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<figure id="figure-nxggiz27n9mcn9ux2z"><img id="nxggiz27n9mcn9ux2z" src="https://cdn.durable.co/blocks/aOkOr9vUVH0dsSqQZU0c5IxmLlDWlyVBfJPfWsXgMb7QGenaCZp3q1PYLO8BC2Qn.png" alt="" title="" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/aOkOr9vUVH0dsSqQZU0c5IxmLlDWlyVBfJPfWsXgMb7QGenaCZp3q1PYLO8BC2Qn.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>Points aren't the problem. Thinking they're the whole program is. Here's how to build loyalty around real value.<blockquote>Before you put a cherry on top, make sure you have a lovely cake underneath.</blockquote>Most brands begin (and end) with rewards mechanics: spend money, earn points, and receive discounts. It's the cherry on top of the loyalty cake.But here's what I've learned after years in this industry: before you put a cherry on top, make sure you have a lovely cake underneath.The problem isn't that points are bad. It's that too many brands think points are the cake. They're not. They're just the final flourish on something much more substantial: genuine value that makes customers' lives better.<h3>The Transaction Trap </h3>When loyalty programs focus purely on "spend more, get more," they create what I call the transaction trap:<figure id="figure-w8tmqin27umcn8sg2k" class=""><img id="w8tmqin27umcn8sg2k" src="https://cdn.durable.co/blocks/1eXo0ESMXgiIoIGUyIjsfJu6yAQbvYWSO4qda3hkE3UEL0oNm36mZvMbAHJDimrh.png" alt="" title="" class="object-cover bg-gray-100" style="aspect-ratio: 3/2; object-position: center center;" data-corners="default" data-aspect="3:2" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/1eXo0ESMXgiIoIGUyIjsfJu6yAQbvYWSO4qda3hkE3UEL0oNm36mZvMbAHJDimrh.png" data-mce-style="aspect-ratio: 3/2; object-position: center center;"></figure>The result? A "one size fits all" approach that actually fits very few customers well. You end up with a small group of heavy users and a large group of people who joined but rarely engage.<h3>The Real Currency: Data and Trust </h3>Here's the fundamental shift every loyalty leader needs to understand: When customers join your program, they're signing a contract with you where data is the currency.They give you information about who they are, what they like, when they shop, and how they behave. In return, they expect clear, personal value back from you.<blockquote><h3>When customers join your program, they're signing a contract with you where data is the currency.</h3></blockquote>This isn't just about demographics and purchase history. Customers today understand the value of their data. They know that their information helps you:<ul><li>Predict what they might want next</li><li>Personalize their experience</li><li>Improve your products and services</li><li>Target them with relevant offers </li></ul>The question is: Are you giving them fair value in return?<h3>Beyond the Discount Addiction </h3>"But our customers are different; they really love discounts and special offers!"I've heard this in every country I've worked in. And yes, customers do like good deals. Price sensitivity varies; people generally enjoy saving money.But the point is that discounts open wallets, not hearts.Discounts work great for acquisition. They get people to sign up. But in the long run, they only work for a narrow group of customers. Worse, transactional relationships are always superficial because there's always someone who can offer a similar product at a lower price.When your primary value proposition is price, all your investment in margin evaporates the moment customers find a better deal elsewhere.<h3>What Meaningful Value Actually Looks Like </h3>Real value exchange goes far beyond discounts. Consider what different customer segments actually value:Busy Parents might value:<ul><li>Digital receipts that automatically organize expenses</li><li>Priority customer service with shorter wait times</li><li>Extended return periods for busy schedules</li></ul>Tech Enthusiasts might value:<ul><li>Early access to new products</li><li>Behind-the-scenes content about product development</li><li>Community access to other enthusiasts </li></ul>Budget-conscious shoppers might value:<ul><li>Price match guarantees</li><li>Exclusive access to clearance items</li><li>Payment flexibility options </li></ul>Occasional Customers might value:<ul><li>Simple, immediate benefits that don't require accumulation</li><li>Helpful content related to their interests</li><li>Recognition for any engagement, not just spending </li></ul>The beauty of many of these benefits? They cost you very little to provide but create genuine value for customers.<h3>The Two-Objective Test </h3>When designing your value proposition, every benefit should pass this two-objective test:1. Sales Growth: Will this encourage members to spend more with us?2. Engagement Growth: Will this motivate members to interact more, giving us better data and insights?The best benefits accomplish both simultaneously. For example:<ul><li>Product reviews and ratings encourage engagement while influencing purchase decisions</li><li>Personalized recommendations use customer data to drive sales while showing you understand their preferences</li><li>Exclusive events create community engagement while showcasing new products </li></ul><h3>Real-World Value Innovation </h3>Here are examples of brands that have moved beyond points and discounts:A major retailer introduced "instant expertise". Members get immediate access to product specialists via chat, creating value for uncertain buyers while increasing conversion rates.A beauty brand offers "virtual try-on" technology exclusively to members, solving the problem of buying cosmetics online while driving digital engagement, leading to an increase in online conversion rates.A grocery chain provides "smart shopping lists" that learn from purchase history and suggest meal planning, making weekly shopping easier while increasing basket size.Notice none of these primarily involve discounts, yet all create genuine value while driving business results.<h3>Building Your Value Mix </h3>Your loyalty program should offer a portfolio of value types:<ul><li>Immediate Value (available from day one), e.g.:<ul><li>Digital receipts and expense tracking</li><li>Priority customer service access</li><li>Welcome gifts or exclusive content</li></ul></li><li>Progressive Value (grows with engagement), e.g.:<ul><li>Personalized recommendations that improve over time</li><li>Access to higher service tiers</li><li>Influence over product development</li></ul></li><li>Experiential Value (creates emotional connection), e.g.:<ul><li>Exclusive events and experiences</li><li>Community access and social features</li><li>Behind-the-scenes brand access</li></ul></li><li>Functional Value (solves real problems), e.g.:<ul><li>Extended warranties and return periods</li><li>Price protection and match guarantees</li><li>Convenience features like saved preferences</li></ul></li></ul><h3>The Sky's the Limit (But Start with Customer Problems) </h3>The possibilities for meaningful value exchange are endless, limited only by your imagination and understanding of customer needs. But while creativity matters, the best programs start with a simple question:"What problems do our customers face that we're uniquely positioned to solve?"Sometimes it's a feature. Sometimes it's service. Sometimes it's access or information. Always, it solves a real problem.<h3>Your Role as Value Architect </h3>As a loyalty leader, you're not just managing a points program. You're architecting an ongoing value exchange between your brand and your customers. This means:<ul><li>Understanding different customer segments and what they uniquely value</li><li>Balancing immediate and long-term benefits to engage both new and veteran members</li><li>Measuring both spending and engagement to ensure your program drives sustainable growth</li><li>Continuously testing and evolving your value proposition based on customer feedback and behavior</li></ul><h3>Moving Forward: From Cherry to Cake </h3>Remember: points and discounts can be the cherry on top, but they shouldn't be the whole dessert. The real opportunity lies in creating a meaningful exchange where customers feel valued, understood, and genuinely better off for being part of your brand community.When you get this right, your loyalty program becomes both a growth engine and a relationship generator, driving sales while deepening connections that last far beyond any single transaction.Ready to move beyond discounts and build a genuine value exchange? The best loyalty programs solve real customer problems while driving business growth. Let's design a value proposition that turns transactions into relationships.

Loyalty Blueprint Step 3. Propose meaningful value exchange

<blockquote>Stop chasing the mythical average. Start solving real customer problems. </blockquote><figure id="figure-m4qsi2xk6bmcm7ycqb"><img id="m4qsi2xk6bmcm7ycqb" src="https://cdn.durable.co/blocks/26zgJEshTNTRyyn8SRucwNTpuBRMZXeiZsCQeXRIjKavPRN8DZQfQsDYNqIS1x9z.png" alt="" title="" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/26zgJEshTNTRyyn8SRucwNTpuBRMZXeiZsCQeXRIjKavPRN8DZQfQsDYNqIS1x9z.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure><h3>The Myth of the "Average Customer"</h3>"Our average customer spends €47 and visits us 2.3 times per month. She's 68% female and 34 years old." Sound familiar? This is how most companies describe their customers: in averages, demographics, and tidy statistics. It feels comfortable. It's easy to present to executives. Everyone nods and says, "Now we know our customers!" But here's the uncomfortable truth: There is no such thing as an average customer. This should become your new mantra.Think about it: When was the last time you met someone who was 68% female or visited a store 2.3 times? These numbers might help with spreadsheets, but they don't help you connect with real people who have real problems, emotions, and motivations. <h3>The Product-First Trap </h3>When brands rely on averages, they fall into the product-first trap. The process looks like this:<figure id="figure-ajuapz3vvfmcm7xyyd"><img id="ajuapz3vvfmcm7xyyd" src="https://cdn.durable.co/blocks/32NiiPO7DNkG0iazeDelWm60SDUSfM9R1ymLi7GZzDsbpdiTZY0KHISbeWzzqaHB.png" alt="" title="" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/32NiiPO7DNkG0iazeDelWm60SDUSfM9R1ymLi7GZzDsbpdiTZY0KHISbeWzzqaHB.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>This approach is like playing a guessing game where you keep asking the same yes/no questions: "Want this product? How about this one? This one?" Some people say yes, but most say no. And after the third "no," they stop listening entirely.The result? You're constantly pushing products that only appeal to a fraction of your audience, while the majority feels disconnected from your brand. <h3>The Real Cost of Thinking Product-First </h3>When you lead with products instead of people, several things happen: <ul><li>You lose potential customers who aren't currently interested in what you're promoting, even though they might love other aspects of your brand.</li><li>Your marketing becomes inefficient because you're broadcasting generic messages to diverse audiences with different needs.</li><li>You miss innovation opportunities because you're not listening to what customers actually struggle with in their daily lives.</li><li>Your teams operate in silos with product managers focused on features, marketers focused on campaigns, and customer service dealing with the disconnect.</li></ul><h3>What Does "Humans First" Actually Mean? </h3>Putting humans above products means starting every decision with a simple question: "What problem are we solving for real people?" Instead of asking "How do we sell more widgets?" you ask: <ul><li>"What makes our customers' lives difficult?"</li><li>"What are they trying to accomplish?"</li><li>"Where do they get stuck in their journey with us?"</li><li>"What would make them genuinely excited to engage with our brand?" </li></ul>This shift changes everything. Instead of pushing products, you start solving problems. Instead of talking at customers, you start listening to them. <blockquote><h3>Putting humans above products means starting every decision with a simple question: "What problem are we solving for real people?"</h3></blockquote><h3>The Data Advantage: From Demographics to Understanding </h3>As a loyalty professional, you have something most marketing teams lack: rich behavioral data and direct customer relationships. While others see "female, 34, shops twice monthly," you can see: <ul><li>Sarah, who always shops on Tuesday mornings because that's when her kids are at school</li><li>Maria, who buys in bulk monthly because she's managing a busy household</li><li>Emma, who browses frequently but only buys during sales because she's budget-conscious</li></ul>Putting humans above products means starting every decision with a simple question: "What problem are we solving for real people?"This depth of understanding comes from combining what you observe (behavior) with what you ask (feedback) and what you test (reactions to different approaches).<h3>How to Operationalize Human-First Thinking</h3><ul><li>Create Customer Insight Loops. Don't just collect data, but actively seek understanding through:<ul><li>Post-purchase surveys asking "What problem did this solve for you?"</li><li>Customer service interaction analysis</li><li>Social listening for unfiltered opinions</li><li>Focus groups with your most engaged members</li></ul></li></ul><ul><li>Map Problems, Not Just Journeys. Traditional customer journey mapping shows touchpoints. Human-first mapping shows frustrations, motivations, and desired outcomes at each stage.</li></ul><ul><li>Test Solutions, Not Just Products. Before launching a new product, test whether it actually solves the problem you think it does. Sometimes the solution isn't a new product: it's better service, clearer information, or a simpler process. </li><li>Empower Front-Line Teams. Your customer service team hears problems every day. Your store associates see customer behavior firsthand. Create channels for these insights to reach decision-makers.</li></ul><h3>Beyond Marketing: The Organizational Shift </h3>When you truly put humans first, the impact goes far beyond marketing campaigns: <ul><li>Product Development starts with customer problems rather than technical possibilities.&nbsp;</li><li>Customer Service becomes proactive problem-solving rather than reactive damage control.</li><li>Operations are optimized for customer convenience, not just internal efficiency.</li><li>Communication becomes relevant and helpful rather than promotional and pushy.</li></ul><h3>Your Role as the Human Advocate </h3>As a loyalty leader, you're uniquely positioned to champion this shift. You own: <ul><li>Direct customer relationships through your program.</li><li>Rich behavioral data showing what people actually do, not just what they say.</li><li>Cross-functional influence connecting marketing, service, and product teams</li><li>Permission to experiment with different approaches and measure results</li></ul>Your mission: become the voice of the customer in every business decision. <h3>The Competitive Advantage </h3>Brands that master human-first thinking don't just win customers. They create advocates. When people feel understood and valued as individuals, they don't just buy; they recommend, they engage, and they forgive mistakes. Companies like Amazon, Netflix, and Spotify didn't succeed by having the best products initially. They succeeded by understanding human behavior and solving real problems better than anyone else. <h3>Starting Your Human-First Journey</h3><blockquote><h3>&nbsp;Your brand offers much more than just products. You have the power to solve customer problems and make their lives easier every day.&nbsp;</h3></blockquote>Week 1: Replace "average customer" language in one presentation with specific customer examples and their unique motivations. Week 2: Ask your customer service team: "What are the top 3 problems customers complain about that aren't product-related?" Week 3: Survey 100 recent customers with one question: "What were you trying to accomplish when you first came to us?" Week 4: Present these insights to your product or marketing team with the question: "How might we solve these problems better?" The goal isn't to abandon products. It's to ensure every product, service, and interaction serves a genuine human need.Remember: Your brand offers much more than just products. You have the power to solve customer problems and make their lives easier every day. When you identify needs early, you don't just discover better solutions, you build deeper relationships.

Loyalty Blueprint Step 2. Place humans above your products

<h3>The Reality of Today's Customer Journey</h3>Picture this: You browse a product on your phone during lunch, research reviews on your laptop at home, then buy it in-store on the weekend. Sound familiar? This is the modern customer journey: fluid, multi-device, and cross-channel.Yet most companies are still organized around channels. We have separate teams for eCommerce, stores, call centers, and marketing. Each team has its own tools, metrics, and yes, its view of the customer.This creates a problem. While customers move seamlessly between channels, companies view them as distinct fragments: "the website visitor," "the store customer," and&nbsp;"the email subscriber." It's like trying to solve a puzzle with pieces scattered across different tables.<figure id="figure-m0j0r6ncjlmcm6shv3" class=""><img id="m0j0r6ncjlmcm6shv3" src="https://cdn.durable.co/covers/11BboiHlHn5KCozrgkQLzIIaGmlxbXrS4BAJnY9kzznQdaqTADrYKr7rVb9xaLc6.jpg" alt="" title="" class="object-cover bg-gray-100" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/covers/11BboiHlHn5KCozrgkQLzIIaGmlxbXrS4BAJnY9kzznQdaqTADrYKr7rVb9xaLc6.jpg" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>The Hidden Costs of Fragmented Data </h3>When teams only see part of the customer story, mistakes happen:<ul><li>The Abandoned Cart Mistake: Your email team sends a "You forgot something!" message to someone who already bought the item in your store an hour later.</li><li>The Duplication Problem: Marketing spends money acquiring "new" customers who are already loyal members shopping through different channels.</li><li>The Service Disconnect: A customer calls support frustrated about an online order, but the agent has no visibility into their in-store purchase history or loyalty status.</li></ul>These aren't just glitches. They erode trust and drain the budget.<h3>What Is a Single Customer View? </h3><blockquote>A Single Customer View means recognizing the same person across all their interactions with your brand, regardless of how, when, or where they engage. </blockquote>It's your customer's complete story in one place:Sarah, who browses on mobile → buys in-store → calls customer service → opens the emailsAll recognized as one person with one unified profile Think of it as a digital passport that follows your customer across every channel and interaction.<h3>Why Building This Is Challenging (But Worth It) </h3>Creating a unified customer view isn't simple because:<ul><li>People are constantly changing: New phones, browsers, email addresses, and home addresses. You're often the last to know about these changes.</li><li>Technology keeps evolving: Privacy regulations, cookie changes, and new devices constantly shift how you can track and connect customer data.</li><li>Channels work independently: Each team has different systems that don't naturally integrate with one another.</li></ul>But here's why it matters: Data value comes from completeness, not just volume. Partial pictures lead to partial solutions.<blockquote>But here's why it matters: Data value comes from completeness, not just volume. Partial pictures lead to partial solutions.</blockquote>What Happens When You Get It Right? When you successfully build a single customer view, every team in your organization gets superpowers:<ul><li>Your eCommerce Team can recommend products based on what customers bought in-store, making personalization truly personal.</li><li>Your Marketing Team can stop wasting money on customers who are already engaged and focus the budget on real acquisition opportunities.</li><li>Your Customer Experience Team can resolve issues faster because they see the complete customer context, not just the current problem.</li><li>Your Finance Team can calculate true customer lifetime value and profitability, helping guide better business decisions.</li><li>Your Store Teams can recognize VIP customers and provide personalized service based on their complete purchase history.</li></ul><h3>Starting Your Single Customer View Journey </h3>Building a unified customer view is an ongoing process, not a one-time project. Here's how to think about it:<ol><li>Start with what you have: Identify all the places customer data currently lives in your organization.</li><li>Connect the obvious dots first: Link customers who use the same email address or phone number across channels.</li><li>Build bridges gradually: Use loyalty programs, account creation, and customer service interactions to connect more dots over time.</li><li>Make it valuable for customers: Give people reasons to identify themselves (exclusive offers, personalized experiences, seamless service).</li><li>Keep improving: As technology and customer behavior evolve, so should your approach.</li></ol><h3>The Loyalty Advantage </h3>This is where loyalty programs become strategic assets, not just marketing tactics. Great loyalty programs don't just reward behavior. They invite customers to build a relationship across channels, turning sporadic touchpoints into a connected journey.<blockquote>This is where loyalty programs become strategic assets, not just marketing tactics. Great loyalty programs don't just reward behavior. They invite customers to build a relationship across channels, turning sporadic touchpoints into a connected journey.</blockquote>A well-designed loyalty program gives customers compelling reasons to identify themselves consistently across all channels. It becomes the thread that connects their entire journey with your brand.When customers see clear value in being recognized: better service, relevant offers, seamless experiences, they'll help you build that single view by willingly connecting their touchpoints.<h3>Your Role as the Conductor </h3>As a loyalty professional, you're uniquely positioned to orchestrate this effort. You understand customer behavior, you bridge marketing and operations, and you have access to rich customer data.<blockquote>Your mission: become the single source of truth about your customers.</blockquote>Your mission: become the single source of truth about your customers. When done well, you transform from a program manager into a customer intelligence hub that powers better decisions across your entire organization.Ready to build your Single Customer View? This is just the beginning. Every organization's journey is different, but the principles remain the same: start with the customer, connect the dots, and create value for everyone.

Loyalty Blueprint Step 1. Build a single view of the customer

Adam Nowak Customer Loyalty

Turn customer challenges into opportunities with practical insights on CRM, engagement, and loyalty from Adam Nowak, Customer Loyalty Expert.  

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Loyalty Blueprint Step 3. Propose meaningful value exchange

Loyalty Blueprint Step 2. Place humans above your products

Loyalty Blueprint Step 1. Build a single view of the cust...