Is Your Loyalty Program Really Rewarding Loyalty?

Loyalty programs are everywhere, from major retailers to local cafés, clubs to airlines. They promise rewards, perks, and that warm fuzzy feeling of being a “valued customer.”

But here’s the thing: if your loyalty program doesn’t actually benefit your customers, it’s not building loyalty, it’s just marketing.

Not long ago, I received a $5 loyalty voucher from a major chain store. I’ve been a regular customer for years, consistently shopping there and choosing them over competitors. It was a nice gesture - until I saw the fine print.

Two weeks to use it.

No reminder. No flexibility. No real consideration for how or when I usually shop.

I missed the window. Not because I didn’t appreciate the voucher, but because life is busy. And instead of feeling appreciated, I felt… a little unimportant. If I’m a loyal customer, why not show me the same consideration I’ve shown you?

It was a small thing, but loyalty is built (or broken) in the small things.

For clubs and hospitality venues, loyalty programs are a powerful way to keep members coming back, but only if they feel genuinely rewarded.

Here’s what makes the difference:

1. It’s Simple and Seamless

If your members have to jump through hoops, enter codes, or navigate clunky apps, they won’t bother. Keep it easy. Make it obvious. Integrate it into their natural behaviour.

2. It’s Truly Valuable to Them

Free coffee after ten stamps is fine. But what if your most frequent guests were rewarded with priority access, exclusive event invites, or surprise upgrades? Think beyond the discount and into the experience.

3. It’s Timely and Considerate

A voucher with a two-week expiry might work for some, but not all. Consider giving members flexible redemption periods, especially if they’ve shown long-term loyalty. Loyalty isn’t a flash sale - it’s a relationship.

4. It Reflects How They Engage With You

Use the data you already have. Do they come in every Friday night? Celebrate that pattern with a tailored reward. Do they bring in new guests? Give them something to share.

A member signs up for your loyalty program. That’s a start. However, the real test is what happens next.

Do they feel seen and appreciated?
Do your rewards reflect how they engage with your venue?
Are you making it easy and enjoyable for them to stay loyal?

The strongest loyalty programs don’t rely on gimmicks or expiry dates. They’re built on thoughtful, consistent gestures that make people feel valued.

Because in hospitality, when guests feel appreciated, they return the favour.