A loyalty program can go live in just a few days, but not every one of them leads to real success afterward. The difference often lies in the preparation: If you ask yourself the right questions beforehand, you’ll start off with a much better chance of success. These four questions will help you reach your goals quickly.
Before you begin: What is a loyalty program really all about?
Are you looking to launch a loyalty program and take your first steps toward building customer loyalty? If so, it’s worth considering four key questions beforehand. A loyalty program is all about Purchase decisions, in order to People and about Rewards for your most loyal customers. Ultimately, though, for you as an entrepreneur, it’s simply a matter of Revenue.
That's why your program must be beneficial for both your target audience and your company. real benefit create. Today, it’s about much more than just the traditional loyalty card or a birthday gift certificate.
Question 1: Why do customers choose your brand?
First, it’s important to know how customers perceive your brand. Understanding how much effort customers put into choosing your products helps you assess how much you can influence their behavior in the future.
Buying a car is a carefully considered decision because a lot of money and several years are at stake. Buying a pack of gum at the supermarket, on the other hand, is a decision of lesser importance for most people.
Question 2: Why do customers remain loyal to your brand?
Understanding this will help you identify the factors that influence your customers the most. This is the only way to objectively evaluate strategies for your loyalty program. You can find a comparison of other strategies in Top 5 customer retention measures for B2B and B2C.
Barriers to Change vs. Enabling Factors
The reasons why customers stay with a company are usually a combination of two types of factors: barriers to switching and reinforcing factors. Not every barrier is automatically an effective tool for customer retention—the following overview illustrates the difference.
| Type | Example | Impact on Customer Loyalty |
|---|---|---|
| Change Barrier | Effort Involved in Switching Providers (Time, Setup, Contractual Commitment) | Customers tend to stay out of convenience rather than out of conviction |
| Encouraging factor | Trust, good service, tangible benefits from the program | Customers stay because they are genuinely satisfied |
| Encouraging factor | Personal Connection to the Company | Strengthens the emotional bond in addition to the economic one |
| Change Barrier | Lack of comparable alternatives on the market | Commitment without true freedom of choice—risky when new competitors enter the market |
Question 3: Why don't customers feel connected to your brand?
Positive service experiences can build customer loyalty to your company. Negative experiences often have the opposite effect—they create distance between the customer and the brand.
There is a clear link between good service and customer loyalty. It’s important to know that it’s not just dissatisfied customers who leave. Even satisfied customers sometimes switch to the competition if a better offer entices them. Only complete satisfaction makes customers truly resistant to attempts to lure them away.
Understanding Your Customers' Buying Behavior
What factors actually influence your customers’ purchasing behavior? If you know your customers well, you can help shape their purchasing decisions in a more targeted way.
According to the DACH Loyalty Report 2026, 63.6 % of companies believe that sending updates once a week is sufficient. In reality, however, 82.1 % of customers would like to receive at least weekly updates on offers and news. You can find an overview of additional tools in The Most Important Customer Loyalty Tools.
When it comes to benefits, too, the expectation is clear: lower prices and discount promotions are at the top of customers’ wish lists for a loyalty program.
Question 4: What other customers can you reach?
This question pertains to your competitors' customers. A look at their customer retention strategies will show you why people don't just shop with you.
A well-known example is the American bookseller Barnes & Noble: Through its Reader’s Advantage program, members pay $25 annually and receive a 10 % discount in-store and a 5 % discount in the online store.
The result: Once someone has invested $25 in a membership, they’ll think twice about shopping elsewhere. If you’re already enrolled in a competitor’s program, switching is less likely—your own program will then need to offer significantly greater value. In this article, we’ll show you how to raise the profile of your own program: Promoting a loyalty app: How to properly promote your customer loyalty app.
Conclusion: Asking the Right Questions for a Successful Loyalty Program
Ask yourself these four questions before launching your own rewards or customer loyalty program—this will help you understand your customers and your market environment much better. If you launch your digital customer loyalty program with a smart strategy, you have a good chance of being among the 67.31 % satisfied companies highlighted in the DACH Loyalty Report 2026.
FAQ: Frequently Asked Questions About the Launch of the Loyalty Program
What exactly is a loyalty program?
A loyalty program rewards customers for repeat purchases, for example with points, discounts, or exclusive benefits. The goal is to turn occasional buyers into loyal, regular customers. Modern programs typically operate through a dedicated app rather than plastic cards.
Is a loyalty program even worth it?
Yes: According to the DACH Loyalty Report 2026, 67.31 % of companies with digital customer loyalty programs are satisfied or very satisfied with the results. In addition, customers who participate in loyalty programs spend significantly more on average than those who do not. However, this requires careful planning.
What are barriers to switching?
Switching barriers are the effort or costs incurred when customers switch to another provider—for example, the time it takes to set up a new account. They tend to keep customers loyal out of convenience rather than genuine conviction. Factors that encourage loyalty, such as trust and tangible benefits, usually have a more lasting effect.
How often should I update clients about my program?
According to the DACH Loyalty Report 2026, 82.1 % of customers want updates at least once a week—significantly more than many companies realize. If you don’t communicate often enough, your program will quickly be forgotten.
What benefits do customers expect most from a loyalty program?
According to the report, lower prices (61.7 %) and discount promotions (60.1 %) rank at the top, followed by discounts through bonus points. Exclusive products or personalized offers come next. A program should therefore clearly emphasize these immediate, tangible benefits.
What if my customers are already participating in a competitor's program?
In that case, your own program must offer significantly greater value to make switching or dual membership worthwhile. Often, it’s enough to design your program so that it can easily coexist with others. The focus should clearly be on genuine benefits, not merely on barriers to switching.
