How to design an effective loyalty program in Mexico (2025 Guide)

Do you want your customers in Mexico to not just buy from you once, but to come back again and again? The key is an effective loyalty program . In this 2025 guide, we’ll reveal how to design one that truly works, drawing on our more than 25 years of experience helping leading brands. Forget simple discounts; we’ll show you how to build a lasting and profitable relationship with your customers.

What is a loyalty program?

A loyalty program is a marketing strategy designed to encourage customers to make repeat purchases at your business. It goes beyond a simple discount; it aims to build an emotional connection with the brand, offer exclusive benefits, and reward loyalty. Essentially, it’s a win-win: the customer receives added value, and you secure their long-term loyalty.

Why they are key in Mexico (recent data)

In a market as competitive as Mexico’s, customer loyalty is invaluable. A recent study reveals that Mexican consumers are more likely to choose brands that offer loyalty programs, even if prices are slightly higher. This demonstrates the power of perceived value and the desire to feel appreciated. Furthermore, the Mexican economy presents unique challenges, and effective loyalty programs can help companies retain customers during periods of economic uncertainty. An effective loyalty program is a highly cost-effective tool.

At Loyalty Marketing Services we have 27 years of experience and work with over 50 brands.

At Loyalty Marketing Services, we have over 25 years of experience designing and implementing successful loyalty programs for more than 50 leading brands in Mexico and Latin America. We’ve seen firsthand what works and what doesn’t. Our expertise allows us to offer you a unique perspective and customized solutions for your business. We have in-depth knowledge of the Mexican market and understand the specific needs of your customers.

Common mistakes when designing loyalty programs

Despite their potential, many loyalty programs fail due to common mistakes. Avoid these pitfalls:

Just give discounts

Offering only discounts might be appealing in the short term, but it doesn’t build genuine loyalty. Customers will focus solely on price and switch brands as soon as they find a better deal. Instead, strive to offer unique experiences, exclusive benefits, and added value that goes beyond simply saving money.

Not measuring ROI

A loyalty program without metrics is like sailing blind. It’s crucial to define key performance indicators (KPIs) and constantly monitor return on investment (ROI). Are you increasing purchase frequency? Improving customer retention? Increasing the average order value? If you don’t measure, you can’t improve.

Do not use technology (CRM, AI, analytics)

In the digital age, technology is your ally. A CRM (Customer Relationship Management) system allows you to efficiently manage customer information, personalize communication, and offer relevant rewards. Artificial intelligence (AI) can help you analyze large volumes of data to identify behavioral patterns and predict your customers’ needs. An effective loyalty program must be supported by modern technological tools.

Step-by-step strategic design of an effective loyalty program

Here’s a step-by-step guide to designing a loyalty program that actually works:

Define objective (repurchase, recurrence, ticket)

What do you want to achieve with your loyalty program? Increase purchase frequency? Encourage repeat business? Increase the average order value? Define a clear and specific objective so that all your actions are aligned.

Choose a model (points, cashback, levels)

There are various loyalty program models available. Choose the one that best suits your business and your customers:

• Points program: Customers accumulate points for every purchase and redeem them for rewards.
• Cashback: Customers receive a percentage of their purchases back in cash or credit.
• Tiered program: Customers move up a level as they make purchases and receive increasingly greater benefits.

Integrate technology (app, CRM, AI)

Integrate your loyalty program with a mobile app, a CRM system, and AI tools for more efficient management and a personalized experience. An app allows customers to access their rewards, track their points, and receive exclusive offers. A CRM lets you segment your customers and send them relevant communications. AI helps you personalize rewards and predict your customers’ needs.

Operation and Logistics

Clearly define the operational and logistical processes of your loyalty program. How will customers register? How will they accumulate points or cashback? How will they redeem their rewards? Ensure the process is simple and seamless to avoid frustration.

Omnichannel communication

Use an omnichannel communication strategy to keep your customers informed about your loyalty program. Send emails, push notifications, text messages, and post content on your social media channels. Personalize communication based on each customer’s profile to increase relevance.

Short case: Real client (anonymous)

To protect confidentiality, we will not reveal the name of the company, but we can share the impact of our work.

• Problem: A restaurant chain in Mexico was experiencing a high customer churn rate and needed to increase visit frequency.
• Solution: We designed and implemented a points-based loyalty program with customized rewards and an intuitive mobile app.
• Result: We reduced churn by 27% in 6 months and increased visit frequency by 15%.

Frequently Asked Questions

Conclusion and CTA

Implementing an effective loyalty program in Mexico is a strategic investment that can generate significant long-term results. Don’t settle for simple discounts; build lasting relationships with your customers and reward their loyalty. An effective loyalty program is more than a tool, it’s an investment in the future.

Ready to take your loyalty program to the next level? Schedule a call .