Tailoring rewards to individual preferences is a game-changer for businesses. It enhances customer relationships & drives sustainable growth.

Is customer loyalty important to a successful business? Absolutely, and when existing customers are loyal to your brand, you don't need to spend as much time and energy convincing them you’re worth choosing. They'll also tell their friends about your company while coming back for more. 

That's why as many as 90% of companies incorporate customer loyalty programs. These programs incentivize repeat business by allowing customers to earn points for every purchase they make and redeem those points for a reward. Still, some customer loyalty programs are more effective than others. 

Today’s researchers are finding that personalization is key to building brand loyalty. As many as 75% of consumers say they're more likely to be loyal to brands that understand them on a personal level. However, only 22% of loyalty program members report feeling satisfied with the current level of personalization in their programs, which tells a story of its own.

Customizing your customer loyalty program to appeal to your customers' unique wants and needs is a great way to improve the effectiveness of the program. Read on to learn five reasons why reward customization efforts are sure to drive customer loyalty in this way.

Top 5 reasons: How personalized experiences drive customer loyalty 

The art of personalization in daily business interactions is as important to customers as quality products and services. Developing a loyalty program that capitalizes on personalization can drive your company's growth. But why do customers appreciate personalized incentives so much?

Much of the power of customizable incentive programs or rewards comes from the idea of emotional connection. Making a connection at this level can be powerful, a driving force behind many human actions and decisions. So, when your customers develop an emotional connection with your company, it’s only natural that their sense of loyalty to that brand grows in the process.

In the same way, personalized rewards produce an emotional connection with your customer. That connection drives loyalty, which is why customized loyalty programs work so well long-term. 


Here are five reasons to personalize what you’re giving to your customer base:

#1 Personalized rewards create a sense of belonging

That personalized reward you’re giving your best customers fosters a sense of belonging and purpose. Customers come to know that the company is capable of meeting their needs, which makes them feel like they are part of a larger community. If your business seems to align with the person’s goals and values, it’s even more powerful in strengthening their sense of identity.

When your business shows that you understand customers (by giving them personalized rewards), customers start to feel like they belong with you, and understandably so.

#2 Help customers feel understood 

When your company personalizes the loyalty rewards it gives to your customers, those customers feel like you and your team truly understand their wants and needs. After all, understanding is a foundation of human connection and helping other people feel safe with us.

One example of a loyalty program that emphasizes understanding is Nike's app. It creates personalized workout routines based on users' requirements and lets them test Nike shoes for 30 days to find the right fit. Customers who use this app feel like Nike understands their unique needs and are more likely to buy the brand’s footwear or apparel.

#3 Break down the corporate barrier

A robotic, domineering brand presence doesn’t help your company feel warm or transparent to customers. As a collection of people with interests and passions, your company isn’t an impenetrable structure. Offering a personalized loyalty program breaks down that barrier.

You humanize your brand by providing the rewards your customers actually want. When customers have a relationship with your company and connect with you on social media, they feel drawn to it. 

Companies develop huge followings due to humorous and personable interactions with customers on social media platforms. Why? Engaging with customers in a personal way highlights their needs and allows you to better customize their experiences. 

#4 Improve motivation and engagement 

Successful customer loyalty programs require successful incentives. You can't expect customers to participate in loyalty programs when they aren't excited about the rewards on offer. Plus, customers who don't have an emotional connection to your brand yet will still feel engaged with your loyalty program and continue buying your products or services if your reward is enticing.

#5 Invoke a feeling of individuality

Customers don't want to feel like they're just another number to you or your competitors. Everyone wants to be able to connect with your brand. However, by human nature, they can only really do that when they understand that you care about their interests.

Successful marketing often hinges on catching up with trends and looking into ways to embrace conformity across industries or a niche. However, the number of people who are now highlighting the concept of "influencer marketing" proves that consumers very much enjoy individuality. 

Your customer wants to know that your brand is catering to their unique needs instead of taking a "one-size-fits-all" approach. If not, you might love them to a competitor who does recognize their unique qualities.

Don’t worry; one of the easiest ways to foster a sense of individuality in your customer loyalty program is to use customers' names in your communications. "Hey {Name}," or "Welcome Back, {Name}" puts any loyalty program instantly off to a great start.


Giftbit helps us a lot in effectively managing the Rewards and Incentive Programs.

We loved how easy it is to buy and send e-gift cards to our users with Giftbit. We can manually customize the Reward Template and add our brand logo, details of the incentive program and reward message.

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Why choose Giftbit to customize rewards & incentives? 

Now that you know why customization is so important in customer loyalty programs, you may be wondering: how do I customize rewards? Won't that take a lot more time and money than my company has to give? 

In reality, customizing rewards and incentives is easy with the right approach. Why not try the comprehensive rewards program at Giftbit, which lets customers choose their own gift card rewards from a list of hundreds of different brands? Your customers will be able to choose an incentive that motivates them to stay loyal to your company, and that’s priceless.

With Giftbit, you can automatically trigger specific rewards when your customers spend a certain amount or complete certain actions. You can also use Giftbit's gift card API and Zapier integrations to automate your rewards program. It saves time and doesn’t compromise the user experience. 


Finally, Giftbit allows for greater personalization within your customer loyalty program. For example, you can use in-app redemption to enjoy complete control over your users' end-to-end experiences. You can also collect in-depth customer data about the types of gift cards your customer base is redeeming, allowing you to shape your loyalty program around these interests or concerns.