Top 10 Loyalty Program examples to stand out the Competitive Market

Safalta Expert Published by: Aditi Goyal Updated Fri, 31 Mar 2023 07:09 PM IST

Successful customer loyalty programs can help your company get more exposure, boost sales, and engage more people. You may expand your business without investing a lot of money if you have a strong loyalty program. A loyalty program could help keep your brand at the forefront of customers' minds with successful innovation and implementation.

What is a customer loyalty program?
A customer loyalty program is a marketing tactic that encourages consumers to continue purchasing from your company rather than one of your rivals. Loyalty among customers is difficult to achieve. People need to have a cause to purchase from your brand.

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Because of this, firms give loyal customers exclusive benefits. Brands can use Digital Marketing to enhance customer satisfaction.

Retailers and other companies who sponsor loyalty programs do so to draw and keep customers by providing rewards, discounts, and other unique incentives. Customer loyalty programs are curated to reward customers for their brand or store loyalty and promote their business by repetition of customers. Usually, a customer receives bigger benefits the more frequently they shop at the business and the more money they spend.
Loyalty programs can encourage customers to make repeat purchases from you if they are implemented with them in mind. You can employ a variety of loyalty programs or tactics. What you decide relies on your product and your reward program objectives. A few of the customer loyalty programs are points programs, Mission-driven programs, paid programs, progress programs, etc. 

Table of Contents
Starbucks Rewards
Domino’s Cheesy Rewards
Sephora Beauty Insider
Amazon prime
REI Co-op
Tarte <3 Rewards
Target Circle
Kohl's Rewards

In this article, we will see examples of those companies that have implemented these customer loyalty programs so that their consumers continue to purchase from their company:

1. Starbucks Rewards
Developing a mobile app to handle loyalty programs is now a regular practice among merchants. When Starbucks originally introduced My Starbucks Rewards via the Starbucks app, it was a new approach. For clients, using the program through their app makes it incredibly simple as there is nothing to forget or lose, and there is no sign-in necessary. Customers can accrue points through the reward program Starbucks Rewards for each transaction they make. Members also get access to special offers and discounts, and these points can be exchanged for free food and beverages (or stars, in their case). This method of centralizing consumer transactions generates a wealth of information about customer preferences and behavior.

2. Domino’s Cheesy Rewards
With Domino's Cheesy Rewards, a groundbreaking rewards program, consumers can earn 100 points (1 pie) for each order and, after accumulating 600 points, can receive a free pizza. This enables customers to partake in their preferred Domino's Pizza while earning rewards for their purchases. After every order, a pizza slice shows in the account. On completing six orders, a complete pizza will reflect in the account, notifying a free pizza. Enjoy a free pizza from Domino’s after every 6th order.

3. DSW
The standard loyalty program that Designer Shoe Warehouse (or DSW) offers gives consumers points for every purchase and has reward tiers that customers can access when they spend more money. Their program works without a hitch. Customers don't need to remember a punch card because their internet system can identify them by name, contact details, or payment information.

A point-based loyalty program called DSW VIP offers customers free delivery on every purchase, extra points for giving away nearly-new shoes to people in need, and even more points for sharing birthday information or placing an order online and picking it up in-store. The three-tiered loyalty program offers tempting discounts the more a member purchases.
4. Sephora Beauty Insider
The Beauty Insider rewards program from Sephora is extremely well-known. Each purchase by a customer results in incentives based on a conventional point system. The ability for members to select the best way to utilize their reward points is novel. Beauty Insider offers clients special, one-of-a-kind privileges through a tiered system of benefits. With tailored sessions with top-tier makeup artists, individualized benefits, and discount offers, Sephora has developed a compelling program that encourages customers to continue shopping and dramatically increases their lifetime value as customers.

5. Amazon prime
Amazon's Prime membership program is well-known. Prime members receive free unlimited two-day shipping on thousands of products for a fixed annual price, in addition to other benefits like Prime Day promotions and the streaming service that Amazon has added.

Amazon faces a severe threat from Walmart and other retailers. Most of the things you may buy on Amazon can also be obtained elsewhere. By selling Prime, they distinguish themselves from the competitors and convince customers to make all of their purchases from Amazon. It's effective; on average, Prime members end up spending 4 times as much on Amazon as regular customers.

6. REI Co-op
For an alluring one-time charge, REI's customer loyalty program offers a variety of alluring prizes and privileges. The REI program takes clients back to the company's early days as a co-op, which was a business owned by its customers. Customers can join the Co-op for life for $20.

Obtaining lifetime access to exclusive early-release collections, free standard shipping, flat discounts on rental and repair services, and an additional discount from REI costs just $30. 

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7. Tarte <3 Rewards
Consumers are increasingly using user-generated information (such as selfies and video makeup tips) to inform their purchasing decisions in the beauty sector. By rewarding social media interaction and user-generated content, Tarte takes advantage of this trend. Consumers can become brand ambassadors by sharing selfies with Tarte products, submitting online reviews, and watching training videos to earn rewards points.

The Tarte program demonstrates how you can encourage practically any customer behavior you want with a loyalty program. It need not be restricted to enticing people to spend more money. Customers can continue to accrue points between purchases, which helps you increase brand recognition and authority.

8. Target Circle
In October 2019, Target unveiled RedCard, their reward program. The next year, they celebrated having around 80 million subscribers.

How? With special incentives, free two-day delivery, and an extended 30 days to return or exchange anything, the retailer offered devoted Target customers the chance to save 5% on all orders. In addition, Target and Starbucks collaborated to offer RedCard holders 5% off at any in-store Starbucks location.

9. Kohl's Rewards
Money-conscious consumers who are seeking a good deal have long made Kohl's their go-to store, but this retailer's reward program raises their value-for-money offering even further.

Kohl's YES2YOU rewards program, which has 100% free membership, is an omnichannel points-based program that lets customers earn points for each dollar that they spend in-store, online, or in an app. Kohl's extends the lifetime of their rewards points by 30 days to encourage repeat business and increase the urgency of their offering. Rewards are permanently lost if customers don't use their points within 30 days of leaving and returning.
10. Apple
Although this one is a touch different, there aren't many companies with a fancier and more devoted fanbase than Apple. The most creative loyalty program is occasionally none at all. Not every retailer can develop a devoted and loyal customer base—like Apple has—without providing incentives and rewards. Yet vendors of genuinely distinctive goods can.

You may do away with a typical loyalty program entirely by attracting new consumers with your product, providing an outstanding customer experience, and providing those rewards with each and every purchase.

  Over the past 10 years, loyalty and customer incentives programs have shown to be a successful means of increasing client lifetime value and fostering loyalty. Even while the understated punch card has its place in some firms, retailers can gain much from a truly unique approach to client loyalty programs. One of the most effective methods to increase brand loyalty is to be able to provide a seamless customer experience across the customer lifecycle.

What is a customer loyalty program?

A customer loyalty program is a marketing strategy that businesses use to incentivize customers to continue buying from them. It rewards customers for repeat purchases or brand loyalty.

Why are customer loyalty programs important?

Customer loyalty programs are important because they help businesses to retain customers, increase customer lifetime value, and create a competitive edge in the market. They also provide insights into customer behavior and preferences.

What are some types of loyalty programs?

Some types of loyalty programs include points-based systems, tiered programs, cashback programs, and frequent flyer programs.

Can small businesses have loyalty programs?

Yes, small businesses can have loyalty programs. Loyalty programs can be particularly effective for small businesses because they can help to build customer loyalty and differentiate the business from competitors.

Are loyalty programs expensive to implement?

The cost of implementing a loyalty program can vary depending on the size and complexity of the program. However, there are many affordable and easy-to-use loyalty program software and platforms available that can make it more accessible for businesses of all sizes.

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