Building customer loyalty with rewards that matter

The 2024 Interactive Customer Experience Summit brought together industry leaders to discuss the evolving landscape of loyalty programs in retail and dining, exploring how businesses can better engage customers and drive revenue.

Hosted by Networld Media Group in Charlotte, North Carolina, the ICX Summit included a panel entitled “Building customer loyalty with rewards that matter.”

Moderated by Judy Mottl, editor of Retail Customer Experience and Rewards That Matter, the panel included insights from Darren Spicer, co-founder and CEO at Clutch Coffee; Alex Preece, co-founder and CEO at Tillo; Christine Johnson, COO at Le Duff America; and Alison Brigham, VP of brand experience and community impact at Lee Bank.

Each panelist shared their expertise on the challenges and successes of loyalty programs.

Simplifying loyalty programs to maximize engagement

Spicer emphasized the importance of simplicity in loyalty programs, noting that his company utilizes a points-based system through the Como platform, which integrates directly into their point-of-sale system. He noted that transitioning from a traditional “buy X, get Y” model to a more flexible, gamified system has been beneficial for both the company and its customers.

“Make it very easy to use and very easy to understand,” Spicer said. “The easier it is, the more people will engage with it. If it becomes difficult, human nature is to avoid it.”

This shift not only streamlined the experience for customers but also gave Clutch Coffee more flexibility in offering rewards that could be easily adjusted over time.

Rewarding customers with personalization and flexibility

For Alex Preece, co-founder of Tillo, the key to a successful loyalty program lies in personalization. Preece’s company works with global financial services and retail brands to provide reward APIs, processing $1.5 billion in gift card transactions annually. He stressed the need for loyalty programs that cater to individual customer preferences, particularly in a volatile economic climate.

“What we’re seeing is premium-led services being offered to consumers where they might get more rebate margin because they’re a premium customer,” Preece explained. “Consumers are willing to pay for it—they just need to see that they’re getting more.”

Preece also highlighted the importance of data in tailoring the customer experience, noting that brands must continually evolve to keep up with consumer expectations.

Transitioning to a new loyalty platform

Christine Johnson of Le Duff America shared her company’s experience transitioning from a custom-built loyalty app to an off-the-shelf solution by Thanks. With 91 locations across the U.S., Le Duff’s primary brand, La Madeleine Bakery Café, faced challenges in moving from a visit-based rewards system to a more consumer-driven, dollar-based model.

“Customers told us they wanted to earn rewards based on their spending, not just their visits,” Johnson said. “We had to adapt, and while it was a big transition, the customer feedback has been very positive.”

Johnson noted that one of the biggest hurdles was educating both customers and employees on the new system, which automatically links purchases to loyalty accounts via a registered credit card. This new model has allowed for greater flexibility and provided a more seamless user experience.

Banking on loyalty with consumer engagement

Alison Brigham from Lee Bank discussed the impact of loyalty programs in the financial sector. Lee Bank’s reward-based checking accounts—which offer either cashback on debit card purchases or interest based on account balances—have been a key factor in customer retention.

“One of the things we always monitor is how many customers are qualifying for their rewards each month,” Brigham said. “Interestingly, the biggest sticking point tends to be e-statements. Once you’re signed up, you don’t have to do anything more, but getting people to make that initial leap can be a challenge.”

Brigham also stressed the importance of employee education, ensuring that staff understand the program well enough to guide customers into the account that best suits their needs.

Lessons learned and looking forward

As the panelists shared insights from their respective industries, a few common themes emerged—chief among them was the need for simplicity, flexibility, and data-driven personalization.

For Spicer, one key takeaway from Clutch Coffee’s journey was the value of offering incentives upfront. “If you sign up and download the app, you get a free drink to start,” he said. “It’s a small gesture, but it makes a big impact in terms of getting people engaged.”

Preece emphasized the importance of seamless integration and continuous improvement, especially as technology continues to evolve. “If you’re not rewarding your customers, you’re already behind,” he warned. “Consumers today expect more, and they’re paying attention to who’s offering the best rewards.”

Johnson underscored the necessity of educating both employees and customers throughout the transition to a new loyalty system. Despite initial confusion, she noted that their approach of linking rewards to credit card usage has led to higher customer satisfaction and more frequent visits.

Brigham added that data is essential not only for improving the customer experience but also for optimizing the program itself. “We track everything, from how often people swipe their cards to what keeps them from qualifying for rewards,” she explained. “This helps us adjust our strategy and ensure that we’re offering the right incentives.”

The panelists agreed that loyalty programs are not just a nice-to-have feature—they’re essential to driving long-term customer engagement and business growth. As technology continues to advance, brands must stay nimble, using data to personalize their offerings and ensuring that both customers and employees are educated on how to maximize the benefits of these programs.

With loyalty programs becoming increasingly integral to customer retention, businesses across all industries will need to continue refining their strategies to stay competitive in an ever-changing marketplace.