Recently at work, the question of what exactly is a “loyalty card” came up. Because in truth, loyalty cards are really just discount cards. I for example, have one from multiple grocery stores, multiple book stores, etc. Having a loyalty card from retailer A doesn’t mean I’ll be loyal to retailer A, because I probably have one from the competing retailer B as well.

People use the loyalty cards for the instant discounts. And every time you check out, the cashier ask “if you’d like to sign up, it’s super easy.” There is no investment, financially or mentally, into this loyalty program. So, in return, there is no loyalty.

But a recent conversation with a friend reminded that there are loyalty programs that work. Airlines.

What’s the difference? Well, an airline loyalty program is everything a retail loyalty program is not.

1. Airline loyalty program is not about easy and convenient. Have you every booked a reward travel? You have to jump through hoops!
2. It’s not instant. Hoops aside, you have to save up these points! It’s not quick or easy. And once you’ve accumulated a certain number of points, you feel invested into the program. That’s why ultimately drives loyalty.

So, the moral of the story: While the payoff is important, it’s the motivation to join a loyalty program. However, like everything else, the success of a loyalty program depends on how much you actually involve the consumers in the process. Make them invest into your brand one way or another! Then, they’ll be loyal to your brand. Otherwise, it’s just another card in the wallet.

Photo credit:DSCF5589, originally uploaded by joelogon.