Customer loyalty programs are everywhere these days, but most of them don’t actually work. Walk into any store and you’ll get asked to sign up for points, discounts, or some reward system that nobody really uses. Chad C. Paris has spent over 15 years figuring out why most of these programs fail and what actually makes customers stick around. As Senior Vice President of Sales and Marketing at companies such as Panoramic Doors and Attic Breeze, he’s turned customer retention into serious revenue.
How to Design Customer Loyalty Programs That Work
Most people think loyalty comes from getting good deals. He disagrees. “Ever walked into your favorite coffee shop and they already know your order? That feeling, that sense of being known is what real loyalty looks like,” he says. It’s not about remembering someone bought coffee last Tuesday. It’s about making them feel valued by your business. “It’s not built with points or perks alone. It’s built with purpose,” Paris explains.
Loyalty Begins with Listening
Too many companies build loyalty programs the wrong way around. They design the rewards first, then try to figure out what customers want. Paris says that’s backwards thinking. “The best loyalty programs don’t start with a spreadsheet. They start with your customer’s voice,” he points out. You can’t build something that works if you don’t know what your customers actually care about. “Before you build rewards, build relationships. Use surveys, customer success calls, and behavior data to understand why your customers stay or leave,” Paris advises. At Attic Breeze, they thought they knew what made customers happy. Turns out they were wrong. “We discovered our most loyal customers weren’t just happy, they felt heard,” he says. Once they figured that out, everything changed.
Make it Emotional, Not Just Transactional
Everyone loves a good discount, but that’s not what keeps people coming back long-term. Price wars are a race to the bottom that nobody wins. “Discounts are great, but feelings drive behavior. People stay loyal when they feel connected to you or your brand,” he explains. Building real connections takes more work than sending coupon codes. Paris talks about how they created “personalized thank you campaigns and customer spotlights on social media that made people feel part of our brand.” Simple stuff, but it works because people want to feel special. At Attic Breeze, they take it further with their environmental focus. “We recognize top contractors and homeowners who go green with our solar products, turning them into brand ambassadors, not just repeat buyers,” he shares.
Reward the Right Behavior
Here’s where most loyalty programs mess up. They only reward people for buying stuff, which misses the bigger picture. Paris thinks that’s shortsighted. “Not all rewards are created equal. Don’t just reward purchases—reward advocacy, referrals, and feedback,” he suggests. Smart businesses reward the actions that actually help them grow. “Your loyalty programs should reflect your business goals. Want referrals? Give points for sharing. Want online reviews? Incentivize them. Want repeat orders? Offer exclusive upgrades,” Paris breaks it down. The trick is knowing which behaviors matter most for your specific business. “It’s about reinforcing behaviors that grow your brand organically,” he notes.
Building loyalty programs that actually work means balancing what makes sense on paper with what makes sense to real people. You need both the numbers and the emotional connection. “Remember, people don’t stay for the perks. They stay for the purpose,” he says. Most business owners should take a hard look at their current programs. Paris asks a simple question that cuts through all the complexity: “Take a look at your current program. Is it transactional or transformational?” If you’re just processing transactions, you’re missing the point. The goal is building relationships that last beyond the next sale. “Let’s build loyalty that actually lasts,” he concludes.
Connect with Chad C. Paris on LinkedIn to explore more about building lasting customer loyalty.
