10+ businesses with the best loyalty programs [2024]

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Effective and well-designed loyalty programs go beyond offering discounts and freebies to frequent customers. They serve as cornerstones of customer retention for businesses of all sizes.

The best loyalty programs reward ongoing patronage with valuable perks, fostering deeper brand-customer relationships.

If you’re seeking inspiration to craft a win-win loyalty program, you’ve come to the right place. We’ve sifted through hundreds of loyalty programs to find the most successful examples, handpicking 11 great ones. 

From established businesses like Starbucks and Sephora to smaller, independent companies, you’ll find a wide range of customer loyalty program examples to spark your creativity. Let’s start with a quick overview.

Loyalty program	Industry	Members	Best benefits
My Bath & Body Works Rewards	Beauty, cosmetics, & fragrance retailer	38+ million	Free products for purchases
Amazon Prime	Ecommerce, streaming & more	180+ million	Free shipping, streaming, and exclusive deals
Starbucks Rewards	Coffee & beverage retail	34+ million	Free drinks, food, and member-only perks
Sephora Beauty Insider	Beauty and cosmetics	34+ million	Free samples, beauty classes, exclusive access, and discounts
H&M Membership	Fashion retail	200+ million	Early access, member discounts, and free shipping
REI Co-op Community	Outdoor gear and sporting goods	23+ million	Annual dividends and exclusive discounts on events, and gear rentals
Chipotle Rewards	Fast food restaurant	27+ million	Free food, personalized offers, and achievement badges
Mileage Plan	Airline	Not publicly available	Miles based on distance, seat upgrades, partner flights
LEGO Insiders	Toy manufacturing and retail	Not publicly available	Exclusive rewards, LEGO fan community, and co-creation opportunities
XPLR Pass	Outdoor gear and sporting goods	Not publicly available	Exclusive discounts and early product access
World of Hyatt	Hospitality	Not publicly available	Free nights, room upgrades, and milestone rewards

1. My Bath & Body Works Rewards

Starting off our list of businesses with the best customer loyalty programs is My Bath & Body Works. It has a simple yet effective points-based loyalty program that works by allowing customers to earn points with every purchase.

In this case, you get 10 points for each dollar spent, translating to 1 point for every 10¢ spent on eligible purchases. Once you earn 1,000 points, you can redeem a free product of your choice that’s worth up to $16.95. Bath & Body Works also offers access to member-exclusive special events, products, and other perks for signing up.

This generous program has become quite legendary in retail circles, offering excellent value for money compared to other customer loyalty solutions.

Why My Bath & Body Works Rewards is among the best loyalty programs:

• A wide range of engagement perks, including a birthday gift, early access to sales and new products, and exclusive app offers
• The convenience of a mobile app for easy tracking, shopping, and reward redemption
• There’s a dedicated Top Rewards Picks page where members can check out available and trending products

2. Amazon Prime 

We all know about Amazon and its Prime loyalty program. This is a subscription-based service, costing $139 per year or $14.99 per month and offering a wide range of benefits. For most people, the biggest benefit is speedy one or two-day shipping. However, you’ll also get access to Amazon’s popular streaming service, early access to deals, and a host of other discounts with Amazon partners such as Whole Foods.

Now with 180 million Prime subscribers, Amazon is one of the best examples of how companies with loyalty programs should promote them for the maximum impact.

Despite the cost, users are seeing huge advantages to signing up. Prime offers a strong focus on customer convenience, with its quick deliveries and personalized recommendations. 

Why Amazon Prime is among the best loyalty programs: 

• Prime benefits are immediate and shareable — you don’t have to wait for points to accumulate to enjoy the convenience of one-day delivery
• The membership unlocks a treasure trove of entertainment options with Prime Reading, Video, Music, and Gaming
• There’s a heightened sense of belonging — you’re part of an exclusive club with special deals and perks, like Prime Day, which fosters loyalty

3. Starbucks Rewards

As the name suggests, Starbucks Rewards is an awards-based system that allows you to earn stars with each purchase. You can earn more stars depending on which payment method you use. Stars can be redeemed for various free coffee and food deals, as well as members-only extras such as express order and pick-up. 

Starbucks has one of the best app-based loyalty programs. Using the app, customers can easily redeem points, skip the queues, and get size upgrades, free customizations, and discounts.

Since 2009, the industry-leading Starbucks Rewards program has continued to grow in popularity. In Oct 2023-Dec 2023, for instance, Starbucks hit a new record with 90-day active Starbucks Rewards members growing 13% year-over-year to 34.3 million. 

Why Starbucks Rewards is among the best loyalty programs: 

• It gamifies the rewards experience. There are Double Star Days, Bonus Star challenges, and you can earn double stars for using your Starbucks card 
• There’s a convenient and user-friendly mobile app that seamlessly integrates earning stars, tracking progress, and redeeming rewards
• The program goes beyond offering free drinks. You also get birthday rewards and perks from Starbucks partners like Delta SkyMiles and Bank of America

4. Sephora Beauty Insider

Sephora’s Beauty Insider Program is another 1 point = 1 dollar system, with 500 points giving you $10 off a qualified purchase. There are three loyalty tiers, namely Insider, VIB, and Rouge, whose membership is determined by customer spend per year.

While Insider is free to join, you must spend at least $350/year to qualify for VIB and $1,000/year to become a Rouge member. VIB and Rouge levels unlock added benefits such as first access, exclusive gifts, and more birthday gift options.

With 34 million members and counting, Beauty Insider has one of the best customer loyalty programs in retail. This is largely because of its flexible and creative benefits that cater specifically to customer interests.

For example, there are non-transactional perks that appeal more to people’s emotions. This includes access to beauty classes, exclusive collections, community events, and more. Nurturing an emotional connection is an important and often forgotten feature of loyalty programs — loyal customers expect more than discounts only. 

Why Sephora Beauty Insider is among the best loyalty programs: 

• Beauty Insider uses a tiered program that rewards customers based on how much they spend, rewarding all types of customers and encouraging higher spends
• Apart from the points, the program also offers free samples and personalized free birthday gifts to boost loyalty while introducing customers to new products and brands
• It offers gamified experiences through Beauty Insider Challenges — as users complete tasks, they’re exposed to various Sephora products and services 

5. H&M Membership

H&M Membership is a points-based loyalty program that offers 1 point for every dollar spent. You can also collect points by recycling your clothes and earn a 15% off coupon for every bag of unwanted garments you bring to the store. For every 200 points earned, you receive a $5 reward. Reaching 500 points makes you a Plus Member, giving you access to higher-level rewards and perks. 

There’s a reason H&M is one of the companies with a highly cherished loyalty program. It offers exactly the kinds of benefits a fashion lover would enjoy. For example, customers get birthday discounts, free shipping, surprise offers, and special access to limited collections. This is reflected in the huge success of the program — over 200 million people have signed up so far.

Why H&M Membership is among the best loyalty programs: 

• The program offers points for recycling, making its commitment to sustainability a huge draw for eco-conscious customers
• Members enjoy exclusive access and convenience — Plus members even get free shipping, VIP treatment, and surprise offers, which encourages others to earn this rank
• Members enjoy flexible payment options through H&M’s partnership with Klarna and perks like special member prices

6. World of Hyatt

Offered by the renowned Hyatt hotel chain, World of Hyatt is designed to keep members engaged at every step of the ecommerce sales funnel, from initial booking to post-stay advocacy. 

Free members instantly unlock up to 10% discounts and can earn Base Points redeemable for free night awards. 

Why World of Hyatt is among the best loyalty programs: 

• Members get milestone rewards every 10 nights booked at a Hyatt property — with frequent small wins, such as free nights and upgrades, you’re motivated to keep going back for more 
• Numerous perks, including free internet and upgrade possibilities, that elevate your hotel experience are available even at the base level
• Members can use a World of Hyatt card to get extra points on purchases and annual free nights

7. Chipotle Rewards

Following Starbucks’ example, Chipotle Rewards is a web and app-based rewards program that offers 10 points for each dollar spent. Chipotle has also included a gamified element, introducing the possibility to earn extra points and collect achievement badges. According to the chain, this is an industry first.

Gamification is proven to be an effective customer retention strategy that provides memorable experiences. In fact, according to Omnisend research, gamification elements drive 74% better engagement. 

The program is a hit with customers, attracting over 27 million members so far. It has also helped Chipotle in its shift toward digital sales. According to Chipotle’s chief marketing officer, Chris Brandt, “Offering new ways to engage with Chipotle is essential to the ongoing evolution of our digital business.”  

Why Chipotle Rewards is among the best loyalty programs: 

• The “Extras” feature gamifies Chipotle Rewards, offering personalized challenges to earn bonus points and collect achievement badges
• There’s a Rewards Exchange where members can redeem their points — you can choose from more than 15 different reward options, from food to apparel
• Loyalty program members can redeem points to support Chipotle’s non-profit partners

8. Mileage Plan

For frequent flyers seeking the best rewards programs, Alaska Airlines’ Mileage Plan stands out as a true champion. 

Unlike many airlines that prioritize spending over distance flown, Mileage Plan rewards its repeat customers based on the miles traveled. This means longer flights, even on budget-friendly tickets, can significantly boost your mileage accumulation. 

Miles can be used for seat upgrades, hotel stays, and travel to over 1,000 destinations worldwide through the airline’s Oneworld Alliance partnerships. 

Additionally, you only need a minimum of 5,000 miles to get a complimentary flight booking with Mileage Plan, which makes it easy to tick off bucket list destinations. Members can also earn and use miles across more than a dozen Oneworld Alliance and Global partners.

Why Mileage Plan is among the best loyalty programs: 

• Distance-based earning means you accrue miles based on how far you fly, not how much you spend, which maximizes rewards for budget-conscious travelers
• Mileage Plan is accessible, with straightforward qualifications and you can achieve elite status faster as there are no minimum spend requirements

9. Lego Insiders

Similar to other programs, LEGO Insiders offers rewards via points that you can exchange for discounts and other benefits. Points can be earned by buying LEGO through the website, following LEGO social media accounts, and doing company surveys. 

While it might sound exclusive, becoming a LEGO Insider is free and easy. Perks like early access to new collections and cool gifts make it a no-brainer for LEGO lovers. For example, the company offered an exclusive Yoda lightsaber for Star Wars lovers and it was hugely popular. According to research, the program has been a huge success for the company too, generating $106+ million in 2023.

Why LEGO Insiders is among the best loyalty programs: 

• LEGO Insiders offers the convenience of one account for all previous separate LEGO logins and memberships, including checkout, LEGO VIP, and LEGO apps
• Members can redeem accrued points in the LEGO Insiders Reward Center where they can get discounts on sets, sweepstake entries for collectibles, and more
• Perks extend from early access to community connection, where members can participate in LEGO Ideas and engage with the LEGO Insiders Community

10. XPLR Pass

The XPLR Pass is a simple points-based loyalty program that allows you to earn points when making a purchase. Every dollar you spend earns you one point. 100 points get you a $10 reward. Other ways to earn points include referring a friend, bringing a reusable bag when shopping in stores, and checking in via the North Face App at a National Park. 

This emphasis on sustainability and community provides a strong emotional reason for customers to sign up. The company also encourages customers to trade in their old gear for recycling, rewarding this sustainable behavior with extra discounts.

Finally, loyal customers sometimes get the chance to test unreleased products in extreme outdoor conditions. This adds an extra element of exclusivity and adventure.

Why XPLR Pass is among the best loyalty programs: 

• New members get an extra incentive to join, with 10% off their first online purchase
• A members-only product field test is available for XPLR Pass members — you can test your gear in the real world and return it if it doesn’t meet your expectations
• There are exclusive perks, including birthday gifts and shoutouts, and the chance to test unreleased products

11. REI Co-op Community

  

This is another great example of a paid membership loyalty program. A $30 one-off payment gives lifetime access to a range of benefits offered by the REI Co-op. The most obvious benefit is the 10% cashback on all eligible purchases made, which is automatically paid back in an annual dividend. 

REI Co-op now has over 23 million members who enjoy exclusive member-only deals. For example, there are great offers on gear, outdoor classes, hiking, camping, and other adventures. Consisting mainly of outdoor enthusiasts, members also have the satisfaction of knowing that their contributions help to fund impactful work at hiking trails across the USA. The membership not only pays for itself in terms of savings but provides a strong emotional attraction too. 

Why REI Co-op is among the best loyalty programs: 

• You get lifetime dividends by paying one-time membership fee — unlike expiring points, REI offers a yearly “dividend” based on a percentage of your purchases 
• The benefits go beyond financial rewards, with members enjoying exclusive discounts on classes, trips, and gear rentals
• REI members get special pricing on used gear through the Re/Supply program, plus an extended 100% satisfaction guarantee that offers a full year to return items for a replacement or refund

Best loyalty programs: Final thoughts

As you can see, the best loyalty programs offer more than just discounts. They appeal to people’s emotions through exclusivity, offering personalized learning opportunities, environmental concerns, and more. 

They also make loyalty fun through gamification of rewards, helping people to earn more via active engagement with the program. Finally, they remember that the benefits of loyalty are always prioritized towards the customer rather than the company — which they demonstrate with spontaneous and surprise rewards and gifts to make them feel special.