Loyalty programs

In 2024, loyalty systems are evolving significantly, driven by technological advancements and changing consumer preferences. The most important loyalty programs are:

Integration with Digital Wallets: Many brands are linking loyalty programs with customers' digital wallets, enhancing the ease of earning and redeeming points directly from smartphones. This integration streamlines the process and increases customer engagement.
Gamification: Loyalty programs are incorporating game elements such as points, levels, and challenges to make them more interactive and engaging. This approach not only incentivizes purchases but also makes the experience fun, fostering stronger brand loyalty.
AI and Machine Learning: AI and ML are being used to develop prescriptive models that predict customer behavior and preferences. These technologies help in creating personalized loyalty strategies and optimizing reward offerings, thereby enhancing customer engagement and satisfaction.
Experiential Rewards: There's a shift from purely transactional rewards to experiential ones, which build stronger emotional bonds with customers. These rewards include personalized experiences and exclusive opportunities, making customers feel more valued and connected to the brand.
Subscription-Based Models: Subscription loyalty programs are gaining popularity, offering consistent value to customers through regular fees. This model provides businesses with stable revenue and deeper insights into consumer preferences, allowing for more tailored offerings.
Social Media Integration and User-Generated Content: Brands are leveraging social media to enhance their loyalty programs. Customers can earn points by engaging with brands online, sharing their experiences, and creating user-generated content. This strategy boosts brand visibility and customer loyalty.
Sustainability and Social Impact: Loyalty programs are increasingly focusing on sustainability and social responsibility. Customers can earn rewards for supporting environmental initiatives, which aligns with the growing consumer preference for brands that demonstrate social responsibility.

Some of the world's famous brands that use programs and loyalty cards

One of the ways to use the loyalty program is to use a loyalty card

Loyalty Cards

Loyalty cards come in various types, each designed to cater to different business models and customer engagement strategies. Here are some common types:

Points-Based Loyalty Cards:

Customers earn points for each purchase, which can later be redeemed for rewards, discounts, or other benefits.

Examples: Frequent flyer miles, and retail store points programs.

Tiered Loyalty Cards:

Customers receive different levels of rewards based on their spending or engagement levels. Higher tiers offer more exclusive benefits.

Examples: Credit card rewards programs with tiers like Gold, Platinum, and Diamond.

Cashback Loyalty Cards:

Customers earn a percentage of their purchase amount back as cash or credit that can be used for future purchases.

Examples: Cashback credit cards, and some retail store cards.

Punch Cards:

Customers receive a stamp or punch for each purchase, and after a certain number of punches, they receive a reward (e.g., a free item).

Examples: Coffee shop punch cards.

Coalition Loyalty Cards:

Multiple businesses participate in a single loyalty program, allowing customers to earn and redeem points across various brands.

Examples: Air Miles programs.

Other ways to use the loyalty program

issuing a physical card is not the only way to implement a loyalty program. Many modern alternatives leverage technology to enhance the customer experience and streamline the process. Here are several ways to use loyalty services without issuing a physical card:

1. Mobile Apps:

Many businesses offer loyalty programs through mobile apps. These apps can track purchases, reward points, and provide personalized offers.

Examples: Starbucks Rewards app, McDonald's app.

2. Digital Wallet Integration:

Loyalty programs can be integrated with digital wallets such as Apple Wallet or Google Pay, allowing customers to store and use their loyalty cards digitally.

Examples: Walgreens Balance Rewards, Woolworths Rewards.

3. Phone Number or Email:

Customers can use their phone number or email address to participate in loyalty programs. Points and rewards are tracked using these identifiers.

Examples: CVS ExtraCare, Kroger Plus.

4. QR Codes and Barcodes:

Businesses can provide QR codes or barcodes that customers can scan to earn points or redeem rewards. These can be displayed on smartphones or printed receipts.

Examples: Tesco Clubcard, and digital punch cards at cafes.

5. Online Accounts:

Customers can create online accounts to track their purchases and rewards. This method is especially common for e-commerce and subscription-based services.

Examples: Amazon Prime, and Sephora Beauty Insider.

6. NFC (Near Field Communication):

NFC technology allows customers to tap their smartphones at point-of-sale terminals to earn points or redeem rewards.

Examples: Apple Pay loyalty integrations, and contactless loyalty programs.

7. SMS-Based Programs:

Loyalty programs can be managed through SMS, where customers send and receive text messages to track their points and receive rewards.

Examples: SMS-based loyalty programs in local businesses.

8. Email-Based Programs:

Customers can participate in loyalty programs through email interactions, receiving points, and rewards via email communications.

Examples: Frequent email promotions and offers by e-commerce websites.

Loyalty program in Oman

In Oman, the loyalty card system has evolved significantly, reflecting global trends and local preferences. Key players such as Oman Arab Bank (OAB) have developed comprehensive loyalty programs like OAB Rewards. This program allows customers to earn points for various transactions, including spending on credit cards and referring friends. Points can be accumulated and redeemed for a variety of rewards, enhancing customer engagement and retention.

Additionally, digital solutions like the Stamp Me app have been introduced, modernizing traditional loyalty schemes. Stamp Me allows businesses to create digital loyalty cards that customers can use via their smartphones. This platform supports various industries, from cafes and restaurants to beauty salons and retail stores, offering features like customer data tracking, direct communication through push notifications, and gamification elements to boost engagement.

These initiatives indicate a strong push towards leveraging technology to enhance customer loyalty and offer personalized rewards, making the loyalty card system in Oman both sophisticated and user-friendly.

In Oman, loyalty systems are widely used across various industries, with notable prominence in the following sectors:

Retail: Major retail chains and supermarkets frequently use loyalty programs to reward regular customers. These programs often include points systems, discounts, and special offers to encourage repeat business and customer retention.
Banking: Banks such as Oman Arab Bank offer comprehensive loyalty programs linked to their credit and debit cards. These programs reward customers for their spending, both domestically and internationally, and provide a variety of redemption options, from cashback to exclusive deals.
Hospitality and Restaurants: Hotels and restaurant chains implement loyalty cards to provide perks such as free meals, discounts on future visits, and exclusive offers to frequent diners. This sector leverages loyalty programs to build a loyal customer base and enhance customer experience.
Telecommunications: Telecom companies offer loyalty programs that reward customers for their usage and payments. These programs often include benefits like additional data, discounted rates, and special promotions.
Travel and Airlines: Airlines and travel agencies use loyalty cards to offer points for flights, hotel stays, and other travel-related expenses. These points can be redeemed for future travel, upgrades, and other travel-related services.

Oman's government uses the “National Product Loyalty Program” to encourage local commerce

loyalty magazine - January 23, 2024

“In Oman, a program is in place that says it “appreciates the role of society in supporting Omani products through joint efforts.”

What this means in practice is a buy Omani campaign, helped by loyalty programs that offer rewards, bonuses, and prizes.

Bader bin Salim Al Mamari, Secretary General of the Tender Board, reaffirmed that the National Product Loyalty Program falls within the work of the Secretariat General of the Tender Board and is associated with the national policy of the local content.

He said that the program’s significance stems from its support for the national policy to enhance the local content through support campaigns at the governorate level.

He said that the implementation of the program with its platform represents one of the marketing tools on which the companies rely to woo customers by motivating them to buy through the platform and get bonuses and prizes whenever their purchases increase.

He added that this motivation comes in the form of different methods, including getting loyalty cards or digital applications for collecting points.

He said that the Secretariat General of the Tender Board coordinates with the companies and related parties on the executive procedures and announcement of the schedule for the launch of the program, the working mechanism, and the terms of joining the program.”