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What makes a customer loyal? Sure, great products and stellar service help, but you need to go beyond the basics. That’s where loyalty programs come in. With the right approach, a well-structured customer loyalty program can turn occasional buyers into long-term brand advocates.
In this article, we’ll explore 11 real-life customer loyalty program examples that do just that. From Starbucks to Nike, these brands have cracked the code to customer retention, and we’re here to show you how they did it.
A customer loyalty program is a structured marketing strategy designed to encourage customers to continue engaging with a brand. These programs reward customers for their repeat business by offering perks such as discounts, exclusive access, or points that can be redeemed for future purchases.
Loyalty programs not only drive sales but also build a deeper relationship between the brand and the customer by delivering value that goes beyond the product itself. Customer loyalty programs come in different shapes and sizes, tailored to fit a brand’s goals and customer preferences.This is the most common type of loyalty program, and for good reason: it’s simple, straightforward, and effective. In a points-based loyalty program, customers earn points for every purchase they make, which can later be redeemed for discounts, free products, or other exclusive rewards.
Tier-based loyalty programs take a more structured approach, offering different levels of rewards based on how much a customer spends. As customers move up through the tiers, they unlock better perks, creating a sense of exclusivity and accomplishment.
Unlike other loyalty programs, paid loyalty programs ask members to pay an upfront fee to join, but in return, they gain access to premium benefits that far outweigh the cost. Amazon Prime is a standout in this category, where customers pay an annual fee to enjoy benefits like free two-day shipping, Prime Video, and exclusive discounts.
To join, customers simply download the Starbucks app. Once signed up, they start earning “stars” for every purchase. These stars can then be redeemed for free drinks, food, or even Starbucks merchandise like their signature cups.
The app also offers exclusive member perks, including personalized offers, mobile ordering, and a free drink on your birthday.
Why it works: The ease of earning and redeeming loyalty points, combined with personalized perks, makes the program simple yet highly effective. Plus, the app experience is top-notch, encouraging frequent visits and a personalized customer relationship.
Sephora’s Beauty Insider program is a tiered loyalty system that rewards beauty lovers with increasingly exclusive perks as they spend more. The more you shop, the better the exclusive rewards get, creating a sense of excitement and motivation.
Members earn rewards points with every purchase, which can be redeemed for discounts, free shipping, or free products.
As customers move up the tiers, they unlock additional benefits like exclusive gifts, early access to new products, and bigger discounts during seasonal savings events. Sephora also offers access to app-exclusive deals and promotions, making the experience feel personalized and VIP.
Why it works: The tiered structure motivates customers to increase their spending to reach higher tiers, unlocking premium benefits. Exclusive products and experiences create a sense of community among Sephora’s most loyal customers.