Do users generally find customer loyalty programs worthwhile and engaging? My research suggests: not really. Why is that and how can they be improved?
Do users generally find customer loyalty programs worthwhile and engaging? My research suggests: not really. Why is that and how can they be improved?
I gathered feedback from 5 participants about loyalty plans and developed a hypothetical loyalty program plug-in for web applications.
How did the participants respond? Let's find out…
I gathered feedback from 5 participants about loyalty plans and developed a hypothetical loyalty program plug-in for web applications.
How did the participants respond? Let's find out…
10 min read · Aug 12, 2025
User research participants: 5
My deliverables:
10 user interviews & summaries
15 user surveys
Low-fi wireflow and prototype
2 rounds of usability tests
Web-app mockup creation
Branding kit
Plug-in logo creation
Hi-fi wireflow and prototype
In my user interviews, the 5 participants rated existing customer loyalty
programs an average score of 5.9/10. Not too good.
This indicates a significant issue: loyalty programs, very often, do not make users feel valued enough and current programs are far too transactional.
Loyalty programs are common, yet many users feel undervalued due to reward delays, low engagement, and lack of recognition.
Research participants often noted that loyalty programs feel unfulfilling and lack an emotional connection. This suggests that many companies fail to foster appreciation and customer lifetime value. This leads to unsatisfactory loyalty experiences.
Loyalty programs are extremely common and almost expected these days. Yet, many users feel undervalued due to issues like delays in rewards, low engagement, and insufficient recognition.
During interviews, participants often expressed that loylaty programs felt unfulfilling, highlighting a lack of emotional connection in these programs. It can be argued that most companies tend to focus too heavily or solely on the transactional aspect of rewards programs, rather than fostering appreciation and customer lifetime value. This results in unsatisfactory loyalty experiences.
Loyalty programs are extremely common and almost expected these days. Yet, many users feel undervalued due to issues like delays in rewards, low engagement, and insufficient recognition.
During interviews, participants often expressed that the loyalty programs felt unfulfilling, highlighting a lack of emotional connection in these programs. It can be argued that most companies tend to focus too heavily or solely on the transactional aspect of rewards programs, rather than fostering appreciation and customer lifetime value. This results in unsatisfactory loyalty experiences.
Key Market Research Insight
"Our research has found that top-performing loyalty programs can boost revenue from customers who redeem points by 15 to 25 percent annually, by increasing either their purchase frequency or basket size or both.
However, we have observed that around two-thirds of established loyalty programs fail to deliver value, with many actually eroding value."
- McKinsey & Company
"Our research has found that top-performing loyalty programs can boost revenue from customers who redeem points by 15 to 25 percent annually, by increasing either their purchase frequency or basket size or both.
However, we have observed that around two-thirds of established loyalty programs fail to deliver value, with many actually eroding value."
- McKinsey & Company
Loyalty plans have become mundane or not really worth joining as shown by this user statistic…
Loyalty plans have become mundane or not really worth joining as shown by this user statistic…
5.9/10
Avg user research participant rating of loyalty plans, in general
“Some programs make it so that you have to spend a lot of money to get a small reward, so it doesn't seem worth it. But if you give smaller rewards at more frequent intervals/milestones it might keep the customer more motivated .”
“Some programs make it so that you have to spend a lot of money to get a small reward, so it doesn't seem worth it. But if you give smaller rewards at more frequent intervals/milestones it might keep the customer more motivated .”
- user research participant
When I first met with my research participants, these were a few key insights I gathered…
Interesting initial user survey results
(pre-design work)
Interesting initial user survey results
(pre-design work)
· Random discount offerings
· Reward points progress bar
· Membership tiers
· Random discount offerings
· Reward points progress bar
· Membership tiers
Top 3 voted features to have in a loyalty reward program
Top 3 voted features to have in a loyalty reward program
How much, on avg, the case study participants enjoy receiving points, membership tiers, badges, or streaks
How much, on avg, the case study participants enjoy receiving points, membership tiers, badges, or streaks
Amount of consecutive days of ordering it should take to receive a free entree or specialty drink. 4/5 users voted this.
Amount of consecutive days of ordering it should take to receive a free entree or specialty drink. 4/5 users voted this.
Now that I had a user-backed problem to research, I was ready to start initial design work…
Solutions Design Process
Design Process
Phase 1
Initial user interviews
Interviewed 5 users about loyalty plans to seek the features they find essential and their suggestions for improvement.
Phase 2
Determine the problem
Before beginning any design work, I needed to establish a problem that users face.
Phase 3
Low-fi wireflow creation and user tests
Based on user feedback from initial interviews, I created low-fi wireflows and had them user tested.
Phase 4
Branding
I created a style kit and logo for the plug-in I was developing.
Phase 5
Hi-fi wireflow creation and user tests
I created hi-fi wireflows and had them tested by all research participants.
Phase 6
Final iterations and prototyping
I completed my final design iterations after user testing the hi-fi prototypes.
Phase 4
Branding
I created a style kit and logo for the plug-in I was developing.
Phase 5
Hi-fi wireflow creation and user tests
I created hi-fi wireflows and had them tested by all research participants.
Phase 6
Final iterations and prototyping
I completed my final design iterations after user testing the hi-fi prototypes.
In the initial user interviews, the 5 participants rated existing customer loyalty programs an average of 5.9/10 overall. This seems to indicate that customers feel undervalued and disengaged.
My leading ideas to enhance user engagement:
My leading ideas to enhance user engagement:
Make the loyalty plan fun to engage with, not just transactional. Keep users entertained.
Make the loyalty plan fun to engage with, not just transactional. Keep users entertained.
Amplify user's sense of achievement with fun animations, illustrations + haptic and audio feedback.
Amplify user's sense of achievement with fun animations, illustrations + haptic and audio feedback.
Personalized elements and tailored reward offerings to enhance user appreciation and attention. Emotional connection.
Personalized elements and tailored reward offerings to enhance user appreciation and attention. Emotional connection.
Although I'm unable to create a loyalty program that will require companies to give out rewards more frequently, I can create prototypes that could help improve user engagement. The prototypes would also give the business-side fun and creative ideas to offer rewards and build emotional connection with customers.
In initial user interviews, the 5 participants rated existing customer loyalty programs an average of 5.8/10, indicating customers feel undervalued. Many loyalty programs in the food and drink industry are either lacking or perceived as unfair, with rewards seen as difficult to attain or not worth the investment. This leads to disengaged customers and lost opportunities for businesses.
In the low-fi wireframe stage, I built out several flows. One of the flows was a digital swipe-off ticket. It provides 3 critical elements: engagement, entertainment and appreciation:
321 Coffee
Digital Swipe-Off Ticket
321 Coffee
Digital Swipe-Off Ticket
Congratulations, John! You won 1 free cold brew or drip coffee for your next 321 Coffee visit!
Find this award in the rewards section in the app to redeem.
321 Coffee
Digital Swipe-Off Ticket
John, try your luck with
this digital swipe-off ticket to reveal a reward for your loyalty to 321 Coffee...
1 free Cold Brew
or Drip Coffee
Phone plays a celebratory sound and vibrates to accentuate user accomplishment and gratitude (positive haptic and audio feedback)
Customer swipes the “coating” off the ticket to reveal their reward
I also designed a tailored-reward-offering flow, that provides an offer that pertains the customers most commonly ordered items:
3 low-fi user test findings:
1. Users gave the swipe-off card idea and flow an 8.2/10
1. Users gave the swipe-off card idea and flow an 8.2/10
1. Users gave the swipe-off card idea and flow an 8.2/10
2. Users gave the idea of gamification elements an 8.2/10
2. Users gave the idea of gamification elements an 8.2/10
2. Users gave the idea of gamification elements an 8.2/10
3. Giving users the ability to donate points to charity was the most-voted feature to add in the next design iterations.
3. Giving users the ability to donate points to charity was the most-voted feature to add in the next design iterations.
3. Giving users the ability to donate points to charity was the most-voted feature to add in the next design iterations.
I then took a quick break from wireframing and focused on branding for this hypothetical loyalty program plug-in…
Plug-in name: Spark
The loyalty program would be the spark to creating customer loyalty and engagement.
Colors: Bolt Yellow, Black, and White
Bright yellow emphasizes the spark and welcoming theme. The black meshes well and pops against the yellow.
Typeface: Sofia Pro
Clean, very readable, trustworthy and inviting
Brand logo: I initially had a lightning bolt logo to match the spark theme, but decided to switch to a flame logo that was cleaner…
(final logo selection - simple and clean)
I then took a quick break from wireframing and focused on branding for this hypothetical loyalty program plug-in…
Plug-in name: Spark
The loyalty program would be the spark to creating customer loyalty and engagement.
Colors: Bolt Yellow, Black, and White
Bright yellow emphasizes the spark and welcoming theme. The black meshes well and pops against the yellow.
Typeface: Sofia Pro
Clean, very readable, trustworthy and inviting
Brand logo: I initially had a lightning bolt logo to match the spark theme, but decided to switch to a flame logo that was cleaner…
Brand logo: I initially had a lightning bolt logo to match the spark theme, but decided to switch to a flame logo that was cleaner…
(final logo selection - simple and clean)
After I established the branding I was going for, I went back over my initial interview and low-fi user notes and started creating the hi-fi wireframes…
After I established the branding I was going for, I went back over my initial interview and low-fi user notes and started creating the hi-fi wireframes…
After I established the branding I was going for, I went back over my initial interview and low-fi user notes and started creating the hi-fi wireframes…
Tailored Reward Offering
Tailored Reward Offering
Provides users with direct attention, gratitude, and a tailored reward offer regarding their most frequently ordered menu item. In return, the business could foster a deeper connection with their customer.
Provides users with direct attention, gratitude, and a tailored reward offer regarding their most frequently ordered menu item. In return, the business could foster a deeper connection with their customer.
Hi-fi tailored reward offering
Low-fi tailored reward offering
Low-fi tailored reward offering
Hi-fi tailored reward offering
Hi-fi tailored reward offering
3 hi-fi user test findings:
3 hi-fi user test findings:
1. Users gave the overall appearance of the design an 8.2/10
1. Users gave the overall appearance of the design an 8.2/10
1. Users gave the overall appearance of the design an 8.2/10
2. Users gave the idea of including the in-app wallet feature, to store user rewards, a 9.60/10
2. Users gave the idea of including the in-app wallet feature, to store user rewards, a 9.60/10
2. Users gave the idea of including the in-app wallet feature, to store user rewards, a 9.60/10
3. Users rated my design's ability to create user engagement a 7.8/10, compared to other loyalty programs. Plenty room for improvement.
3. Users rated my design's ability to create user engagement a 7.8/10, compared to other loyalty programs. Plenty room for improvement.
3. Users rated my design's ability to create user engagement a 7.8/10, compared to other loyalty programs. Plenty room for improvement.
After having my hi-fi prototypes user-tested, I looked over the insights and survey results to guide my final prototype iterations…
Digital Swipe-Off Ticket
Provides users with direct attention, gratitude, and a tailored reward offer regarding their most frequently ordered menu item.
Donate loyalty points feature
The most popular feature request in the initial user interviews was the ability for customers to donate their points to charities.
See Final Prototype Flows
User Success Metrics
(avg participant scores)
User Success Metrics
(avg participant scores)
Research participants rated loyalty plans 5.9/10, overall.
How engaging my design would be compared to other loyalty plans
How fun my design would be compared to other loyalty plans
How easy it would be to redeem loyalty points
4 of 5 users gave me actionable insights to further improve my work
So, what's next?
With user input and market research as guidance, I would like to continue implementing improvements and adding more features to the loyalty program, including:
· Improved animations and graphics that enhance user engagement
· Design 3 more gamified reward offering ideas (ex. Wordle - guess the word to get an award)
· Build out the ordering streak feature with user opinion and market analysis for guidance
Hope you enjoyed reading!
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