The noise around AI is louder than ever—72% of businesses say AI is the next big loyalty game-changer, but let’s face it: only a few have cracked the code.
Learn now by watching this exclusive webinar ‘Harnessing AI for Enhanced Customer Loyalty’ hosted by Bill Hanifin from The Wise Marketer, featuring Capillary’s Aneesh Reddy and Don Smith, as well as Phil Rubin from Grey Space Matters. Expect bold opinions, data-driven insights, and no fluff—just actionable strategies that cut through the noise.
What’s waiting for you:
The raw truth: Is AI really transforming loyalty, or just another buzzword?
Real-world stories: Successes and missteps from brands you know.
Game-changing strategies you can put into action right away to stay ahead.
The loyalty application market has undergone a seismic shift. Once dominated by the era of large agencies crafting bespoke solutions for Fortune 500 brands, this traditional approach—though effective in its time—was costly, complex, and fraught with technical hurdles. Back then, loyalty management relied heavily on agency partnerships to design and implement programs. While some of the most iconic loyalty initiatives emerged from this model, the landscape has evolved, and so have customer expectations.
Today, technology is rewriting the rules of loyalty marketing. The rise of SaaS (Software as a Service) is reshaping how brands approach loyalty, offering agile, scalable, and cost-effective solutions redefining what’s possible. In this piece, we’ll explore how today’s SaaS loyalty platforms empower brands to innovate and adapt to create loyalty programs that meet the modern consumer’s demands.
What Is Loyalty SaaS And Market Overview
The loyalty management market is estimated to be more than $10 billion and the USA is the most advanced in terms of acceptance. Most of the major brands have had ongoing loyalty programs and for many of them, Loyalty is a separate business line in itself. For instance, in the first six months of 2023, Delta reported cash sales from loyalty marketing agreements worth $3.4 Billion, or approximately 12% of their revenue over the same period (read more).
With the advent of cloud-based technologies (AWS arrived in 2006), a loyalty SaaS offering also came into the picture, and at Capillary Technologies, we’ve had the privilege of being one of the pioneering enterprises offering a SaaS platform for loyalty marketing (we started in 2008). Software as a service is basically a platform that brands can use to implement loyalty solutions in a quicker, more flexible, and more cost-effective manner.
Why Choose Loyalty SaaS Over Any Other Approach
There are multiple reasons why brands are opting for SaaS technology over the traditional agency-led approach.
Flexible & Cost-effective
With SaaS, a brand doesn’t have to invest as much in technology resources, worry about integrations, or take a large risk. Brands can choose to start with a small pilot and scale as they succeed. The SaaS provider does all the technological heavy lifting of managing data and having integrations in place through APIs so that it can work with your existing technology systems. Along with this, SaaS platforms also offer a high degree of flexibility.
For example, a large conglomerate in the Middle East shifted from an agency-led model to Capillary because it wanted to do a lot many things with its loyalty program and deliver a superior customer experience. Early in September, the brand wanted to go live with more than 50 employee offers, 26 promotions (including six cashback deals), and a game – all in one day. And this wasn’t part of the earlier plan but they could still do this easily and efficiently with Capillary. If this were repeated on any agency model in the USA, customers would need to spend around $300K as a change request on developing and delivering these promotions by coding on the platform. It would have taken at least 2 months to deliver! But with a SaaS platform, this is instantly possible and without any extra cost.
Get The Best Product Offering
Taking forth the first point, this is also possible because a loyalty SaaS platform has a product roadmap in place. Customers get access to the best in class technology which is being built by working with more than 250 brands across industries.
Capillary’s platform with its suite of products- Loyalty+, Engage+, Rewards+, Insights+; sitting on top of a powerful consumer data platform has touched more than a billion end customers and has offerings with learnings from implementing more than 100 enterprise loyalty programs.
Developments in the field of emotional intelligence (BLQ and Yawye partnership), investments in AI technology, nudge framework, and such results in pathbreaking features that would help loyalty marketers run better programs, delight customers, and achieve business goals. These features are not being built for a specific brand but the product roadmap is built with every sector in mind and any development gets rolled out to all brands on the platform.
Faster Go Live
Another big advantage of headless technology like Capillary is the extensive integration marketplace it comes with. For any brand, it is inevitable that it’ll have a number of technology systems in place, and for a new one to be implemented, it has to be compatible. Capillary comes with integrations for POS systems, to communication gateways to social integration, and more. Through APIs, a brand can connect to many of the major systems to ensure seamless data flow. With existing integrations, there is minimal technology resource requirement from the brand’s side which lets it go live much faster.
Ensured Data Privacy & Security
In the modern digital age, consumers are increasingly concerned about their personal data and it becomes critical to have airtight data security. For a brand to do this in-house is an uphill task considering this isn’t their forte. In an agency-led model, more third-party consultants would need to be brought in to ensure compliance. But in case of a SaaS platform like Capillary, it inherently needs to be compliant with regulations like GDPR, CCPA & PDPA for it to be able to offer its services across the globe. This again means that the brand can focus on what it does best and leave the data privacy regulations to the SaaS platform.
Loyalty SaaS Meets Expertise: Redefining Emotional and ROI-Driven Loyalty With Capillary
If you’re an enterprise brand aiming to elevate your loyalty strategy or build a program that truly stands out, Capillary Technologies offers you the best of both worlds. Here’s why: In early 2023, Capillary acquired Brierley+Partners, a renowned loyalty consultancy known for their innovative BLQ (Brierley Loyalty Quotient), a game-changer in measuring emotional loyalty. Combine this with Capillary’s state-of-the-art technology platform—recognized as a Leader in the Forrester Wave—and you have a powerful mix of expertise and cutting-edge tools to create ROI-driven loyalty programs that deliver real impact.
Ready to transform your loyalty game? Schedule a call with our Loyalty Experts today to explore our loyalty solutions.
SaaS loyalty, or Software as a Service loyalty solutions is a platform that enables brands to deploy loyalty solutions faster, more adaptable, and more cost-efficient.
How are Saas loyalty models different from agency-led models?
SaaS loyalty models offer faster, more flexible, and cost-effective solutions with greater scalability and control, relying on AI for seamless updates. In contrast, agency-led models are service-driven, slower to adapt, and come with higher costs and limited scalability.
Why Capillary offers the perfect Loyalty SaaS solutions for you?
Capillary’s platform, powered by a robust consumer data foundation, has impacted over a billion customers, leveraging insights from 100+ enterprise loyalty programs. With innovations in emotional intelligence, AI, and a sector-agnostic approach, it delivers cutting-edge features to help marketers enhance loyalty and achieve business goals.
Take a quick trip down memory lane with me and think of a time when you felt truly welcomed. Whether it was while traveling to visit a relative, reuniting with a long-time friend, or joining your favorite organization, when you got there you couldn’t believe how enthusiastically and lovingly you were received.
Now, come back to reality with me and think of your loyalty program. Do your members feel the same sense of welcome?
One of the most crucial components of an effective loyalty program is the welcome series. This initial interaction sets the tone for the entire customer journeyand helps establish a foundation of trust and excitement throughout the program. Here’s why it matters.
1. No second chance to make a first impression
First impressions count. When customers become members, they are showing interest in your brand, and this is the perfect opportunity to encourage them to engage further. A thoughtful welcome series can also create an emotional connection, making members feel valued from day one.
2. A Time for teaching
This is the perfect time to educate new members about your program’s benefits and features. Share how the program works, what they can earn, and any special perks they receive or can aspire to earn. Clear, concise information helps them understand what they gain from being a part of the “club”, which can increase their participation.
3. Buy early, buy often
The sooner t new members make a purchase and earn their first reward, the sooner they’ll experience the value your program provides. Your welcome series should guide them toward taking immediate action – whether it’s making a purchase, completing a profile, or exploring your website. By providing guidance in your welcome series you help to build a “habit” of interaction with your brand, laying the groundwork for ongoing loyalty.
4. Build a relationship
More than just driving transactions, you want your members to like you. Your welcome series can help build an emotional connection by inviting members to converse with you by sharing your brand story, mission, and values. By making connections based on shared beliefs, you can enhance the feeling of loyalty and help members feel a part of your community.
As an interesting aside, Capillary can help you measure this emotional component of loyalty via a survey instrument called “BLQ”. Please click the link if you’d like to learn more.
5. Expectations
A well-structured welcome series also gives you the opportunity to set clear expectations for your program. Address how often members will receive communications, what they can earn, upcoming promotions, and other “insider” information they can expect to receive. Clear communication reduces uncertainty and helps members feel more confident in engaging with your brand.
When designing your series, we encourage you to get creative and find ways to make your program stand out. To help with some guiding principles, keep the following best practices in mind.
6. Personalization
Use data to personalize your messages. Address members by name, collect profile data and use member preferences or purchase history to help tailor your communications. This will help increase the likelihood of engagement.
7. Multiple Touchpoints
Your welcome series should include several touchpoints. Start with a welcoming email, followed by subsequent messages that delve deeper into program benefits or exclusive “member only” offers that encourage interaction. Spread these messages over days and weeks to keep your brand top of mind and the conversation ongoing.
8. Clear Call to Action
Every communication should include a clear call to action – Whether it’s “Buy now,” “Click here,” “Complete the survey,” or “Explore to the website.” Whatever the next step is, make sure it is clear and easy to see. Members need to know what to do next.
9. Feedback Opportunities
Encourage member feedback by providing opportunities for them to share their thoughts and experiences. This feedback can help you refine your program over time. Keep it optional, though. Just as in a friendship, demanding that someone share their thoughts does not turn out well. Make it a warm and encouraging experience.
10. Monitor and Optimize
Make sure to track your welcome series. Review open rates, click-through rates, responses to offers, and general customer feedback to refine and enhance your program. Incorporating this feedback can also help to keep your program fresh and engaging.
As you can see, the welcome series is a critical component of a successful loyalty program. It lays the groundwork for strong relationships, fosters engagement and drives long-term loyalty i.e. ongoing sales. By creating a thoughtful and effective welcome series, you can transform new members into brand advocates, setting the stage for a thriving program.
So, whether it’s a huge hug from your mother after driving hundreds of miles to see her or the thrill of making your first purchase with a new brand, we all cherish the feeling of being welcomed. At Capillary, we understand the importance of that first interaction. With our expertise in crafting personalized, impactful welcome journeys, we help brands make every new member feel like they belong from day one.
Ready to create memorable welcomes that drive lifelong loyalty?
Get in touch with us to explore how our solutions can build emotional connections, drive engagement, and turn new members into your most loyal advocates. Let’s design a welcome series that sets the perfect tone for your loyalty program’s success!
“Satisfaction is a rating… Loyalty is a brand.” Quoted Shep Hyken, a noted Customer Service public speaker and Chief Amazement Officer (CAO) at Shepard Presentations, emphasizes the significance of a loyal customer base in elevating enterprises to world-class status. He asserts that well-crafted loyalty programs are pivotal, shifting causal shoppers into loyalty customers; playing a crucial role in this transformation. According to a McKinsey Report, consumers in MENA expressed a strong intent to do more shopping online, with 34 percent of consumers in Egypt, 33 percent in the UAE, and 30 percent in KSA looking to increase their online shopping habits in 2024. It therefore comes as a no-brainer that the Middle Eastern market’s upgraded promotional schemes like visual merchandising, advertising, and loyalty programs are an inspiration to the global retail industry to catapult customers that are driven by innovative loyalty programs. As we embark on the evolution of loyalty programs in the UAE and other Middle Eastern countries, let’s begin by understanding what makes retail loyalty so worthy. Before we move ahead, take a look at the figures below drawn from the iVend Retail research focusing on why shoppers vouch for a loyalty program in the Middle East retail market. As we dive deeper into the retail segment of the Middle East, let’s take a cue from some of the lauded loyalty programs in the UAE that have been there and continue to churn profitable wallets, rooted by a loyal customer base.
Top 5 Stand Out Loyalty Programs in The Middle East
1. Amber
A premium rewards program by Al Tayer Group, Amber has partnered with more than 80 brands including automotive brands like Ferrari and Jaguar thereby bolstering its premium presence across the world. Amber offers memberships categorised as Classic, Select and Plus offering a wider gamut of rewards and privileges. However, Amber‘s major evolution begin in 2016 with the launch of the new Amber App in UAE, Qatar, Kuwait, Bahrain and Saudi Arabia. A highly rated App, it is available in English and Arabic languages. Amber’s digital evolution has not only impacted its current customer base which rose 13x than before, but the conversion rate too which has scaled up to 2.5 times.
2. Shukran Rewards
Translated as ‘thank you’ in Arabic, Shukran Rewards is owned by the renowned Landmark Group in Dubai offering almost 57 global brands. This award-winning loyalty program in the UAE boasts of over 10 million members spread out over 9 countries owing to its decade-long presence in the market. While the company started its innings by offering a physical card and but in 2016, owing to the digital evolution, the company announced its virtual card which could be downloaded from the Shukran App available on both iOS and Android.
3. Club Apparel
Offering a range of over 75 brands currently, Club Apparel started with a cardless, App-based loyalty program and is helmed by the Apparel Group across entire GCC (Gulf Cooperation Council) region. It was also the first entity to offer a digital retail experience in the retail loyalty program segment. The group has enjoyed a massive customer base and to further strengthen their subscribers, it was in 2016 when the Cardless maverick introduced a three-tier membership program offering more privileges, rewards and access to VIP events at every tier to their subscribers. This move was aimed at offering exceptional services to its shoppers.
4. MyClub
World’s second largest retailer Carrefour partnered with Majid Al Futtaim Group to launch this loyalty program in UAE. While all the other loyalty programs focus on Lifestyle and Fashion brands, Carrefour is the only loyalty program catering to the quintessential commodity – groceries. A lifetime free card, it is available at 17 Carrefour Hypermarket and 19 Carrefour Supermarket in the region. With the foray of digitization in the retail segment, Al Futtaim Group launched a loyalty program namely SHARE in 2019 under which Carrefour points can also be clubbed now. This move was aimed at customer convenience by allowing shoppers the flexibility to earn and redeem points with other partners by downloading the SHARE App.
5. SHARE Rewards
Spearheaded by the Majid Al-Futtaim Retail Group, this is the Group’s first centralized customer loyalty program offering lucrative rewards when shopping with the Group brands and partners across 17 malls in the GCC & Egypt regions. A recent entrant in the retail loyalty program bandwagon, SHARE Rewards is rated 4.5 on the Google Play Store and is a popular choice for shoppers in UAE. SHARE Rewards redemption is also applicable on other Al Futtaim brands including Carrefour, VOX Cinemas, Magic Planet, Ski Dubai, Little Explorers, iFly Dubai, Crate & Barrel, American Girl and Lego making it an irresistible deal for shoppers.
Why Brand Loyalty Works In The Middle East
The above tabular representation signifies the surge in digital evolution in the Middle East Retail market around 2016. The ubiquity of retail loyalty Apps in the Middle East largely reflect how digitalization wave has gripped the region. Indeed, the recent Pandemic times has exhibited a major shift in the shopping behaviour across the globe with Middle East not being an exception. This statement is further quantified by a consumer incentive study by Wirecard which highlights the fact that 70% of shoppers are accessing App for a fuller control of their retail choices and experiences. With the tipping scale pointing more towards the consumers now, App-based loyalty programs can be a game-changer. The recent move by Al Futtaim Group also stands as a testimony to a forthcoming evolution in the retail industry. Given the facts, figures and the current industry moves by many stalwarts; it can be said that… … the evolution in retail has begun; the revolution is not far behind. Explore how Capillary could be your next best thing in customer loyalty.Talk to Our Loyalty Expertsfor More Insights.
The top 5 retail loyalty programs in UAE are Amber, Shukran Rewards, MyClub, Share Rewards and Club Apparal.
Why Capillary could be your next Customer Loyalty solutions providor in UAE?
Lets anwer this with an example. The Blue Rewards program, one of the best programs in the MIddle East and Asia, delivers an unparalleled experience for customers across, setting a benchmark for the region. Powered by Capillary’s cutting-edge loyalty tech, AI-driven personalization and innovative loyalty management, the Blue Rewards program not only elevates customer experiences but also continually evolves, adding value and setting new standards in loyalty landscape. Capillary’s robust tools empower brands to enhance customer relationships, demonstrating that personalized rewards and seamless engagement are key to long-term customer loyalty.
In the rapidly evolving telecommunications industry, customer loyalty is no longer just a goal—it’s a necessity for long-term profitability. With fierce competition, rapidly shifting technology, and evolving consumer expectations, retaining customers has become more challenging than ever. However, customer retention in the telecom industry can be significantly improved with the right mix of personalized experiences, superior service, and strategic rewards. This blog explores the key challenges telcos face in loyalty management and the most effective strategies to build lasting relationships with customers.
Understanding the Challenges
High Competition: With numerous players in the market, customers have a plethora of choices, making it easier for them to switch providers. This scenario compels telcos to continuously innovate and differentiate themselves.
Technological Advancements: Rapid technological changes mean that telcos must consistently update their infrastructure and services to meet customer expectations, which can be a costly affair.
Customer Expectations: Today’s customers expect more than just good connectivity; they seek value-added services, personalized experiences, and exceptional customer service.
Price Sensitivity: In many markets, price wars are prevalent, with customers often choosing the provider offering the lowest rates, making it challenging to build loyalty based purely on service quality.
Strategies for Building Telco Loyalty Programs
1. Hyper-Personalization for Stronger Engagement
Leveraging customer data and AI-driven analytics, telcos can craft hyper-personalized plans and offers based on individual usage patterns. Whether it’s customized data bundles or streaming subscriptions, tailored solutions make customers feel valued and less likely to switch providers. Looking to up your customer engagement game? Check out Capillary’s Engage+.
2. Superior Network Quality and Service Reliability
Nothing impacts telecom loyalty programs more than the core service itself. Investing in network infrastructure to enhance speed, coverage, and uptime can significantly improve customer satisfaction and retention.
3. Exceptional Customer Service & Omnichannel Support
24/7 AI-powered chatbots, human-assisted service desks, and omnichannel support create seamless interactions that enhance customer experience. Providing quick resolutions and proactive service can prevent churn and build trust.
4. Rewarding Customers with Robust Loyalty Software
A well-structured loyalty program software can drive repeat business by rewarding long-term customers. Offering benefits like discounts, bonus data, VIP customer tiers, and referral bonuses incentivizes retention. Successful telecom loyalty programs gamify rewards, encouraging continued engagement. Check out Capillary’s robust loyalty software – Loyalty+.
5. Digital Transformation & Self-Service Options
From mobile apps to AI-powered self-service kiosks, digital convenience plays a huge role in customer retention in the telecom industry. Giving customers control over their accounts—such as bill payments, data tracking, and plan modifications—enhances satisfaction.
6. Community Engagement & Corporate Social Responsibility (CSR)
Aligning brand values with social responsibility can foster emotional connections with customers. Initiatives such as sustainability programs, educational projects, and local community involvement contribute to customer affinity and brand loyalty.
7. Transparent Billing & Flexible Plans
One of the most common pain points in telecom is unclear billing structures. Offering transparent pricing with flexible, customizable plans reduces dissatisfaction and builds long-term trust with customers.
The Future of Telco Loyalty Programs
The next phase of customer loyalty management for telecom will be driven by cutting-edge technologies such as AI-driven predictive analytics, 5G-enabled personalized experiences, and IoT-based service enhancements. As consumer expectations shift towards seamless, integrated experiences, telcos that embrace smart technologies and prioritize customer-centric innovation will lead the loyalty game. Additionally, sustainability and brand ethics will play an increasing role in influencing customer choices and loyalty.
Redefine Your Telco Loyalty Program with Capillary
Building loyalty in the telecom sector is a complex yet rewarding endeavor. By combining superior network reliability, AI-powered loyalty software, hyper-personalization, and innovative reward mechanisms, telcos can foster stronger, long-lasting relationships with their customers. Ultimately, telecom customer retention is about creating more than just satisfied customers—it’s about cultivating loyal brand advocates.
At Capillary, we take telco loyalty programs to a whole new level by leveraging AI, real-time customer insights, and a seamless omnichannel experience. Our industry-leading loyalty program software empowers telecom providers to drive deeper engagement, personalize interactions at scale, and create sustainable loyalty strategies that maximize customer lifetime value. Whether through predictive analytics, automated rewards management, or digital-first engagement tools, Capillary helps telcos stay ahead of the curve and build a loyal customer base that drives long-term growth.
Explore how the right loyalty program software can elevate your telecom business. Contact a loyalty expert today!
1. What are the key benefits of implementing a telecom loyalty program?
A telco loyalty program enhances customer retention, reduces churn, increases revenue through upselling and cross-selling, and fosters long-term engagement by offering personalized rewards and experiences.
2. How can AI improve customer retention in the telecom industry?
AI-powered loyalty software analyzes customer behavior, predicts churn, personalizes rewards, and automates engagement strategies, ensuring a seamless and proactive approach to telecom customer retention.
3. What features should telecom loyalty programs include?
The best telecom loyalty programs offer personalized rewards, tier-based incentives, real-time engagement, omnichannel experiences, and seamless integration with existing CRM and billing systems.
4. How does loyalty program software help telecom providers?
A well-structured loyalty program software enables telecom providers to create and manage loyalty initiatives, track customer behavior, offer automated rewards, and optimize engagement strategies to drive customer retention in the telecom industry.
5. What makes Capillary’s telecom loyalty solutions unique?
Capillary’s customer loyalty management for telecom leverages AI, real-time analytics, and omnichannel engagement to create data-driven, personalized, and scalable loyalty programs that maximize customer lifetime value.
As with any fraud mitigation strategy, it’s important to find the right balance between preventing fraud and maintaining a positive member experience. One challenge many loyalty programs face is return fraud, where members exploit return policies to earn, redeem, and then return products while keeping the redeemed rewards. This not only impacts the bottom line but also diminishes the program’s overall value.
There are several ways to manage return fraud while still ensuring a positive member experience. Each approach has its pros and cons, and the best strategy depends on factors such as financial liability, prioritizing fraud reduction, member satisfaction, and operational complexity.
Delayed Point Issuance Until Returns Clear Away
In this approach, points are not issued immediately but become available only after the return window closes (e.g. 30 days). This prevents members from redeeming points on products they later return. However, delayed point issuance can negatively impact the member experience, especially for those who want to use their points quickly after purchase.
Building Trust with Transparent Pending Points
Similar to the Delayed Point Issuance strategy, pending points allow the delay of point issuance but with full transparency. This is a balanced approach, offering transparency to the member while providing safeguards against fraud. However, it’s essential to clearly communicate the rules around pending points to avoid any confusion.
Deducting Rewards to Ensure Fair Refunds
With this strategy, if a member returns a product after earning points on it, the value of the points is subtracted from the refund. This is a strong deterrent, as it ensures members don’t benefit from points they truly did not earn. While this may be the best member experience, there are high operational complexities in handling this process correctly without disrupting daily commerce activities.
Using Negative Balances to Prevent Future Fraud
In this approach, the program deducts points from the member’s balance if the item is returned. If the member doesn’t have enough points to cover the deduction, future points will be used to balance the account. That is, the member’s account balance may go in the negative. While this method may be more simple operationally, it may discourage future engagement or upset members who see a negative point balance.
Monitoring Returns to Catch Fraud Before It Spreads
Regardless of the chosen return fraud mitigation strategy, it’s essential to have fraud monitoring in place. Programs should closely monitor return and redemption behaviors and implement detection alerts to flag suspicious activity. When repeat offenders are identified, it’s wise to consider blacklisting them from the program to prevent future abuse.
Protect Loyalty, Preserve Trust
Navigating return fraud in loyalty programs requires a delicate balance between protecting your bottom line and maintaining a seamless member experience. While strategies like delayed issuance, pending points, or deductions from returns offer varying levels of protection, the right approach depends on your business’s priorities and operational capabilities. At the core of any strategy lies the need for transparent communication and robust fraud monitoring to maintain trust and ensure members feel valued without compromising program integrity.
Need help to strike that balance? Capillary’s advanced loyalty solutions, coupled with fraud detection capabilities, empower businesses to safeguard against fraud while keeping members engaged. Connect with us today to explore how we can tailor strategies to fit your loyalty program and keep it running smoothly—because loyalty should build trust, not loopholes.
9th February is celebrated as International Pizza Day, sparking an interesting conversation—what is the co-relationship between pizza, F&B brands, and building customer loyalty? For instance, Pizza Hut launched its first loyalty program in 2015, and Domino’s recently introduced its Cheesy Rewards program. Meanwhile, industry leaders like Starbucks faced backlash for changes in their programs. This article explores food and beverage loyalty programs, especially in the context of pizza chains, and how loyalty software plays a critical role in driving customer retention.
Food & Beverage Brands and Emotional Loyalty
Pizzas are a marketing & positioning masterstroke! A pizza can be both a need (easy & filling food) and a want (satisfying a craving). It’s great with family, friends, solo, or even on a date! It’s perfect for eating out, ordering in, or workplace deliveries. Given how easily pizza fits into different situations, it’s no surprise that customers form emotional connections with it.
When a pizza brand becomes the creator of good memories, emotional loyalty follows. Getting it right the first time—even unknowingly—can set the foundation for a long-term customer relationship. This is where food and beverage loyalty management backed by loyalty program software can help brands create structured, data-driven engagement models that go beyond discounts and promotions.
Challenges of a Pizza chain to win customer loyalty
While businesses across industries strive to build customer loyalty, pizza brands have a unique advantage: a single experience can turn a first-time buyer into a repeat customer. However, securing that loyalty presents certain challenges.
1. Minimal Product & Service Differentiation
Despite innovations in pizza bases, toppings, and cooking methods, differentiation remains limited. Most pizza chains offer similar services, making it crucial to create loyalty beyond the pizza itself. This is where food and beverage loyalty programs powered by loyalty software can help brands deliver unique, personalized experiences that customers actually value. Check out Capillary’s robust Loyalty+.
2. Too Many Loyalty Programs
The average U.S. consumer belongs to 16+ loyalty programs, bombarded with deals, rewards, and exclusive offers. The risk? Customers forget they’re even enrolled. F&B loyalty management requires brands to create memorable, high-value loyalty interactions to remain top-of-mind. Advanced loyalty program software enables brands to automate these interactions and optimize engagement strategies.
3. Even Loyal Customers Explore Options
Even the most loyal pizza customers occasionally crave variety. A great pizza loyalty program can reduce churn by providing engagement beyond discounts—whether through gamification, exclusive perks, or cross-brand collaborations. Loyalty program software ensures real-time insights and dynamic reward structures to keep customers engaged.
4. A Broken Phygital Experience
Some F&B brands focus on in-dine experiences, while others are delivery-first. Capturing data across physical and digital touchpoints is vital for food and beverage loyalty management. Without a 360-degree customer view, brands risk missing opportunities to personalize rewards. Loyalty software plays a crucial role in unifying customer data, enabling brands to provide a seamless and data-driven loyalty experience.
Here, we dive deep into three interesting rewards programs from Pizza Chains and pull out insights that can help F&B brands.
1. Pizza Hut and My Hut Rewards – Loyalty Success Through Hyper-Personalization
Pizza Hut’s My Hut Rewards is a spend-based program that rewards customers for every dollar spent and allows points to accrue without daily limits. Customers get 2 points for every $1 spent online or via mobile orders. 200 points earn them a free medium pizza with unlimited toppings and for 250 rewards points a large pizza with unlimited toppings. Pizza Hut leverages first-party customer data to derive insights and create hyper-personalized customer journeys that keep them coming back for more.
Knock knock. Who’s there? The welcome journey incentivizes customers with discounts to share first-party data. The shared customer insights such as dietary preferences and party size are used to tailor-make the offers and deliver a better experience.
Offering personalized discounts – Discounts are offered based on the expected average order value (AOV). If the customer identifies as someone ordering for the family, they are likely to spend more and are offered a personalized discount bracket targeting a higher spend amount.
Testing for loyalty acquisition – Through customer data insights, Pizza Hut determined the value exchange that would be a better motivator in getting a customer to sign up for the rewards program. An email campaign then tested the marketing messages and introduced the loyalty schemes to each customer based on their response.
By delivering the right message at the right time, via the right channel, Hut’s Rewards Program drives a functional frictionless experience and succeeds in building meaningful relationships with the customers.
2. Domino’s Piece of the Pie Rewards Program – Innovation for Customer Engagement
Domino’s Piece of the Pie rewards program has 25 million+ active loyalty members. Anytime a customer places an order for $10 or more, they earn 10 points. Upon reaching 60 points a customer can either earn a free medium pizza or continue earning points and cash out later for multiple free pizzas. However, the customer can only earn points on one order per calendar day and points expire if the account is inactive for 180 days.
Keeping customers loyal to a pizza is tricky business and Domino’s works around that with out-of-the-box and industry-first digital innovations.
Domino’s Zero Clicks app – The Zero Click app makes mobile ordering incredibly convenient. Once the app has been downloaded, customers link it to their existing Domino’s profile and save all of their favorite orders. Then each time the Zero Click app is opened on a smartphone, it will prompt the Easy Order to be automatically re-ordered without asking consumers to tap, swipe or click anything. The app displays a 10-second countdown until the order goes through, giving customers ample opportunity to cancel it, in case of a mistake.
‘Piece of the Pie Pursuit’ Mobile Game – The Piece of the Pie Pursuit provides players with pizza-themed challenges and highlights different ways to order a Domino’s pizza. With six types of unique gameplay to keep customers/players coming back for more, the game also gives Piece of the Pie Rewards members a chance to earn real-world bonus points toward free pizza.
Points for Pies Campaign – Did Domino’s just say they will award points for eating any pizza? Even from a competitor? Expanding on its existing rewards program, Domino’s Points-for-Pies campaign
lets customers earn rewards points by simply clicking pictures of any pizza! – whether it came from Domino’s, the grocery store freezer, a neighborhood slice shop, or anywhere else. Customers would earn 10 points for the scan and once they hit 60, they received a free medium two-topping Domino’s pizza. The advertising campaign ran for a 12-week window just in time for Super Bowl LIII and engaged with pizza lovers (customers or not).By rethinking innovation and service to deliver faster, easier, and better customer experiences (CX), Domino’s becomes the kind of brand customers would like to engage with, driving business growth and loyalty.
3. Slice Rewards – America’s Largest Rewards Program for Pizza Lovers With 18,000+ local pizzerias in its network, Slice Rewards is the largest rewards program for pizza lovers in the US.
Slice is an innovative tech platform that empowers local independent pizzerias with the tech and services they need to thrive. The pizzeria owners can offer their products to customers and the customers can place orders, customize, track and earn reward points via the Slice app. Unlike third-party food delivery apps, Slice partners directly with independent pizzerias and passes the savings directly to the customers.
A first-of-its-kind loyalty program, Slice rewards customers for supporting local pizzerias across the US.
Delivering on its promise of keeping things simple for independent pizzerias and customers alike, Slice’s tech platform auto-enrolls the customers of local pizzerias onto the Slice Rewards platform. Customers receive emails, reminders, and notifications updating them on their journey and progress towards racking up Pizza Points, as they order from their favorite local pizza joints.
>Every time a customer makes an order over $15, they earn 1 Pizza Point. Customers can redeem anywhere from 2 to 8 pizza points – offering a free topping for 2 points, a club soda for 4 points, garlic knots for 6 points, and a free pizza for 8 points.
Along with Slice rewards, customers also receive a variety of special offers, exclusive deals, and promotions.
Slice Rewards doesn’t create loyalty, rather protects and manages it. Slice acknowledges the loyalty that customers have for their neighborhood pizzeria and empowers it through convenience. In creating North America’s largest Pizza loyalty program, Slice Rewards delivers local diversity through its platform while creating value for small business owners and customers alike.
Creating A Robust F&B Loyalty Program That Really Works
Take an insight-based approach – Customers are willing to share information with brands in exchange for relevant engagement and meaningful experiences. While zero-party data can provide insights into explicit interests and preferences, first-party data is rich with behavioral information and implied interest. By leveraging both, pizza brands can determine the personal context for each customer and the ways in which they want the brand to recognize them. Looking to upscale your customer insights efforts? Explore Capillary’s Insights+.
Go Phygital for end-to-end immersive CX – Having delivered the no-contact digital service counterparts to in-person interactions, brands can now create a seamless immersive CX that combines the best of both physical and digital (phygital) ecosystems. A common phygital execution would be for a pizza lover to arrive at the pizzeria with rewards points on the app profile notifying that a free pizza is due today. From making digital payments in-store to click-and-collect, curb-side pick up and QR code scannable menus, phygital experiences break channel silos to ensure a continued and cohesive brand experience throughout the customer journey. The greater the synergy between digital and physical, the more efficient the service delivery and the more satisfying the consumer experience.
Gamify – When each touch point on the customer journey can be gamified, which one should you choose? Whichever can help accomplish a specific brand or business outcome in the most fun manner possible – Is it possible to take an otherwise mechanical process and gamify it to reduce process drop-outs? Is it possible to build a community of pizza lovers and create brand advocates for your upcoming campaign? Is it possible to evolve relationships with customers who are otherwise engaging with the brand in a purely transactional manner? Gamification makes it possible to bypass the business-customer role play and builds emotional affinity and better engagement.
Going beyond for a beyond reach – A successful loyalty program looks to create value for the customer in their daily lives within and outside the brand’s ecosystem. Go beyond to include offerings from other brands that share the same values as yours and brands your customers enjoy engaging within their daily routines. The more frequently and variedly a customer can leverage the rewards program each day, the longer they would like to stay enrolled.
The cardinal Do Not – Previously when digital engagement was non-existent, brands were non-intrusive by default. Now with customers open to an omnichannel phygital engagement, brands must be specific about when, how, and how often to engage with them. Value stepping back as much as stepping in to ensure customers stay onboard to receive what is served next.
The pre-pandemic customer behavior has evolved, and brands must view every customer as a new customer. In the initial phase of digital loyalty for F&B brands, new sign-ups drive growth. However, as the market matures, customers will expect more than transactional benefits.
Capillary’s Loyalty+ helps F&B brands navigate this shift by providing:
AI-powered loyalty program software to personalize rewards and engagement strategies.
Phygital integration to unify online and offline customer interactions.
Gamification and real-time insights to enhance food and beverage loyalty management.
Advanced analytics to track customer lifetime value and retention metrics.
Whether you’re running a global pizza chain or a regional food brand, Capillary’s loyalty software helps create customer engagement strategies that work.
Ready to future-proof your F&B loyalty strategy? Get in touch with Capillary’s experts today!
1. Why do food and beverage brands need a loyalty program?
Loyalty programs help F&B brands increase customer retention, drive repeat purchases, and enhance brand engagement. With the right loyalty software, brands can offer personalized rewards, gamification, and seamless omnichannel experiences, ensuring customers keep coming back.
2. How do pizza brands benefit from a loyalty program?
Pizza loyalty programs, like Pizza Hut Rewards Points and Domino’s Piece of the Pie, encourage repeat orders, increase average order value (AOV), and build customer loyalty. By leveraging food and beverage loyalty management, brands can provide personalized rewards, gamified experiences, and exclusive member perks to strengthen customer relationships.
3. What features should an F&B loyalty program include?
A strong food and beverage loyalty program should offer:
Points-based rewards system (e.g., Pizza Hut Rewards Points)
In today’s world, where customer preferences can change in an instant—especially with the pandemic reshaping priorities—enterprises are finding it essential to overhaul their engagement and loyalty strategies. Once upon a time, a vacation experience depended solely on a travel agency; today, customers have control over every aspect of their travel journey.
With this complex landscape, it’s no surprise that myths and misconceptions have emerged, clouding the outlook for travelers and enterprises alike. In this comprehensive read, we’ll unpack these myths and clarify what travel loyalty really looks like today.
Busting 5 Common Travel Loyalty Myths
Myth 1: Travel Loyalty Programs Are Just a Marketing Gimmick
When companies establish loyalty programs without a well-thought-out strategy—implementing them merely for appearance—they often roll out uninspiring earn-and-burn schemes. Customers aren’t easily impressed when they see no real benefit or differentiation, leaving enterprises wondering why their loyalty programs aren’t effective and dismissing them as mere marketing gimmicks. But here’s the thing: loyalty done right is about forging genuine connections. It transforms every customer interaction into a rewarding, personalized experience. Ultimately, it’s the critical factor that tips the balance between securing your customer’s trust or losing it altogether. According to Gartner Digital IQ Data, while only 41% of enterprises across various industries have a loyalty program, a notable 80% of travel and hospitality enterprises are already embracing loyalty strategies.
Myth 2: My Loyalty Tech Can Support An Ever-evolving User Experience
Many enterprises adopt an “if it’s working, don’t fix it” mentality, but in reality, they may be missing out. The growing role of AI in customer loyalty—with advancements in personalization, data analytics, mobile integration, and evolving user preferences—is both impressive and complex. Take propensity models, for example. These AI- and ML-powered tools forecast the likelihood of customer actions, providing invaluable loyalty insights. With innovative loyalty solutions like Capillary’s AiRA (Artificial Intelligence Retail Analytics tool), your business can gain a crucial advantage in fine-tuning the user experience. In the end, it’s all about delivering a seamless experience, and having the right loyalty platform on your side can elevate that experience to a whole new level.
Capillary’s proprietary AiRA equips you to stay ahead with precise segmentations, tailored promotions, efficient campaign setups, and quick edits. Curious about how a partnership with Capillary could enhance your customer engagement and retention? Let’s explore the possibilities together.
Loyalty tech isn’t just about pioneering innovations; it’s about streamlining loyalty processes and turning strategies from the drawing board into impactful, real-world actions.
Myth 3: Points Are the Be-All and End-All of Rewards
Think beyond points! Many businesses stick to the traditional earn-and-burn model because it’s familiar, but does it really set you apart? Ask yourself, why would a traveler choose your airline if your loyalty offering mirrors everyone else’s? The truth is that modern travelers crave more than just points—they’re seeking experiences and values that resonate with their lifestyles. If you can align your offerings with what truly matters to your customers, you’re not just competing; you’re leading the pack. Imagine replacing simple point redemptions with exciting upgrades, exclusive lounge access, or one-of-a-kind experiences. That’s how you win over the discerning traveler.
Myth 4: A One-Size-Fits-All Program Works for Everyone
Travelers come in all types, and the best loyalty programs understand this. They don’t try to squeeze everyone into the same box; instead, they customize experiences and rewards to match the unique preferences and travel habits of their members. This tailored approach is what sets successful loyalty programs apart. Hyper-personalization is the buzzword for businesses, focusing on understanding a customer’s online journey and purchasing habits. By harnessing data-driven insights and recognizing distinct customer segments, enterprises can craft the perfect messaging at the right time and on the right channel. Whether it’s a gamified prompt encouraging a status upgrade or an enticing offer that motivates spending for a free hotel stay, the key lies in the relevance and delivery of the message.
Myth 5: Frequent Flyer Programs Have Run Its Course
Did you know that the loyalty programs of the three big US airlines—American, United, and Delta—are each valued at over $20 billion? But the question remains: what’s in it for travelers? Are elite statuses and gold memberships tempting enough, especially for Gen Z and Millennials?
Gen Z and Millennials are less likely to engage with frequent flyer programs compared to older generations like Gen X and Baby Boomers, partly because they travel less frequently and are cautious about sharing personal data. However, airlines can capture their interest by broadening the scope of points redemption, moving beyond just earning miles. Through a network of partner rewards, points can unlock seat upgrades, lounge access, or even exclusive travel experiences. Ultimately, customers are seeking more redemption options than mere points out of their loyalty programs.
Bonus Myth 6: Travel Loyalty Programs Offer No Real Value for Occasional Travelers
Many travelers accumulate points they never actually use. This perception stems partly from the belief that they’re earning more rewards than they actually are, making some loyalty programs seem underwhelming. However, there are real advantages for even occasional travelers. For instance, co-branded credit cards offer perks like priority boarding and additional baggage allowances, enhancing the travel experience. Additionally, with many frequent flyer programs allowing point redemption across various platforms, even infrequent flyers can accumulate points from diverse sources. This setup encourages casual travelers to take advantage of multiple benefits, potentially turning them into brand advocates.
Put Travel Myths to rest with Capillary
With multiple world-class travel brands leveraging our AI-powered loyalty solutions, Capillary is no stranger to busting travel loyalty myths, driving deep customer engagement, and building lasting brand loyalty.
Have you ever thought about how often we turn our lives into a game? It starts with a simple game of peek-a-boo, then moves to earning a nickel for every time we tie our shoelaces, and eventually, we’re trading A’s in math for a new PlayStation. We’re naturally hardwired to play games and gamify our everyday moments, more often than we might think! When it comes to loyalty, gamification isn’t exactly new to marketers. But here’s the exciting part: with today’s access to real zero and first-party data and the ability to create seamless phygital (physical + digital) omnichannel experiences, gamification has taken on a whole new dimension. It’s no wonder then that brands are doubling down on reinventing gamification, harnessing its potential to convert everyday users into loyal customers and, ultimately, into brand advocates. Isn’t that a game-changer?
What exactly is Gamification in loyalty programs?
A gamified loyalty program is an advanced marketing strategy that weaves elements of game design into traditional loyalty schemes, enhancing the shopping experience and deepening customer loyalty to a brand. Customers engage by completing challenges or tasks, or by using tokens to enter contests with known prizes. This approach not only makes the interaction fun but also effectively encourages behaviors from app logins to product trials and social sharing. Gamification is used to create a strong and lasting brand impression in the minds of your customers.
How Does Loyalty Gamification Impact Your Customers?
Loyalty is not a once-and-for-all destination, where brands finally arrive never to look back and customers continue to stay on forever. How we wish it were! But a more realistic interpretation of loyalty would be ‘intimacy’. “Loyalty is an ever-growing intimacy between a brand and its customers, where each is willing to put more at stake for the other. The more frequently and diversely customers are willing to engage with the brand, the deeper is the intimacy and greater the loyalty.” Gamification in loyalty programs can help brands create loyalty differentiation through fun and uniqueness. Incorporating gamification into their customer engagement strategies, brands see a 47% rise in engagement, a 22% rise in brand loyalty, and a 15% rise in brand awareness. By taking game elements like play, competition, transparency, rewards, and challenges, and applying them to non-game contexts, you can incentivize customers to engage with the brand in a desired manner. And with the right engagement, everything else follows.
Begin with a clear objective
Greater social media engagement, increased purchase frequency, more app downloads, new sign-ups, or nudging customers to move up the reward tiers – any brand objective can be gamified and become a precursor for loyalty.
Follow the customer journey
Customer expectations and motivations differ at each point in the journey. Use these to identify which touch point syncs closely and can deliver maximum success in meeting the objective.
Gamify Engagement
See what motivates your customers to take action. Then gamify and enable this motivation through tiers, rewards, redemption, feedback and social connect. Look to balance the customer effort with an equal reward for maximum engagement.
How To Use Loyalty Gamification To Drive Your Engagement Efforts
In an engagement economy like the one today, time and attention are increasingly scarce. So users gravitate to loyalty programs that are rewarding and provide opportunities to achieve, grow, and connect with others. Brands that recognize can leverage gamified experiences to build true intimacy with their customers.
Enhancing product performance through gamification- Google Local Guides Program
If you have a Google account and contribute to the public data in any manner, you are automatically enrolled as a Local Guide. Google’s Local Guide program has 10 different levels and 7 badges, awarded against points collected by contributing reviews, ratings, photos, responding to Q&As, and more. The collected points give benefits like early access to Google features and special rewards from partners. As contributors move through the program and up the leaderboard, Google receives user-generated content, which it uses to improve SERP with better local insights.
Gamification for likes, shares, referrals, and more- Sweet Points Program from Sweet Lounge
Sweet Lounge, is a UK-based candy brand that makes gluten-free, plant-based candy for all. In addition to earning points for sign-up and purchases, customers also earn 50-75 Sweet Points for every time they engage with the brands on Facebook and Instagram, and 250 Sweet Points when they refer family and friends. The redemption slabs have been purposely kept high – at 1000, 1500 & 3000 Sweet Points – a hard level for anyone to reach only through social media engagement. This encourages customers to refer more peers to the program, as it offers the most points and is the quickest way up the ladder.
Gamifying New customer sign-ups: 7-Eleven’s Bday Hustle
7-Eleven delivered free offers to its app users on its 87th birthday. Each day for a week, coupons for different free items were featured on 7-Eleven’s smartphone app. Giveaways included free Slurpees, Hostess Twinkies, Snickers ice cream bars, Pillsbury cookies, and more. To receive each day’s free offer, customers were required to download and register on the 7-Eleven app. Each offer had an associated barcode, which was shown at the checkout counter and redeemed immediately. The rewards were heavily promoted on the brand’s social media pages and shared further by appreciative customers, which enabled 7-Eleven to earn countless app downloads and new customer sign-ups.
Gathering better customer data through gamification – Domino’s Points-for-Pies campaign
Domino’s Points-for-Pies let customers earn rewards points by simply clicking pictures ofany pizza!- whether it came from Domino’s, the grocery-store freezer, a neighborhood slice shop or anywhere else. Customers earned 10 points for a scan and received a free Domino’s pizza once they hit 60 points. But what did Domino’s gain from this? The pizza chain can segregate all this information by say location. Then use AI & machine learning to analyze the photos and deduce the pizza brands, size, topping, et all. Domino’s now has an exceptional understanding of each app user, their preferences, the brands they may be buying, location-wise winners and a lot more. And all this prime zero-party data comes from customers and as well as non-customers (who had downloaded the Domino’s app just to participate and get a free pizza).
Driving purchases through gamification – Stride Rite’s Phygital execution
A great example of phygital gamification comes from shoe retailer Stride Rite, with their campaign encouraging kids to ‘try on their shoes’. Shoppers would select a shoe in the store, try them on, and mimic dance moves on screen as accurately as possible. At the end of each game, the child would receive a score, which they could share online. Not only did this increase the amount of time children and their parents spent in-store, it also drove the sales conversion rate because shoppers felt positive about the shoes they had tried on. The families sharing dance scores on their social media accounts was an added bonus!
Gaming for community and social good – Fold.it from the University of Washington
Meet the revolutionary online game that has gamified scientific research into citizen science and is crowdsourcing solutions. Through Foldit, players can contribute to advanced research on human health, cutting-edge bioengineering, and the inner workings of biology. Foldit gamers solved a 15-year-old HIV enzyme riddle in just 3 weeks!The objective of Foldit is to fold (or solve) the structures of selected proteins as perfectly as possible, using tools provided in the game. As a protein structure is modified, a score is calculated based on how well-folded the protein is, and a list of high scores for each puzzle is maintained. The highest-scoring solutions are analyzed by researchers, who determine whether this structure can have real-world applications. Scientists can then use these solutions to target and eradicate diseases and create biological innovations. More recently, the platform introduced a puzzle to work on the protein code for Coronavirus in a bid to crowdsource a solution that helps scientists develop a working vaccine.
Setup Your Gamified Loyalty Program For Success
Design to evoke emotions
It is a given that a gamified experience should be fun for the player. But ‘fun’ is a rather hard concept to define and achieve. So can gamification rewards be designed for emotions? Can you make a player feel intrigued, curious, excited, joyful, and epic? By designing to evoke emotions, you also achieve fun as a spin-off.
Gamify everyday tasks
The possibility of creating excitement is the highest with repetitive tasks performed every day. The more basic a task you gamify, the greater is the possibility of positive customer engagement and appreciation.
Get quirky with rewards
Go beyond earnings and savings rewards to create offerings of value to your customers. A reward can be a simple freebie, donating to a social cause for each sale, recognition, and a lot more. Brands that can innovate the right rewards for their audience are already halfway to receiving a great response.
Omnichannel: The Future of Gamified Loyalty Programs
Brands are catering to Boomers, GenXs, Millennials, and GenZs all at the same time. So you are required to understand how customers across segments engage with technology and what types of games they’re most likely to engage with. If some of your rewards program members love to interact on mobile, others on desktop, and others in-store, it only makes sense to ensure your customers can engage with the program (including its gamification) wherever they are. While technology is enabling brands to create 1:1 personalization, it is also inspiring an ever-growing uniqueness in customers and preferences. We are experiencing the need to re-segment customers more frequently, to reveal micro-clusters with niche and dynamic demands. To respond, brands must go beyond 1:1 personalization and deliver 1:you omnichannel gamified engagement. With an omnichannel execution you broadcast wide to reach all customers, with 1:you, you dive deep to serve personal preferences and the gamification bit, that’s for engagement and fun! At Capillary, we’re all about reimagining loyalty for the long haul, through the power of data and tech. We dive deep into what drives your customers and craft gamified, omnichannel experiences that not only capture their attention but also foster lasting relationships. Curious to see how our AI-Driven Loyalty platform can revamp your loyalty strategy? Chat with our gamification gurus and discover what we can do for you!
A gamified loyalty program integrates game design elements into conventional loyalty strategies, enriching the shopping experience and strengthening brand loyalty. Customers participate by accomplishing tasks or challenges, or by utilizing tokens to enter contests with predetermined prizes.
Why would you want to implement a gamified approach to your loyalty efforts?
Introducing gamification into loyalty programs offers brands a way to stand out by infusing fun and uniqueness into their strategies. By integrating gaming elements such as competition, rewards, and challenges into everyday interactions, brands can encourage customers to engage more deeply and consistently in the ways they desire.
Gamification made easy with Capillary.
At Capillary, we are dedicated to transforming the concept of loyalty into a sustainable, long-term strategy by leveraging AI & ML and cutting-edge data analytics. Our approach involves behavioral economics a deep exploration into the motivations and behaviors of your customers, allowing us to create tailored, gamified experiences across all channels. This isn’t just about grabbing their attention momentarily; it’s about building engagement that evolves into genuine relationships. By integrating elements of gamification, such as challenges and rewards, into omnichannel strategies, we ensure that every customer interaction with your brand is meaningful and rewarding. Our goal is to empower your brand to continuously captivate and retain customers, enhancing loyalty through personalized and dynamic experiences that resonate on every platform.
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.
