Customer acquisition gets all the attention, but retention is where modern brands win. The most successful companies today don’t rely solely on discounts - they design loyalty programs that shape behavior, build emotional attachment, and turn everyday shoppers into lifelong fans.
In this guide, I’ve compiled 15+ loyalty programs from brands that excel at driving repeat purchases and long-term engagement. Each one includes practical takeaways you can adapt to your own strategy.
For every brand, you will find:
- A clear overview of how the loyalty program works
- A sharp insight into why it stands out
- A breakdown of the mechanics: points, tiers, perks, or engagement-led elements
- Real outcomes when available
- Key lessons you can apply immediately
Before breaking down each example, here’s a quick overview of the top loyalty programs at a glance
Key Takeaways
- The most successful loyalty programs shape behavior and build emotional attachment, not just offer discounts.
- Points-based programs (Sephora, Starbucks) work best for high-frequency purchases. Tiered programs drive aspirational spending.
- Community-driven models (LEGO Insiders, Nike Membership) build emotional loyalty that's harder for competitors to replicate.
- Paid membership programs (Amazon Prime, Costco) generate upfront commitment and 2-3x higher spending from members.
- Every program in this list succeeds because it aligns the reward structure with actual customer behavior, not the other way around.
Overview of the Top Loyalty Programs
| Brand / Program | Industry | Loyalty Model |
|---|---|---|
| Vinamilk Rewards | FMCG (Dairy) | Omnichannel, Gamified, Points-Based |
| Sephora Beauty Insider | Beauty Retail | Tiered Loyalty (Insider → VIB → Rouge) |
| The North Face – XPLR Pass | Outdoor Retail | Points-Based + Experience-Driven |
| My Bath & Body Works Rewards | Personal Care Retail | Points-Based + Member Perks |
| LEGO Insiders | Toys / Collectibles | Community-Driven, Points-Based, Engagement-Based |
| Wesfarmers OnePass | Multi-Brand Retail | Multi-Brand Ecosystem, Subscription-Hybrid |
| Chipotle Rewards | QSR / Fast-Casual Dining | Gamified, Points-Based |
| Rakuten Points | Ecommerce + Financial Services | Multi-Partner Ecosystem, Versatile Points |
| H&M Members | Fashion Retail | Points-Based + Experiential + Sustainability |
| Marriott Bonvoy | Hospitality | Tiered, Multi-Brand, Travel Ecosystem |
| Starbucks Rewards | Coffee / QSR | App-Based, Gamified, Stars (Points) |
| DSW VIP | Footwear Retail | Tiered + Social Engagement |
| PetSmart Treats | Pet Care Retail | Points-Based + Emotional Pet-Centric Rewards |
| Allbirds Loyalty | Sustainable DTC Retail | Tiered Cashback + Omnichannel |
| Glamour Us Loyalty | Beauty Ecommerce | Omnichannel Points + Engagement Actions |
| Amazon Prime | Ecommerce + Entertainment | Paid Subscription Ecosystem |
| Nike Membership | Sportswear Retail | Omnichannel + Community-Driven |
| Costco Membership | Wholesale Retail | Paid Membership Loyalty |
| IKEA Family | Home & Furniture Retail | Experience-Focused + Member Perks |
1. Vinamilk Rewards (FMCG, Omnichannel Loyalty)
Vinamilk, Vietnam’s largest dairy company, launched its loyalty program in October 2023 to enhance customer engagement across its vast network of over 1,100 stores nationwide. The program, implemented through the Joy Loyalty platform, quickly gained traction, attracting over 300,000 customer adoptions in its first 30 days and generating more than 30 million customer actions.
In my view, what makes Vinamilk’s loyalty program (Vinamilk Rewards) stand out is its impressive scale and rapid adoption rate, coupled with its seamless integration across online and offline channels, making it a prime example of how large enterprises can successfully implement and scale loyalty initiatives.
Vinamilk is a perfect example of a loyalty program you can check out. Key to their success is the integration of the Joy Loyalty Program into their mobile apps, which enables customers to track and redeem rewards, access offers, and engage with the brand directly through their devices.
How did Vinamilk build their loyalty program?
Here’s how Vinamilk leveraged the Joy app to create a captivating loyalty and rewards program:
- Fun and Interactive Rewards: Vinamilk used Joy’s tools to create a loyalty page that feels like a game. Customers could earn and redeem points in an exciting, not boring way. Who doesn’t love getting rewards while having a little fun?
- Convenience Through a Mobile App: The mobile app allows customers to scan QR codes from scratch cards, seamlessly integrating them into the loyalty program regardless of their touchpoint.
- Everything in One Place: With Joy, Vinamilk unifies customer data across fragmented multi-channels, which had previously used separate loyalty schemes for online stores and POS.
Results That Matter
Besides the above statistics, here are the additional data about the Vinamilk Rewards program:
- 2022 consolidated Revenue: $610M
- Point of Purchase: 624
- Authorized Merchants: 3000+
- Vinamilk is one of the top 36 biggest dairy companies globally
- Vinamilk loyalty program reached 20 million consumers
- Loyalty engagement in the last 30 days: 30M+
- Point redemption rate in the last 30 days: 50%
- Return on investment: 450%
Key Learnings:
- Seamless integration across online and offline touchpoints boosts adoption and engagement at scale.
- Gamified experiences like scratch card scanning drive high user participation.
- Centralizing fragmented loyalty systems increases efficiency and ROI, as seen in Vinamilk’s 450% return.
Want to dive deeper into how Vinamilk used Joy to achieve this success? Discover the full story here.
2. Sephora Beauty Insider (Beauty Retail, Tiered Loyalty)
Sephora, a leading beauty retailer, has created the Beauty Insider Program to reward its loyal customers with a tiered loyalty system. Targeting cosmetic enthusiasts, this beauty loyalty program spans three membership levels: Insider, VIB, and Rouge. Members earn 1 point per $1 spent, with rewards ranging from exclusive gifts and first access to products to birthday perks and discounts.
As a long-time user, I find the program particularly appealing for its personalized perks and frequent exclusive offers that feel tailored to beauty lovers like myself.
How did Sephora build their loyalty program?
- Tiered Rewards: Sephora’s tiered reward system encourages customers to spend more to unlock exclusive perks. I find this strategy effective because it motivates shoppers to aim for higher tiers, enhancing their shopping experience.
- Diverse Rewards: The program offers a variety of rewards, from free products to exclusive event access, ensuring that members find value in participating. This variety keeps things exciting and makes customers feel like they’re getting something special.
- Community Building: Sephora has created a strong community through its Beauty Insider Community, allowing members to share tips and feel connected. This sense of belonging can be a huge draw for beauty enthusiasts.
Results That Matter
Key Learnings:
- Tiered systems create natural incentives for increased spend by unlocking exclusive perks.
- A mix of experiential and tangible rewards keeps beauty customers continuously engaged.
- Community features like forums add emotional value and brand stickiness beyond points.
3. XPLR Pass (Outdoor Retail, Experience-Based Loyalty)
The XPLR Pass is a points-based loyalty program by The North Face that is designed for outdoor enthusiasts. Members earn points for purchases, with every dollar spent equating to one point. Points can be redeemed for rewards like $10 off for 100 points.
As an avid outdoor enthusiast, I appreciate how the XPLR Pass encourages not just purchases but meaningful contributions to sustainability and the community. With exclusive perks like unreleased product testing and personalized rewards, it truly fosters a deeper connection with nature and the brand.
How did The North Face build their loyalty program?
- Points for Purchases: Members earn points for every dollar spent, which encourages repeat purchases. I think this straightforward approach is appealing because it feels rewarding with every transaction.
- Exclusive Access: The program provides early access to exclusive products and limited-edition collections, enhancing the shopping experience. This exclusivity makes members feel like they’re part of something special.
- Personalized Experiences: Members receive birthday gifts and other personalized experiences, fostering a deeper connection with the brand. It’s nice when brands go the extra mile to make customers feel appreciated.
Results That Matter
Key Learnings:
- Aligning rewards with brand lifestyle (e.g., early gear access, sustainability efforts) deepens emotional connection.
- Personalized surprises (like birthday rewards) keep customers coming back.
- Offering value beyond purchases (like product testing) turns members into brand advocates.
4. My Bath & Body Works Rewards (Personal Care Loyalty)
My Bath & Body Works Rewards program features a simple yet effective points-based loyalty program. Members earn 10 points for every dollar spent, translating to 1 point for every 10¢ spent on eligible purchases.
Once 1,000 points are earned, members can redeem a free product of their choice worth up to $16.95. Additionally, the program offers exclusive member perks, such as early access to sales, special events, and unique products.
How did Bath & Body Works build their loyalty program?
- Generous Point System: Members earn 10 points for every dollar spent, which significantly boosts engagement. I appreciate how easy it is to accumulate points quickly with this system.
- Exclusive Perks: The program offers early access to sales and special events, which keeps loyal customers in the loop. This kind of insider access can make shopping feel more rewarding.
- Strong Emotional Connection: Bath & Body Works fosters emotional connections through personalized experiences and rewards. This emotional tie can often lead to increased customer loyalty.
Results That Matter
Key Learnings:
- A high-earning point system (10 points per $1) makes rewards feel quickly attainable.
- Emotional connection and personalized experiences foster long-term retention.
- Insider perks like early access create a sense of exclusivity without complex tiers.
5. Lego Insiders (Community-Driven Loyalty)
LEGO Insiders (launched in August 2023) is a community-driven loyalty program that transforms fan creativity and brand engagement into meaningful, redeemable rewards. Members earn points through purchases, social media interactions, and surveys, which can be redeemed for discounts, exclusive rewards, and sweepstakes entries.
Personally, as a long-time LEGO enthusiast, I’ve experienced the excitement of earning points and accessing unique perks like early access to new collections.
How did LEGO build its loyalty program?
- Community Engagement: The program rewards customers not just for purchases but also for engaging with the community. I love how Lego encourages interaction among fans; it creates a fun environment around their products.
- Exclusive Perks: Members get early access to new sets and opportunities to provide feedback on designs, making them feel involved in the brand’s development. This involvement can deepen loyalty since customers feel their opinions matter.
- Centralized Platform: Lego Insiders centralizes all accounts into one platform, simplifying reward management. It’s user-friendly, which is always a plus in my book.
Results That Matter
Key Learnings:
- Rewarding non-transactional actions like feedback or social engagement builds a fan-driven ecosystem.
- Early product access and participation in design feedback strengthen loyalty among enthusiasts.
- Centralizing user data and activities into one hub improves UX and loyalty program management.
6. Wesfarmers: OnePass (Multi-Brand Loyalty)
OnePass is a collaborative loyalty program involving major Australian retailers under Wesfarmers, a leading retail conglomerate. Members gain access to benefits across 5 of Australia’s largest retailers, including exclusive discounts, member-only deals, and bundled services like Disney+ for added value.
What makes OnePass compelling is how it simplifies value across everyday shopping; members instantly feel the benefit when rewards apply to multiple categories and stores. The integrated data insights also allow Wesfarmers to deliver highly relevant deals, making the membership feel both practical and personalized.
How did Wesfarmers build their loyalty program?
- Broad Benefits: OnePass offers significant value across multiple brands under Wesfarmers, including free delivery and bonus points. I think this multi-brand approach makes it appealing as members can enjoy benefits from various stores.
- Data Insights: The program allows Wesfarmers to collect valuable consumer data, enabling personalized deals and recommendations. This data-driven strategy can enhance customer satisfaction by tailoring offers to individual preferences.
- Cost Savings: Members reportedly save over $100 annually, which is a nice incentive for joining. This tangible benefit can motivate more people to sign up.
Results That Matter
Key Learnings:
- Bundling loyalty across multiple brands boosts perceived value and cross-brand engagement.
- Value-added services (like Disney+ access) differentiate the program beyond retail.
- Personalization through shared data insights leads to more relevant and timely offers.
7. Chipotle Rewards (QSR, Gamified Loyalty)
Chipotle Rewards������������is a web and app-based loyalty program that allows members to earn 10 points for every dollar spent. The program integrates a gamified element, enabling users to earn bonus points and achievement badges.
This approach not only enhances engagement but also offers a unique, memorable experience in the fast-casual dining industry. As a frequent Chipotle customer, I’ve enjoyed the interactive challenges that make earning rewards more engaging and personalized.
How did Chipotle build their loyalty program?
- Quick Earning Potential: Chipotle Rewards allows members to earn rewards after just two visits on average, making it easy to engage with the program. I think this low barrier to entry is fantastic for encouraging participation.
- Expanded Redemption Options: The program has broadened its redemption options beyond just free food, including merchandise and charitable donations. This flexibility aligns well with modern consumer values and enhances member engagement.
- Gamification Elements: Chipotle’s gamified elements drive higher engagement through challenges that let members earn extra points. This fun twist keeps things exciting and encourages more frequent visits.
Results That Matter
Key Learnings:
- Gamification (badges, challenges) creates stickiness in an industry known for low retention.
- Fast rewards redemption (after two visits) lowers barriers and encourages repeat visits.
- Offering alternative redemptions (merch, donations) broadens appeal across customer values.
8. Rakuten: Rakuten Point (Financial Services Loyalty)
Rakuten Points is a client loyalty program created by Rakuten, Japan’s leading online retail and financial services giant. With over 80% of Japan’s population enrolled, it has become one of the country’s most widely used and successful loyalty systems.
What stands out is how Rakuten seamlessly integrates into everyday life, offering members the ability to earn and redeem points across a diverse range of services, from shopping and travel to utilities and entertainment.
How did Rakuten build their loyalty program?
- Massive Reach and Flexibility: With partnerships with 49,000 stores and subsidiary services like Rakuten Travel and Rakuten TV, members can earn and redeem points seamlessly.
- Versatile Points System: Rakuten Points allow users to earn points across various services and spend them flexibly within the Rakuten ecosystem. I appreciate how versatile this system is; it feels like you’re rewarded no matter where you shop or what you do.
- Integration with Daily Life: Users can use points for everything from shopping to investing in stocks or dining out, making it part of their everyday lives. This integration makes loyalty feel less like a chore and more like a lifestyle choice.
Results That Matter
Key Learnings:
- A broad ecosystem approach (retail, travel, finance) makes loyalty part of daily life.
- Versatile earning and redemption options increase engagement across categories.
- Mass adoption is driven by partner expansion (49,000+ merchants) and real-life integration.
9. H&M Members (Fashion Retail Loyalty Program)
H&M Members is H&M's free loyalty program designed to reward customers for shopping and engaging with the brand. Members earn points for every dollar spent, receive exclusive offers, and get early access to sales. With over 120 million members globally, the program is known for its wide accessibility and customer-first approach.
As a fan of fashion on a budget, I love how H&M Members makes stylish shopping more rewarding. Their regular surprise perks and member discounts make every visit feel like a VIP experience.
How did H&M build their loyalty program?
- Point System: Members earn points for every purchase, which can be redeemed for vouchers and offers.
- Experiential Rewards: Members receive birthday gifts, early sale access, and exclusive event invitations.
- Sustainability Incentives: The program rewards customers who bring in old clothes for recycling — aligning with H&M's eco-conscious branding.
Results That Matter:
- 120M+ global members
- Repeat purchase rate increased by 28% among loyalty members
- Over 20% of sales in some regions attributed to loyalty-driven incentives
Key Learnings:
- Free and easy entry makes it accessible to a wide customer base
- Blending transactional rewards with sustainability encourages brand alignment
- Offers that change frequently (e.g., birthday perks, limited-time deals) keep members engaged
- Fashion retail loyalty thrives when paired with eco-conscious values
10. Marriott Bonvoy (Hotel Loyalty Program)
Marriott Bonvoy is a global hotel loyalty program covering over 30 hotel brands, offering points for stays, dining, and even credit card usage. Members can redeem points for free nights, upgrades, and travel experiences, making it a high-value program for frequent travelers.
I personally love Marriott Bonvoy because it makes loyalty feel luxurious. With perks like free upgrades and late checkout, the program turns regular business trips into pampered stays.
How did Marriott build their loyalty program?
- Multi-Brand Ecosystem: One program across all Marriott hotel brands
- Tier-Based Benefits: Higher tiers offer lounge access, room upgrades, and guaranteed late checkout
- Partnerships: Integrated with airlines, credit cards, and other travel services to accelerate point earnings
Results That Matter:
- 177M+ members globally
- Members account for more than 50% of all stays
- Significant increase in direct bookings via the app and website
Key Learnings:
- Centralizing across brands makes loyalty more valuable for customers
- Tiered benefits are ideal for encouraging repeat high-spending customers
- Travel perks (like room upgrades and lounge access) are major loyalty drivers in hospitality
- Integrating credit card partnerships can massively expand earning potential
11. Starbucks Rewards (App-Based Gamified Loyalty Program)
Starbucks Rewards is a mobile-based loyalty program where members earn stars for purchases, which can be redeemed for drinks, food, and merchandise. With millions of users and deep app integration, it’s one of the most successful loyalty programs in the world.
I use Starbucks Rewards every day, and I must say — earning stars becomes oddly satisfying. The in-app games and challenges keep me engaged far beyond just grabbing coffee.
How did Starbucks build their loyalty program?
- Mobile-Centric Experience: App is the hub for ordering, payments, and tracking stars
- Star Earning System: 2 stars per $1 spent, with redemption tiers for free drinks and food
- Gamified Engagement: Bonus star challenges and personalized offers increase usage frequency
Results That Matter:
- 75M+ monthly active app users
- Loyalty members account for over 50% of U.S. sales
- Order-ahead and in-app payments drive convenience and repeat use
Key Learnings:
- Mobile-first approach enables frictionless experiences and stronger data capture
- Gamification boosts engagement and retention
- Personalized offers increase frequency of visits
- Simplicity in earning and redemption keeps customers loyal
12. DSW VIP (Footwear Loyalty Program)
DSW’s VIP loyalty program rewards shoe shoppers for purchases and social sharing. Members earn points for every dollar spent, plus free shipping, birthday rewards, and access to exclusive sales. VIP Elite tier customers enjoy extra perks like accelerated point earning.
As someone who loves seasonal shoe updates, DSW VIP keeps me coming back. I appreciate how quickly the points add up — and how they always seem to arrive when I need a new pair.
How did DSW build its loyalty program?
- Three-Tier System: VIP, VIP Gold, and VIP Elite based on annual spending
- Social Loyalty: Points for reviews and social interactions
- Customer Experience Perks: Free shipping, return flexibility, and surprise rewards
Results That Matter:
- Over 30 million members
- Loyalty members shop 2x more frequently than non-members
- Increased average order value among VIP Elite customers
Key Learnings:
- Rewards for social activity build deeper brand engagement
- Offering basic perks (free shipping) adds real value
- Tier-based rewards encourage higher annual spend
- Surprise perks build excitement and emotional loyalty
13. PetSmart Treats (Pet Supplies Loyalty Program)
PetSmart Treats is a free loyalty program for pet parents, offering 8 points per dollar spent, personalized offers, and birthday gifts for pets. The program supports both online and in-store purchases.
As a dog owner, Treats is incredibly thoughtful. They even remember my dog’s birthday — that kind of touchpoint creates a lasting emotional bond.
How did PetSmart build their loyalty program?
- Unified Experience: Single account across mobile app, website, and store
- Point Rewards: 8 points per dollar, redeemable for discounts
- Emotional Hooks: Birthday gifts, adoption support, and pet care services
Results That Matter:
- Millions of active members
- Loyalty members drive 2.5x higher spend per visit
- High app usage for appointment bookings and purchases
Key Learnings:
- Loyalty tied to pet care creates deep emotional engagement
- Combining services with retail (e.g., grooming, vet) increases touchpoints
- Rewarding based on spend and care actions builds lifetime value
- Birthday rewards aren’t just for humans — they can delight pet parents too
14. Allbirds Loyalty (Sustainable Ecommerce Loyalty Program)
Allbirds launched its first Korean store while migrating to Shopify, using Joy to roll out a seamless loyalty program with tiered cashback, anti-cheat protection, and local integrations like KakaoTalk. The program rewarded historical purchases and connected both online and in-store data.
As a customer, the cashback tiers feel instantly rewarding — it’s clear, automatic, and fits right into the brand’s premium-yet-practical vibe.
How did Allbirds build their loyalty program?
- Tiered Cashback: 1–5% back based on VIP status, with clear progression
- Anti-Cheat Protections: Pending points until returns expire (30 days)
- Omnichannel Sync: Unified experience across online, POS, and mobile
- Localized Setup: Integrated with Korean platforms like KakaoTalk
- Historical Migration: Imported purchase history and assigned points pre-launch
Results That Matter:
- 98.5% MoM sales growth after program launch
- 45% reward redemption rate — 2x industry average
- 1700% return on investment
- No data loss during Shopify migration
Key Learnings:
- Loyalty can support major platform transitions without disrupting customers
- Tiered rewards work best when value is immediate and transparent
- Pending points help mitigate abuse from returns
- Localizing programs (e.g., KakaoTalk) drives stronger regional adoption
- Migrating point history builds trust and loyalty from day one
15. Glamour Us (Beauty Ecommerce Loyalty Program)
Glamour Us, a long-standing beauty retailer in San Diego, used Joy to connect its POS and online store into one loyalty system called Glam Club Rewards. With flexible ways to earn points and a seamless data migration, the store quickly engaged thousands of customers with meaningful rewards.
As a frequent shopper, earning points for things like birthdays or Google reviews makes me feel valued beyond just spending money.
How did Glamour Us build their loyalty program?
- Point Migration: Imported phone numbers, email, tiers, and point balances
- Earn Everywhere: Points for orders, reviews, birthdays, and social follows
- Fast Onboarding: Phone number or customer ID used for sign-up
- Omnichannel System: Rewards and points available both in-store and online
- High Engagement Hooks: Non-purchase actions (e.g., reviews) incentivized
Results That Matter:
- 197% month-over-month sales growth
- 55% reward redemption rate
- 60% of customers enrolled within the first 30 days
Key Learnings:
- Connecting offline and online systems is key to modern loyalty
- Rewarding both purchases and engagement increases program usage
- Simple onboarding (like using a phone number) drives higher adoption
- Migrating old data preserves customer relationships
- Engagement-based actions (e.g., reviews, follows) drive visibility and growth
16. Amazon Prime (Subscription Loyalty Ecosystem)
Amazon Prime is a subscription program offering fast shipping, entertainment, and exclusive shopping perks, creating a comprehensive lifestyle bundle. Members gain access to unlimited delivery, Prime Video, Music, Reading, and more.
Its strength lies in combining convenience with ecosystem value. Fast shipping, bundled entertainment, and localized offerings make the program feel essential, while mega events like Prime Day drive new sign-ups and sustained engagement.
How did Amazon build their loyalty program?
- Subscription-Based Model: Customers pay an annual or monthly fee to unlock unlimited fast shipping, exclusive deals, and Prime Day access.
- Ecosystem Benefits: Prime includes Prime Video, Music, Reading, and cloud storage - creating an all-in-one lifestyle bundle that keeps users inside the Amazon ecosystem.
- Regional Personalization: In markets like India, streaming content drives sign-ups, while in the U.S., shipping remains the top motivator.
- Event-Driven Growth: Prime Day consistently brings millions of new memberships each year.
Results That Matter
- 220M global Prime members (2025 estimates)
- 180M U.S. members (~80% of U.S. households)
- Subscription revenue hit $44.9B in 2024
- Prime Day 2024 drove 7M+ global new sign-ups
- India surpassed 28M members, its fastest-growing market
Key Learnings
- A strong value bundle (shipping + entertainment) increases retention
- Localizing benefits (e.g., content in India) accelerates adoption
- Mega events like Prime Day can become major acquisition engines
- Paid loyalty creates predictable revenue and higher purchase frequency
- Ecosystem benefits deepen stickiness far beyond discounts or points
17. Nike Membership (Omnichannel & Community Loyalty)
Nike Membership is a free, tierless program that rewards access, exclusivity, and personalized experiences rather than points or discounts. Members enjoy early product drops, coaching content, community events, and in-store support.
Nike’s loyalty feels compelling because it treats members as part of a culture, not just customers. It creates identity-driven engagement that turns everyday interactions into meaningful connections, making loyalty almost invisible yet deeply felt.
How the Brand Built It
- Frictionless onboarding: simple, fast sign-up across apps and online.
- Access & exclusivity: early product drops, insider content, and event invites.
- Personalized experiences: app and online content tailored to user behavior and interests.
- Beyond shopping: wellness, coaching, and personalized in-store support.
- Innovation: .Swoosh Web3 platform for digital collectibles, co-creation, and token-gated experiences.
Results That Matter:
- Over 100 million members globally by 2023.
- Members spend 3× more than non-members.
- SNKRS revenue grew from $70M in 2019 to $700M in 2021 through access-based engagement.
Key Learnings:
- Loyalty can be identity-driven, not transaction-driven.
- Embed loyalty into experiences, not just rewards.
- Daily, personalized touchpoints increase engagement and retention.
- Exclusivity and community amplify perceived value and emotional connection.
- Future-proof programs with innovation to keep loyalty fresh and relevant.
18. Costco Membership (Paid Loyalty with High Retention)
Costco Membership is a paid program providing access to bulk goods, services, and exclusive deals, with tiered options for personal and business customers. Executive members earn 2% cashback on eligible purchases, while all members access discounts across multiple categories.
Its value comes from blending savings with lifestyle benefits. Tiered memberships, multi-channel access, and cashback incentives make membership feel worthwhile, driving high retention and repeat visits.
How did Costco build its loyalty program?
- Tiered Memberships: Gold Star ($65/year), Executive ($130/year with 2% cashback), and Business ($65/year) offer varying levels of benefits while giving access to all Costco locations worldwide.
- Broad Value Proposition: Members enjoy savings on groceries, gas, electronics, furniture, travel, auto services, pharmacy, insurance, and photo printing—blending products and lifestyle perks.
- Frictionless Access: Membership allows in-store and online shopping, including some benefits like Executive-only shopping hours, making the experience convenient and seamless.
- Rewards Incentives: Executive members earn 2% cashback on eligible purchases, incentivizing higher spend and engagement.
Results That Matter
- 137M global members (2025)
- Executive members can offset membership fees through cashback
- Membership drives strong repeat purchase behavior across categories
- Business and household memberships expand reach and retention
Key Learnings
- Combining product discounts with lifestyle and service perks increases perceived value
- Tiered memberships can encourage upgrades and higher spending
- Seamless multi-channel access strengthens engagement and loyalty
- Cashback and exclusive benefits incentivize long-term retention
- A simple, predictable fee structure builds trust and commitment
19. IKEA Family (Retail Loyalty with Experience Focus)
IKEA Family is a free, single-tier program that rewards engagement and purchases with experiential perks, product discounts, and workshops. Members earn points for both purchases and participation in activities like planning tools or wishlists.
The program emphasizes small, consistent gestures that create loyalty. Free coffee, DIY workshops, and personalized interactions transform shopping into a community experience rather than just transactions.
How the Brand Built It
- Single-Tier Membership: All members receive equal access to benefits, reflecting IKEA’s democratic ethos.
- Omnichannel Engagement: Members can sign up online or in-store, with a unified digital card tracking points and rewards across all touchpoints.
- Dual Reward Paths: Points are earned through both purchases and non-purchase activities to maintain high engagement between visits.
- Experiential Perks: Workshops, planning tools, birthday surprises, and insurance create emotional value beyond discounts.
- Global-Local Balance: Core program principles are consistent worldwide, while workshops, rewards, and pricing adapt to local markets.
Results That Matter
- 170M members globally by mid-2025
- 24M U.S. members
- Increased engagement and repeat visits via micro-perks and experiential offerings
- Strong data capture on preferences and behavior, enabling personalized offers and global insights
Key Learnings
- Reward engagement, not just purchases, to maintain ongoing interaction
- Small, consistent perks (coffee, workshops) compound into emotional loyalty
- Single-tier membership can drive broad adoption while still enabling personalization
- Global programs benefit from modular infrastructure and localized execution
- Integrating experiential and transactional rewards strengthens both retention and brand trust
Conclusion
We have just explored 8 of the top loyalty programs in the world, highlighting the various approaches businesses use to foster customer loyalty and increase sales. In my opinion, the most important thing is to understand your customers and what motivates them because that’s the key to designing a loyalty program that actually works.
