Customer Loyalty Programs

Help the user design and manage loyalty programs — from strategy and structure through points/tiers/rewards mechanics, member engagement, and ROI measurement. This skill is tool-agnostic but includes platform-specific guidance for Brevo Loyalty, Smile.io, LoyaltyLion, Yotpo, Stamp.me, and custom-built solutions.

Step 1 — Gather context

Ask the user:

1. What do you need help with?

   • A) Program design — creating a new loyalty program from scratch
   • B) Tool selection — choosing loyalty program software
   • C) Points & rewards — setting up earning rules and reward catalog
   • D) Tiers / VIP — designing tier levels and progression
   • E) Member engagement — increasing participation and redemption
   • F) Analytics & ROI — measuring program effectiveness
   • G) Integration — connecting loyalty to e-commerce, CRM, or POS
   • H) Migration — switching loyalty platforms
   • I) Something else — describe it

2. What type of business?

   • A) E-commerce / DTC
   • B) Retail (physical stores)
   • C) SaaS / subscription
   • D) Hospitality / restaurants
   • E) B2B
   • F) Multi-location / franchise
   • G) Other

3. Current loyalty setup?

   • A) No program yet — starting from scratch
   • B) Using Brevo Loyalty
   • C) Using Smile.io
   • D) Using LoyaltyLion
   • E) Using Yotpo
   • F) Using a custom-built solution
   • G) Using another platform
   • H) Have a basic program (punch card, discount codes) but want to upgrade

If the user's request already provides most of this context, skip directly to the relevant step. Lead with your best-effort answer using reasonable assumptions (stated explicitly), then ask only the most critical 1-2 clarifying questions at the end.

Step 2 — Strategy and approach

Loyalty program types

Type	How it works	Best for	Example
Points	Earn points on purchases, redeem for rewards	E-commerce, retail	1 point per $1 spent, 100 points = $5 off
Tiered	Higher tiers unlock better perks	Brands wanting aspirational status	Silver → Gold → Platinum with increasing benefits
Paid / VIP	Pay for membership with exclusive benefits	Premium brands, Amazon Prime model	$99/year for free shipping + early access
Cashback	Earn store credit on purchases	Price-sensitive customers	5% back on every purchase
Punch card	Buy X, get 1 free	Cafes, salons, simple retail	Buy 10 coffees, get 1 free
Experiential	Rewards are experiences, not discounts	Luxury brands	Early access, exclusive events, personal styling

Program design framework

1. Define the objective — retention, AOV increase, purchase frequency, referrals, data collection?
2. Choose the model — points, tiers, paid, hybrid?
3. Set earning rules — how do customers earn? (purchases, reviews, referrals, social shares, birthdays)
4. Design rewards — what can they redeem? (discounts, free products, free shipping, exclusive access, charity donations)
5. Create tiers (optional) — 2-4 tiers with clear progression and meaningful benefits at each level
6. Plan communication — welcome email, points reminders, tier upgrade notifications, expiry warnings
7. Measure — enrollment rate, active rate, redemption rate, incremental revenue

Points economy design

Earning rules (typical):

• Purchase: 1 point per $1 spent (or 10 points per $1 for psychological effect)
• Account creation: 50-100 points (one-time)
• Birthday: 50-200 points (annual)
• Product review: 25-50 points
• Social share/follow: 10-25 points
• Referral: 100-500 points

Redemption value:

• Target 5-10% effective discount rate (e.g., 100 points = $5 on a program where you earn 1 point/$1)
• Don't make rewards too hard to reach — first reward should be achievable in 2-3 purchases
• Offer a mix of reward values ($5, $10, $25, free product, free shipping)

Tier design

• 2-3 tiers is ideal — more than 4 creates confusion
• Name tiers — use brand-relevant names, not just Bronze/Silver/Gold
• Clear progression — spend $X/year or earn X points to reach next tier
• Meaningful benefits — each tier must feel noticeably better (not just 1% more discount)
• Maintain status — require annual re-qualification to maintain tier (prevents dormant high-tier members)

Step 3 — Platform-specific guidance

In Brevo

• Product: Brevo Loyalty — full loyalty engine with points, tiers, rewards, vouchers, mobile wallet
• Key concepts: Programs, Subscriptions (enrolled members), Balances (points), Tiers, Rewards, Vouchers
• API: Comprehensive REST API for all loyalty operations — program management, subscription enrollment, balance transactions, tier assignment, voucher creation/redemption
• Mobile wallet: Digital loyalty cards on Apple Wallet / Google Pay (Enterprise only)
• Strength: Integrated with Brevo's email/SMS/WhatsApp — loyalty events can trigger marketing automation (e.g., tier upgrade → congratulations email, points expiring → reminder SMS)
• Limitation: Enterprise plan only — not available on Starter/Standard/Professional
• Best for: Teams already using Brevo for marketing who want integrated loyalty without a separate tool
• Platform skill: /sales-brevo

In Smile.io

• Product: Popular loyalty platform for Shopify, BigCommerce, Wix
• Programs: Points, VIP tiers, referrals — all in one
• Free tier: Up to 200 monthly orders
• Strength: Best Shopify integration. Easy setup, good-looking widget. Strong referral program built in.
• Limitation: Limited customization on lower plans. Advanced analytics on higher tiers only.
• Best for: Shopify stores wanting a quick, attractive loyalty program

In LoyaltyLion

• Product: E-commerce loyalty platform with deep analytics
• Programs: Points, tiers, custom rewards, loyalty pages
• Strength: Advanced analytics and segmentation. Can create custom loyalty pages. Good for data-driven teams.
• Limitation: Higher starting price. Setup is more complex.
• Best for: Mid-market e-commerce brands wanting detailed loyalty analytics

In Yotpo

• Product: Part of Yotpo's retention marketing suite (loyalty + reviews + SMS + email)
• Programs: Points, tiers, referrals, VIP
• Strength: Combines loyalty with reviews and UGC — customers earn points for reviews, which generates social proof. Unified retention platform.
• Limitation: Most powerful as a suite — loyalty alone may be expensive. Complex pricing.
• Best for: E-commerce brands wanting loyalty + reviews + SMS in one platform

In Stamp.me

• Product: Digital loyalty card and stamp program
• Programs: Digital punch cards, points, tiered rewards
• Strength: Simple and affordable. Mobile-first with digital stamp cards. Good for brick-and-mortar.
• Limitation: Less sophisticated than full loyalty platforms. Limited e-commerce integrations.
• Best for: Cafes, restaurants, salons, and small retail with simple loyalty needs

Custom-built

• When: Unique business model, specific integration needs, or very high volume (millions of members)
• Approach: Build on your database + API layer, or use headless loyalty APIs
• Strength: Complete control and customization
• Limitation: Significant development effort, ongoing maintenance
• Best for: Enterprise with unique requirements or companies where loyalty is a core competitive advantage

Step 4 — Actionable guidance

Launch checklist

1. Design program — model, earning rules, rewards, tiers (see Step 2)
2. Choose platform — based on your e-commerce stack and needs
3. Configure — set up program, earning rules, reward catalog, tiers
4. Design assets — loyalty page, widget, emails (welcome, points earned, reward available, expiry warning)
5. Set up automations — trigger emails/SMS based on loyalty events
6. Soft launch — test with a small group, verify points earning and redemption
7. Promote — announce via email, site banner, checkout page, social media
8. Measure — track enrollment, engagement, and revenue impact weekly

Key metrics

Metric	Benchmark	What it tells you
Enrollment rate	20-40% of customers	Program attractiveness
Active member rate	40-60% of enrolled	Ongoing engagement
Redemption rate	20-40% of points issued	Reward appeal
Member vs non-member AOV	15-25% higher	Revenue impact
Member purchase frequency	20-40% higher	Retention impact
Program ROI	3-5x cost	Overall program value

Gotchas

1. Don't make the first reward unreachable — if it takes 10 purchases to earn the first reward, most customers will give up. Design the first reward to be achievable in 2-3 purchases.
2. Don't create too many tiers — 2-3 tiers with meaningful differences beats 5 tiers with marginal distinctions. Each tier should feel like a real upgrade.
3. Don't forget expiration communication — if points expire, you must warn members before expiration (30 days, 7 days, 1 day). Surprise expiration creates angry customers.
4. Don't discount your way to losses — if your effective discount rate exceeds your margin, the program loses money. Model the economics before launch (typical target: 5-10% effective discount).
5. Don't neglect non-purchase engagement — the best loyalty programs reward reviews, referrals, social engagement, and account actions — not just purchases. This keeps members engaged between purchases.

Related skills

• /sales-brevo — Brevo platform help (Brevo Loyalty setup and configuration)
• /sales-affiliate-program — Affiliate and referral programs with commission payouts
• /sales-email-marketing — Email communication for loyalty program members
• /sales-checkout — Checkout optimization (loyalty display at checkout)
• /sales-integration — Connect loyalty tools with e-commerce and CRM
• /sales-do — Not sure which skill to use? The router matches any sales objective to the right skill. Install: npx skills add sales-skills/sales --skills sales-do

Examples

Example 1: Designing a loyalty program for a Shopify store

User says: "I run a DTC skincare brand on Shopify with $80 AOV. How should I structure a loyalty program?" Skill does: Recommends points-based program with 2 tiers. Earning: 1 point/$1 + bonus points for reviews and referrals. Rewards: $5 off (50 points), $15 off (150 points), free mini product (100 points). Tiers: Regular + VIP (spend $500/year for 1.5x points, free shipping, early access). Recommends Smile.io for Shopify. Result: Complete program design with economics, platform recommendation, and launch plan

Example 2: Measuring loyalty program ROI

User says: "Our loyalty program has been running for 6 months and we're not sure if it's working" Skill does: Defines key metrics to pull (member vs non-member AOV, purchase frequency, retention rate, redemption rate). Provides benchmark comparisons. Identifies common issues (low engagement, unreachable rewards, no communication). Result: Measurement framework with specific metrics, benchmarks, and optimization recommendations

Example 3: Setting up Brevo Loyalty with email automation

User says: "We're on Brevo Enterprise and want to launch a tiered loyalty program with automated emails" Skill does: Walks through creating a loyalty program in Brevo → defining tiers and earning rules → setting up reward catalog → building automation journeys triggered by loyalty events (enrollment → welcome, tier upgrade → congratulations, points expiring → reminder) Result: Loyalty program configured in Brevo with automated email flows for all key moments

Troubleshooting

Low enrollment rate

Symptom: Less than 10% of customers joining the loyalty program Cause: Program not visible enough, value proposition unclear, or signup process too complex Solution: 1) Add loyalty callout on homepage, product pages, and checkout. 2) Offer sign-up bonus (50-100 points). 3) Simplify enrollment to 1 click (email only). 4) Show the first achievable reward at signup ("You're 2 purchases away from $5 off!").

Members not redeeming rewards

Symptom: High points issuance but low redemption (< 15%) Cause: Rewards not appealing, redemption process too complex, or members forget they have points Solution: 1) Survey members on desired rewards. 2) Simplify redemption (1-click at checkout). 3) Send points balance reminders monthly. 4) Add lower-tier rewards that are easier to reach. 5) Show points balance prominently on account page and in emails.

Program losing money

Symptom: Loyalty program costs exceed the incremental revenue it generates Cause: Effective discount rate too high, or program attracts deal-seekers without increasing loyalty Solution: 1) Calculate effective discount rate (total rewards redeemed ÷ total member revenue). 2) If > 10%, reduce earning rate or increase redemption thresholds. 3) Add non-discount rewards (early access, exclusive content). 4) Implement minimum spend for redemption. 5) Segment: compare member lifetime value to non-member — if no difference, the program isn't driving incremental behavior.