Are you a brand looking to increase your customer retention rates?
Reports suggest that loyalty programs cause 54% of a company’s customer base.
Hence, implementing a loyalty program may prove to be beneficial in improving customer retention.
Customer loyalty programs are an essential tool for brands to retain customers and increase their engagement. These programs are designed to reward loyal customers for their continued support and encourage them to make repeat purchases. In this article, we will explore 14 examples of top brands that have implemented successful customer loyalty programs. Whether you are a business owner or a customer, learning about these programs can help you better understand the value of loyalty and how to achieve it in the marketplace.
What is a Customer Loyalty Program?
A customer loyalty program is a marketing strategy used by businesses to incentivize customers to continue purchasing their products or services. These programs typically offer rewards, discounts, or other special benefits to customers who demonstrate a strong commitment to the brand by making repeat purchases or engaging with the business.
Some common examples of Customer loyalty programs include:
✅Point-based systems: Customers earn points for purchases or other activities, which can be redeemed for rewards or discounts.
✅Tiered systems: Customers earn rewards or perks as they move up the tiers of a loyalty program, based on their level of engagement with the company.
✅Paid membership programs: Customers pay a fee to access exclusive discounts, perks, or other benefits.
✅Referral programs: Customers earn rewards for referring new customers to the business.
17 Examples of Top Brand Customer Loyalty Programs
Here are 17 examples of top brand customer loyalty programs:
#1. Myntra
Myntra’s Insider Program is uniquely designed for users who continuously engage and shop at the Myntra store. A user has to opt-in to join this program. Users are rewarded with “Supercoins” every time they shop. These coins, in turn, can also be used to shop on Myntra as well as Flipkart and other partners who have onboarded “SuperCoins”.
Ananth Narayanan, the CEO, Myntra-Jabong, said, “Myntra Insider is our endeavor to engage deeply with our users and celebrate our fans. We aim to encourage casually involved users to interact and indulge with Myntra and grow in their journeys to become our Icons. The uniqueness of our program is twofold - our uniquely crafted experiences for our biggest fans and gamification of engagement through personalization and interactivity”
Benefits of the Insider Program
✅Early access to sales
✅Exclusive rewards and benefits
✅Priority customer support
#2. Sephora
Sephora’s beauty insider is a traditional point-based system wherein customers earn rewards every time they make a purchase. Members earn 1 point for every $1 spent. The USP of this loyalty program is that customers can choose how they want to use their rewards. Members can redeem their points with gift cards, discounts, exclusive limited edition products, or instore beauty tutorials
Benefits of Beauty Insider
✅Free Standard shipping
✅10% off on seasonal saving events
✅Free birthday gift
✅Exclusive gifts
✅Early access to products
#3. Amazon Prime
Amazon Prime is a paid membership program that provides members with a range of benefits including same-day shipping and free shipping. Although Amazon’s program causes them to lose money, approximately $1-2 billion a year, this is made up with increased frequency of shopping by prime members. Prime members spend $1500 on average per year compared to non-members who only spend $625.
Benefits of Amazon Prime
✅Free delivery on select addresses
✅Discounted delivery charges to eligible addresses
✅Prime Reading
✅Amazon Music
✅Amazon Prime Video
✅Early access to sales
#4. Body Shop
Body Shop’s “Love your body club” acts more like a community than a reward program. Their tagline “collect points, change the world, make a difference” says it all. It focuses on inclusivity in addition to letting members earn reward points. The brand’s ulterior focus is working for social and environmental causes.
Benefits of Love Your Body Club
✅Invites to membership events
✅Rewards for every dollar spent
✅$10 birthday coupon
✅Discounted prices
✅Points can be used as donations for charities of your choice
#5. Uber
Uber Rewards members can earn points for every dollar spent on rides and Uber Eats orders. It is free to join and has to be signed up manually. The more points a user earns the higher their rank level is. It is divided into three tiers - Gold, Platinum and Diamond. Higher rank members can unlock more rewards and benefits.
Benefits of Uber Rewards
✅Flexible cancellation policy
✅Priority customer support
✅Priority airport pickups
#6. Bath and Body Works
One of the most noteworthy loyalty program examples is Bath and Body works rewards program. A simple points-based program that allows members access to a wide range of benefits upon signing up. Once a user signs up, they receive a welcome offer that gives $10 off on a minimum of $30 purchase.
Benefits of Bath and Body Works Rewards
✅Early access to sales events
✅Early access to New Seasonal Collections
✅10 points on every dollar spent
✅Free gift worth $16.50 for every $100 spent
✅Free birthday gift
#7. H&M
H&M Now, a points-based program allows members to earn points for every dollar spent. Their USP “conscious choices” allow members to recycle old clothes and bring their bags to the store and earn points in exchange.
✅Benefits of H&M Now
✅$5 voucher for 200 points earned
✅Plus member upon reaching 500 points
✅Birthday discounts
✅Free shipping
✅Surprise offers
✅Special access to limited editions
#8. Starbucks
Starbucks Rewards Program allows members to earn stars on every purchase. Starbucks Rewards has reached over 21 million members in 2021. The loyalty program was designed to make it easier for users to buy coffee without having to stand in a queue. This convenient program generated a huge surge of customers.
“With over 24 million active members now representing 51% of all spend in our U.S. stores and up 8 percentage points over pre-pandemic levels, our ability to engage has never been higher,” said CEO and president Kevin Johnson.
Benefits of Starbuck's Rewards Program
✅Free coffee and food deals
✅Express order and pickup
✅Birthday treats
#9. Indigo 6E
Indigo’s loyalty program, also known as “Indigo 6E” has an annual joining fee. This reward program has been done in collaboration with HDFC bank credit cards. Members can earn rewards every time they make a transaction with the airline.
Benefits of Indigo 6E
✅2.5% earnings on Indigo flights
✅2% earnings on dining, entertainment, and flights
✅1% on other spends (eg. fuel)
✅Rs. 150 off on convenience fee
✅Domestic Airport Lounge Access
✅Welcome benefits (free air ticket, hotel stay voucher, etc)
#10. Hyatt
The Hyatt loyalty program, called World of Hyatt, is a rewards system wherein members can earn points by staying at Hyatt hotels and resorts, booking through Hyatt channels, and participating in various promotions. The program has three membership tiers: Discoverist, Explorist, and Globalist, each with its own set of privileges and perks. Members can redeem their points for free nights, upgrades, dining and spa credits, and even exclusive experiences such as private dinners or backstage tours.
Benefits of World of Hyatt
✅Exclusive member-only offers
✅Free hotel stays starting from 5000 points
✅Late checkouts
✅Upgraded rooms
✅Club lounge access
#11. Westside
Westside offers a loyalty program for its customers, which is designed to reward them for their continued patronage. The Westside loyalty program, is also known as "The West Style Club". Members of the program also earn reward points for their purchases, which can be redeemed for discounts on future purchases. The program is free to join and is a great way for Westside customers to get the most out of their shopping experience.
Benefits of The West Style Club
✅Weekly updates on new launches
✅Complimentary beauty makeovers
✅20% off on a minimum spend of Rs 5000 during the birthday month
✅Free shipping
✅Earn 1 point on Rs 1000 spent
#12. Michael Kors
The KORSVIP program is a four-tiered program that allows members to earn rewards with every purchase and while browsing through the Michael Kors site. The more rewards one earns, the higher they go up in the loyalty level ladder. The first tier is free to join. The four tiers are Studio, Backstage, Runway, and Red carpet.
Benefits of KORSVIP
✅Free standard shipping and returns
✅Private styling and appointments
✅Early sale access
✅Annual member gift
✅VIP experiences
✅Special loyalty gifts
✅Exclusive in-store events
✅Birthday Reward
#13. Nykka
The Nykaa Loyalty Program is designed to reward customers for their continued loyalty to the brand. The Nykka Prive offers an all-access pass the moment you sign up on the app. Members need to spend at least Rs 7500 in a calendar year to be able to redeem benefits. It is a great way for customers to save money and get more value out of their shopping experience, while also feeling appreciated for their loyalty to the brand.
Benefits of Nykka Prive
✅Complimentary birthday gift on the birthday month
✅Special discounts
✅Free shipping coupons
✅Special access to latest launches and beauty trends
✅Exclusive access to special offers and events
#14. Decathlon
The Decathlon Loyalty Program is designed to reward customers for their continued loyalty to the brand. Members earn points for their purchases, and these points can be redeemed for discounts on future purchases. Decathlon Loyalty Program is a great way for customers to save money and get more value out of their shopping experience, while also feeling appreciated for their loyalty to the brand. The program is especially valuable for sports enthusiasts who want to take advantage of the exclusive benefits and discounts available to members.
Benefits of Decathlon's Loyalty Program
✅Easy access to workshop services
✅Tips and advice from experts
✅365 days return without receipt
✅Product traceability for warranty support
✅Free Decathlon click and collect