Online shopping has never been more competitive. And when so many other businesses are vying for the attention of your hard-earned customers, it’s no longer enough to hope your customers will choose you — you need to give them reasons to keep coming back.
This is where customer loyalty programs come in.
In this article, we’ll walk you through the key types of programs, complete with 10 examples of loyalty from some of the most successful retail brands.
Table of Contents:
What are the Different Types of Loyalty Programs?
Although many of the customer loyalty programs you’ll encounter have their own nuances, the majority fit under one of seven categories:
1. Omnichannel loyalty program
If you’re a single-channel brand like an e-commerce store, a single-channel loyalty program could work well.
However, if you operate across multiple platforms and engage with your customers via several touchpoints, it might not be enough. Omnichannel loyalty programs bridge the gap between in-store and online, giving your customers a connected rewards experience regardless of where they decide to engage with your brand.
2. Point-based loyalty program
Points-based programs allow customers to accrue credits, or points.
These points can then be redeemed against future purchases, securing them a discount and incentivizing them to continue shopping with the same brand.
3. Tiered loyalty program
Not all loyalty programs are born equal, and not all brands want to give the same incentives to new loyalty members that they give to seasoned, repeat customers.
This is where tiered programs come in. Tiered loyalty programs reward customers for repeat purchases. The more they purchase, the more points they earn, and the higher they will rise up through the loyalty tiers.
4. Value-based loyalty program
Instead of offering a financial incentive, value-based programs appeal to preferences and personal interests of their members. If your brand has a strong set of moral values that align with your customer’s interests, value-based loyalty programs could work well.
Take a look at how these top brands are excelling at value-based loyalty:
- Mental Health app HeadSpace drives customer loyalty by donating a free membership for every new subscription.
- In celebration of Earth Day, shoe brand Etnies appealed to their target audience’s passion for the planet by planting a tree for every shoe sold.
- By partnering with Thrift+, Sportswear store GymShark offers sustainability-focused customers the chance to reduce fast fashion and give their clothes a second life.
5. Paid loyalty program
Paid loyalty programs give customers the opportunity to unlock additional discounts or benefits, including hidden content, early access, and shipping perks by paying a monthly subscription fee.
Brands like Amazon have simultaneously built successful revenue streams and increased customer loyalty with paid loyalty programs that offer value that appeals to their customers — namely, fast and free shipping.
6. Cash back rewards
Cash back rewards programs are exactly as they sound – in exchange for a purchase, brands give customers a portion of their spend back, usually in the form of a direct rebate or credit towards a future purchase.
The effectiveness of this loyalty program comes down to its simplicity. Customers find cash back rewards easy to understand, helping brands create a cycle where customers feel incentivized to purchase and are rewarded for their loyalty, which keeps them coming back.
Cashback rewards example: Established retailer Kohl’s operates a cash back rewards program known as Kohl’s Cash. Kohl’s Cash customers get a percentage of their order back as credit, which they can redeem against their next purchase within a set timeframe.
Simple yet powerful, cash back rewards are a great way to drive retention and grow incentivized loyalty.
7. Referral programs
Source: Plum mobile app
Also known as customer advocacy programs, referral programs use incentives to encourage your existing customers to refer their friends and family to your business.
Referral programs are effective because they make your current customers feel valued, helping retention, while also organically growing your customer base. Customers trust recommendations from people they know, which makes referral programs an excellent tool for driving growth and loyalty.
The 10 Best Customer Loyalty Programs in Retail
1. Starbucks
Source: Starbucks.com
Starbucks Rewards is one of the most successful loyalty programs globally, with over 21 million active members as of 2021. Its success is rooted in the program’s ability to create convenience and value for customers while building strong brand loyalty. But what makes this program stand out from the competition?
Loyalty program type: Points based. Members earn “Stars” for every purchase which can be redeemed against in-store items.
Benefits of Starbucks Rewards:
- Customer flexibility: By integrating across web, mobile and in-store, Starbucks’ loyalty program lets customers shop how, when and where they want to.
- Exclusive, personalized perks: Members get free in-store refills, birthday rewards, and other personalized offers.
How the program works:
- Earn stars: Spend $1, and you’ll get 2 stars on your Starbucks card.
- Redeem stars: Once you’ve got enough stars, you can turn them in for exclusive rewards:
| Number of stars | Loyalty reward |
| 25 stars | Free customization (like an extra shot of espresso or syrup) |
| 100 stars | Free brewed coffee, bakery item, or hot tea |
| 200 stars | Free handcrafted beverage or hot breakfast |
| 300 stars | Free lunch sandwich or protein box |
| 400 stars | Free merchandise or at-home coffee |
2. Sephora
Source: Sephora.com
Launched in 2007, Sephora’s Beauty Insider loyalty program has been a game-changer for the brand. By combining exclusive perks, personalized experiences, and tangible reward, the program has driven significant growth through effective customer engagement.
Loyalty program type: Tiered.
- Insider: Entry-level members get birthday gifts, point rewards, and access to basic sales and discounts.
- VIB: Higher-tier members unlock bigger discounts, free beauty classes, and more exclusive perks.
- Rouge: Top-tier members receive the most exclusive benefits, including first access to products and VIP event invitations.
Benefits of Sephora Beauty Insider:
- Exclusive member perks: Sephora provides its members with a range of benefits, including:
- Birthday gifts: A yearly perk that keeps members excited to remain engaged.
- Invite-only events: Access to special in-store and virtual beauty events where members can try new products or receive personalized consultations from experts.
- Early access: Rouge members often get early access to new products and special sales before the general public.
How the program works:
- Sign up: Customers can join Sephora Beauty Insider for free, either through the Sephora website, mobile app, or in-store. Upon joining, members start accumulating points for every dollar spent.
- Earn points:
- 1 point for every $1 spent for Insider members.
- 1.25 points for every $1 spent for VIB members (achieved after spending $350/year).
- 1.5 points for every $1 spent for Rouge members (achieved after spending $1,000/year).
- Redeem points: Members can redeem their accumulated points for various rewards, including:
- Free samples and exclusive deluxe products.
- Special product sets curated for loyalty members.
- Early access to sales and exclusive product launches.
3. Nike
Source: Nike.com
Nike’s Membership Program goes beyond traditional rewards by offering exclusive products, personalized experiences, and a community-driven approach through its apps like SNKRS, Nike Run Club and Nike Training Club.
Loyalty program type: Omnichannel, value-based.
Benefits of Nike’s loyalty program:
- Member products: Members get exclusive access to products that aren’t available to the wider public.
- Personalized offers: Nike leverages its member data to create personalized rewards such as birthday discounts and tailored product offers.
- Community focus: By connecting its network of fitness apps, Nike builds a sense of community by encouraging members to participate in challenges, guided workouts, and community events.
- Free shipping on orders over $50 and receiptless returns.
How the program works:
With seamless omnichannel integration across their website, apps, and in-store purchases, Nike delivers a convenient, engaging customer experience.
4. Amazon
Amazon Prime needs no introduction. Since its launch in 2005, it’s amassed over 200 million global members, offering benefits across shopping, entertainment and even healthcare.
Loyalty program type: paid.
Amazon Prime benefits:
- Fast, free shipping: Prime members enjoy free same, next and two-day shipping on millions of items.
- Entertainment perks: Prime gives members access to Video, Music and Gaming, giving members a wide variety of digital content at no extra cost.
- Exclusive deals: Members get early access to Lightning Deals and exclusive shopping events like Prime Day, with additional savings on groceries at Whole Foods and Amazon Fresh.
- Healthcare and additional benefits: Prime also offers RxPass, a subscription service for discounted prescription medications starting at $5/month.
How the program works:
The beauty of Amazon Prime lies in its simplicity. Sign up, and immediately unlock your benefits.
Amazon Prime addresses key customer pain points like shipping costs and adds continuous value through entertainment and exclusive deals, making it so valuable that people are willing to pay for it.
5. IKEA
Source: IKEA.com
IKEA’s Family Program is a free loyalty club designed to offer value to frequent shoppers while enhancing the overall shopping experience. With over 150 million members globally, IKEA Family provides access to a variety of perks both in-store and online.
Loyalty program type: Omnichannel, value-based.
Benefits of IKEA Family:
- Birthday rewards: Including free meals and a $15 store coupon.
- Exclusive Discounts: Members get discounts on select products, as well as a flat 5% off eligible in-store purchases.
- Free coffee: Visit one of IKEA’s retail locations and you’ll get free hot drinks to keep you going.
- Member events: Members unlock access to styling events like home furnishing workshops.
- Purchase Protection: The program offers “Oops-assurance”, providing free replacements for damaged furniture.
- Buy back & resell: Access to IKEA’s Buy Back & Resell program, allowing members to sell back used furniture for store credit.
Why it works:
IKEA knows that a visit to one of their stores is a time investment, and their loyalty program builds on that experience. With member benefits such as free meals and workshops, IKEA’s loyalty program respects and rewards its customers for their time, encouraging them to visit their store locations more often, and stay for longer. They’re even incentivized to purchase with 5% flat discount.
6. H&M
With over 100 million global members, H&M’s Membership Program offers a comprehensive, digital-first loyalty experience that aligns with modern customer expectations and stands out in the fashion retail space.
Loyalty program type:
- Points-based: Members earn 1 point for every $1 spent, whether shopping online or in-store. After accumulating 200 points, members receive a $5 reward that can be redeemed on future purchases.
- Tiered: Core members enjoy benefits like 10% off their first purchase, birthday treats, and free shipping on orders over $40. Once members reach 500 points, they unlock Plus membership, which includes perks such as free shipping on all orders, early access to new collections, and exclusive shopping events.
Benefits of H&M’s loyalty program:
- Omnichannel integration: Making it easy for members to track rewards, access offers, and make purchases via the H&M mobile app, website or in-store.
- Sustainability initiatives: H&M has aligned their loyalty program with their sustainability goals by offering additional rewards for environmentally conscious actions, such as garment recycling. Members can earn extra points for donating clothing in-store, supporting H&M’s sustainability efforts while also gaining rewards.
How the program works:
- Sign up: Join the H&M Membership program for free via the H&M app or website.
- Earn points: Earn 1 point for every $1 spent. Additional points can be earned through sustainable actions, such as in-store order collection.
- Redeem rewards: For every 200 points, members receive $5 in rewards, which can be applied to future purchases. Points are valid for 12 months, ensuring customers remain engaged.
Why it works:
H&M’s loyalty program is effective because it caters to both fashion-conscious and sustainability-minded shoppers. Coupled with their digital-first approach, H&M has created a flexible, easy-to-use loyalty program that keeps customers engaged across all shopping channels.
7. Walgreens
Source: Walgreens
Walgreens’ MyWalgreens program takes the pain out of the medicine purchase and prescription renewal process. Through the Walgreens mobile app, members can easily manage their rewards and healthcare needs in one place, offering a seamless and convenient customer experience.
Loyalty program type: Points-based.
Benefits of MyWalgreens:
- Health-focused: Earn points on purchases and for healthy habits tracked in the app.
- Personalized savings: Get customized offers based on shopping habits and clip digital coupons via the app.
- Extra convenience: Enjoy same-day pickup, delivery, and 24/7 pharmacy access for refills.
Why it works:
myWalgreens stands out by combining rewards with health and sustainability, offering an all-in-one platform for savings and wellness.
8. Williams Sonoma
Williams Sonoma’s loyalty program, The Key, is a unified rewards system that operates across its entire family of brands, including Pottery Barn, West Elm, and Mark and Graham.
Originally focused on catalog-based retail, Williams Sonoma recognized the need to shift towards a mobile-first approach, and The Key loyalty program has been instrumental in facilitating that transition.
Benefits of Williams Sonoma’s loyalty program:
- Multi-brand integration: Customers can earn and redeem rewards whether they’re shopping at Williams Sonoma, Pottery Barn, West Elm, or Mark and Graham.
- Omnichannel rewards: No matter where a customer shops, they earn 3% back in rewards that can be redeemed across any of the brands in the family.
- App connectivity: The mobile app provides an easy way for members to track their points and see how close they are to unlocking rewards. Points can easily be tracked through the mobile app.
[Learn more at Williamssonoma.com]
9. PetSmart
Source: PetSmart
PetSmart Treats is a loyalty program designed to show your pets the same love and care they receive from family. This loyalty program is tailored for pet owners who are invested in the well-being of their furry friends and want to earn rewards on everything from pet food to grooming services.
Loyalty program type: Points-based, value-based.
Benefits of PetSmart Treats:
- Pet-centered perks: Customers earn rewards not just for products, but also services like grooming, training sessions, and even donations to PetSmart Charities®.
- Pet birthday rewards: Members get personalized birthday gifts for their pets, a personal touch that boosts brand loyalty.
How the program works:
- Sign up: Customers can sign up for PetSmart Treats for free via the PetSmart website or mobile app.
- Earn Points:
- Earn 8 points for every $1 spent on eligible purchases.
- Earn points on pet services such as grooming, training, and even donations to PetSmart Charities®.
- Redeem Points: Members can redeem points for discounts on future purchases. For every 1,000 points, members get a $2.50 reward.
Why it works:
PetSmart Treats is successful because it caters directly to pet owners’ emotional connections with their pets, offering personalized rewards that enhance the customer experience. By rewarding members for essential services and adding special birthday perks, the program keeps customers loyal and engaged.
10. Nordstrom
Source: Nordstrom
The Nordy Club by Nordstrom takes things beyond the typical loyalty program by blending luxury, personalization, and experiential benefits. As one of the leading department stores for luxury retail, Nordstrom’s loyalty program is designed to offer more than just discounts—it provides members with unique perks that enhance their shopping experience.
Loyalty program type: Points-based.
Benefits of Nordy Club:
- Experiential rewards: Members have access to lifestyle workshops, in-home stylist visits, and early access to new collections. These high-touch services enhance the customer experience and deepen the connection between Nordstrom and its members.
- In-App currency: Members earn “Notes”, a simple but rewading in-app currency that can be redeemed for purchases.
- Unique value-adding benefits: In addition to earning Notes, Nordy Club members unlock perks like:
- Free basic alterations on clothing purchases.
- Pick-your-own double points days, allowing members to choose when they want to accelerate their rewards.
- First-to-shop perks, which offer early access to sales and new products.
- Exclusive styling services, including in-home visits from Nordstrom stylists.
How the program works:
- Sign up: Customers can join The Nordy Club for free via the Nordstrom website or mobile app.
- Earn notes:
- Members earn 1 point per $1 spent.
- Members with a Nordstrom credit card can earn 3 points per $1 spent.
- Redeeming notes: For every 2,000 points, members receive $20 in Notes, which can be applied to future purchases. Points are earned across Nordstrom, Nordstrom Rack, and HauteLook.
- Additional perks:
- Free basic alterations for Nordy Club members.
- Access to exclusive events, lifestyle workshops, and styling sessions.
Why it works:
Nordstrom’s approach goes beyond discounts by offering a range of high-value, personalized benefits that appeal to their luxury customer base. By focusing on value-adding, experiential rewards, Nordstrom deepens its customer loyalty while also reinforcing their luxury brand positioning.
Final thoughts
Being able to deliver a seamless customer experience throughout the customer lifecycle is arguably one of the most powerful ways of building brand loyalty.
With our customer engagement platform, Emarsys helps brands produce long-lasting loyalty. Using Emarsys, you can create dynamic segments, personalize engagements, and view detailed reporting and analytics by lifecycle stage, so you can see the impact of your customer loyalty campaigns in real-time.
Want to see how Emarsys can help your brand deliver the 1:1 omnichannel experiences that drive customer loyalty and increase customer lifetime value?
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