Designing a Customer Loyalty Program

brief ○ research ○ design ○ implement ○ reiterate

In May 2022, schuh launched its first-ever loyalty program, The Schuh Club, to reward customers for purchases both online and in-store. Designing a loyalty program for schuh focuses on creating a system that drives engagement, enhances retention, and aligns with the brand’s values.

By understanding customer needs, selecting an effective rewards model, and integrating digital tools, the program aims to deliver a seamless and personalised experience.

Problem Statement

Schuh lacked a seamless loyalty program to drive customer retention and repeat purchases. Without clear incentives, engagement was low, and competitors offered stronger rewards. A user-friendly, scalable solution was needed to enhance customer experience and brand loyalty.

My Role

As a UX/UI Designer my role was to assist with crafting an intuitive loyalty program to enhance retention. Through research, wireframes, mock ups and prototyping, I helped craft a seamless reward experience that strengthened customer loyalty.

The solution

The solution was a seamless, user-friendly loyalty program designed to boost engagement and retention. By creating an intuitive interface, clear reward structure, and accessible design, customers could easily earn and redeem benefits. The program enhanced the shopping experience while strengthening brand loyalty and competitiveness.

Tools Used

Figma, Illustrator, XD, Google Sheets

I conducted in-depth research to identify schuh’s customer needs, leveraging my skills in user research, usability testing, and competitive analysis.

  • Data Analysis: I analysed customer behaviour with in house data analysts to uncover key insights about demographics, purchasing habits, and preferences.

    • Defined key questions, such as “What incentives drive purchases?” to guide data exploration and inform decision-making.

  • Competitor Analysis: I studied loyalty programs from competitors like Office and JD Sports to identify opportunities for differentiation and innovation.

    • Highlighted gaps and trends in competitor offerings to inform schuh’s unique value proposition. An example of competitor research is shown on the right where I looked into the effective elements, advantages and disadvantages of retailers with popular loyalty programs.

Competitor research: distinctive elements, advantages, disadvantages

2. Define Goals and Objectives

I collaborated with stakeholders to establish clear goals for schuh’s loyalty program using my knowledge of strategic planning, stakeholder engagement, and customer-centric thinking.

  • Goal Setting: Worked closely with cross-functional teams to define measurable objectives, such as:

    • Increasing repeat purchases.

    • Building emotional connections with the brand.

    • Enhancing the customer experience with meaningful rewards.

    • Boosting engagement through interactive elements like reviews and social media.

    • Attended and contributed to meetings to align teams on key objectives, ensuring that goals were based on customer insights and business priorities.

  • Strategic Prioritisation: Translated broad ideas into actionable goals by balancing customer needs with business targets.

    • Mapped objectives to loyalty program features, such as tiered rewards and exclusive perks, ensuring each goal had a clear implementation pathway.

4. Design the User Journey

I then also contributed to the creation of an intuitive and engaging user journey for Schuh’s loyalty program, applying my expertise in user-centered design, UX mapping, and communication strategy.

  • Onboarding wireframes: Simplified the sign-up to a step by step process making it easy for customers to join and to display more information in a digestible way. Designed a clear, step-by-step onboarding experience with supportive copy to explain the program’s benefits effectively.

  • Earning Rewards: Defined actions for earning points (e.g., purchases, referrals, reviews) and ensured these were easy for customers to track. Collaborated with developers to design interfaces that clearly display rewards earned and encourage further engagement.

  • Redeeming Rewards: Made reward redemption seamless across all platforms. Developed user flows and interface designs to streamline the redemption process, ensuring it was intuitive and frustration-free.

  • Ongoing developments: I am currently focusing on expanding and enhancing key areas of my website, particularly the home page, product pages, and account sections. My goal is to improve user experience by making these pages more engaging and easier to navigate. Additionally, I plan to incorporate more targeted content, such as promotions and exclusive offers, to further engage visitors and encourage repeat interactions.

By focusing on usability and personalisation, I designed a journey that ensures customers remain engaged and see value in the program at every step. Below is an example of the loyalty pop up I designed deployed on our live site:

1. Research User Needs

3. Decide on Loyalty Model

I contributed to the design of schuh’s loyalty model by applying customer insights, creative problem-solving, and user-centered design principles. This approach helped create a program that met both user expectations and business objectives.

  • Student tier recommendation: Bronze, gold, and silver tiers can overwhelm new customers with complexity and lack immediate rewards. A student tier is simpler, offering clear, instant benefits that drive early engagement. It works well for younger audiences and can easily transition into more advanced tiers, building long-term loyalty.

  • Customising Features: Tailored the program to schuh’s brand by incorporating exclusive perks and personalised features (e.g. use of customer name, being recognised throughout the journey). Worked collaboratively with stakeholders to refine ideas and ensure the chosen model reflected customer preferences and schuh’s unique positioning.

  • Balancing Simplicity and Value: Ensured the loyalty model was easy to understand while providing tangible benefits to customers. Designed clear communication strategies to explain earning and redemption processes, making the program accessible and user-friendly.

5. Integrate Digital Tools

I played a key role in integrating technology into schuh’s loyalty program, using my skills in digital strategy, UX design, and data personalisation to enhance the user experience.

  • Rewards : Enabled customers to view points, track rewards, and redeem benefits. Designed interfaces that were intuitive and visually engaging, ensuring customers could easily interact with the program on the go.

  • Personalisation: Leveraged data analytics to deliver tailored rewards and recommendations based on customer preferences. Worked with data teams to define key metrics and used insights to personalise communication and offers for individual users.

  • Gamification: This is currently underway, however I am looking at adding interactive elements like milestones, challenges, and bonus point opportunities to boost engagement.

By integrating cutting-edge digital tools, I helped create an engaging loyalty program that enhances usability and drives long-term customer satisfaction.

Example of user testing to improve loyalty features using UsabilityHub

6. Test, Launch, Monitor & Improve

I currently contributing to the testing, launching, and refining of schuh’s loyalty program, using my expertise in user testing, performance analysis, and continuous improvement.

  • Testing: Conducting usability tests to gather customer feedback to validate the program’s design and functionality before launch. Designed and facilitated testing sessions, analysed results, and implemented changes to address user pain points and enhance the experience.

  • Launch: Worked closely with CRM, marketing and tech teams to ensure the program was effectively communicated and seamlessly integrated into existing systems.

  • Monitoring: Working with analysts to track key performance indicators, such as sign-ups, engagement rates, and redemption activity.

  • Improvement: Currently leveraging customer feedback and data trends to optimise the program post-launch, ensuring it meets evolving customer needs. Suggested and implemented enhancements, to maintain engagement and satisfaction.

  • Customer Surveys and Interviews: I designed and facilitated surveys and interviews through UsabilityHub to understand what rewards customers value most (e.g., discounts, exclusive access).

    • Crafted targeted survey questions and synthesised findings to shape the program’s features.

Through thorough testing and continuous iteration, I ensure that the loyalty program remains effective, user-friendly, and aligned with both customer expectations and business goals.

Results

The Schuh Club loyalty program has significantly enhanced customer engagement and business performance since its inception. Key achievements include:

  • High Adoption Rate: Currently, 40% of all transactions, both in-store and online, are associated with a loyalty account, indicating strong customer participation.

  • Increased Customer Retention: The program has strengthened relationships with customers, leading to improved retention rates.

  • Enhanced Customer Experience: Members benefit from exclusive promotions, competitions, and a generous one-year returns policy, contributing to higher satisfaction and repeat business.

  • Improved Average Order Value (AOV): By recognizing and rewarding customers, the program aims to reduce one-time purchases and increase AOV.

These outcomes demonstrate the effectiveness of the Schuh Club in fostering customer loyalty and driving business growth.