Is loyalty still possible?
Of course, I’m talking about loyalty programs, just to avoid any confusion. The answer isn't straightforward. Loyalty to a product or service, as we once knew it, is no longer possible today. The reasons for this are increasing competition, an ever more diverse range of offerings, innovative approaches, and people becoming more calculative, demanding, and indifferent. Discount platforms have also played a part in this shift. Taking all this into account, we’re left with no choice but to focus on creating our own loyalty program. It might sound complicated, but it’s not. As someone who has been working in the field of loyalty programs and data management for over 15 years, I can confidently say that adaptability is the key to success.

Discount hunters or loyal customers?
Those who believe that a loyalty program only means offering discounts will attract so-called "discount hunters." That’s not necessarily wrong, but it requires the right approach. In the U.S., for example, discounts work, especially those like, "If you order in the next 15 minutes, you’ll get a 50% discount." Such providers already have these offers calculated and know what they mean for their business.
It’s true that at the start, you need to offer something attractive – a gift or a discount – to get an email address, or permission to send newsletters and offers. Believe me, for at least half of new members, the initial benefit is key, as they are already ready to make a purchase. If there’s an additional discount, even better, of course they’ll leave their email. After that, it’s up to us to do our job, which is to retain new members and ensure they at least read our messages.

Types of loyalty programs
Creating a loyalty program is not a simple process. The more expensive the service or product, the harder it is to build an attractive program. First, we need to put ourselves in the position of the business as a person (persona) and imagine how we want customers to perceive us. With that in mind, we then build our loyalty program. The more expensive the service, the better we need to know the customer and offer them only what would truly interest them – or what differentiates us from the competition. For less expensive services, a personal approach is key. Restaurants or cafes are a good example – with a simple "cashback" program and the friendliness of staff who know the habits of regular customers, we can create a sense of home and connection. The customer feels they are not just a number, which strengthens their loyalty.

The importance of data
Data is the foundation of every successful loyalty program. As W. Edwards Deming said, "Without data, you’re just another person with an opinion." Modern software tools enable effective data management, and today BI tools are practically essential if we want to understand customers and offer them segmented deals. Introducing AI tools further simplifies the process. The first steps are, therefore, obtaining an email address and permission to send newsletters and offers. After that, we start collecting other data, with the most valuable being the so-called "soft data." This includes information such as customer preferences, whether they have a family, who they’re connected with, and so on. Based on this data, we create different segments and tailor our communication. For example: If we have a database of several thousand members, how many of them actually read our emails? Especially if they’re not personalized and the offer isn’t segmented. If the offer isn’t attractive and is the same for everyone, the percentage is quite low. A personalized offer is the key to success. Richard Branson once emphasized, "Loyalty isn’t just about discounts; it’s about customers feeling they’re important."

Is a loyalty program possible?
To the question of whether a loyalty program is even possible, the answer is – yes and no. It depends on how much time and energy you invest in it. It won’t work on its own, but with the right approach, personalization, and the use of data, you can build a strong foundation of loyal customers. Loyalty is more than just a one-time benefit or discount – it’s about long-term mutual trust between the business and the customers. My years of experience show that the key elements of success are personalized communication, market adaptation, and effective data management, which allows for a better understanding and fulfillment of customer needs.
To wrap up, if I go back to the play on words, is it any different in a personal relationship? Even with a partner – we need to put in the effort, and our "offer" needs to be unique to stand out from the competition on the market. :)