10 Retail Brands with the Best Customer Loyalty Programs

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 guide, we’ll define the major program types, compare the 10 best retail customer loyalty programs, and show why these programs work in 2025 — including fresh updates and examples you can borrow.

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. 

Example trend: Target’s expanded Target Circle (free) and Target Circle 360 (paid) blends exclusive prices, personalized offers, and delivery benefits — a good model of free‑plus‑paid tiers in one ecosystem.

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.

Example: Amazon Prime’s bundle of fast delivery, streaming, and RxPass pharmacy benefit at $5/month for common generics (Prime members) keeps value obvious and recurring.

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.

Example: Kohl’s has issued $25B+ in Kohl’s Cash® over 20 years, underscoring how simple earn‑and‑redeem mechanics drive repeat purchases.

7. Referral programs

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. 

We’ve had a quick overview of the best retail loyalty programs – now let’s take a deeper dive into the key features of each, and what makes them so successful:

1. Starbucks

Source: Starbucks.com

Starbucks Rewards is one of the most successful loyalty programs globally, with over 34.6M active US members in Q1 2025, reinforcing the program’s scale and impact. 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

1. Earn stars: Spend $1, and you’ll get 2 stars on your Starbucks card. 
2. Redeem stars: Once you’ve got enough stars, you can turn them in for exclusive rewards: 

[Learn more at Starbucks.com]

2. Sephora

Source: Sephora.com

Launched in 2007, Sephora’s Beauty Insider loyalty program has been a game-changer for the brand. Sephora reports ~34M members and has leaned into gamified “Challenges” and Beauty Insider Cash to keep engagement high.

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.

[Learn more at Sephora.com]

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 ffor members on orders $50+ (U.S.) and receiptless returns.

Why it works: 

With seamless omnichannel integration across their website, apps, and in-store purchases​, Nike delivers a convenient, engaging customer experience. 

[Learn more at Nike.com]

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. 

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: RxPass gives Prime members access to common generic medicines for $5/month.

How it 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.

[Learn more on Amazon.com]

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. In 2025, the U.S. launched Rewards from IKEA Family, adding a points layer you can earn via purchases and brand interactions; points unlock rewards like discounts, delivery savings, and meals.

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.
• Reward catalog: Accrue points and select rewards from their points-powered reward catalog.
• 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. 

[Learn more on IKEA.com]

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.
• Member-only prices: Join the H&M loyalty program and you’ll unlock exclusive deals.
• 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 it works:

1. Sign up: Join the H&M Membership program for free via the H&M app or website.
2. Earn points: Earn 1 point for every $1 spent. Additional points can be earned through sustainable actions, such as in-store order collection.
3. 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. 

[Learn more at hm.com]

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.

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. Customers earn 1% Walgreens Cash storewide and 5% on Walgreens brands.
• 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.

[Learn more at walgreens.com]

8. Ulta Beauty Rewards

Ulta Beauty’s loyalty program, Ulta Beauty Rewards, stands out for its generous earning structure and smart tiering system that keeps customers engaged from their first purchase. Formerly known as Ultamate Rewards, the program was recently refreshed with a new name, updated terms, and a modernized brand presentation.

Benefits of Ulta Beauty’s loyalty program:

• Earn-and-burn simplicity: Members earn points on qualifying products and salon services, both in-store and online, and can redeem them directly for money off future purchases.

• Tiered engagement: Multiple status levels and frequent point-multiplier events incentivize repeat shopping and accelerate progression through the tiers.

• Omnichannel experience: Rewards are seamlessly integrated across Ulta’s app, website, and 1,300+ store locations, creating a consistent and connected customer journey.

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. 
• Seasonal engagement: Periodic, themed member months introduce exclusive offers and activities that keep the program feeling fresh year-round.
  
• Smart personalization: AI-powered recommendations tailor offers based on pet profiles, preferences, and past purchases, ensuring every reward feels relevant.

How the Program Works

1. Sign up: Customers can sign up for PetSmart Treats for free via the PetSmart website or mobile app.
2. 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®.
3. 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.

[Learn more at Petsmart.com]

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: 
  • 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 it works:

1. Sign up: Join The Nordy Club for free via the Nordstrom website or mobile app.
2. Earn Notes: Members earn 1 point per $1 spent at Nordstrom and HauteLook.
3. Cardholder benefits: Nordstrom credit card holders earn 3 points per $1 spent at Nordstrom and receive an instant 5% discount at Nordstrom Rack (effective June 3, 2025).
4. Redeem Notes: For every 2,000 points earned, members receive $20 in Notes to apply toward future purchases.

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. 

[Learn more at Nordstrom.com]

Loyalty in 2025 is shaped by customer expectations for speed, simplicity, and shared values. The strongest programs succeed because they connect experiences across channels, personalize in real time, and make customers feel genuinely recognized.

Omnichannel by default: The best programs meet customers wherever they shop — app, web, or in store — without friction. App-native experiences, digital IDs, and POS integrations mean rewards follow the customer, not the channel. Starbucks and Target are leaders here, connecting mobile ordering, payment, and loyalty into a single experience that makes participation effortless. For retailers, this “always-on” connection turns every touchpoint into an engagement opportunity.

Paid layers that prove value fast: Subscription-based loyalty is evolving beyond free shipping and points. Amazon Prime, Target Circle 360, and Walmart+ demonstrate that customers are willing to pay when benefits are instant, visible, and part of their daily routine. The model works because it drives consistent engagement and increases share of wallet but only when the perceived value outweighs the cost. Smart retailers use data to balance premium perks with everyday savings, ensuring ROI for both sides.

Personalization and AI: AI has transformed loyalty from static points programs into living, adaptive ecosystems. Retailers like PetSmart and Ulta now tailor offers, recommendations, and point-multiplier events based on real-time customer data. The result? Higher redemption rates, greater relevance, and longer-term loyalty. Platforms like SAP Emarsys enable this at scale, unifying data, predicting behavior, and automating individualized rewards across every channel.

If you’re building or refining your loyalty program, focus on getting the fundamentals right. These elements will help you create a program your customers actually want to join, and keep coming back to.

• Clear earn-to-burn value: Make it easy for members to see what their points are worth. Transparent, cash-like rewards (for example, “1,000 points = $10 off”) build confidence and encourage participation.

• Meaningful tier logic: Give customers a reason to move up. Each tier should unlock genuine benefits, like early access, exclusive events, or personalized experiences,  not just a digital badge.

• Omnichannel integration: Connect every touchpoint. When your POS, app, website, and email are synced, customers can earn and redeem points anywhere without friction.

• Personalization through first-party data: Use the data you already have to tailor offers, timing, and channels. AI-driven personalization makes every reward feel relevant and well-timed.

• Continuous measurement: Track key metrics like enrollment, activation, redemption, breakage, AOV, and LTV to understand what’s working and where you can improve.

Even with the right intentions, loyalty programs can miss the mark. Watch out for these common mistakes when building your brand’s loyalty program:

• Too many tiers or unclear rules: Keep progression simple and motivating, not confusing.

• Rewards that don’t fit your audience: Match incentives to what your customers truly value, whether that’s savings, status, or experiences.

• Hidden earn/burn math: Don’t make customers hunt for the fine print. Transparency builds trust.

• Overlooking your in-store team: Your associates are your best advocates. Train them to explain and activate loyalty on the spot.

What is the single best retail customer loyalty program?

There’s no one-size-fits-all winner — the best program depends on your category and goals. For reach and utility, Starbucks and Amazon still lead. In beauty, Sephora sets the benchmark for tiered loyalty. For lifestyle and apparel, Nike and Ulta are top performers. Use our comparison table to find the closest match for your brand.

Are paid tiers worth it?

 Absolutely! When the benefits deliver instant, everyday value. That’s why Amazon Prime and Target Circle 360 convert so well: customers see the payoff immediately through shipping, content, and convenience.

What KPIs prove loyalty ROI?

Track metrics across the customer lifecycle, including enrollment and activation rates, reward redemption, repeat purchase frequency, AOV and LTV uplift compared to non-members, and churn reduction. Mapping these KPIs to your CDP or ESP helps quantify performance and identify growth opportunities.

Which programs changed in 2025?

Several leaders refreshed their programs this year:

• Starbucks reported 34.6 million active U.S. members (Q1 FY25).

• IKEA U.S. introduced a new points-based rewards layer.

• Nordstrom ended points accrual at Rack; Rack purchases now focus on the 5% instant discount for cardholders.

Ulta rebranded Ultamate Rewards to Ulta Beauty Rewards, updating its terms and presentation for a more modern experience.

Building true loyalty means connecting every customer experience, from first purchase to lifelong advocacy. With SAP Emarsys, you can turn data and personalization into meaningful moments that keep customers coming back.

Our customer engagement platform gives you everything you need to design, automate, and optimize loyalty at scale. Create dynamic segments, personalize engagements across channels, and measure impact in real time by lifecycle stage.

By unifying your data layer (customer profiles), channel orchestration (email, mobile, web, paid), and AI-driven decisioning (predictive offers and insights), Emarsys provides the foundation for an omnichannel loyalty strategy that drives repeat purchases and long-term customer value.

👉 Ready to build loyalty that lasts? Book a demo now