The Most Successful Loyalty Program Examples to Learn From
Table of Contents
- The benefits and advantages of customer loyalty
- What are loyalty programs?
- How to create a loyalty program strategy?
- Loyalty program examples in hotels
- Loyalty program examples in restaurants
- Loyalty programs examples in air companies
- Loyalty programs examples in retail
- What to learn from loyalty program examples
- Machine Learning In Finance: 12 Essential Applications
- How To Create Interactive Compliance Training For Bank Employees
- How Fintech Apps Are Using Gamification To Increase User Engagement
- Top Gamification Companies for Employee & Customer Engagement
The benefits and advantages of customer loyalty
- Boost to CX – Customer experience is a critical element of the buyer journey and it’s where the desire to make a repeat purchase is often won or lost. It involves every interaction with your brand and whether it meets or exceeds your expectations. Customer loyalty programmes can help enhance these interactions by adding value.
- Better retention – A retention rate is the percentage at which you maintain a stable of repeat purchasers and churn is the inverse. Loyal customers are less likely to leave your brand and therefore help keep your retention rate high.
- Create brand advocates – Delighted customers will tell other people. This is advocacy. And you need to do more than offer a good product to win this kind of loyalty. You must show that you don’t take repeat customers for granted. Some of the best loyalty program examples do this with reinvestment and other value-adds.
- CLV Increases – Customer lifetime value is the estimated spend per head of your customers as an average over their tenure with the brand. The higher you can get this figure, the more profit you’ll generate from every customer you acquire. Following in the footsteps of the loyalty program examples provided below can help you do this.
- Win new customers – Acquiring customers is a costly endeavour. But, brands with a long history of looking after their customer base are more likely to win in the consideration phase of the buyer journey. When consumers know you’ll reward them for their loyalty, they are much more likely to engage with your brand in the first place.
- Acquire data – Even today, data is one of the most valuable commodities on the planet. Having access to the inboxes, SMS and mailboxes of consumers without having to go through data aggregators like Facebook or Google means that you will benefit from audience insights, reduced direct marketing costs and own a powerful asset. Running a good loyalty program increases the likelihood that customers will share their data.
What are loyalty programs?
When you create a system or group of processes designed to reward your regular customers, this is a customer loyalty program. The goal of these programmes is to increase the customer’s selection of that brand’s products over another. Truly effective loyalty program examples show that loyal customers will display this preference even when a different brand is more accessible or lower priced. This means that true loyalty is not cost or availability-dependent.
How to create a loyalty program strategy?
#1. Gamification
Gamification helps you drive action and increase the emotional connection with your company when you apply it to a loyalty program. Create curiosity, delight and excitement through game mechanics deployed across the full buyer journey with a gamified loyalty program.
One of the most common loyalty programs, this format rewards customers for their custom and interactions with points. This virtual currency can be turned in for discounts, free items, perks at a certain level, cashback and more. With this system, the conversion rate is usually clearly shared with the consumer so they know how close they are to achieving the reward they want.
How points are used in loyalty programs?
The goal of loyalty points is to reward customers for doing things that drive their integration with the brand up. The best loyalty program examples see consumers earn points on a range of positive activities like making bulk or repeat purchases, engaging with time-limited offers, trying out a new collection or doing any other sort of brand-facing interaction.
Tiered loyalty programs
Ranking your customers by how much value they add to your business is an old strategy but it’s still effective. With a tiered program, the most popular loyalty program examples will divide customers into levels that confer different perks based on (usually) sales figures. The higher the rank, the more exclusive the rewards become.
Coupon system
More and more loyalty program examples show how coupons can be used to reward your customers with a range of perks designed just for them. This can increase engagement when it takes into account their previous purchases and shopping habits. Plus, modern coupons can be secured with account validation to ensure the right person is rewarded. Really good loyalty program examples will allow customers to earn discounts, points, shipping vouchers and the like with digital or POS coupon systems.
How can you give tangible benefits and reward customer loyalty with a coupon system?
#2. Cashback programs
Cashback is fairly straightforward. For the money spent, customers are returned a portion. Common in physical stores, cashback encourages repeat visitation with higher purchase quantities. This increased frequency and purchase value mean that retailers are becoming more fond of cashback over discounting. The cashback format seen offered by big-name loyalty program examples like Halifax, creates trust and provides clear reinvestment to the consumer. Customers feel they are getting something real and useful back (money) instead of just giving out something less (discounts).
#3. Subscription loyalty programs
In exchange for a one-time or ongoing fee, customers can get benefits via a paid loyalty programme. Some loyalty program examples like this are TasteCard, ASOS Premier and Amazon Prime. To run a profitable program, the benefits need to have a perceived value that’s worth more than the fee. And you’ll need to retain users with added experiential bonuses and interactions that drive the engagement upward.
#4. Celebrate customer birthdays with discounts/ coupons/ gift cards
Everyone loves a freebie and the most popular loyalty program examples almost always layer on discounts, coupons or gifts for their customer’s birthdays. This helps to humanise the brand and deepen the attachment with the customer. Birthdays are personal and inserting your brand message with a thoughtful gift at the right time during this festive occasion can generate good feelings from customers.
#5. Refer-a-friend programs
Referral schemes turn every customer into a salesperson. On top of reviews or feedback, customers can directly advocate for your product or service to family and friends. By giving them a discount code or referral link, they’ll go to market for you and evangelise about your service. The goal is to make sure there’s something in it for your customer too. The best loyalty program examples are offers like £10 in credit when you refer a friend or 20% off your next shop when your friends buy twice. Referrals are more likely to already have a positive view of your company because of how your existing customer would have advocated for you.
Offering rewards that benefit our planet or encourage healthy habits tap into our value systems and build loyalty based on shared ideals. Your rewards could include donations to social programs or cashback for community-positive behaviours. For some loyalty program examples like this, think of Ocado’s bag recycling program or the Toms one-for-one. You can combine value-based loyalty programs with traditional rewards like cashback to create a hybrid offering.
Loyalty program examples in hotels
In general, loyalty programs in the hotel industry are designed to drive repeat visitation, increased occupancy and better retention. Most do this with points that are redeemable for free stays or discounts. Plus, these programs usually have a tiered element which confers additional benefits for the upper levels like complimentary upgrades, discounts at the restaurant or spa and late checkout service. The goal is to increase loyalty by (amongst others) triggering a sunk cost bias and creating exclusionary loyalty where that hotel chain is one’s exclusive choice due to the benefits already acquired.
Marriott Bonvoy Program
What is the Marriott Bonvoy program?
With 30 brands and hundreds of locations across the globe, Bonvoy is one of the largest hotel loyalty programs in the world. It’s one of the loyalty program examples that uses points to drive visitation across their hotel estate. As you level up, get even more perks and preferential rates with the brand.
How to earn Marriott Bonvoy points?
Earning points in the program is easy. First, you get them for anything you spend with Marriott. This is tiered both to the brand level and your membership level. Then, if you use a Marriott credit card you’ll earn points on top (although a lot of these cards have an annual fee). Some cards earn you points only for spending at Marriott locations, but others like their business AMEX will earn reward points at other businesses like restaurants and petrol stations. Members can also buy points directly or transfer points from other loyalty programs if they need to top up their balance in order to reach a tier or redemption threshold.
How to use Marriott Bonvoy points?
Bonvoy points can be turned into a donation, gifted to others, used for services like Uber, transferred to airline partners or redeemed for vouchers via shopping portals. However, the most common use is for getting free stays at Marriott locations.
In addition to the standard tiered points programme, Marriott also offers paid loyalty programs or subscription-based programs in some hotels. For example, in the Meridien Dubai village, you can pay a one-time yearly subscription and get access to benefits such as:
- Spa vouchers and discounts
- Gourmet dining freebies and discounts
- Fitness centre access
- Laundry vouchers
- Best room rates
ALL – Accor live limitless
What is the All – Accor live limitless program?
The points-based loyalty program for Accor properties is one of the loyalty program examples which -like Marriott- covers thousands of locations globally. So it needs to appeal to everyone. Points are earned for spending across the estate and with selected partners. Loyal customers are categorised into membership tiers according to their level of commitment with the brand.
How to earn Accor points?
Members can earn when they stay with Accor, use their credit card, book cars and transfers, shop from their e-boutiques, book experiences with their excursion partners on their website or eat in their partner restaurants.
How to use All points?
Overall, these are extremely versatile points. They can be redeemed via nearly all the earning methods above. So, members can use them for dining, hotel rooms, shopping, taxi rides, activities or donate them to charity.
Wyndham rewards
What is the Wyndham rewards program?
Another points-based rewards program, Wyndham rewards are earnable and redeemable across 22 brands worldwide. This is also one of our loyalty program examples with a tier system; the highest being Diamond.
How to earn points in Wyndham hotels?
Points are earned with qualified stays, via purchases on their own-brand credit card or via other travel and shopping partners.
How to redeem points from Wyndham hotels?
Redemption is easy via the simple members portal. This allows 24/7 access to turn points into rewards like petrol vouchers, charity donations, hotel stays, airline miles, car rentals, gift cards, merch and tours.
Hilton honors
What is the Hilton honors program?
Focused on perks, this point-based and tiered loyalty program example really talks up the soft benefits like rollover nights, buy 4 get the 5th night free and free water on arrival. It also cross-sells the co-branded Hilton credit card by offering automatic elite status when you open the account. In addition, clients can level up their benefits according to the silver, gold or diamond tiers.
How to earn points with Hilton Honors?
Like most loyalty program examples for hotels, you get points for spend on property. In addition, Honors points are earned with partner brands on dining, shopping, travel or gross spending. There are also ways to get bonus points on top of spend but they don’t count towards your tier within the program. Lastly, members can top up their balances by purchasing points directly if they’re close to a tier or reward amount needed for a perk.
How to redeem points from Hilton Honors hotels?
First and foremost, you can use these points on hotel stays. Then, there are experiences like concerts and sports events to cash in on. Lastly, members can spend their points on Amazon or via their airline partners for flights.
IHG® one rewards
What is the IHG® one rewards program?
The tiered and points-based reward program from InterContinental Hotels Group, IHG ONE applies to over 6k properties and confers special perks like late checkout to travellers as they increase in status. It’s one of the many loyalty program examples in the hotel industry which is free to join. However, IHG does have a subscription program (IHG InterContinental Ambassador) which charges an annual fee.
How to earn points with IHG® one rewards
On registration, members can earn points on hotel stays and the quantity increases as the member’s status increases. They can also earn them for qualifying spending on their IHG credit card, via the Apple shopping partnership, via IHG’s Dine & Earn program or if they complete a transfer of points from another eligible reward program. Lastly, members can buy or receive gifted points which can help get them to a status goal for extra perks. In addition, for a $200 fee, they can join the IHG InterContinental Ambassador program to get upgrades, bar credits and more just on registration. Equally important, IHG offers Lounge Club membership at one of its highest tiers; a perk not offered by any other major hotel chain
How to redeem points from IHG® one rewards?
Spending points are easy as IHG is one of the loyalty program examples with dynamic pricing. So, in low-demand periods, you can turn in points for free stays at a better rate than during peak demand. As such, this encourages off-peak bookings. Plus, with the IHG credit card, the 4th night is free anyway; allowing you to create a custom holiday package. You can cover all or some of the costs with your points. Or, you can transfer your points to an airline partner to cover your flights or use them to buy gift cards or purchase merchandise from the IHG Shopping Mall.
Loyalty program examples in restaurants
The best loyalty program examples in restaurants are simple, straightforward points or visitation counting schemes. They award stamps, stars or points for purchases and aim to give benefits after a certain number of visits are met. These perks could be physical items to take home like merch, money off their next visit or a completely free item. The goal is to track and reward progression clearly and measurably so that members choose their chain to complete the offer versus other high street options.
Dunkin’ rewards – Dunkin Donuts
In late 2022, Dunkin Donuts replaced the beloved DD Perks with Dunkin Rewards to widespread criticism. At launch, and overnight, the program increased the cost to redeem points for items; requiring more spending. Now, the chain awards 10 points for every dollar spent and coffee drinks start at 500 points to redeem. However, there’s a rapid earning mode that can kick in if they visit 12 times in a month that gives members 20% more and there’s an additional point boost on their birthday.
Costa club from Costa Coffee
The Costa club is a very simple program that awards members for buying coffees both in-store and from Costa vending machines at petrol stations and supermarkets. Once the member buys 8 drinks, the 9th is free – or if they use a reusable cup- they get a free drink after 4 purchases. There’s also a cake for the member’s birthday plus extra bonuses that drop randomly each month.
Wendy’s rewards
This is one of the simplest loyalty program examples. You get 10 points for every dollar spent eating at Wendy’s with the option to get bonus points from time to time. Then, when you have enough points, turn them in for rewards within the app. Also, if you forget to scan your app at the point of purchase, that’s okay – you can add it later. You just need to input details from the receipt.
My McDonald’s rewards
Once you download and register via the app, you can start earning 1 point for every penny spent at Mcdonald’s. This is one of the most granular loyalty program examples out there as most others have an earning threshold of one dollar. You also get 1000 bonus points with your very first order and the lowest point cost reward is only 1500 points to unlock via the app.
Loyalty programs examples in air companies
Air miles are just a fancy word for points. The loyalty program examples from the air travel industry are all about status and point balances that you can redeem for a coveted upgrade, transfers and more. Not only can they save you money and bundle in perks that you’d otherwise pay for, but they are saving air companies overall. By collateralising these point balances, airlines were able to raise loans from global banks to improve their assets.
SkyMiles
The popular SkyMiles program is a partnership between a range of carriers including Delta Air Lines, Virgin Atlantic and WestJet. One of the many collaborative loyalty program examples, SkyMiles lets you earn points when flying, using partner credit cards and spending with partner companies. Plus, when you earn points, you can go up in status to unlock more perks like rollover miles, Delta Sky Club access, complimentary upgrades and priority boarding. With more than 92m members globally, it’s one of the largest loyalty programs in the world.
AAdvantage
Brainchild of American Airlines, this second conglomeration of carriers includes British Airways, Iberia and Qatar Airways. Another one of our loyalty program examples that combines points and tiers, this program allows you to earn status based on a percentage of miles flown. As a result, this requirement keeps a lot of the spending with the air carriers. But non-airline core partner companies include Avis, Kohls and Holiday Inn. Overall with top-tier status, members get attractive benefits like 3 checked bags, auto-upgrades and preferred seating.
AirFrance & KLM Flying Blue
This partnership is one of the most discount-heavy loyalty program examples in the air travel industry with preferential rates dipping as low as 50% off. Perhaps that’s why it attracts 100k in new signups each year. In addition to the core partners, collaborative airlines include Delta, Korean Air and Aeromexico. Travel up the tiers to unlock amazing perks like free seat selection, SkyTeam lounge access with a plus one and lifelong membership after holding the Platinum status for 10 years.
Loyalty programs examples in retail
Brick-and-mortar retail isn’t the only loyalty program example we should look to. With programs that try to understand consumer spending to suggest the most compelling promotions and offer discounts, B1G1 sales and perks like free 2-day shipping; e-commerce is also learning the way. Loyalty programs in retail are usually points-based. However, Amazon Prime is one of the largest loyalty programs on the planet and it’s a paid-for service.
Amazon Prime
Amazon Prime is a subscription-based loyalty program that offers different perks depending on where you are in the world. In UAE, you’ll get access to Amazon Music, Prime Video, free global shipping, free 2-day or better domestic shipping, discounts and free partner programs like Deliveroo Plus. Then there are lighting deals, Prime Day and early Black Friday deals which Prime members can get early access to as well. The membership fee offsets the cost of these perks and makes the program truly valuable for members.
Sephora Insider
The Sephora Insider program is tiered to offer more benefits with more spending. At the top tier of $1000 spent per year, members unlock all the perks from cash to spend in-store, savings & discounts, point multiplier days, free shipping, auto-replenish of their favourite products, events & launches, free product samples and gifts. Points are earned at 1:1 dollar spent and redeeming them is easy via the app / online or with their partnership at many Kohl’s retail stores.
The Body Shop Club
Right away, the Body Shop Club lures you in with 15% off your first purchase at registration. Then you get 10 points for every £1 spent and when you get to 500, they trigger a £5 off voucher for you to use. There’s another fiver for your birthday and access to exclusive promotions and offers with this membership. Lastly, as one of the few loyalty program examples to reward members for being green, this program gives double points on eco-refills.
What to learn from loyalty program examples
Across all of the loyalty program examples we looked at in this piece, one thing is very clear. Rewarding members for their loyalty through points, tiers, subscription-based programs and more is a successful way to reduce churn and retain more of your customer base. Gamification is a great way to do this with engaging mechanics that boost the uptake and ongoing use of your program. If you want to explore how Mambo can help make your loyalty program more sticky, talk to us here.
