16 Successful Consumer Loyalty Program Examples For 2025

Loyalty programs stand out as a powerful tool for boosting customer retention.

According to Zinrelo, 73% of buyers expect brands to reciprocate loyalty and members drive 12-18% more annual revenue than non-members. Many brands have achieved impressive results with their loyalty initiatives, but their success is not by chance. They thrive because they deeply understand their customers’ needs and design programs that truly resonate.

Loyalty programs aren’t a one-size-fits-all solution. E-commerce stores should offer a growing range of options for structuring these programs. Traditional loyalty cards remain effective, but digital loyalty programs offer innovative and sophisticated methods to incentivize and monitor customer loyalty.

In the article, we’ll delve deeper into the 16 successful consumer loyalty program examples to uncover the key factors driving their success.

How Do Customer Loyalty Programs Work? 

A customer loyalty program enables businesses to offer points or rewards to customers, which can then be redeemed for discounts, free products, exclusive perks, or other incentives. The primary objective of such programs:

• Increased Customer Referrals: Satisfied customers are likelier to recommend loyalty programs to friends and family. This leads to a cycle of new customers and further strengthens brand loyalty.

• Enhanced Customer Retention: Customers who derive value from a loyalty program are more likely to remain loyal to the brand over time, increasing customer retention rates.

• Boosted Sales: Loyalty programs often result in higher sales. A study revealed that 76% of Americans spend more when enrolled in a loyalty program. Additionally, 83% of consumers reported that being part of a loyalty program influences their decision to make repeat purchases. These findings underscore the effectiveness of loyalty programs in driving increased consumer spending and enhancing brand loyalty.

• Brand Advocacy: A well-executed loyalty program can transform regular customers into brand advocates who promote the business through word of mouth, an effective and cost-efficient marketing strategy that can outperform traditional paid advertising.

Ultimately, customer loyalty programs serve as a strategic tool for enhancing customer engagement, increasing sales, and cultivating brand loyalty, benefiting the business and its customers.

The Main Types of Customer Loyalty Programs (with The Proven Examples of each Type) 

Customer loyalty programs are strategic initiatives designed to incentivize repeat business and deepen customer relationships. They come in various forms, each tailored to different business models and customer preferences.

Points-Based Loyalty Programs

Points-based programs are among the most popular types of reward systems. Customers earn points that can be redeemed for perks like free products, discounts, or cashback. Points aren’t just awarded for purchases; they can also be earned through actions like sharing on social media, writing reviews, celebrating birthdays, or engaging in gamified activities.

1. Starbucks Rewards

Starbucks Rewards is among the most globally recognized and successful points-based loyalty programs. Customers earn “Stars” for every dollar spent at Starbucks locations or through their app. These Stars can be redeemed for free drinks, food, and other exclusive perks. Starbucks uses a tiered structure to engage its customers, where spending thresholds unlock various rewards, such as birthday gifts, personalized offers, and early access to new products.

Key Elements of Success:

• Mobile Integration: Starbucks leverages its mobile app to provide an easy, seamless experience for customers to track their points, receive personalized offers, and make purchases directly from the app. This convenience fosters greater customer engagement.
• Gamification: The program includes gamified elements, such as limited-time challenges, bonus Star opportunities, and seasonal promotions, making the experience more exciting and encouraging members to return frequently.
• Personalization: Starbucks tailors rewards based on a customer’s purchase history and preferences, providing a more personalized experience that increases satisfaction and loyalty.

Starbucks Rewards has been a major driver of the company’s growth, with millions of active members significantly contributing to increased sales. The program has also been instrumental in enhancing digital engagement, with a large portion of Starbucks transactions now originating from mobile app users. By seamlessly integrating digital rewards with in-store experiences, Starbucks has created a cohesive ecosystem where customers feel appreciated, fostering loyalty and encouraging repeat visits.

2. Sephora Beauty Insider

Sephora’s Beauty Insider loyalty program is a premier model in the beauty industry, offering members points for every dollar spent. The points can be redeemed for a variety of rewards, including product samples, exclusive gifts, and beauty experiences. The program has multiple levels—Insider, VIB (Very Important Beauty Insider), and Rouge—which provide escalating benefits as members reach higher spending tiers.

Key Elements of Success:

• Tiered Structure: Sephora uses a tiered loyalty system that not only rewards spending but also encourages customers to aspire to higher status by offering progressively better benefits. VIB and Rouge members receive exclusive perks such as free shipping, access to private events, and early access to new products.
• Omnichannel Experience: Sephora provides a seamless experience across both online and offline channels. Customers earn and redeem points whether they shop in-store or online, creating a more unified and rewarding experience.
• Exclusive Rewards and Partnerships: Beauty Insider members gain access to exclusive products, experiences, and collaborations with popular brands, keeping the program fresh and exciting.

The success of Sephora’s Beauty Insider program demonstrates that a thoughtful combination of tiered rewards, omnichannel accessibility, and exclusive perks can create a loyalty program that not only drives repeat purchases but also strengthens customer relationships over time.

3. Delta SkyMiles Program

Delta Air Lines’ SkyMiles program makes a captivating impression on strategy points-based loyalty programs. Members earn miles for every flight they take, and those miles can be redeemed for a range of rewards, including free flights, seat upgrades, and access to Delta’s Sky Club lounges. The program includes a tiered system with Silver, Gold, Platinum, and Premier 1K, which offer increasingly valuable benefits as customers accumulate more miles.

Key Elements of Success:

• Comprehensive Earning Potential: Delta members earn miles not just from flights, but also through partnerships with hotels, car rental agencies, and even credit card spending, allowing for a wide range of earning opportunities. This flexibility helps drive engagement and increases the number of ways customers can accumulate miles.
• Exclusive Member Benefits: The Medallion status system provides loyal customers with a suite of exclusive benefits, such as priority boarding, complimentary upgrades, and waived fees, which enhance the overall travel experience and create incentives for customers to remain loyal to Delta.
• Global Reach and Flexibility: SkyMiles offers a high degree of flexibility in how miles can be redeemed, including for travel on Delta’s global network of partners. This flexibility enhances the program’s appeal to frequent travelers who may use different airlines and services.

Delta’s SkyMiles program drives customer retention by fostering exclusivity and offering valuable rewards, strengthening brand loyalty. With the ability to earn miles across various channels, the program extends its appeal beyond air travel, keeping customers engaged with Delta even when not flying. This integration into daily life makes SkyMiles more than a loyalty program—it’s a comprehensive engagement strategy.

4. Amazon Prime Rewards

Amazon Prime’s loyalty program transcends traditional points systems, delivering value through a curated suite of exclusive member benefits. One of the most popular perks is the Amazon Prime Rewards Visa Signature Card, which offers 5% back on Amazon.com purchases and 2% back at restaurants, gas stations, and drugstores. Members can accumulate cashback rewards that can be applied to future purchases on Amazon.

Key Elements of Success:

• Cashback Rewards: Unlike traditional points, Amazon’s program focuses on cashback rewards, which are highly valued by customers for their simplicity and flexibility. These rewards can be redeemed instantly on Amazon purchases, creating a seamless experience.
• Exclusive Member Benefits: In addition to cashback rewards, Prime members also enjoy other exclusive perks such as free shipping, access to Amazon Prime Video, Prime Music, and early access to deals. These benefits create significant value for customers, encouraging them to renew their membership year after year.
• Integration with Other Amazon Services: The program is deeply integrated into the Amazon ecosystem, encouraging customers to use Amazon’s diverse services, such as Amazon Music, Prime Video, and Amazon Fresh, to earn rewards across multiple touchpoints.

Amazon Prime has become a dominant force in e-commerce, with over 200 million members worldwide. The combination of cashback rewards and other exclusive benefits has not only helped retain existing customers but has also attracted new ones, with the loyalty program contributing significantly to Amazon’s growth. Prime members tend to spend more on Amazon, demonstrating the success of the program in driving long-term engagement and loyalty.

Tiered Loyalty Programs

Tiered programs segment customers into levels or ranks based on criteria like spending or engagement. Each tier offers progressively better rewards, motivating customers to aim for higher levels. These programs provide clear goals, making the pursuit of exclusive benefits a compelling reason for continued participation.

5. Marriott Bonvoy

Marriott Bonvoy, the loyalty program of Marriott International, is a good case in the hospitality industry. It features multiple tiers: Member, Silver Elite, Gold Elite, Platinum Elite, Titanium Elite, and Ambassador Elite. Customers earn points for stays, dining, and other services at Marriott properties, which can be redeemed for free nights, room upgrades, and exclusive experiences. Higher tiers unlock increasingly luxurious perks such as lounge access, complimentary breakfasts, and personalized concierge services.

Key Elements of Success:

• Global Reach and Diversity: Marriott Bonvoy covers over 8,000 properties worldwide, offering members extensive opportunities to earn and redeem points, enhancing the program’s appeal to frequent travelers.
• Exclusive Member Experiences: The program provides access to unique experiences, such as culinary events and private concerts, available only to higher-tier members, creating an aspirational element.
• Seamless Integration: Marriott’s mobile app streamlines the user experience by allowing members to track their tier status, manage bookings, and access digital room keys.

Marriott Bonvoy has been instrumental in driving customer loyalty and revenue, boasting over 140 million members worldwide. The tiered structure motivates members to concentrate their travel with Marriott, leading to higher average spending per customer and increased lifetime value. Its ability to blend aspirational rewards with tangible benefits ensures that members remain engaged over the long term.

6. Emirates Skywards

Emirates Skywards, the loyalty program of Emirates Airlines, employs a four-tier structure: Blue, Silver, Gold, and Platinum. Members earn “Skywards Miles” based on ticket fares and travel distances, which can be redeemed for free flights, seat upgrades, and other travel-related perks. As members progress to higher tiers, they gain access to premium benefits, such as dedicated check-in counters, priority boarding, and complimentary lounge access.

Key Elements of Success:

• Tier-Based Exclusivity: The higher tiers provide significant value-adds, including guaranteed seat availability and increased baggage allowances, which cater to the needs of frequent and business travelers.
• Partnerships for Additional Benefits: Skywards members can earn and redeem miles through partnerships with hotels, car rental companies, and retail outlets, making the program more versatile and rewarding.
• Personalized Services: Platinum members receive a personal relationship manager, enhancing the sense of exclusivity and making high-value customers feel prioritized.

Emirates Skywards has over 30 million members and plays a crucial role in the airline’s customer retention strategy. The tiered rewards encourage members to remain loyal to Emirates even when alternative airlines might offer competitive pricing. This loyalty translates into higher revenues and a strong brand association with premium service.

7. Nordstrom’s The Nordy Club

The Nordy Club is Nordstrom’s tiered loyalty program, created to reward its fashion-focused customers. The program features four tiers: Member, Influencer, Ambassador, and Icon, based on annual spending. Customers earn points for every purchase, which can be redeemed for Nordstrom Notes (store credit). As customers move up the tiers, they gain access to exclusive perks like early sale access, complimentary alterations, and invitations to special events, enhancing the overall shopping experience.

Key Elements of Success:

• Customer-Centric Rewards: The Nordy Club prioritizes benefits that align with its customers’ preferences, such as personal styling sessions and first access to new collections, enhancing the perceived value of membership.
• Integrated Credit Card Program: Members who use the Nordstrom credit card earn points faster, incentivizing credit card adoption and deeper engagement with the brand.
• Experiential Perks: High-tier members gain access to exclusive events, such as fashion shows and private shopping experiences, which reinforce their connection to the brand.

The Nordy Club has been effective in driving customer loyalty and increasing spending among high-value customers. The program strengthens Nordstrom’s position as a premium retailer, ensuring that loyal customers continue to choose it over competitors. Its emphasis on experiential rewards also builds a deeper emotional connection with members, further boosting retention.

8. American Express Membership Rewards

American Express (Amex) operates a highly successful tiered rewards system integrated into its credit card offerings. Cardholders earn Membership Rewards points for every dollar spent, with higher-tier cards, such as the Black and Platinum (Black Card), offering more lucrative rewards and exclusive perks. Benefits range from travel credits and lounge access to concierge services and VIP event invitations.

Key Elements of Success:

• Prestige and Exclusivity: Higher-tier cards, especially the Centurion Card, are synonymous with status and luxury. Amex ensures that members feel part of an elite group, appealing to affluent customers.
• Customizable Rewards: Members can redeem points for a variety of rewards, including flights, hotel stays, and gift cards, allowing them to tailor benefits to their preferences.
• Unparalleled Customer Service: Amex offers 24/7 concierge services and priority support for premium-tier members, delivering an exceptional customer experience.

American Express’s loyalty program has been a significant driver of customer acquisition and retention. The tiered structure not only attracts new customers to its entry-level cards but also incentivizes them to upgrade to higher tiers as their spending increases. This strategy has solidified Amex’s reputation as a leader in premium financial services, with a customer base that remains fiercely loyal.

Paid Loyalty Programs

Paid loyalty programs, also known as fee-based programs, provide members with immediate and ongoing benefits in exchange for a participation fee, which could be one-time or recurring. While these programs may require businesses to demonstrate their value upfront, they often attract highly engaged members. A prime example is Amazon Prime, though many businesses can adapt this model to fit their offerings.

9. Costco Membership

Costco’s paid membership model is integral to its business strategy. Customers pay an annual fee to access its warehouse clubs, which offer high-quality products at bulk discounts. With over 125 million members globally, Costco’s program is a textbook example of how a paid loyalty model can drive consistent foot traffic and high renewal rates.

Key Elements of Success

• Tiered Memberships: Gold Star and Executive memberships cater to different spending habits, with Executive members earning 2% cashback rewards.
• Perceived Value: Bulk purchasing and discounted prices make the membership fee worthwhile for families and small businesses.
• Additional Perks: Travel discounts, insurance services, and exclusive product offerings add layers of value.
• Customer Trust: Costco’s commitment to quality, including its liberal return policy, reinforces the perceived value of membership.

Costco’s loyalty program thrives because of its simplicity and transparency. Members view the program as an investment, which creates high satisfaction and loyalty. The added perks beyond retail strengthen its appeal, ensuring continued success.

10. Walmart+

Launched in 2020, Walmart+ is Walmart’s response to Amazon Prime. With a subscription fee, Walmart+ offers a blend of savings and convenience, specifically targeting busy families and price-sensitive shoppers. While relatively new, the program has already made significant strides in expanding its membership base.

Key Elements of Success:

• Convenience-Focused Features: Members benefit from unlimited free delivery on groceries and general merchandise, eliminating order minimums.
• Fuel Savings: Walmart+ offers discounts on fuel purchases, an attractive perk for frequent drivers.
• Time-Saving Technologies: Features like “Scan & Go” allow members to skip checkout lines, enhancing the in-store shopping experience.
• Price Competitiveness: Walmart+ retains Walmart’s core strength—low prices—while adding convenience, making it a value-driven proposition.

Walmart+ demonstrates how established retail giants can leverage paid loyalty programs to compete in a digital-first economy. By addressing customer pain points such as delivery fees and long checkout times, Walmart+ has positioned itself as a practical and cost-effective solution for everyday shopping needs.

11. Sephora Flash

Sephora’s Flash program is an annual paid subscription designed to enhance the customer experience by offering unlimited two-day shipping for a flat fee of $15. This loyalty program targets frequent shoppers who value fast delivery and convenience in their beauty shopping. Unlike traditional loyalty programs, Sephora Flash is an exclusive, paid membership that goes beyond discounts or points accumulation, focusing on streamlining the purchasing process itself.

Key Elements of Success:

• Affordable Price: At just $15 per year, Flash is accessible and cost-effective for a broad customer base, making it an easy choice for frequent shoppers.
• Convenience: The two-day shipping perk is a major draw for beauty enthusiasts who need products quickly, ensuring faster delivery than standard shipping options.
• Integration with Beauty Insider: Flash members also benefit from Sephora’s free Beauty Insider rewards program, allowing them to earn points and access exclusive offers, enhancing the overall value.

Sephora Flash offers an affordable and convenient solution for beauty lovers who prioritize fast shipping. Its seamless integration with the Beauty Insider program strengthens its appeal, driving loyalty and repeat purchases.

12. REI Co-op Membership

REI’s Co-op Membership is a one-time, lifetime membership that costs $30, offering outdoor enthusiasts exclusive benefits, including discounts on products, a share of annual dividends, and access to unique events and outdoor experiences. This program appeals to REI’s customer base by providing tangible rewards while fostering a strong community and emphasizing sustainability. With millions of members, REI Co-op Membership has become a cornerstone of the company’s business model, driving customer loyalty and reinforcing the brand’s values.

Key Elements of Success:

• Lifetime Value: Members earn annual dividends (around 10% of eligible purchases), encouraging repeat business and creating a sense of ownership.
• Community Building: REI offers exclusive events and outdoor experiences that help members connect with others who share their passion for the outdoors.
• Sustainability Focus: Membership fees support REI’s sustainability efforts, appealing to environmentally-conscious customers.
• Additional Benefits: Members also enjoy discounts, early access to sales, and access to gear rentals, enhancing the overall value of the program.

REI’s Co-op Membership succeeds by aligning with customers’ values and passions, offering tangible rewards, and fostering a strong sense of community. This approach drives long-term loyalty and strengthens REI’s connection with its audience.

Value-Based Loyalty Programs

Value-based loyalty programs focus on building emotional connections with customers by linking purchases to charitable causes. A portion of every transaction is donated to a cause, either pre-selected by the business or chosen by the customer. While these programs don’t directly reward participants, they foster goodwill and align with customers’ values by contributing to societal benefits.

13. TOMS Shoes: One for One Program

TOMS Shoes is renowned for its value-based loyalty program, the “One for One” initiative, which pledges that for every pair of shoes purchased, the company will donate a pair to a child in need. This program focuses on creating social impact while providing customers with a sense of contributing to a greater cause. It appeals to customers who value purpose-driven purchases.

Key Elements of Success:

• Social Impact: Customers resonate with the idea of giving back. By linking each purchase to a charitable cause, TOMS aligns its brand with social responsibility, making customers feel part of something larger.
• Emotional Connection: The program fosters strong emotional ties, as customers feel that their purchases are having a positive effect on society.
• Brand Purpose: TOMS integrates social responsibility into the core of its business model, which strengthens brand loyalty and enhances the customer experience.

TOMS Shoes’ One for One program exemplifies a value-based loyalty initiative that emphasizes social responsibility. By tying product purchases to a philanthropic cause, TOMS creates a deep emotional connection that enhances customer retention and brand loyalty.

14. Patagonia’s Worn Wear

Patagonia’s Worn Wear program focuses on sustainability, offering customers the opportunity to buy used gear and trade in old clothing for store credit. This program emphasizes environmental responsibility and caters to a growing base of eco-conscious consumers. Patagonia’s program is a prime example of a value-based loyalty program that encourages repeat business by supporting values-based purchasing decisions.

Key Elements of Success:

• Sustainability Focus: The program encourages customers to buy used goods and repair worn items, reducing waste and promoting a circular economy.
• Loyalty through Shared Values: Patagonia’s focus on sustainability resonates with customers who value environmental conservation. This shared ethos fosters deeper brand loyalty.
• Incentivized Trades: Customers who trade in old items receive store credit, encouraging repeat business while keeping the environmental impact minimal.

Patagonia’s Worn Wear program demonstrates the power of aligning brand values with customer loyalty. By championing sustainability and offering tangible rewards for eco-conscious behavior, Patagonia strengthens its connection with loyal customers.

15. NikePlus

NikePlus is a value-based loyalty program that combines exclusive offers, personalized experiences, and access to Nike’s digital ecosystem, including the Nike Training Club app and Nike Run Club app. Members earn rewards based on activity levels, such as discounts, early access to new products, and invitations to exclusive events.

Key Elements of Success:

• Fitness Integration: The program rewards physical activity, encouraging members to engage with Nike’s apps and products while achieving personal fitness goals.
• Personalized Offers: NikePlus uses data to offer tailored product recommendations and exclusive offers based on individual preferences and activity.
• Exclusive Perks: Members enjoy access to limited-edition products and early releases, boosting the exclusivity and value of membership.

NikePlus thrives by offering personalized rewards, fitness integration, and exclusive perks that create a strong sense of community among fitness enthusiasts. This value-based loyalty program strengthens brand loyalty and drives engagement with Nike’s broader ecosystem.

16. Tesla

Tesla’s referral program encourages current owners to refer new customers in exchange for rewards such as free Supercharging miles, exclusive events, and discounts. The program taps into the brand’s ethos of sustainability and innovation, fostering a sense of community among Tesla owners.

Key Elements of Success: 

• Community Building: The program leverages word-of-mouth marketing, fostering a sense of community among Tesla owners. 
• Unique Rewards: Tesla offers exclusive experiences and rewards, like invitations to special events, that enhance customer engagement. 
• Alignment with Brand Values: The program is consistent with Tesla’s focus on sustainability and innovation, attracting like-minded customers.

Tesla’s referral program successfully blends sustainability, community, and exclusivity to build loyalty. By rewarding customers in ways that align with their values and offer unique experiences, Tesla deepens its customer relationships and encourages advocacy, reinforcing its position as a leader in the automotive and clean energy industries.

5 Important Takeaways to Create an Efficiency Retail Loyalty Program

Creating an efficient retail loyalty program boosts customer retention, repeat purchases, and brand loyalty. A well-designed program offers personalized rewards and valuable insights into customer behavior. Below are five important takeaways for a successful retail loyalty program:

1. Keep It Simple and Clear

A successful loyalty program is easy to understand and effortless to use. Avoid overcomplicating the structure or rewards. Communicate how customers earn points, what milestones they need to hit, and what benefits they’ll unlock. Simplicity makes the program more engaging and ensures customers stay motivated to participate.

2. Offer Meaningful Rewards

Rewards need to be valuable and relevant to your target audience. Whether it’s discounts, exclusive products, or early access to sales, make sure the incentives align with customer interests. Meaningful rewards create excitement and drive repeat purchases, keeping customers invested in the program.

3. Incorporate a Tiered Structure

A tiered system encourages customers to spend more and stay loyal over time. By offering better perks as they advance to higher levels, you create a sense of achievement and exclusivity. For example, moving from “Silver” to “Gold” status with added benefits gives customers a clear reason to stay engaged.

4. Leverage Personalization and Social Proof

Tailor rewards and messaging to individual customers based on their purchase history and preferences. Additionally, integrate social proof, such as reviews and testimonials, to build trust and boost program participation. Using Trustify: Reviews & Testimonial helps showcase authentic customer reviews, which can inspire confidence in your loyalty program and encourage sign-ups.

5. Make It Omnichannel

Ensure your loyalty program seamlessly integrates across all channels—online, in-store, and mobile. Customers should be able to earn and redeem rewards no matter how they shop. An omnichannel experience not only improves convenience but also keeps your brand top of mind throughout their buying journey.

Questions & Answers About Customer Loyalty Programs

1. Should small businesses offer loyalty programs?

Yes, loyalty programs can be especially effective for small businesses, as they help create repeat customers, foster a strong customer base, and differentiate from competitors. Even with a small budget, businesses can implement simple loyalty programs with digital solutions that track customer spending.

2. What should I avoid when designing a loyalty program?

• Overcomplicating the process: Avoid complex rules or unclear redemption methods, as they may confuse customers.
• Offering irrelevant rewards: Make sure the rewards are valuable to your target audience.
• Neglecting customer feedback: Listen to your customers and adjust the program based on their needs and preferences.
• Focusing only on new customers: Retaining existing customers should be a priority, as they are often more profitable than new ones.

3. How can businesses measure the success of their loyalty program?

Key performance indicators (KPIs) to track include:

• Customer retention rate: How many customers continue to engage after joining the program?
• Average order value (AOV): Whether customers are spending more after joining.
• Program participation rate: The percentage of customers who are actively using the program.
• Redemption rate: The frequency with which rewards are redeemed, indicating engagement levels.

WRAP UP

Customer loyalty programs are essential strategies for building lasting relationships with customers, driving repeat business, and increasing overall revenue. By rewarding customers for their continued support, businesses can create a sense of value and appreciation, which fosters trust and loyalty. When thoughtfully designed, loyalty programs can also provide key insights into customer preferences, enabling businesses to personalize their offerings and improve customer satisfaction. Ultimately, a successful loyalty program strengthens customer retention, boosts brand advocacy, and contributes to long-term business growth.