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Industry Innovation

Designing the Perfect Convenience Store Loyalty Program

Building Convenience Store Loyalty Program Isn’t Solely About Rewards

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Crafting an influential convenience store loyalty program isn't solely about giving rewards. It's about understanding modern customers, employing data-driven insights, and meticulously designing every program facet. This guide delves into the essence of designing quality loyalty programs, including the integral components, pitfalls to sidestep, and how to create a program that resonates with every store visit.

The Rising Need for Loyalty Programs

The ecommerce landscape has dramatically evolved in recent years, increasing the need for robust customer retention strategies. Historically, retention offset customer acquisition costs (CAC), but with recent changes in data availability and security, CAC has surged by 60% in the last five years.

A well-designed loyalty program isn't just a strategy; it's a customer experience revolution.

Hence, the surge in popularity of reward programs, particularly among direct-to-consumer (DTC) brands and subscription businesses. The recurring nature of subscribers' purchases offers touchpoints for regular communication, which can be harnessed through loyalty programs to amplify value for businesses and customers alike.

Key Benefits of Loyalty Programs

Loyalty programs can help ecommerce businesses meet several objectives, such as increasing customer lifetime value (LTV), promoting repeat purchases, and incentivizing conversions. Specifically defining the target audience is crucial in creating effective loyalty program designs. Consider the personas you want to reach and the type of rewards that would appeal to them. To create a successful loyalty program, ensure it's easy for customers to join and participate, communicate the program's value, and select the right rewards based on your business and target audience.

Steps to Designing Quality Loyalty Programs

Define the Program Goals

While retention is a significant benefit of loyalty programs, businesses may have additional goals. Companies need to be clear about these aims to maintain focus on their strategy and understand how loyalty programs can enhance their focal areas.

For instance, loyalty programs can increase subscription conversions by enticing potential customers with future loyalty rewards. This can make a brand stand out among competitors offering similar products or services. Additionally, loyalty programs can boost customer LTV by encouraging loyal customers to stay longer or spend more through a tiered system.

Identify the Target Audience

After defining the loyalty program goals, determine your target audience and the personas you hope to reach. If the aim is acquisition, your target audience is likely new customers. If your focus is retention, your targets are likely existing customers whom you want to encourage to make repeat purchases and build brand loyalty.

Select the Appropriate Rewards

Choosing the right rewards for a loyalty program depends on your target audience, focal areas, and business type. For instance, point-based loyalty programs can be particularly effective for a younger demographic, where reward points can be earned through referrals, social media shares, or milestones like birthdays.

Make the Program Accessible

Ensure your loyalty program is easily accessible to your customers. The more straightforward it is for new customers to learn about the program, how to join it, and how to manage their reward points, the more engaged they will be, contributing to a positive customer experience.

Communicate the Program's Value

Communicate the benefits of your loyalty program clearly at multiple touchpoints. Customers should feel there is genuine value in joining your program, encouraging positive behavior from the onset and providing tangible benefits even before they join.

Use Customer Data to Personalize the Experience

An effective rewards program is driven by customer data. By understanding customer behavior, businesses can design more customer-centric loyalty programs that encourage customers to follow a specified path leading to higher LTV or average order value (AOV).

Monitor and Measure Success

A strong loyalty program relies on tracking and measuring its success. By collecting data on metrics such as LTV and retention, businesses can determine whether the implementation of a loyalty program has a measurable impact.

Keep the Program Updated and Relevant

Ensure your customer loyalty programs are fresh and relevant over time, through regular updates and new rewards. Communicate these updates clearly to your customers, motivating them to take advantage of new offers.

Standing Out from the Crowd

With the commonality of loyalty programs, it takes more to differentiate your brand. The best loyalty programs demonstrate an understanding of the deeper motivations behind customer loyalty, personalize their messages for maximum engagement, and commit to the brand's vision across their entire business.

Differentiating Your Loyalty Program


According to Manzie R. Lawfer in his book, "Why Customers Come Back: How to Create Lasting Customer Loyalty," the key to creating customer loyalty is differentiation — offering customers a unique experience they can't find anywhere else. This uniqueness is achieved by creating consistent, unique, and relevant experiences for customers.


Personalization is the key to differentiating your promotional messages in the minds and hearts of your customers. A one-size-fits-all approach to loyalty programs isn't enough to stand out. Treating your customers as individuals is crucial; otherwise, your loyalty program risks being left behind.

Advanced Loyalty Framework

To be an industry leader in customer loyalty, you need to move beyond basics in six key areas: outlook, insights, coordination, tools, stats, and teams. A business should prioritize customer loyalty as a key objective, have a thorough approach to research, meticulously share data between departments, invest in the best tools, understand the importance of emotional and behavioral loyalty, and have a team that understands the purpose of customer loyalty.

Committing to Loyalty

To achieve meaningful results, businesses need to make customer loyalty a part of their DNA, committing to it across all departments. Customer loyalty comprises an entire spectrum of actions and mechanisms required to improve the brand's perception among its customers.

Types of Customer Loyalty

Customer loyalty can be measured using two main metrics: behavioral loyalty and emotional loyalty. Behavioral loyalty is demonstrated through repeated buying behaviors, while emotional loyalty is a customer's emotional connection to a brand, comprising three elements — affinity, attachment, and trust.

Measurement and Metrics

Behavioral loyalty is generally easier to measure by looking at customers' purchase habits and trends. On the other hand, emotional loyalty gives a much deeper insight into the motivations behind customer actions and their feelings towards a brand.

Offering to Customers

With clearly defined customer segments, you can increase the effectiveness of your rewards. The key is to optimize your value proposition to each of your core customer segments. Tier-based loyalty programs are very helpful, enabling brands to diversify their offerings based on each loyalty tier.


Implementing customer loyalty programs enables businesses to promote positive consumer behavior, drive repeat business, and reward customers for it. Identifying valuable customers and targeting them with your customer loyalty program is vital. With clearly set goals and strong communication with your loyalty members, a strategically placed customer loyalty program may be just what your ecommerce business needs to scale to the next level.

August 17, 2023