to provide gamification elements, which encourages customers to participate in challenges, fun games, and earn badges that move them up a tier. 

All of these loyalty program features work together to build a robust program that enables you to understand your customers on their terms (and yours), offer them rewards that keep them coming back, and drive profitability for your business. 

Frequently Asked Questions About Loyalty Program Features 

What are the key components in a loyalty program? 

Here are five key components in a loyalty program: 

1. Rewards System: Your program must specify how customers earn points or rewards. 
2. Enrollment: Customers must be able to sign up quickly without any hassle. They’ll abandon the process if it’s too time-consuming or complicated. 
3. Earning Opportunities: Offer multiple ways for customers to earn different types of rewards, like making purchases or referring friends. 
4. Redemption: Customers must know how to redeem their points easily. Create a simple dashboard that looks and feels like other popular consumer apps (Instacart, Amazon).  
5. Communication: Keep customers engaged with messaging relevant to their rewards and special offers. 

What are the KPIs for loyalty programs? 

Four common key performance indicators (KPIs) for loyalty programs include: 

1. Customer Retention Rate: This measures how many customers continue to shop with your brand after joining your loyalty program. A high retention rate indicates your program is effective in maintaining customer loyalty. 
2. Purchase Frequency: This KPI tracks how often loyalty members make purchases within a certain period. Increased frequency suggests your program encourages more frequent shopping. 
3. Average Spend per Transaction: This metric shows how much members typically spend per visit. A higher average spend indicates your program is influencing customers to purchase more or buy higher-value items. 
4. Redemption Rate: This shows the percentage of rewards your customers redeem relative to how much they earn. A high redemption rate suggests that customers find your rewards appealing and accessible. 

What do customers look for in loyalty programs? 

Here are five characteristics customers look for in loyalty programs: 

1. Easy Enrollment: Customers want a quick and hassle-free sign-up process that doesn't take more than a few minutes.  
2. Valuable Rewards: Customers look for clear rewards that feel worthwhile and easy to achieve. If customers see value in the rewards, they’re more likely to engage with your program. 
3. Personalized Offers: Customers respond positively (and more often) to rewards that are personalized to their interests and preferences. When your offers resonate with their strongest desires, they’re more likely to remain active in your loyalty program. 
4. Fast Earning Opportunities: Customers prefer programs that let them earn points quickly through various activities. The faster they accumulate rewards, the more motivated they feel to participate. 
5. Simple Redemption Process: Customers want straightforward ways to use their points, whether online, in-store, or both.  

How do you evaluate a loyalty program? 

You can evaluate your loyalty program by following these four steps: 

1. Assess customer engagement. Check how many members actively participate in your program. High engagement indicates your customers find value in the program. 
2. Track redemption rates. Analyze how often customers use their rewards versus how many have been earned. This provides insights into the attractiveness and accessibility of rewards. 
3. Analyze sales data. Compare sales figures before and after launching your program. A significant sales increase proves your loyalty program drives customer purchases. 
4. Gather customer feedback. Collect feedback from customers about their experiences with your program. Direct input helps you evaluate the effectiveness of your program and identify potential issues. 

Bring Your Vision to Life with Paytronix  

A major part of Paytronix is our AI-powered loyalty platform designed to meet the unique needs of restaurants and convenience stores. We offer all these loyalty program features and hundreds more, empowering you to create a comprehensive loyalty program that fosters financial growth as well as deeper customer relationships. Request a demo now to see it firsthand.