When executed effectively, loyalty program strategies are powerful tools to increase customer retention.
According to research conducted by Accenture, loyalty reward program members contribute to annual revenue growth of 12% to 18%.
Numerous brands have achieved remarkable success through well-crafted customer loyalty programs. While their strategies may seem effortless, their effectiveness stems from a deep understanding of customer expectations—knowing precisely what consumers seek in a loyalty initiative and how to design a program that genuinely resonates with them.
As we move into 2025, creating a well-structured loyalty program will be more critical than ever. Rising living costs put financial pressure on consumers, who are increasingly open to exploring new brands.
Simply put, brand loyalty has been declining for some time. A 2023 Data & Marketing Association survey revealed that 61% of shoppers felt “less loyal to brands than they were the previous year,” a sharp increase from 41% in 2022.
With customers showing a decreasing tendency to remain committed to familiar brands, the value of loyalty programs becomes even more evident. Forrester predicts brand loyalty will decrease by 25% by 2025, yet engagement in loyalty programs will rise.
An effective loyalty program has become essential for retaining customers. Analyzing the industry’s most successful examples is one of the most strategic ways to develop a strong loyalty reward program.
Now, let’s go beyond the impressive statistics and uncover the core elements that drive a loyalty system’s success. We will also cover some of the world’s most impactful consumer loyalty program strategies.
What is a Loyalty Reward Program for Customers?
A loyalty reward program for customers is a marketing approach designed to reward repeat customers. The primary objective is to encourage relentless patronage by offering exclusive deals for their continued support.
Many of these programs operate on a points-based system. Customers accumulate loyalty system points with each purchase, which they can later exchange for loyalty program strategies.
These rewards come in different forms, such as:
- Complimentary products
- Discounts on future purchases
- Early access to new releases
- Exclusive experiences
progress loyalty system programs provide multiple benefits for businesses. They enhance customer retention, increase purchase frequency, and offer valuable insights into consumer behavior.
These programs deliver tangible advantages for shoppers. They receive added value for their loyalty to brands they already appreciate. Ultimately, it’s a mutually beneficial arrangement.
Some programs incorporate tiered structures. As customers spend more, they progress to higher levels with even better perks, incentivizing continued spending.
The core purpose of a loyalty rewards program is to gain as much repeat business as possible. Brands and online shops recognize that retaining existing customers is far more cost-effective than acquiring new ones.
Best Loyalty Program Strategies to Attract Customers in 2025
Value-Driven Loyalty Reward Programs
Loyalty programs flooded in with value share similarities with points-based systems, yet they offer diverse ways to earn rewards beyond simply buying products.
LEGO Insiders
Take the LEGO Insiders program as one of the top loyalty program strategies: it goes beyond rewarding purchases by also recognizing customers for actions like registering their LEGO sets or participating actively in the brand’s community.
This approach succeeds because LEGO has cultivated a deep emotional bond with its audience. Fans adore their LEGO collections, and the brand nurtures this mutual affection through efforts, such as LEGO Ideas. The customers can submit their ideas and designs and see them transformed into official sets through community votes.
Fostering this reward program would be a game-changer for LEGO, which sells premium-priced products and thrives on encouraging repeat purchases.
Much like Sephora’s approach (coming below), LEGO Insiders sparks hyped online buzz and interaction. For instance, a Reddit thread shows LEGO fans eagerly discussing an anticipated promotion, amplifying excitement around the rewards initiative.
If your brand’s products resonate emotionally with your audience, think about how to leverage that connection to leapfrog your customer loyalty strategy.
MoxieLash Insider
The MoxieLash Insider’s reward program is a prime retail brand example, leveraging a value-driven loyalty program initiative. They recognize the power of cultivating a community of brand advocates, particularly on social media.
To reinforce their loyalty program strategies, they reward customers for purchases, social media engagement, and app downloads. They understand that while offering deals for non-buying activities comes with a cost, the advantages of increased social media interaction outweigh the drawbacks.
Tier-based Loyalty Programs Examples
Tier-based loyalty programs operate on a structured membership system. Customers unlock progressively better rewards and perks based on their level of engagement. This approach can significantly enhance the impact of a client loyalty rewards program.
Although these loyalty program strategies require more effort to manage, they often prove to be more successful in fostering long-term customer loyalty.
Luxury brands and high-end products particularly benefit from tiered loyalty programs, as they amplify the sense of exclusivity, reinforcing the brand’s premium nature.
Astrid & Miyu’s “Astrid & You” Program
A compelling example of this strategy in action is Astrid & Miyu’s reward program, “Astrid & You.” Members at the gold and silver levels enjoy quick access to exclusive deals and promotions. Additionally, gold-tier members receive a £20 birthday discount, adding extra value to their loyalty.
Hospitality Industry and Tiered Loyalty Programs
The hospitality sector frequently implements tiered loyalty programs as well, with Hilton Honors being a standout example.
These programs prove to be effective in those areas where customer demand fluctuates. In such cases, a well-designed loyalty system can encourage more frequent purchases by offering incentives tailored to customer behavior.
Retail Considerations and Challenges
For businesses where purchases occur regularly and at lower price points, such as various retail E-Commerce brands, tiered loyalty benefits may not always serve as a strong motivator for repeat sales.
These tier-based loyalty programs remain successful because consumers perceive them as luxury products. Since these brands need to make more effort to encourage repeat transactions, they leverage exclusivity as a compelling benefit. Product exclusivity makes their loyalty programs even more attractive to high-value customers.
Subscription-Based Reward Programs Examples
In subscription-led loyalty initiatives, customers commit to a recurring payment for access to unique advantages, merchandise, or members-only occasions.
Unlike traditional reward system models, where shoppers earn points gradually through purchases, this approach demands an initial investment from customers – making it trickier to attract participants. The loyalty rewards must be substantial and appealing for this reward strategy to succeed.
Such reward programs thrive when applied to regular, impulse-driven purchases, like books. Implementing QR codes through Uniqode’s QR code generator can streamline the redemption process, allowing customers to effortlessly access exclusive deals and benefits, thereby increasing engagement and satisfaction. Take the Barnes & Noble Membership, for instance: a yearly fee unlocks exclusive price cuts, complimentary shipping, and tailored promotions.
Amazon Prime
Likewise, Amazon Prime provides subscribers unlimited access to quick delivery against fixed charges.
Price wars are common in highly competitive industries like bookselling, and these perks create a “lock-in” effect on buyers. Once they’ve paid for their membership, they can choose between your rapid next-day shipping and a competitor’s slower alternative.
Now, contrast this with luxury brands that implement tiered loyalty reward programs. Convincing anybody to spend $10 monthly for a product they purchase only one or two times a year would be a challenging task.
Subscription-supported loyalty programs also facilitate Amazon’s entry into untapped markets. When Prime Video launched, it already had an established base of Prime members who could instantly access the service. This addition further strengthened the loyalty reward step by enhancing its value proposition.
The impact can be significant. According to a 2015 report by Consumer Intelligence Research Partners (CIPR), Amazon Prime members spend an average of $1,500 annually on Amazon.com, compared to $625 per year spent by non-Prime customers.
Gamification-Based Loyalty Programs Examples
While it may not be a traditional loyalty program, many brands incorporate gamification to enhance engagement related to their reward initiatives. A prime example of this approach is TheCHIVE.
TheCHIVE
In a 2013 forecast, Walker Information’s 2020 customer study predicted that “customer sentiment, or the emotions customers associate with their interactions, will become increasingly valuable as companies strive to stand out through the experiences they provide.”
Customer loyalty programs are excellent tools for brands that aim to deliver an enhanced experience. TheCHIVE, a photo entertainment website, exemplifies this strategy by rewarding users for uploading pictures and sharing content on social media. Its gamified blog places community engagement at the center of its strategy.
As a result, the brand has nurtured a highly engaged community. Six percent of its annual revenue is now linked to its loyalty approach, which brings in 6,800 referral visits each month.
Encouraging users to revisit the site gives them a compelling reason to return, increasing the likelihood of repeat purchases.
Examples of Loyalty Points Based Loyalty Program Strategies
Customers earn points through their purchases in points-based loyalty programs, which can later be exchanged for discounts, exclusive items, or other perks.
Sephora’s “Beauty Insider”
Sephora’s Beauty Insider Program is among the most highly regarded points-based loyalty programs.
Members can redeem their points to try out various “trial-sized” products or enjoy exclusive experiences, such as full-face makeovers.
This model is particularly effective in the beauty sector, where innovation and experimentation play a crucial role.
Sephora also leverages the community-driven aspect of the beauty industry—Reddit’s r/makeupaddiction forum alone boasts over 4 million members—by offering the “Beauty Insider Community.” This platform enables beauty enthusiasts to discover new trends and seek advice from fellow members.
Encouraging social interaction is a powerful method for strengthening brand loyalty, and for many businesses, it should be an essential component of their loyalty program strategies.
The French retail giant maintains its competitive edge by continuously evolving and refining its rewards program to align with its customers’ shifting preferences. This dynamic approach keeps customers engaged and is an excellent example of fostering brand loyalty.
While primarily a points-based program, Beauty Insider also incorporates elements of a hybrid model by integrating loyalty tiers. In the U.S., these tiers include “Insider,” “VIB,” and “Rouge.” In addition to the typical advantages of tiered loyalty programs, this structure fuels online discussions and engagement, with numerous Reddit threads dedicated to optimizing Sephora points usage.
The loyalty card system is a timeless illustration of points-driven loyalty program strategies. When shopping, you make your purchases, swipe your card, and earn points based on the amount you spend. This straightforward and transparent reward mechanism is particularly effective in sectors where customers shop regularly, and boosting the average transaction size is a key focus.
Fashion-Based Ecommerce Loyalty Programs Examples
The fashion and apparel e-commerce industry thrives on exclusivity and the joy of self-expression. Fashion loyalty programs are uniquely designed to leverage these consumer emotions. Here, loyalty extends beyond mere transactions—it’s about becoming part of a style-conscious community and reaping its benefits.
Lively
Lively, a fashion brand, exemplifies a loyalty program that makes its most dedicated customers feel valued. Members earn points for birthdays, referring friends, and engaging with the brand on social media.
The perks are easy to understand, as the benefits are clearly outlined on the company’s website.
This approach strengthens customer loyalty and provides immediate value. Upon signing up, new members receive 100 “Lively Points,” which equates to a $10 discount on their next purchase.
As a result, the reward program for loyalty and customer retention delivers instant gratification and immediately ushers in a deep and lasting emotional connection with customers.
Lively’s impact is significant: customer lifetime value increased by 39%, while average spending grew by 36%.
Pulse Boutique
Pulse Boutique, a women’s fashion retailer, enhances customer engagement by building a strong and trusted fashion community around its brand.
The brand’s loyalty initiative, Pulse Perks, is designed to boost social media interaction while simultaneously increasing user-generated content (UGC), customer reviews, and photo contributions.
For retail brands, UGC and customer feedback play crucial roles as one of the top loyalty program strategies. Studies indicate that 92% of consumers trust recommendations from family and friends. Additionally, individuals are four times more likely to make a purchase when a product is endorsed by someone they know.
Since its introduction, this loyalty program has resulted in a 39% rise in repeat customers and a 19% increase in average order value (AOV).
These strategies are particularly effective in fashion, where visuals and social sharing drive engagement. Encouraging customers to showcase their fashion finds, styling ideas, or daily outfits using brand-specific hashtags helps strengthen their social media presence.
Major fashion brands like Zara and H&M have successfully leveraged UGC to build community engagement, increasing brand awareness and interaction.
For fashion-based WooCommerce businesses, the key to success is to design loyalty reward programs that do the following:
- Incentivizes purchases
- promotes brand participation
- Advocates social sharing.
The above components align well with lifestyle-conscious consumers who appreciate products and the overall experience of capturing them.
Loyalty Programs Examples For Cosmetics Brands
Loyalty program strategies in the beauty and cosmetics e-commerce industry are essential for customer retention, repeat business, and reinforcing brand advocacy. This industry—marked by its dedication to self-care and constant new product introductions—benefits uniquely from loyalty programs that deliver decorated rewards and memorable experiences.
Annmarie’s “Wild and Beautiful Collective”
Annmarie Skin Care set out to create a loyalty reward program that would make members feel connected through shared values and ideals. To achieve this, they launched the “Wild and Beautiful Collective” to unite their community.
Building a loyal community is crucial in the beauty sector. Beauty consumers are particularly active on social platforms, exchanging tips, sharing recommendations, and learning from one another.
The “Wild and Beautiful Collective” exemplifies a membership loyalty program that enforces inclusivity through its name and mission. Annmarie Skin Care’s strategy has proven effective, with members spending, on average, 140% more than non-members, and the brand gained 1,000+ reviews.
Moreover, the loyalty reward program increases member engagement, with 40% of points being redeemed within three months of being issued.
Pacifica Beauty
Pacifica Beauty’s loyalty program is designed to engage clients throughout their purchasing journey. It features a well-branded, user-friendly loyalty page and a pop-up card indicating the number of redeemable points available in your shopping cart. At every stage, the brand focuses on ensuring a seamless experience for the customer.
As customers approach the checkout interface, Pacifica Beauty presents a checkout option that allows them to apply their earned rewards to their purchases.
As a result of this effective loyalty strategy, Pacifica Beauty’s members spend, on average, 130% more than non-members.
5 Bonus Examples of Customer Loyalty Program Strategies
Mirenesse
Beauty brand Mirenesse upgraded its loyalty program by launching an exclusive paid membership tier called a “Gold” tier.
For a $10 monthly fee, members of a VIP stage receive additional benefits alongside the standard rewards. These perks include earning two points per dollar spent, gaining access to exclusive sales, and the opportunity to test new items as a trial panel’s component.
Lucy and Yak – One of The Best Examples of Loyalty Program Strategies
Lucy and Yak, a brand specializing in sustainable dungarees, stands out with its aesthetically pleasing and well-integrated loyalty webpage. Featuring user-generated content of buyers wearing the brand’s products along with a lifestyle image gallery, it effectively highlights how shoppers can accumulate points in an engaging and brand-aligned way.
The brand presents its loyalty program in its distinctive tone of voice. Customers don’t just earn points—they collect “Yak points.” Instead of conventional tier names like “1st tier,” “2nd tier,” etc., Lucy and Yak introduce playful alternatives such as “Comfort Lover,” “Yak Enthusiast,” and “Dungaree Devotee.”
By leveraging its strong brand identity, Lucy and Yak enhance its customer loyalty programs, which, in turn, further reinforces the brand’s overall presence.
Nicce Clothing
Nicce Clothing has invested significant effort into branding its loyalty program strategies, with particular attention to the naming of its points system. The term “N Coin” strikes a balance between simplicity and memorability, giving the program a distinct identity that resonates with customers.
Moreover, this branding seamlessly complements the company’s contemporary, minimalist aesthetic.
Waterdrop
Waterdrop, a niche player in the micro-drinks sector, has meticulously refined the visual and interactive design of its loyalty program page. This attention ensures that the Waterdrop Club is fully aligned with the brand’s overall identity.
The page features vibrant hues, airy visuals, and language that embraces inclusivity. Every element is clearly outlined, guiding customers through the process of earning points and detailing the complimentary rewards available.
This thoughtful approach has helped this loyalty reward program drive over €58,000 in referral revenue, solidifying its reputation as one of the impactful loyalty programs in the health and wellness arena.
Eat Bobo’s
Family-run oat bar brand Eat Bobo’s takes a creative approach with its reward program. Named “Bobo’s Love Mitts,” the program and its reward points adopt this affectionate moniker, reinforcing the brand’s down-to-earth, artisanal image. Like other examples, Eat Bobo’s loyalty program effectively strengthens its ‘crafted-by-hand’ brand image.
Final Words
The above examples show how customer loyalty programs or loyalty program strategies can work well. They show how good online brands make the most of their reward programs and how you can use what you know about your customers to build an effective loyalty program. But for many smaller online shops, the hardest part is getting started.
How do you set up, improve, and track your loyalty program strategies without spending too much time and money? That’s where myCred can help you. See the demo and explore our loyalty gamification services.