Shopper satisfaction is critical to building loyalty, which is why retailers have built extensive loyalty program infrastructures. However, when these programs reward shoppers on transaction history alone, they can create the wrong expectations. Only when retailers overlay insights into who their core shoppers are, and what motivates them, can they begin down a clearer path to loyalty.

This year, shoppers claimed their greatest loyalty to Walmart, which has no loyalty club or rewards program. Walmart instead achieves loyalty by clearly and consistently delivering against its “Save Money” theme through everyday low prices wrapped in a “Live Better” message that resonates with shoppers who are looking for a partner to help them shop smarter during tough times. This approach appeals to a broad range of shoppers impacting Walmart’s penetration and frequency.

Other retailers that consistently inspire loyalty do so without loyalty programs. They instead ensure that they understand their core shoppers and how they value the key retail loyalty levers. They deliver against price by consistently providing good value on the key brands and products that their top shoppers want.

They make personal customer-service central to their approach and then they deliver against quality by providing unique brands and in-store experiences that go above and beyond the expected, often becoming a destination for their own brands or services.

Consider some of the small-scale retailers that are driving both loyalty and growth: Wegman’s, HEB, Publix and Trader Joe’s. Their approach is to stand for something that matters to their core shoppers and stick with it. Simply said, Tesco Fresh & Easy’s approach to driving shopper loyalty is simply to “deliver the best shopping trip!”

Wegman’s creates loyalty by living its company mission of providing reasonable prices, a range of quality foods, customer service and an exceptional shopping experience every day. Wegman’s has the highest employee and sales-per-store of any grocery chain, proving the value of customer service. No one can discount the value of the array of quality food that shoppers can enjoy either at home or in its wireless- enabled café.

HEB clearly connects with its shoppers on both the price and the quality of its brands. This is delivered in a locally-relevant way through its “Texas Showdown” campaign, which pits national brands against HEB’s own brands that, as HEB says, are “Made for the love of Texans.”

Publix consistently delivers against its tagline — “Where Shopping is a Pleasure” — with its relentless attention to quality products and customer service delivered consistently by its employee-owners, resulting in exceptional shopper loyalty.

Trader Joe’s welcomes customers with its promise of giving shoppers “the best food & beverage values … & information … & dedication to customer satisfaction delivered with a sense of warmth & fun” written out on their blackboard — palm tree included.

Loyalty Cards Still Matter

At the same time, today’s shopper sentiment has shifted towards savings, with low prices becoming a retailer’s strongest loyalty lure. Shoppers see their new approach to shopping and saving as “smarter” than they did two years ago. They enjoy both the process and end result, and don’t see themselves going back to their old ways anytime soon.

This insight into how consumers enjoy and feel smart about saving money should be leveraged to drive loyalty. To secure true shopper loyalty, it is essential that we deliver not only against price, but also other key drivers of loyalty: customer service and product quality.

Currently, retail loyalty programs do a good job of delivering on savings by providing immediate or future price reductions on purchases when shoppers use their store-sponsored card. Shoppers have responded, by enrolling in an average of 14 different loyalty-card programs — up 25 percent from two years ago.

Target recently shifted its strategic focus from customer acquisition to driving repeat purchase and customer retention with its revamped Redcard, which provides “guests” with an additional five percent off on all purchases in its stores and on Target.com.

Half of grocery retailers rely on a two-tiered pricing system — providing significant discounts for loyalty-club members. While consumers feel empowered by prompting the immediate price rollback, this approach does little to address the customer services side of the equation by addressing shoppers’ needs and wants.

Best-in-class retailers provide an additional level of customer service by tailoring the delivery mechanisms, communications and rewards to reflect their loyal shoppers’ needs. Shoppers have the opportunity to receive discounts in-store, at home, online, at the pump and on their cell phone.

Retailers increasingly find themselves leveraging multiple tactics. Many shopper cards often provide immediate savings, along with the opportunity to accumulate points to drive additional savings. To provide incremental insight and relevant value to their shoppers, retailers are creating unique partnerships, often with other retailers.

For example, Kroger has extended savings outside its stores to include the gas pump at Shell stations. At Walgreensrewards.com, points can be redeemed online for store gift certificates, themed gift cards good at other retailers such as Starbucks, JCPenney, Kohl’s, Foot Locker, Borders, The Home Depot or select merchandise from Paula Dean, Reebok, Nine West and Nintendo. This approach provides top shoppers with a range of rewards and allows them to select what is relevant for them.

Understanding that not all loyal shoppers are created equal, several retailers have upped the ante for their heaviest shoppers, asking them to buy into a premium loyalty program that will deliver a higher level of benefits. This is not unlike the warehouse model, where shoppers buy a savings benefit upfront. This appeals to the heavy shopper, who can visualize the long-term benefit of paying to join a club.

For instance, Borders’ customers will have a choice of two loyalty programs with the chain. The first is free, with some additional perks over the previous plan. The second, Borders Rewards Plus, will cost $20 and include higher savings on purchases. At a recent visit to Game Stop, accompanied by my teen and tween sons, the sales clerk saw me as a potential heavy user and sold hard against joining their premium PowerUp rewards program. I resisted.

All three leading drug chains have recently rolled out or revamped their loyalty initiatives. All three programs reward shoppers for current purchases with future discounts. To deliver against the customer service dynamic, Rite Aid allows its wellness+ members the option to chat online or by phone with a pharmacist 24/7 and CVS targets a key shopper segment with their Extra Care Advantage for Diabetes program overlay.

Before the recession, the mantra in both retailer and manufacturer boardrooms was to grow, often by trying to attract a constant stream of new users. The opportunities appeared to be boundless. Now, fundamental shifts in shopper behavior have forced a reevaluation of loyalty’s limits.

To understand what satisfies shoppers, we need to identify those core shoppers and understand their behaviors. Success in the marketplace today never hinges on one single variable — but on listening to and addressing all of the shoppers’ loyalty levers in a way that is consistent with both the brand’s and retailer’s positioning.

Loyalty programs are an important part of keeping shoppers in the fold, but only if they are designed with insight into those actual shopper needs and wants, delivering unexpected but relevant perks, resulting in a more rewarding shopping experience.