In today’s crowded e-commerce space, consumer loyalty is more important than ever. Almost 70% of German consumers prefer brands that offer loyalty programs, according to Brevo’s 2024 Consumer Survey conducted by YouGov. Loyalty programs have become essential for businesses looking to keep customers engaged and drive long-term growth.
In this article, we’ll explore the importance of loyalty programs for e-commerce businesses in the DACH region. We’ll discuss how they can boost customer retention and outline the best strategies for creating a successful program. Using insights from the Brevo survey, we’ll dive into consumer behavior trends, highlight key communication channels, and explore how digital innovation is reshaping customer loyalty.
Why loyalty programs matter more than ever
The Brevo survey shows how much consumers value loyalty programs—especially in Germany, where 69% of respondents wish their favorite brands offered them. This sentiment cuts across all demographics, proving that people of all ages appreciate the rewards of sticking to a brand.
Loyalty programs do more than just encourage repeat purchases. They create an emotional connection between brands and customers. When people feel recognized and rewarded, they’re more likely to stay loyal, even when competitors come knocking with special offers. And in a time when acquiring new customers is becoming more expensive, retaining existing ones is crucial for long-term success.
How to engage younger consumers
One of the survey’s most interesting findings is how younger consumers prefer to communicate with brands. While email still leads overall (41%), the 18-34 age group shows a clear shift towards social media. For them, it is the top choice (38%), followed by email (31%) and WhatsApp (26%).
Even more telling, 59% of 18-34-year-olds are open to receiving marketing messages through WhatsApp—as long as they’ve opted in. This allows brands to explore newer channels like WhatsApp, mobile push notifications, and social media. These platforms offer a level of immediacy and personalization that younger consumers value, especially when looking for convenience and quick engagement.
The shift toward digital loyalty cards
Another major trend is the growing popularity of digital loyalty cards. Among 18-34-year-olds, 64% prefer storing loyalty cards on their smartphones rather than carrying physical ones. The benefits are obvious: you can access discounts and promotions instantly in one convenient location. In addition, 71 % of younger consumers see a benefit to receiving push notifications about special offers via a digital card in a mobile wallet. By integrating loyalty programs with digital wallets, brands can make shopping easier while keeping customers engaged with timely, relevant updates.
Fashion brand The Kooples shows how effective mobile wallets can be: Customers who use the mobile wallet function generate 89% more sales than those who don’t. With targeted push messages, The Kooples motivates its customers to regularly visit its online store or stores. As a result, purchase frequency has increased by up to 90%. These impressive results underscore the potential of an integrated loyalty program combined with a digital solution such as a mobile wallet. Customer loyalty is strengthened, interactions increase, and the result is a noticeable increase in sales. Another advantage of the wallet over apps is that customer retention is significantly higher with the wallet than with retailer apps. At The Kooples, 98% of wallet users keep their digital loyalty card on their smartphone.
Building trust and loyalty through better service
When choosing between a brand’s website and an online marketplace, 41% of consumers find both equally suitable. However, only 22% prefer buying directly from the brand, while 38% favor marketplaces. The reasons vary significantly: consumers choose direct purchases for authentic products (39%), better customer service (37%), and the satisfaction of supporting the brand (29%). In contrast, marketplaces attract shoppers with a broader product selection (47%), price comparison (43%), and superior delivery or return options (39%).
To compete with the advantages of marketplaces, brands must deliver a standout shopping experience by emphasizing personalized service and clearly communicating the unique value they offer beyond price. By doing so, they can foster lasting trust and loyalty, creating mutual benefits for both the brand and the customer.
Tips for building a winning loyalty program
Want to create a loyalty program that delivers real, measurable results? Here are key strategies to ensure success:
I. Personalization: Go beyond generic rewards
Tailor rewards to meet the unique needs and preferences of your customers. Use data-driven insights to understand shopping behaviors, purchase history, and preferences. For example, if a customer frequently buys from a specific product category, offer exclusive discounts or early access to new releases in that category. Personalized rewards make customers feel understood and valued, increasing engagement and loyalty.
Consider incorporating dynamic rewards that adapt based on customer interactions, such as special birthday offers or milestone-based rewards. This approach shows that your brand recognizes individual customers, fostering a deeper emotional connection.
II. Omnichannel engagement: Meet customers where they are
Don’t limit your communication to traditional methods like email. Engage customers through a variety of channels, including social media, WhatsApp, SMS, and mobile push notifications. Different demographics prefer different platforms, so offering multiple touchpoints ensures you can reach a broad audience.
For younger consumers, social media and messaging apps are critical. Utilize these platforms to send personalized messages, exclusive offers, or reminders about loyalty points. Meanwhile, older demographics may still appreciate well-timed email campaigns or SMS updates. Creating a seamless experience across all channels will keep your brand top of mind.
III. Seamless digital integration: Make loyalty effortless
Digital loyalty cards stored in mobile wallets are a game-changer. They offer instant access to rewards and can send real-time push notifications about promotions, ensuring that customers are always aware of the latest offers. This level of convenience enhances the shopping experience, making it more likely that customers will return.
Consider integrating your loyalty program with mobile apps or e-commerce platforms. Ensure that customers can easily check their points balance, redeem rewards, and receive personalized recommendations with minimal friction. The easier it is for customers to participate, the more likely they are to stay engaged.
IV. Exclusive perks: Create a sense of privilege
Reward loyalty members with perks they can’t get elsewhere. Offer early access to sales, members-only discounts, free shipping, or exclusive content such as behind-the-scenes videos or personalized recommendations. These exclusive benefits not only encourage repeat purchases but also give customers a reason to stay loyal rather than exploring competitor options.
Consider creating tiered rewards systems where customers unlock increasingly valuable perks as they engage more with your brand. This gamification adds excitement and motivation for customers to remain active participants in your program.
V. Continuous improvement: Adapt and evolve
No loyalty program should remain static. Regularly analyze performance metrics such as redemption rates, customer feedback, and engagement levels. Use this data to refine your offerings, ensuring they remain relevant and compelling.
Actively seek feedback from loyalty members—surveys, focus groups, or one-on-one interviews can provide invaluable insights. Customers’ preferences and needs change, so evolving your program based on their input will keep it fresh and effective.
VI. Community building: Foster emotional connections
Create a sense of belonging by fostering community among your loyalty program members. Encourage user-generated content, such as sharing photos of purchases or testimonials about their experiences. Recognize loyal customers publicly through social media shout-outs or customer spotlight features.
Building a community around your brand enhances the emotional connection customers feel, transforming transactional relationships into meaningful ones. This sense of belonging can be a powerful driver of long-term loyalty.
Loyalty programs: more than just a trend
Loyalty programs aren’t just a trend but a crucial part of any successful e-commerce strategy. Today’s consumers expect personalized experiences and seamless communication, and loyalty programs offer a powerful way to meet those expectations.
By embracing new technologies, focusing on personalization, and delivering top-notch service, e-commerce brands in the DACH region can build loyalty programs that boost revenue and create genuine, lasting relationships. Now is the time to act. Leverage insights from Brevo’s Consumer Study and launch your loyalty program to stay ahead of the curve and meet your customers’ evolving needs.
About the author
Patrick Brück, Head of Sales DACH, Brevo
Patrick Brück serves as Head of Sales DACH at Brevo, the go-to CRM platform for thriving businesses. With a wealth of expertise in marketing, customer relationship management, and business development, Patrick helps organizations choose the right tools to enhance their customer relationships. Leading the sales team of Brevo in the DACH market, he supports businesses in scaling effectively by leveraging robust customer data platforms, comprehensive marketing solutions, and Brevo’s innovative loyalty platform.
Brevo, trusted by over 500,000 clients worldwide, is an all-in-one CRM solution designed to drive customer engagement and strengthen relationships through channels like Email, SMS, Push, Chat, and Digital Wallet.
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