Table of Contents
What makes a customer loyal? Sure, great products and stellar service help, but you need to go beyond the basics.
That’s where loyalty programs come in.
With the right approach, a well-structured customer loyalty program can turn occasional buyers into long-term brand advocates.
In this article, we’ll explore 11 real-life customer loyalty program examples that do just that. From Starbucks to Nike, these brands have cracked the code to customer retention, and we’re here to show you how they did it.
Let’s get started!
What is a customer loyalty program?
A customer loyalty program is a structured marketing strategy designed to encourage customers to continue engaging with a brand.
These programs reward customers for their repeat business by offering perks such as discounts, exclusive access, or points that can be redeemed for future purchases.
Loyalty programs not only drive sales but also build a deeper relationship between the brand and the customer by delivering value that goes beyond the product itself.
5 types of customer loyalty programs
Customer loyalty programs come in different shapes and sizes, tailored to fit a brand’s goals and customer preferences.
Here are the main types:
1. Points-based loyalty programs
This is the most common type of loyalty program, and for good reason: it’s simple, straightforward, and effective.
In a points-based loyalty program, customers earn points for every purchase they make, which can later be redeemed for discounts, free products, or other exclusive rewards.
2. Tiered loyalty programs
Tier-based loyalty programs take a more structured approach, offering different levels of rewards based on how much a customer spends.
As customers move up through the tiers, they unlock better perks, creating a sense of exclusivity and accomplishment.
3. Paid programs
Unlike other loyalty programs, paid loyalty programs ask members to pay an upfront fee to join, but in return, they gain access to premium benefits that far outweigh the cost.
Amazon Prime is a standout in this category, where customers pay an annual fee to enjoy benefits like free two-day shipping, Prime Video, and exclusive discounts.
4. Value-based programs
Value-based loyalty programs reward customers by aligning incentives with the brand’s mission or values. These programs go beyond monetary rewards and instead focus on building an emotional connection.
For example, TOMS Passport Rewards allows customers to earn points for sustainable actions like recycling or for making charitable donations.
5. Experiential programs
Experiential loyalty programs offer rewards that go beyond discounts or freebies. Instead, they provide unique, memorable experiences such as VIP events, early access to product launches, or personalized services.
Brands like Nike and The North Face have successfully implemented this model, offering customers exclusive access to events or adventures that reflect the brand’s ethos.
11 real-life customer loyalty program examples
Now that we’ve covered the basics, let’s dive into 11 real-life customer loyalty program examples that have mastered the art of customer retention.
1. Starbucks Rewards
Starbucks Rewards is one of the most successful loyalty programs that keeps customers engaged through a seamless experience.
To join, customers simply download the Starbucks app. Once signed up, they start earning “stars” for every purchase.
These stars can then be redeemed for free drinks, food, or even Starbucks merchandise like their signature cups.
The app also offers exclusive member perks, including personalized offers, mobile ordering, and a free drink on your birthday.
Why it works: The ease of earning and redeeming loyalty points, combined with personalized perks, makes the program simple yet highly effective. Plus, the app experience is top-notch, encouraging frequent visits and a personalized customer relationship.
2. Sephora’s Beauty Insider
Sephora’s Beauty Insider program is a tiered loyalty system that rewards beauty lovers with increasingly exclusive perks as they spend more. The more you shop, the better the exclusive rewards get, creating a sense of excitement and motivation.
The program has three tiers: Insider, VIB (Very Important Beauty), and Rouge.
Members earn rewards points with every purchase, which can be redeemed for discounts, free shipping, or free products.
As customers move up the tiers, they unlock additional benefits like exclusive gifts, early access to new products, and bigger discounts during seasonal savings events.
Sephora also offers access to app-exclusive deals and promotions, making the experience feel personalized and VIP.
Why it works: The tiered structure motivates customers to increase their spending to reach higher tiers, unlocking premium benefits. Exclusive products and experiences create a sense of community among Sephora’s most loyal customers.
3. Amazon Prime
Amazon Prime is a paid loyalty program that offers a broad range of benefits for a yearly fee, making it one of the most comprehensive and popular loyalty programs around. New program members can even enjoy a 30-day free trial to experience its perks before committing.
For a monthly or annual fee, Amazon Prime members unlock an array of benefits, including free two-day delivery and access to exclusive deals.
Beyond shopping, Prime also provides access to Prime Video and Prime Music, along with exclusive events like Prime Day, where members get special discounts and early access to hot deals.
Why it works: Prime delivers immense value through its variety of benefits, making it hard for customers to justify shopping elsewhere. It creates a one-stop-shop ecosystem that encourages frequent customer engagement.
4. Nike Membership
Nike Membership is another great customer loyalty program example that is tailored to fitness enthusiasts and focuses on personalized engagement.
Members of the Nike program enjoy exclusive access to new product launches, personalized workout plans, and early access to sales.
Additional benefits include free shipping, receiptless returns, and the ability to try out products for 60 days through the “wear test” program.
Nike also offers expert advice and invitations to member-only events, making it a community-driven experience that focuses on fitness and lifestyle.
Why it works: Nike Membership resonates with its health-conscious customer base by providing personalized, fitness-driven content that aligns with their lifestyle and fitness goals, deepening emotional connections.
5. The North Face XPLR Pass
The North Face’s XPLR Pass program is designed for adventure lovers, blending a points-based program with unique experiences.
Members earn 1 point for every dollar spent, which can be redeemed for rewards such as exclusive gear and experiences.
Additional perks include free shipping, birthday gifts, and access to members-only events like outdoor adventures and product launches.
The program also gives members early access to new collections, making them feel like insiders in the world of exploration and adventure.
Why it works: The experiential element is what sets this program apart. By aligning rewards with the adventurous lifestyle of their customers, The North Face builds brand loyalty through shared experiences.
6. Panera Bread’s MyPanera
Panera Bread’s MyPanera rewards program is a personalized loyalty program designed to reward customers based on their individual preferences and dining habits.
Loyalty program members earn points on their purchases and receive personalized rewards, such as free pastries, free delivery, and a birthday treat.
MyPanera members also enjoy early access to new menu items and exclusive offers on special menu items.
The program tailors rewards based on customer behavior, making the experience feel personal and relevant to each individual.
Why it works: By personalizing rewards based on individual customer behavior, Panera Bread makes each customer feel valued, encouraging repeat purchases and visits.
7. REI Co-op Membership
REI’s customer loyalty program isn’t just about rewards—customers become co-op members, gaining a stake in the company. For a one-time fee of $30, members gain lifelong benefits that foster a sense of ownership and community.
Once you join, you’re entitled to an annual dividend based on your eligible purchases, giving you a share of the company’s success.
Members also receive access to exclusive products, discounts on gear and classes, and invitations to members-only events such as outdoor adventures and workshops.
The Co-op structure encourages a deeper connection to the brand and its mission.
Why it works: The co-op structure creates a deep sense of community and belonging, while the annual dividend incentivizes long-term loyalty.
8. H&M Member
H&M’s customer loyalty program offers value-driven rewards to fashion-conscious shoppers. It’s designed to reward frequent shoppers while offering exclusive perks.
Members earn points on every purchase, which can be redeemed for discounts on future shopping.
Additional perks include personalized discounts, a birthday treat, early access to sales, and invitations to exclusive events.
The program tailors rewards to each customer’s shopping habits, making the experience more personal and engaging.
Why it works: The simplicity and clear value proposition appeal to a wide audience, while personalization encourages customers to return and shop more often.
9. Chick-fil-A One
Chick-fil-A One is a tiered loyalty program designed to enhance customer convenience and reward loyalty through a smooth, personalized experience.
Members earn 10 reward points for every dollar spent on qualifying orders, with rewards starting at just 200 points.
The program has four tiers—Member, Silver, Red, and Signature—with increasing benefits at each level.
Members gain access to exclusive content, early notifications about new menu items, and the ability to save their favorite orders and account details for quicker future purchases.
Why it works: Chick-fil-A’s focus on convenience and stellar customer service sets it apart, while the tiered system motivates increased spending.
10. myWalgreens
Walgreens’ customer loyalty program combines everyday rewards with health-focused incentives.
Customers accumulate points on every purchase made using their myWalgreens account, which can be redeemed for future discounts.
The program also offers personalized deals tailored to customers’ shopping habits, making each visit more rewarding.
Additionally, members can earn extra rewards for participating in health-related activities like tracking their fitness or filling prescription.
Why it works: The combination of health-related rewards and personalized offers aligns well with Walgreens’ customer base, encouraging more frequent store visits.
11. Petsmart Treats
PetSmart’s Treats customer loyalty program is designed to strengthen the emotional bond between pets and their owners by offering rewards and perks that make caring for their pets even more rewarding.
Members earn 10 points for every dollar spent on merchandise and services, with additional tier bonuses for reaching higher statuses like Bestie and VIPP (Very Important Pet Parent).
Every 1,000 loyalty points can be redeemed for $2 in savings, which can be applied to future purchases or services for their pets.
The program also includes personalized offers, members-only pricing, free shipping, and special gifts for pets, like birthday treats.
Why it works: By tapping into the emotional connection pet owners have with their pets, PetSmart fosters deeper loyalty through thoughtful, personalized rewards.
Wrapping up
A successful customer loyalty program isn’t just about offering discounts—it’s about building a relationship that goes beyond the transaction.
The best customer loyalty programs deliver personalized experiences, align with customer values, and create a sense of belonging.
Whether you’re revamping your current successful loyalty program or starting from scratch, these customer loyalty program examples show that when done right, loyalty programs can transform customers into lifelong fans.
Migration has never been easier
We made switching a no-brainer with our free, white-glove onboarding service so you can get started in the blink of an eye.
What should you do next?
Thanks for reading till the end. Here are 4 ways we can help you grow your business:
Boost conversions with proven use cases
Explore our Use Case Library, filled with actionable personalization examples and step-by-step guides to unlock your website's full potential. Check out Use Case Library
Create a free OptiMonk account
Create a free OptiMonk account and easily get started with popups and conversion rate optimization. Get OptiMonk free
Get advice from a CRO expert
Schedule a personalized discovery call with one of our experts to explore how OptiMonk can help you grow your business. Book a demo
Join our weekly newsletter
Real CRO insights & marketing tips. No fluff. Straight to your inbox. Subscribe now
Share this article
Written by
Nikolett Lorincz
Nikolett is the Head of Content at OptiMonk. She is obsessed with content marketing and loves creating educational content for ecommerce store owners. She truly believes in the importance of quality over quantity.
You may also like
- Posted in
- Marketing
Product updates: September Release 2024
