Customer loyalty has transformed dramatically in recent years. Traditional rewards programs that offer discounts or points alone are becoming less effective as consumers prioritize experiences that align with their values and interests. From fast food to fashion, brands across industries are increasingly realizing that loyalty is built by meeting customers in meaningful ways – often beyond the transaction.
For example, take McDonald’s recent MONOPOLY promotion in the UK which paired its iconic game with a wellness reward: a free three-month trial to a fitness app, WithU. The result? A significant surge in customer engagement, with thousands of new fitness app sign-ups and strong participation in beginner workouts.
The importance of customer loyalty should not be understated. In fact, CX Network’s research into the global state of CX in 2024 found customer loyalty to be one of the biggest non-tech trends in CX. Perhaps the reason underpinning this is because a staggering 56 percent of respondents strongly agreed that customers will switch brands when unsatisfied.
So, how should brands reimagine loyalty programs to keep up with evolving consumer expectations?
1. The shift from transactional rewards to experience-based loyalty
Traditional loyalty programs often focus on transactional rewards – discounts, points, or punch cards that encourage customers to make repeated purchases. While these incentives still have a place, today’s consumers are looking for more. They want their loyalty programs to resonate with their lifestyle and personal goals.
McDonald’s MONOPOLY campaign illustrated this shift by offering a reward that aligns with wellness, an area of growing interest for consumers. Instead of a straightforward discount or gift, the fitness app trial allowed customers to try something new. This experience-based approach proved highly effective, as shown by the 297 percent spike in app sign-ups.
2. Meeting customers’ needs with relevant, accessible rewards
The success of the McDonald’s campaign highlights the importance of relevance in loyalty programs. Many brands today are incorporating rewards that are meaningful, attainable and directly tied to customer values. Health and wellness, sustainability and convenience are some of the most popular themes.
In the McDonald’s case, offering a wellness-related prize might seem surprising for a fast-food brand, but it reflects a deeper understanding of customer behavior and lifestyle choices. Today’s consumers seek balance – they might enjoy a burger one day and a workout the next. By providing a reward that supports this lifestyle balance, McDonald’s connected with a segment of customers who were eager to explore fitness but might not have taken the plunge on their own. The 95 percent conversion rate from reward redemption to full fitness app registration shows that customers appreciate rewards that enhance their lives in real, accessible ways.
3. Driving positive behavior change using loyalty programs
Brands that align loyalty rewards with positive lifestyle choices can inspire customers to take actions that benefit both parties. This approach is particularly valuable for companies focused on building a brand around wellness, sustainability, or personal growth. When a brand’s loyalty rewards encourage beneficial behavior, they foster both deeper relationships and emotional connections whilst also helping to reinforce brand values.
With 83 percent of the app’s new users opting for beginner-level workouts, the McDonald’s MONOPOLY campaign showed how a well-chosen reward can encourage positive change. Loyalty programs that motivate customers to improve their wellbeing or explore new interests create a mutually beneficial dynamic, enhancing brand loyalty while contributing to customers’ lives.
4. Cross-industry partnerships can create memorable customer journeys
One of the reasons the McDonald’s fitness reward resonated was its uniqueness. Cross-industry partnerships allow brands to expand their rewards beyond their own products, opening up new possibilities for customer engagement. This strategy leverages the strengths of different brands to create a memorable, customer-focused experience.
For example, by partnering with a fitness app, McDonald’s gave its customers something unexpected – access to an on-demand wellness platform, an offering quite different from its usual prize portfolio. This partnership allowed McDonald’s to appeal to a broader audience, including those new to fitness. When brands leverage such partnerships, they can deliver unique experiences that add value to customers’ lives in fresh and exciting ways, creating loyalty by enhancing the overall customer journey.
Quick links
- Five loyalty programs with killer USPs
- How McDonald’s built a seamless customer journey
- How McDonald’s leverages insights and analytics for customer centric decision-making
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