Capturing the moment—and keeping the customer
The first quarter of 2026 brought some of the biggest events of the year, and with them, huge opportunities for brands to be front and center with consumers. With average viewership of 125M people watching across platforms, Super Bowl LX will no doubt rank among the most watched sporting events of the year. Still to come in 2026 – FIFA World Cup 2026 and next month’s NCAA Final Four, each presenting more chances for brands to leave a lasting impression.
With thirty second ads costing an estimated $8M-$10M in 2026, one-time events like the Super Bowl are a big bet for brands. Leaning into that big time opportunity to grab consumers by the wallet can make sense for some businesses, but other brands are better served by playing the long game. Loyalty programs could be just the ticket.
Deloitte reports 72% of consumers say they are more likely to spend more on brands they are connected with through a loyalty program. The importance of that can’t be understated at a time when consumers also say they are willing to jump ship if they don’t like the price of their regular brand. Shopping platform Rakuten collaborated with The Harris Poll on a 2025 study that found 55% of shoppers said they will be looking for the lowest price on products as they continue to face headwinds from inflation.
A well-designed loyalty program can produce results that incentivize your customers to stay with your brand and provide you with valuable data that helps you engage those customers further.
Is your brand a good fit for a loyalty program?
Brands that offer recurring purchases, or regularly purchased products can be particularly well-suited for loyalty programs. This applies to B2B and B2C brands. An effective loyalty program might entice the shopper who buys the same coffee creamer every week, to also purchase the milk or cheese that brand produces. It might encourage the auto parts store to keep ordering an entire suite of products if doing so rewards them with marketing dollars, or employee incentives.
If your brand offers single or infrequently purchased items, or if you are a unicorn with no real competition out there, a loyalty program might not be the best option for customer retention and growth.
If you are a highly regulated business, like adult beverages, a loyalty program could be useful, but only if you are willing to navigate regulations at the federal, state and even local levels. Compliance is serious business these product categories, and you will want a partner that can help you stay on the right side of complex regulations.
Designing a loyalty program that drives consumer engagement
Loyalty programs come in all shapes and sizes. Most common are points-based programs, subscription, and value-based (think of the old “One for One” program by Toms, where every pair of shoes purchased resulted in the donation of a similar item to someone in need). Many brands run loyalty programs that combine several elements, including exclusive offerings and events for members.
Regardless of the type of program, the keys to success are simplification and value. Does your program bring value to your customer? Is it easy to sign up? Are the rewards obtainable? All of these should be built into the design of your program.
That extends beyond the structure of the program itself to how your shoppers interact with the program. Your platform, generally a website or app, must be simple to join and easy to use. A good rule of thumb is to think about what brings value to your customers, and is it worth their time to participate? At Arrowhead, we recommend creating an instant reward for joining, and/or a low entry requirement so shoppers don’t view participation as cumbersome and not worth their time.
Your program design also needs to consider the return on investment. You want to entice your customers, and you want to hit a sweet spot where the program has value for consumers, without being overly generous, and therefore too costly to add value to your brand.
What customers really want: simplicity
A loyalty program can be an exciting addition to your marketing plan. Historically, we’ve helped our clients find success with a well-designed and simple platform that makes it easy to participate. Shoppers should be able to immediately grasp the value.
One of the more successful programs we’ve managed involved rewards platforms for major food clients. Shoppers purchasing those clients’ products uploaded their receipts on easy to use platforms. Once they reached a certain level of purchases, they automatically received a grocery store gift card. The value to shoppers was immediately clear, and it drove the results the clients were looking for.
Value and simplicity. Shoppers will always appreciate these attributes as they consider whether brands are worthy of their hard-earned dollars. A well-designed loyalty program can set your brand apart from the competition, and keep your team in the game for the long haul.
