Loyalty Programs: Essential Strategy or Just Another Buzzword?

You’ve heard it before. Everyone's talking about loyalty programs. “Loyalty, loyalty, loyalty” — it's become the marketing world’s favorite echo.

By now, it might even make you roll your eyes and think, “Here we go again. Another ‘expert’ telling me why I absolutely need one.”

Fair. I get it. The world is full of self-proclaimed gurus who’ve skimmed one book or article and now think they’ve cracked the code.

But what’s often missing from the conversation?
Plain common sense.

Drowning in Information, Starving for Clarity

There’s been a flood of advice about loyalty programs — maybe even too much. And ironically, all this information has only created more confusion.

Businesses are left wondering: “It sounds useful, but... do we really need it?” And that’s when the excuses start rolling in.

Many don’t realize: you don’t need to start with a complicated system. Even small steps matter — if they’re done sincerely.

If you're only launching a program because your competitors have one, you'll attract bargain hunters — and little else. But if you approach it with heart and intention, results will follow.

Do Loyalty Programs Actually Matter?

Yes. They do.

Let’s look at Hofer (Aldi). For years, they proudly claimed their low prices were already “More than fair.” They insisted they didn’t need a loyalty program. Better to cut prices than invest in software and staff, they said.

But even Hofer eventually shifted. They introduced a 10% discount coupon — handed out at checkout and redeemable over the weekend. Why the change? Because they saw what the data kept confirming: Discounts are powerful purchase triggers. Especially in price-sensitive markets like groceries.

Price Isn’t Everything

In grocery retail, sure — people need food, and price often drives where they shop. Especially in the Adriatic region, where wage-to-cost-of-living ratios are tight.

Consumers here often spend a larger chunk of their income on essentials than their Western European counterparts. That’s why Lidl and Hofer frequently win — offering lower-priced baskets than Spar or Mercator, even after discounts.

But in other industries, the story changes. The key question becomes:

Is the customer returning because they have to… or because they want to?

Your goal? Create experiences that make customers want to come back — because they felt valued, seen, and rewarded.

One Size Doesn’t Fit All

Every customer is different. Take Gen Z: They want more than just points. They expect engagement, personalized offers, and sustainable stories. They want to know why a reward matters to them, and how it supports the environment.

So you need to understand your audience:

  • Who are they?
  • What do they care about?
  • What motivates them?

Don’t overcomplicate it with dozens of micro-segments — you’ll only waste time and lose focus. Instead, define a few clear customer groups — and serve them well.

Jurij Triller

How to Start a Loyalty Program

Once you know what you want to achieve and who you’re targeting, the next question is: How will you deliver it?

You’ll hear the usual excuses:

The truth? Simple, affordable tools exist. Even for freelancers and micro-businesses. You don’t need enterprise-grade tech. You just need to start.

Even a hairdresser, beautician, or small café can implement basic loyalty ideas: A return-visit stamp card. A birthday SMS. An exclusive offer via text.

You can always scale later — as you grow.

Choose the Right Tool for Where You Are

You don’t need a Formula 1 car if all you need is a bike to get from A to B. Don’t let vendors upsell you bloated systems you’re not ready for.

Look for tools that can grow with your business. Solutions that allow modular upgrades, not expensive overhauls.

A quality provider will also give you honest advice — including when not to invest, and when it’s likely to pay off.

Here's a fun test: Do loyalty software providers run loyalty programs themselves? Can they keep you loyal as a client? That alone says a lot about their credibility.

Start Small. Scale Smart.

Don’t wait for the “perfect” setup. Instead, ask:

Choose flexibility over flash. Because loyalty isn’t about gimmicks — it’s about consistency, relevance, and value.

Your Loyalty Launch Checklist:

  1. What’s your goal? (More visits? Stronger loyalty? Higher average spend?)
  2. Who are your customers? (Which segments? What do they expect?)
  3. What kind of tool do you need? (Based on your size, budget, and goals)
  4. Can it scale as you grow?
  5. Will your provider support you long-term? (Or just until the sale is closed?)

If you’re unsure where to start — or how to scale what you already have — we’re happy to help with flexible, right-sized loyalty solutions tailored for both small businesses and growing brands.

Jurij Triller

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