More than 90% of companies use some type of customer loyalty program to engage with their audience. Whether you’re looking for ideas to strengthen your existing program or are piloting a new one, these 15 loyalty program examples can help you get started.
Table of Contents
- What Is a Customer Loyalty Program?
- Future of Customer Loyalty
- Why Do Loyalty Programs Work?
- Customer Loyalty Program Examples
What Is a Customer Loyalty Program?
A customer loyalty program rewards customers who repeatedly engage with a brand. There are four primary types or categories of loyalty programs:
- Social media
- Tiers
- Points
- Paid
Loyalty programs incentivize repeat interactions and purchases by offering members discounts, VIP events, unique offers and more.
They’re also a customer retention strategy that motivates customers to continue interacting with your brand.
Future of Customer Loyalty
Customer loyalty programs have existed for years, but they’ve evolved and are experiencing a rise in popularity. A recent forecast estimates that the loyalty management market will grow to $18.2 billion by 2026.
What is contributing to this increased demand for loyalty programs? One of the most important factors is digital transformation. It’s a bit of a buzzword. But it simply means that businesses need to integrate technology into their processes, customer experiences and marketing.
Effective digital marketing relies on understanding your audience, as well as which ads and campaigns are working and why. With new data privacy regulations and third-party deprecation, more businesses are looking for ways to not only engage and retain customers but to collect first-party data. Customer loyalty programs can do both.
The future of customer loyalty is focused on connecting online experiences, whether it’s through your store’s mobile app, digital ads, or site, to your offline in-store experience.
Why Do Loyalty Programs Work?
Customer loyalty programs are one of the most effective ways to drive revenue, retain customers and create brand advocates.
Consumers are currently more emotionally invested in their favorite brands than they’ve been in the past, viewing the brand-shopper relationship as more than just a transactional exchange. This also explains why the Yotpo survey respondents were willing to spend more on a brand they’re loyal to even if cheaper options exist.
Studies show that 75% of consumers favor brands that provide reward programs. The more they buy or engage with a brand, the more rewards they earn.
According to Nielsen, 84% of consumers say they’re more likely to stick with a brand that provides a loyalty program. In a Bain study, 66% of consumers say the ability to earn loyalty rewards changes their spending behavior.
Customers often want an enticing offer to make them feel special while providing perceived cost savings. About 50% of consumers say their major reason for joining a loyalty program is to receive rewards on everyday interactions and purchases.
Companies with loyalty programs outperform brands that don’t have them, especially when it comes to sales and customer satisfaction.
Loyalty Program Benefits
Running a loyalty program means giving away something such as sales, discounts, free shipping, or early access. But the payoff for these reward programs is invaluable. Here are some key benefits:
Increased Customer Referrals
Customers will likely tell others about a great loyalty rewards program. More referrals mean more customers.
Improved Customer Retention
If consumers find value in your loyalty program, they’ll likely repeat the interaction. Besides, it costs five times more to acquire a new customer than to retain an existing one.
Higher Sales
According to recent loyalty research, 49% of consumers say they’ve spent more after joining a loyalty program.
Create Brand Advocacy
With a successful loyalty program, you can turn regular customers into brand advocates who help your business get in front of new consumers through word of mouth, which is a low-cost marketing strategy than paid ads.
Customer Loyalty Program Examples
According to research, 47% of U.S consumers — nearly half — have used a loyalty program. While these figures may seem small, they represent a critical shift from just a few years ago, when less than a quarter (24%) had heard about these programs.
Today, 65% (nearly two-thirds) say they’ve tried at least once or twice to earn rewards with a loyalty program. This underscores how rapidly the market is shifting toward loyalty programs and the potential to enhance customer loyalty and increase brand visibility.
However, 77% of loyalty programs that rely only on customer transactions fail within their first two years. To be successful, you should also offer attractive signup perks and other rewards that encourage customer engagement. Our picks for the best customer loyalty programs can help you avoid common pitfalls and make your own program more successful.
Retail and Ecommerce
1. Anthropologie
Anthropologie is a U.S. clothing retailer operating in more than 200 stores. Its customer loyalty program, AnthroPerks, offers perks such as:
- No tiers or points, just members-only perks that apply to each registered member.
- Paperless returns as well as free shipping on every $150+ order.
- Early access to new collections and birthday treats.
AnthroPerks is all about rewarding customers with the best shopping experience. Turning perks like free shipping into a customer perk generates loyalty.
On the landing page, AnthroPerks starts with a “Sign up — it’s free” call-to-action to address the buyers’ price concerns.
The company then explains the “ABCs” of using the loyalty program, highlighting the perks you get. Anthropologie also sends a 20% birthday discount to customers for a members-only celebration.
2. REI
After 84 years, the specialty outdoor retailer REI Co-op changed its lifetime membership program and added five new benefits. It also increased the price from $20 to a $30 one-time fee.
Members got:
- An automatic 10% off almost everything in the store.
- Members-only coupons.
- Discounts on classes, rentals, adventures and events.
REI added perks like:
- Free shipping – Free US standard shipping on all orders with no minimum purchase. Exceptions are for oversized items and international shipping.
- Charity donations – REI will donate $5 to the REI Cooperative Action Fund with each new membership purchased to support organizations committed to equity, justice and belonging in the outdoors.
- Member-only collections – A curated, broader set of members-only products each month, such as limited editions, brand collaborations, early access and special offers.
- Shop service discount – In-store snowboard, ski and bike shop services discounts are doubled to 20% off for members.
- Used gear for members only – Re/Supply or used gear offerings are now just for members.
Today, REI boasts 20 million lifetime members intending to grow to 50 million by 2030, making it one of the most engaged loyalty program examples.
3. Sea Bags
Sea Bags is a Maine-based ecommerce store that sells bags made from recycled sailcloth. The Sea Bags Anchor Rewards program lets customers earn rewards from the first day.
Members earn rewards for online or in-store sales and writing reviews. Sea Bags also offers birthday bonuses with additional discounts and freebies.
Although the Anchor Rewards program does not have a renewal fee, you must earn or use points at least once in a 16-month period to keep your account active. Sea Bags deactivates the membership for members who do not make purchases or redeem rewards during this time frame. It incentivizes users to stay engaged in the long term so they don’t lose points they’ve accumulated.
4. ThredUP
ThredUP sells secondhand clothing and accessories online. Unlike other loyalty programs where members can only redeem rewards for items, thredUP Rewards members can also waive restocking fees and get free shipping.
There are three thredUP Rewards tiers:
- Star
- Superstar
- VIT (Very Important Thrifter)
Spending $200 in one calendar year will make you a Superstar. Members must spend $1,000 in a year to gain VIT status.
The thredUP Rewards points expire if your account is inactive for one year. ThredUP also offers some one-time rewards, such as:
- 10 points for following the company’s Instagram page.
- 100 points for the first Donation Kit.
- 50 points for the first Clean Out Kit.
Like REI, it also connects with members through a common value. For ThredUP, thrifting is tied to being more sustainable and environmentally conscious.
Food and Beverage
5. Once Upon a Farm
Once Upon a Farm’s Growing Greatness Rewards Program allows members to earn exclusive rewards and points called Seeds. It has the typical one seed per $1 spent setup but customers can also earn reward through actions like:
- 25 Seeds for leaving a review.
- 25 or more Seeds for your birthday.
- 5 Seeds for sharing Once Upon a Farm’s page on Facebook or following on Instagram.
6. BJ’s Wholesale
BJ’s Wholesale’s loyalty program is a little different from others on this list because it’s a paid membership, but you also can add members. For example, families can use the same loyalty program and accumulate rewards.
It also differs from others because it has a program geared toward business owners.
The three loyalty tiers include:
- Club Card Membership – It costs $55 for a year and gives you membership coupons. Members also get a complimentary membership for one of their family members and can add 3 more members for $30 each.
- Club Card+ Membership – It costs $110 for 12 months and gives 2% back in rewards on all purchases. Besides access to exclusive events, you also earn double or triple rewards on special occasions.
- Business memberships – Come with resale privileges and tax exemptions. Business members can also add 8 members at discounted rates.
Health and Beauty
7. Sephora
Cosmetic brand Sephora’s loyalty program is one of retail’s most popular loyalty programs. Besides offering members access to extra perks through store credit cards, it also offers members access to promotions, exclusive promotions and discounts.
Across the retail customer loyalty landscape, many programs focus only on transactional loyalty where rewards equal discounts and prizes. Sephora focuses on emotional and community drivers.
According to research, almost 75% of what triggers customer loyalty and engagement are emotional perks.
One strategy for acting on an emotional driver Sephora uses is to offer birthday perks through a loyalty program. Sephora sends all members birthday offers, tapping into the personal element with customers. Gifts include mini-sets from popular brands like Drunk Elephant and Kat Von D.
The Sephora loyalty program personalizes its perks by allowing members to pick one of three benefits for the year, including extra points, sharing makeover experiences with others, or quick shipping. This makes it adaptable to every member’s needs.
The Sephora customer loyalty program boasts 17 million members in North America alone who are responsible for up to 80% of the company’s sales. The program brings customers to the Sephora website even when they aren’t shopping. It results in a 22% rise in cross-sell and a 13-51% growth in upsell revenue.
8. Biossance
Biossance is a skincare brand that focuses on clean ingredients and sustainability. Its Clean Crew Rewards members earn points for activities from purchasing items to signing up for email. When you make an account on the Biossance website, you automatically join its loyalty program. Creating an account immediately gives you 100 points.
After that, members earn one point for every dollar spent. There are two membership tiers: VIP and Insider. The Insider tier is free to join and offers early access to new products, free shipping on $50 or more orders and an annual birthday gift.
Members have to pay $300 for the VIP tier. However, it has benefits including:
- Free monthly product samplings and experiential events.
- Annual gifts on World Oceans Day and Earth Day.
- 10% off all purchases.
- Free 2-day shipping on orders above $75.
Auto
9. Ford
The FordPass Rewards is one of the most comprehensive loyalty programs in the auto industry.
The company uses it to engage customers throughout the vehicle ownership period and is a platform to launch new services such as Pickup and Delivery.
Customers move up the tiers by achieving milestones through buying or leasing a new Ford vehicle (50 milestones). They can also earn milestones by getting a retail service at the dealer (25 milestones), purchasing a Ford Blue Advantage used vehicle (25 milestones) and being active FordPass Rewards Visa cardholders among others.
The FordPass Rewards section —one of the app’s frequently used features — goes hand-in-hand with the customer loyalty program. The app offers customers access to Vehicle Health Alerts and emergency services, remote command and control features and information on Ford Credit and recalls — all at no cost.
Quick-Service Restaurants (QSRs)
10. Popeyes
Popeyes has become more than just a famous chicken chain. It has a cult following and dedicated customers. Part of that is thanks to the loyalty program it launched in 2021. The program rewards recurring customers with food deals, branded swag and members-only experiences.
The Popeyes loyalty program members can earn rewards and points with each transaction based on how much they spend. For example, loyalty program members earn ten points for every dollar spent on the Popeyes app or online and bonus points on combos and family deals. They also get rewards for personalized challenges as well as other exclusive benefits.
In addition, customers who sign up for the loyalty program can get free apple pie, a small drink or a regular side.
The program’s launch came as Popeyes’ digital sales made up 17% of total sales in the U.S.
11. Dunkin’
Dunkin’ is doing everything it can to get customers to return to its stores after their first purchase.
Its DD Perks loyalty program has around 10 million downloads and has some of the highest brand loyalty among QSRs chains.
In 2022, Dunkin’ revamped it from DD Perks to Dunkin’ Rewards. The new program gives buyers 10 points for every $1 they spend. Previously, it was five points for every $1 spent. Based on customer feedback, Dunkin’ adjusted the program so that members could redeem rewards points for coffee and food. Before food wasn’t a reward.
However, some customers weren’t happy with the changes since it takes more points and money to get a free latte or coffee than it did previously.
Others like the reduced free reward threshold from 200 to 150 pounds. For perspective, 150 points or spending $15 can unlock free:
- Espresso shots for a drink
- Six-count hash browns
- Three-count Munchkin (donut hole treats)
Despite its recent changes, the loyalty program is still one of the most successful in the quick-service restaurant space. It also shows a shift in loyalty programs, the economy and company profitability. More companies are focusing on maximizing the value of their most loyal customers while growing their profits.
12. Starbucks
In the world of loyalty programs, Starbucks reigns supreme. The coffee chain’s rewards program has consistently been recognized as one of the best.
As of 2023, the Starbucks Rewards program has nearly 29 million members. The loyalty program now represents 53% of overall spending in their stores.
The coffee giant is at the top because of its personalized customer experience.
The Starbucks Rewards program awards members with “stars” when they order or pay using the Starbucks app. As customers earn stars, they receive free coffee and products.
Centralizing customer transactions like this creates a goldmine of data on their behavior and preferences. This data helps brands offer more relevant communication and perks to customers.
Starbucks loyalty program members get a free treat on their birthday, receive bonus rewards like double-star days, and can access exclusive offers and games.
However, it’s more than free treats that hook customers enough to become loyal Starbucks customers. Starbucks also uses geolocation data in its app and geofencing marketing. Customers receive push notifications of deals and marketing messages when they are nearby a Starbucks location.
13. Panera
Panera Bread has more than 2,000 cafes and operates one of the industry’s largest customer loyalty programs.
With the Panera Bread loyalty program, customers receive free rewards every time they visit the store. To join the program, customers sign up for the MyPanera Rewards.
The best part of the Panera loyalty program is that customers get rewards for eating at Panera, and they don’t have to purchase a specific item. Unlike other customer loyalty programs, customers don’t earn points for the amount spent. Instead, Panera tracks your activities, and you can choose from a variety of rewards.
No two members get the same rewards — Panera tailors the points based on customers’ purchase history.
Panera’s rewards program started to encourage more customers to visit in person. As of October 2022, Panera updated its rewards to also include delivery. New members can get a free treat and free delivery for 30 days.
The company has also launched MyPanera Week, a week-long program that provides exclusive perks to members. Beginning in September 2022, some of the rewards include:
- $0 delivery fee on September 30.
- Free baguette with in-app purchase on October 1.
- $2 off in-app purchase of broccoli cheddar soup on October 2.
14. McDonald’s
McDonald’s customer loyalty program has signed up over 26 million members since its launch in 2021. It has become one of the industry’s fastest-growing and most popular loyalty programs.
CEO Chris Kempczinski called the program “an instant fan favorite” that is already driving results. The company cited the rewards program for its two-year same-store sales increase of 14.6%
Customers can earn 100 points for every dollar spent. Some items like a cheeseburger or a hash brown cost just 1,500 points to redeem, while a Big Mac or Happy Meal will set members back 6,000 points.
With the McDonald’s app, you can easily reorder favorites, access exclusive daily deals and select convenient pickup options with Mobile Order and Pay.
To encourage customers to join, McDonald’s loyalty program gives them free large fries after downloading the app. It also unlocks free faves in the app with 1,500 bonus points after the first purchase.
Hotels and Hospitality
15. Marriott
Back in 2018, Marriott International combined the three loyalty programs — Marriott Rewards, Starwood Preferred Guest and The Ritz-Carlton Rewards — into one. It made it easier for members to earn and spend points for free nights at any of its hotels.
The programs are now operated under one set of benefits and currency spanning Marriott International’s portfolio of 29 brands and over 6,700 participating hotels. Members can earn and redeem rewards from these hotels and receive Elite status.
Program members can also earn, on average, 20% more points per dollar spent. They can also book stays throughout the portfolio on the website, apps and customer engagement centers.
Build Your Customer Loyalty
Customer loyalty programs are what give most brands the advantage. In addition to increasing customer satisfaction, experience and sales, loyalty programs are a great source of first-party data. They can help you strengthen your marketing campaigns and reach customers when they are most likely to buy.
This is where Goodway excels. We work with national brands to reach customers in creative, but data-driven ways. To learn more about how Goodway can help you create more effective marketing campaigns with better data, audience targeting, paid media services and more, schedule a consultation.
Elly Tedrow is the content and search marketing manager at Tuff, a Goodway brand. She has eight years of experience in marketing. Her experience spans partnership strategy, email marketing and branding, but SEO and content are her specialties. When she’s not digging through a website’s SEO, she’s hiking with her dog Buster, watching YouTube tutorials, reading a book or trying out a new food truck.