The Loyalty Boom in Saudi Arabia: Trends, Challenges, and How Brands Can Stay Ahead

Posted on November 6, 2024 by Anjali Pillai

Saudi Arabia is on a mission with Vision 2030, transforming into a cashless, digital powerhouse—and the loyalty market is feeling the buzz. Even the government has joined the party with DOAM, a loyalty program that’s shaking things up for over 1.2 million public sector employees. The DOAM program allows employees to enjoy exclusive offers, such as discounts on flexible domestic fares, special deals on international flights, and curated travel packages.

This marks a shift not just in the public sector, but across industries like e-commerce, retail and travel and hospitality, where businesses are increasingly using loyalty programs to forge lasting customer relationships.

The Saudi loyalty market grew at an impressive CAGR of 11.6% between 2019 and 2023 and is forecasted to reach USD 1.59 billion by 2028. What’s fueling this exponential growth? A combination of technological advancements and evolving consumer preferences. Brands are beginning to recognize that loyalty programs are no longer a “nice-to-have” but a strategic imperative to drive business growth and stay competitive.

The Shift in Saudi Loyalty Programs: It’s All About Experiences and Value

If you think points and discounts are all you need to get a jump start in this booming market, think again. With over 60% of the population under 35, there’s a massive demand for digital-first, innovative products and experiences. Today’s Saudi consumers crave meaningful connections, memorable experiences, and real-time value. Brands must rethink their loyalty strategies to stay ahead and meet these evolving expectations.

Trends Shaping Loyalty Programs in Saudi Arabia

1. Experiences Over Marginal Discounts

Discounts and offers are no longer sufficient to build loyalty. Today’s consumers expect curated experiences that make them feel special. Programs like Saudi Rewards are leading the way by allowing members to earn and redeem points across a wide network of tourism events, travel deals, dining experiences, excursions, and entertainment. This creates an emotional connection with the brand, turning customers into advocates.

To stand out, brands must move beyond transactional incentives and design loyalty programs that offer exclusive dining experiences, personalized getaways, or VIP access to events. The focus should be on creating moments that matter—moments customers won’t forget.

2. Sustainability: Aligning Loyalty Programs with Consumer Values

Sustainability is becoming a non-negotiable in the Saudi loyalty market, and conscious consumerism is becoming a key trend in the region. Customers are increasingly drawn to brands that show a commitment to social responsibility and environmental consciousness. Loyalty programs that integrate sustainability—such as eco-friendly rewards, carbon offset incentives, or green points systems—appeal to this growing segment of conscious consumers.

3. Instant Gratification: Rewards Without the Wait

Don’t keep them waiting. With instant gratification becoming a key engagement factor, Saudi consumers expect quick rewards making cashback programs more popular than traditional point-based rewards.

Some instant gratification strategies that brands can consider:

Cashbacks within minutes of purchase.
Instant vouchers that can be redeemed in-store or online.
Real-time notifications about points and rewards earned, keeping excitement levels high.

In the booming Saudi loyalty market, brands that deliver rewards swiftly keep customers engaged and motivated to make repeat purchases.

4. Value-Driven Rewards: Catering to Price-Conscious Consumers

Recent research from Saudi Arabia Consumer Behavior in the New Era shows that Saudi consumers are becoming increasingly price-sensitive and value-conscious. This has heightened the need for Saudi loyalty programs that offer meaningful discounts, bundled incentives, and high-value rewards.

Brands should focus on combining price savings with aspirational rewards—for instance, a loyalty program that offers both discounted shopping vouchers and exclusive experiences ensures customers feel they are getting the best of both worlds.

Challenges in Building Loyalty Programs in Saudi Arabia

Despite the growing demand, building and managing loyalty programs in Saudi Arabia is not without its challenges. Brands must navigate the following hurdles to ensure their programs remain relevant and compliant.

1. Regulatory Compliance

The Saudi government is introducing new regulatory frameworks focused on data privacy, payment security, and consumer rights. With loyalty programs requiring access to personal data, it’s crucial for businesses to align with these evolving regulations.

Non-compliance risks damaging brand reputation and customer trust. Brands must balance personalization with privacy by being transparent about how customer data is collected and used.

2. Changing Consumer Expectations and Behaviors

Customer behaviors in Saudi Arabia are evolving rapidly. While digital adoption, mobile shopping, and social commerce are reshaping how consumers engage with brands, building long-term loyalty is becoming more challenging. Younger demographics, in particular, are driven by deals, promotions, and instant gratification, leading to low customer stickiness. To stay competitive, loyalty programs must offer seamless omnichannel experiences and deliver relevant, personalized rewards that go beyond discounts to foster deeper, lasting connections.

How Brands Can Build Loyalty Programs That Resonate in Saudi Arabia

Succeeding in Saudi Arabia’s evolving loyalty landscape means putting customers at the heart of your strategy. It’s about creating programs that resonate with local preferences and align with what customers truly value. Here’s what can make a difference:

1. Localization and Cultural Adaptation

Loyalty programs that reflect regional traditions and cultural values resonate more deeply with Saudi consumers. Hence incorporating localization features that speak directly with the consumers can make a huge difference in building an emotional connection with them. While the foundational element of localization is of course the use of regional language across platforms, it is not limited to it. Localization in your loyalty program can also consider:

Celebrate key moments by offering rewards around holidays like Ramadan and National Day.
Create family-friendly incentives that align with Saudi values.
Provide bilingual support (Arabic and English) across platforms to ensure seamless engagement for all.

2. Customer Experience and Digital Engagement

With digital advancements playing a major role in driving the loyalty market in Saudi, brands need to consider different innovative ways to engage their customers. Gamification could be a great way to start. Gamification features—such as milestones, badges, and challenges—boost engagement and encourage repeat interactions.

By integrating the omnichannel experience into your brand’s loyalty program, you can make sure that you are connected with your customers at every touch point and can engage with them wherever they are and how they might prefer.

3. Hyper-Personalization at Scale

If your brand wants to stand out and truly connect with customers, hyper-personalization isn’t just a nice-to-have—it’s essential. It’s not about simply using a customer’s name, age, gender, or location; it’s about engaging them through their unique preferences based on their purchase history, customer journey, etc, and delivering messages that resonate on a personal level. In order to implement hyper-personalization, brands can:

Use AI-powered analytics to deliver personalized product recommendations.
Create dynamic rewards that allow members to select the incentives they value most.
Run targeted campaigns during holidays and key shopping events, delivering relevant offers in real time.

4. Advanced Analytics to Stay Ahead of Trends

Customer expectations keep changing and that’s a given. Navigating these changing customer expectations is a major challenge that brands face, but there’s a solution. Brands that leverage advanced analytics can anticipate emerging trends and stay ahead of changing consumer behavior. Predictive analytics can help brands identify opportunities to improve their loyalty programs and deliver more meaningful rewards, thus creating a delightful experience for their customers.

5. Partnerships for Cross-Brand Rewards

Collaborating with complementary brands opens new avenues to engage customers by offering richer, more meaningful rewards. In Saudi Arabia, cross-brand loyalty ecosystems are gaining momentum, with notable examples like Saudi Arabian Airlines (Saudia) partnering with retail brands and hotels through their Alfursan loyalty program. Similarly, STC Pay collaborates with retailers and restaurants, providing discounts and rewards that enhance everyday transactions for users.

These partnerships create seamless ecosystems—airlines, hotels, retail chains, and financial services working together to offer customers more value. This approach makes it easier for members to earn and redeem rewards across multiple touchpoints, enhancing their loyalty journey with incentives that fit their lifestyle.

Winning Loyalty in Saudi Arabia With Innovation and Adaptation

The loyalty landscape in Saudi Arabia is expanding rapidly and the demand for personalized, meaningful experiences in the region is now higher than ever. To stay ahead, brands need to act fast, leveraging this momentum to transform loyalty programs from cost centers into profit engines. But why do the heavy lifting all by yourself when you can partner with the right loyalty solutions provider? With the right loyalty partner offering the expertise, tools, and scalability to design impactful programs, brands can achieve measurable results and position themselves to thrive in this dynamic market.

At Capillary Technologies, we specialize in building adaptive, scalable loyalty programs that meet the unique needs of regional markets. With our deep expertise in AI-powered personalization, gamification, and omnichannel engagement, we help brands design loyalty strategies that resonate with Saudi consumers and deliver real business impact.

Is your loyalty program ready to unlock the potential of the Saudi market? Let Capillary help you build the perfect strategy to drive long-term success.

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Debunking RFP: What You Need to Know for 2025

Posted on November 6, 2024 by Bharat Menon

Introduction

Chances are, you’ve heard the term ‘RFP’ tossed around in meetings, setting the stage for serious discussions among clients, managers, and procurement teams. In the B2B world, Requests for Proposals are far more than formalities—they’re a crucial step in finding the right partners to bring ambitious projects to life.

In this comprehensive guide, we’ll delve into RFP territory, from its inception to why it’s essential for most enterprises. By the end of this blog, you’ll have a strong grasp on drafting an RFP from scratch for your loyalty projects.

So What Exactly Is An RFP?

An RFP, or Request for Proposal, isn’t just a bunch of paperwork. It’s essentially a business’s way of saying, “We have a project and think you can help us achieve our goals.” This document details everything you’d want to know about a project: its goals, key performance indicators (KPIs), sponsors, and the fine points of the contract.

An RFP sets the stage for potential vendors or agencies to compete by outlining expectations—such as Scope of Work (SOW), deliverables, and timelines. RFPs aren’t just for show; they’re practical tools widely used across industries. From retailers and CPG giants exploring loyalty solutions with Capillary to governments planning infrastructure, and even e-commerce companies selecting creative partners.

How RFPs Came To Be

Time for a little history lesson. Let’s rewind to the Industrial Revolution in the 1800s. This era wasn’t just about steam engines and mechanization; it also set the stage for today’s RFPs. Back then, vendor selection largely depended on word-of-mouth recommendations, which worked well in small, local markets with limited competition. As the electronic communication era began, the need for formal proposals became apparent, and enterprises started listing bids in newspapers and trade publications. As phones and fax machines became common tools in the 1960s, RFPs grew more detailed and efficient.

Fast forward to today, and the RFP process has expanded from public sector contracts to private projects, thanks to cloud-based technology and automation that make everything more efficient and transparent. It’s a far cry from the days of newspaper bids and faxed responses!

Understanding a Request for Proposal (RFP)

Think of an RFP like a superhero team-up. Imagine you are Batman fighting crime, and you have the best sidekick, Robin. Every enterprise wants to find their perfect sidekick, to tackle high-stakes projects. The RFP process might seem daunting, but it’s all about finding the perfect match. Here’s how it typically unfolds in four broad steps:

The Scope & Specifications of Your Project

The first step of an RFP process is the development phase. It involves

Outlining key objectives and specifics of the project
Conducting internal team discussions for input and alignment
Formulating KPIs to measure the project success
Understanding how to evaluate and rank vendors

Designing The Proposal for Success

With your objectives defined, the next step is to craft and release the RFP, which involves

Creating unbiased, specific questions for the RFP
Setting a project budget, evaluation criteria, and deadlines
Optimizing the RFP with stakeholder input to anticipate challenges
Leveraging RFP software to generate dynamic templates, simplifying the process

Evaluate & Shortlist Vendors

Let us look at what happens in the evaluation and shortlisting process.

Send reminders to vendors, encouraging them to submit proposals
Assess vendor responses with stakeholder and expert input
Identify strengths and weaknesses in each proposal
Follow up with vendors to clarify any open questions from the RFP

Negotiations & Contracting

Reaching the homestretch, this final phase includes both parties reaching a final agreement.

Conduct pre-negotiation checks to confirm vendor reliability
Negotiate with the supplier to assess potential compromises
Notify the chosen vendor with an RFP Award Letter
Sign the contract, covering the scope of work, deliverables, timelines, and payment schedules

The Downsides Of Using RFPs

No process is without its challenges, and RFPs can be complex. Let’s explore why RFPs might sometimes feel like more trouble than they’re worth.

Complex and Time-Consuming

Crafting an RFP is no small feat. It demands significant time and effort, often requiring an extensive list of questions and lengthy consultations with stakeholders and technical experts.

Risk of Stakeholder Biases

Stakeholder biases can pose challenges in vendor selection. Personal preferences may clash with business needs, making it difficult to find common ground. The goal should be to align stakeholder interests with the project’s objectives, ensuring the selection of the most suitable vendor.

Using Outdated Procurement Technology

Just as outdated tech hinders customer loyalty initiatives, it also complicates RFPs. Many procurement teams still rely on basic tools like Excel or Word, which makes managing and analyzing vendor responses cumbersome and prone to error. Relying on these outdated methods slows the process and increases risks of inaccuracies.

Are RFPs Worth The Hype?

Despite being labor-intensive and complex, RFPs bring several advantages to the table. Here are some key benefits of using them in procurement.

Expanding Vendor Choices

While creating an RFP can be a large undertaking, the benefit is in the options. More proposals mean you can refine your procurement strategy, making it easier to evaluate critical factors like vendor performance, offerings, and pricing. It’s about making informed decisions to get the best fit.

Boosting Transparency

RFPs allow the procurement team to lay all expectations clearly, giving vendors a transparent view of the project and the market’s pricing landscape. This mutual understanding sets the stage for effective, fair partnerships.

Streamlining Future Proposals

Consider the initial effort in creating an RFP an investment. Once you have a solid template, it becomes a reusable asset that simplifies future procurement tasks. Incorporate advanced procurement technology, and you’ll not only streamline the process but gain data insights that guide decision-making.

RFP vs. RFQ vs. RFI

RFP	RFQ	RFI
An extensive document that solicits proposals through a bidding process.	It is the pre-qualification stage of the procurement process.	Involves collecting written information about the capabilities of various suppliers.
Contains more specified questions, outlining the project goals and specifics.	More confined to strict project requirements, not giving creative flexibility to vendors.	Usually involves open-ended questions which are mostly informal.
Slightly formal, and relaxed in nature.	More formal and specific in nature.	Very specific and in-depth, looking for quotations from vendors.
Ideally used to define the scope of work, experts/stakeholders understand the landscape.	The loyalty experts/stakeholders understands the landscape and sets up the playing field to find the right fit.	Comparing vendor quotes, with enterprises exactly understanding what they’re looking for.

Find The Right Loyalty Partners With A Comprehensive RFP

Right loyalty solutions provider can elevate your campaigns to new heights. Crafting a detailed and thoughtful RFP is a key step in identifying vendors who align with your business goals and can enhance your loyalty efforts.

Ready to see how this works in action? Consider inviting Capillary Technologies to your next RFP. Explore our AI-driven Loyalty Solutions and discover how we can tailor our services to meet your specific needs. Let’s collaborate to transform your loyalty strategy!

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FAQs

What is an RFP?

RFP or Request for Proposal is a business procurement document that outlines all the key aspects of a new project like its objectives, KPIs, sponsors, and contract terms to name a few.

Why would you use an RFP?

RFPs are used by enterprises that need external help to meet their project needs like IT solutions, loyalty solutions, or CRM solutions. An RFP can help you filter down partners with the right resources, skills, and expertise.

When would you use an RFP?

An enterprise would use an RFP to lay out the playing field for enterprises, providing vital information for vendors and agencies like project objectives, timelines, deliverables, and budgeting.

What happens after the RFP?

Once you’ve got all your responses for your RFP, the procurement team will need to shortlist the vendors and send an RFP award letter.

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Top Loyalty Program Myths: Debunking 10 Misconceptions In Customer Loyalty

Posted on November 2, 2024 by Aditi Aggarwal

There’s a common myth that loyalty is just a promotional gimmick, but that’s far from the whole story. Loyalty is really about building deeper connections with your customers and understanding the customer journey. When used correctly, loyalty programs can nurture brand loyalty.

But let’s be honest, there are plenty of loyalty program myths out there clouding our perception of customer loyalty. In this comprehensive read, we’ll dive into the real world of loyalty, bust some myths, and set the record straight. Let’s get to the facts and uncover how loyalty programs really work!

Top 10 Loyalty Program Myths

Myth 1: Loyalty is an expensive affair

A lot of marketers often dread the upfront cost involved in setting up a loyalty program for their brand. However, if one looks at it closely, they would realize that the benefits outdo the cost involved in setting up a loyalty marketing strategy. If acquiring new customers is anything to go by, then retaining old customers’ drives more revenue and sales. A recent study by Bain & Company on customer retention revealed that a meagre 5% increase in customer loyalty can increase the average profit per customer by almost five times. Isn’t it a great statistic to vouch for and frame your next marketing strategy? In fact, what could in turn be expensive is trying to build a new team from scratch to create an in-house loyalty program. This wouldn’t only be time consuming exercise but it will also mean stepping into a new territory with no experience.

Myth 2: Loyalty doesn’t generate ROI

What I can be assured of when you enroll for this program? How soon can the growth be seen? These are some of the questions on top of loyalty managers’ minds when enrolling for a loyalty program. But remember, loyalty is a long-term journey for any brand. Expecting instant results from a loyalty program isn’t fair as the brand must count both tangible and non-tangible benefits that are involved in it. When a brand ventures into loyalty marketing, a new journey starts. And in this journey, the brand must constantly reinvent their loyalty program keeping abreast with the market changes. It is thus imperative to make your loyalty program appealing to your customers by innovating with newer strategies like gamification, milestone-based rewards, personalized offers, etc.

Myth 3: Loyalty is a complex setup

While there can be complex programs like a group loyalty program but a good tech partner like Capillary will know exactly how to make it work. As a brand, working with on an already established loyalty platform will help you transition swiftly. A technology partner who not only has experience but also a proven scalability to offer new benefits. Brands shouldn’t overwhelm themselves with the pressure of implementing the entire program in one go. A quick pilot run in a smaller geography to test and learn always helps to implement better in the future with different sets of products and more territories. Get in touch with our Loyalty Experts to explore how our loyalty platform can take your loyalty strategies to newer heights.

Myth 4: Loyalty means discounting

No, no, and no! Loyalty is not just giving discounts. Many brands deviated from the loyalty path as they already offer discounts. Most of the finance teams of brands strongly believe in this. As a brand, your journey and relationship with customers need to be defined first. Identify which set of customer segments need discounts and which do not. Accordingly, communicate and send targeted messages to win your customers back.

Myth 5: Loyalty is non-measurable

And the good news is that loyalty is measurable. At Capillary, our experts have created a value-delivery model known as Loyalty Delivered Sales (LDS) framework that assures up to 20% topline revenue. This scientific framework to measure the potential of loyalty programs is a robust approach designed through an in-depth study of 100+ programs from 5 industries across 20+ countries. You can read more about this in our joint whitepaper study with BCG here.

Myth 6: Well-known brands don’t need loyalty

Another loyalty myth looming in the minds of many noted brands feels their goodwill is enough to pull customers or sustain in the competitive market. However, market dynamics are such that sometimes even the most admired brands lose their loyal customers. The pandemic is one good instance, with many brand loyalists turning into the biggest brand switchers owing to the non-availability of products on the shelves. Customer loyalty comes to the rescue, preparing brands for many such situations. We live in the times of experiential marketing where building experiences is far superior to offering a slashed price. At one point, even Starbucks didn’t have a loyalty program because everyone loved the coffee but eventually the brand ventured into a robust loyalty program.

Myth 7: Gen Z don’t relate to loyalty programs

Although GenZs who comprise a major share of today’s active shoppers, love to experiment with different brands, it is equally true that this socially active generation loves rewards and offers. One of the surveys by KPMG in the US market stated that 87% of US Millennials are enrolled in at least one loyalty program and are the most actively engaged with that program while referrals work faster and better with GenZs. When done right, loyalty programs have the ability to capture this segment well with engagement-based loyalty programs that are not tied to their overall spends. Rewarding them for non-transactional elements like referring friends or family, consuming content, or writing product reviews could be a huge boost in driving Millennials and GenZs to engage more.

Myth 8: Loyalty means giving a share of your profits

Your rewards don’t always have to be monetary in nature. It could involve offering exclusive benefits to your loyal customer base like a preview of your new products or services, informational content, early access to ongoing sales, and much more. Personalized benefits like preferential shopping timeslots, new product launch events, and free product sampling could be the levers, enterprises could implement using loyalty programs. Marketers must understand that through offers and rewards, their brand either gets more sales, a new referral, a free download of the app or free reviews. As a brand, you simply incentivize the transactional behavior of your customers for their benefit to grow your brand’s goodwill and eventually make them a loyal brand ambassador. Gathering data must not be compromised or ignored. It is a two-way road, you give rewards to get rich data and insights and this will be of prime importance in a cookie-less world.

Myth 9: Satisfied customers are your loyal customers

Simply sharing reviews or spending more isn’t enough. As a brand, you must be aware of your competitors in the same space and strategize accordingly. Uncertain events like COVID-19 pandemic definitely had many consumers shifting their loyalties to other brands. No one ever imagined but it happened. Hence, as a brand you must look at your customer behavior and reward them from time to time.

Simply sharing reviews or spending more isn’t enough. As a brand, staying ahead requires understanding your competition and strategizing effectively. Unexpected shifts in consumer preferences can quickly change the landscape, as we’ve seen when customers switch allegiances even without major prompts. Therefore, it’s crucial to continuously analyze customer behavior and offer timely rewards to truly foster loyalty.

Myth 10: Loyalty means only earning and burning points

Having a simple earn-and-burn strategy is definitely not enough. Although loyalty has evolved, unfortunately, it is the least evolved dimension in a business’s marketing and growth strategy. There are multiple products of loyalty that brands are unaware of. The 7 types of loyalty products starting from base, personalized, tier, social, digital, dynamic and partner loyalty are cohesively driven by customer behavioral & transactional divergence. It is thus imperative for brands to continue adding more features & benefits to their existing loyalty program to drive effective results.

Put Your Loyalty Program Myths To Rest With Capillary

Now that we’ve debunked various loyalty program myths, the next step to driving customer engagement and retention strategies is building and implementing comprehensive loyalty strategies.

Explore how Capillary can put your loyalty program myths to rest, driving actionable insights leveraging our robust Loyalty+ Solutions. Talk to our Loyalty Experts to explore more.

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FAQs

Are loyalty program myths really a thing?

There’s this notion amongst enterprises and customers alike that loyalty is just a promotional gimmick. These myths can stem from outdated information, oversimplified understandings of customer behavior, or misconceptions about what loyalty programs can and cannot do.

Why is it important to bust some of these loyalty program myths?

Customer loyalty has a lot going on for it with the recent boom in AI, ML, customer data analytics, and mobile apps. But it also comes with its misconceptions attracting skepticism to it from marketers and loyalty managers alike. Debunking these myths helps shift the focus from merely transactional relationships to building genuine, long-lasting customer loyalty based on value and mutual benefit.

How can Capillary put these loyalty myths to rest for your enterprise?

Capillary Intelligent Loyalty offers a suite of creative and cutting-edge software solutions designed to fully support your customer loyalty strategy. This platform places you in complete control of your business, enabling you to plan, make decisions, manage, execute, and monitor your tailored strategy. It’s crafted to meet your specific business needs, ensuring that you can build and run your loyalty programs your way.

Related Blogs

Why Brands Need to Shift from Traditional Loyalty Programs to Digital

Small Steps, Big Impact: Driving Business Growth and Creating a Better Future Through Loyalty Programs

Beyond CRM: Why Loyalty Programs Should Be Your Business’s Core Strategy

Brand Loyalty: Top 10 Brands Who’s Program Always Stand Out, No Matter What!

Posted on November 1, 2024 by Aditi Aggarwal

What was the one thing that top brands focused on most during 2024?

Brand Loyalty.

Once upon a time in retail, loyalty programs were the unsung heroes, often overshadowed by flashy TV ads, eye-catching promotional offers, and bold print ads. Fast forward to today, and there is a dramatic shift. Marketers worldwide have come to realize the myriad benefits of a loyalty program, with some SuperBrands who find their way to the buyer’s heart. Through consistent marketing efforts and loyalty strategies, enterprises are gradually nurturing brand advocates. We’ll take a closer look at a few stand-out brand loyalty examples and how they got it right, really right with their loyalty programs that their customers swear by the products and services offered by them.

Ten Standout Brand Loyalty Examples

1. Apple

Talk about brand loyalty anywhere in the world, and Apple is likely the first name you’ll hear. Bloomberg reported Apple’s brand loyalty reached 93% in comparison to Android’s respectable 80%. Apple’s secret? It’s not just their trailblazing product innovation. They excel because their products and services are crafted from the rich insights they gather from their customers. A study by SellCell highlights that 61.9% of iPhone users are planning to upgrade to the iPhone 16. Now, that’s a loyal community to be proud of!

Its time to upgrade your Loyalty strategies with Capillary’s robust AI-Driven Loyalty+.

2. Amazon

When it comes to buying nearly anything online, Amazon really heard its customers. Given the pandemic paralyzed the world last year, Amazon’s delivery options were highly valued. The brand has come a long way to embrace the ideology, ‘customer is the king.’ Their new membership plan, Amazon Prime not only offers free and timely shipping but special offers, entertainment options, ad-free music, that customers can blindly rely on.

3. IKEA

Heard about the IKEA Effect? The psychological phenomenon is derived from the adulation Americans had towards their self-assembled furniture. In short, feeling joyful for an otherwise frustrating experience. From an American brand to a global furniture name, this brand too puts customer needs first to design their products accordingly. This brand brought a cultural change in people’s minds and its customers are definitely not complaining.

4. Walmart

Walmart is one of the top 3 players, scoring an impressive 73 points with Sam Club (Walmart-owned) hitting 81 points on the annual American Customer Satisfaction Index, a 3-point bump from the past year. This can be attributed to Walmart’s consistent customer engagement initiatives. Over the years, this multinational entity has taken brand loyalty seriously by adopting digital strategies and expanding on its offerings. Walmart believes that brand loyalty is not restricted to just the products they offer but to the larger audience they cater to.

5. Starbucks

Come to think of it, it’s just a cup of coffee? Knowing that a Starbucks coffee would cost you much more than coffee at a regular café. But ask a Starbucks rewards program member and they’ll tell you it’s beyond that. Their ‘order and pay’ feature on the mobile app allows customers convenience, pairing suggestions, free refills, discounts and earn stars for every transaction they make. More stars, more rewards – it’s that simple and effective.

6. Nike

Some brands shine through their innovative products, but brands like NIKE stand out for their messaging and iconic brand image. NIKE has mastered this craft. It doesn’t matter if you’re a sports enthusiast or not—this footwear giant adds a personal touch to your wardrobe by allowing you to customize the colors of your shoes right on their website. When you wear NIKE, you wear them with pride, making them a staple in your collection that you’d never think of parting with.

7. Sephora

The beauty marketplace is as huge as it is competitive. So while other brands would vie for consumer attention, Sephora packs it all under one roof which works as their biggest USP. It caters to delighting customers by giving them a one-stop shop experience. They don’t pause there, in fact, their much-acclaimed and loved tiered loyalty program offers its members invite to exclusive events, favourite brand offers, birthday specials and countless freebies on point accumulation.

8. Lululemon

It’s not just any athleisure brand but it’s a brand with a purpose. And their loyal consumers are well aware of that. The driver and promoter of healthy living and mindfulness, this is a proud parent of over 1400 ambassadors who speak for their brand across the globe. Organizing free fitness sessions and festivals, Lululemon is indeed an inspiration for its customers educating them to live a good life.

9. Domino‘s

According to the Marketing Dive, Domino’s loyalty relaunch drew 2 million members, engaging infrequent customers and carryout users. Launching its loyalty program in 2015, the brand offers new and varied pizza options to different customer segments based on their purchasing behavior. The brand has witnessed a definitive increase in its loyal customer base and overall purchase frequency. CFO Sandeep Reddy said Dominos Rewards will be a significant pillar in driving transactional growth in 2024.

10. Coca-Cola

This carbonated drink pretty much tastes the same as its competitors but for its loyal customers, it does taste different. With over 50 million Facebook fans across the globe, there is something definitely that they did right, from time to time. Building a SuperBrand image and retaining it for long, it is not the sheer promotions that make this drink grab the top shelf in stores today, but its loyal fan base.

Although this carbonated drink might taste similar to its competitors, it has a distinct flavor for its loyal fans. Mere aggressive promotions haven’t kept this drink on top of the minds and on the top shelf in stores today. Coca-Cola’s robust loyalty strategies have nurtured a dedicated fan base that has helped build and maintain its SuperBrand status that we know today.

Final Thoughts

Customer loyalty is offered, Brand loyalty is earned. The brand loyalty examples we’ve explored are a testament to the transformative power of well-crafted loyalty programs that resonate deeply with consumers. These brands haven’t just sold products; they’ve fostered genuine relationships and a community of devoted customers who champion their products and services.

Explore how partnering with Capillary can revamp your brand loyalty efforts. Talk to our Loyalty Experts to book a demo.

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FAQs

1. What are the top global brand loyalty examples?

Global brands like Starbucks, Amazon, and Apple are known for their exceptional loyalty programs, which offer personalized rewards, exclusive benefits, and seamless customer experiences.

2. How do loyalty programs impact brand loyalty?

Loyalty programs impact brand loyalty by providing personalized rewards, enhancing customer experiences, and fostering a sense of belonging, which encourages repeat purchases.

3. Why should global enterprises focus on building brand loyalty?

Global brands should focus on building brand loyalty to forge strong customer relationships, increase brand loyalty, and drive repeat business by offering personalized rewards and exclusive benefits.