Top Customer Loyalty Program Examples to Boost Your Business

18 mins
5/29/2025
Joe Ervin
- customer loyalty programs
- loyalty program examples
- customer retention
- rewards programs
- loyalty marketing
Want Loyal Customers? Steal These Ideas
Keep customers coming back for more with a great customer loyalty program. This list gives you 8 customer loyalty program examples to help you build your own. Stop one-time buyers. Start earning repeat business. Learn from the best programs out there, like Starbucks Rewards and Amazon Prime. We'll look at what makes these programs work. Use these ideas to create a program that’s perfect for your ecommerce, skincare, or clothing brand.
1. Trace
Trace helps e-commerce brands make more money from repeat customers. If your brand earns over $500,000 each year, Trace can help you turn your content into steady sales within just 30 days. They don't use generic marketing tricks. Instead, they give you a complete system. This system uses effective email, text messages, and a content plan built to turn first-time buyers into loyal fans. You won't need daily posts or constant sales to see results.
Many brands struggle to connect their content and email marketing. This leads to unpredictable sales and slow growth. Trace fixes this problem. They give you a full calendar of campaigns and automated tools to build steady, scalable growth. Trace offers a unique "whatever it takes" guarantee. If your returning customer revenue doesn't improve in 90 days, they'll keep helping until you see results, or they'll give you a full refund. Brands using Trace say it makes marketing easier and boosts repeat sales and customer lifetime value. Based in Orlando, Trace helps brands across the U.S. They're a great partner for e-commerce, skincare, and clothing brands ready to grow smarter.
Trace earns a spot on this list because it tackles a key challenge: customer retention. Many loyalty programs focus on attracting new customers. Trace focuses on keeping the ones you already have. This focus makes it a valuable tool for established brands looking to increase profits.
Here's a closer look at what Trace offers:
- Complete Email & SMS System: Trace handles your email and text message marketing. They tailor the system to your brand and customers.
- Content Strategy for Revenue: Trace creates a content strategy that directly leads to more sales and repeat purchases.
- Predictable Sales: Data-driven campaigns and automated marketing create predictable sales.
- 90-Day Guarantee: Trace guarantees results within 90 days. If you don't see improvement, they'll keep working with you or give you a full refund.
- Sustainable Growth: Trace helps your business grow steadily without relying on short-term tricks.
Pros:
- Full email and SMS marketing tailored to your brand.
- Content plan boosts revenue and repeat sales.
- Predictable sales through data and automation.
- 90-day guarantee with refund or continued support.
- Helps your business grow steadily.
Cons:
- Best for brands earning over $500,000 each year. May not be right for smaller startups.
- Focuses on retention and email/SMS. You may need to connect it with other marketing efforts.
Implementation Tips:
- Be ready to share data about your current customers and marketing efforts. This helps Trace create a tailored plan.
- Work closely with the Trace team to understand the strategy and track your results.
- Integrate Trace with your existing e-commerce platform and other marketing tools for the best results.
Pricing and Technical Requirements:
Trace doesn't publicly list pricing. Contact them directly for a custom quote. You'll need an existing e-commerce platform and may need to integrate Trace with other marketing tools.
Comparison with Similar Tools:
While many tools offer email marketing or SMS marketing, Trace stands out by combining these channels with a content strategy focused on retention. This integrated approach differentiates Trace from platforms like Klaviyo or Omnisend, which primarily focus on individual channels. Trace’s guarantee further strengthens its position, offering a level of commitment not commonly seen.
Trace offers a powerful way to build customer loyalty for established e-commerce brands. Their focus on retention, combined with a complete marketing system and a strong guarantee, makes them a valuable partner for brands looking to scale smarter. Visit https://workwithtrace.com to learn more.
2. Starbucks Rewards
Starbucks Rewards is a great customer loyalty program example. It's a points-based system. Customers earn "Stars" for every dollar they spend. It's one of the best loyalty programs in the world. Members get special offers, free drinks, and other perks. They use a mobile app. This app makes it easy to use the program. It also helps Starbucks sell more. Starbucks Rewards is a strong model for any ecommerce, skincare, or clothing brand looking to boost customer loyalty. Its clear rewards, tiered system, and focus on mobile engagement offer valuable lessons.
Here's how it works: you earn 2 Stars for every $1 you spend using your registered Starbucks Card or the app. You can trade Stars for free drinks, food, and even merchandise. It only takes 25 Stars to start getting rewards. The app lets you order and pay ahead of time. You can skip the line! Plus, you get special offers and a birthday reward.
There are three levels in Starbucks Rewards: Welcome, Green, and Gold. Everyone starts at Welcome. Green is for anyone with Stars. Gold is for people who earn 450+ Stars each year. Gold members get extra perks. This tiered system encourages customers to spend more to unlock better rewards. Think about how you could use a similar system for your brand. Perhaps offer exclusive product access or early bird discounts to high-tier members.
This program is easy to use because of the app. The rewards are easy to understand. You can use your rewards in many ways. People really like the personal suggestions. This makes customers happy. Starbucks has over 24 million active members! This shows strong brand loyalty. Imagine the potential impact a similar program could have on your own brand's customer retention.
Think about a clothing brand. Customers could earn points for every purchase. They could use these points for discounts or free items. A skincare brand could offer free samples or early access to new products. An ecommerce brand could give free shipping to loyal customers.
Setting up a similar system for your brand is possible. You'll need a way to track customer purchases and reward points. This might require a mobile app or integration with your existing ecommerce platform. There are many loyalty program software options available. Consider factors like cost, ease of integration, and customization options when making your choice. Plan a clear reward structure and promote it well to your customers. Promote the benefits clearly to encourage sign-ups and participation.
While Starbucks Rewards is great, it has a few downsides. Rewards are only for Starbucks products. You need to spend a lot to get the best rewards. Not everyone likes using apps. Think about these things when planning your own program. How can you make your rewards inclusive for all customers? How can you balance reward value with attainable spending thresholds? Perhaps offer alternative ways to earn and redeem points beyond a mobile app.
Despite these drawbacks, Starbucks Rewards remains a top example. It’s simple, convenient, and rewarding for customers. Visit the Starbucks Rewards website (https://www.starbucks.com/rewards) to learn more. This program is a good model for any brand wanting a loyalty program.
3. Amazon Prime
Amazon Prime is a top customer loyalty program example. It shows how a paid membership can boost sales and keep customers coming back. For a yearly fee of $139 or a monthly fee of $14.99, members get lots of perks. These perks go beyond just free shipping. They make customers feel valued and encourage them to shop more on Amazon. This makes it a great example for ecommerce, skincare, and clothing brand owners to study.
Prime offers free two-day shipping on many items. There's no minimum order size. This fast, free shipping makes online shopping easy and fun. Members also get Prime Video. They can stream movies and TV shows, including Amazon Originals. Prime Music lets members listen to millions of songs. Prime Reading gives them free access to ebooks.
Beyond these core benefits, Prime members get exclusive deals. They can shop Lightning Deals early. They also get special discounts during Prime Day, a huge annual shopping event. Learn more about Amazon Prime and how it can inspire your own customer retention efforts.
This wide range of benefits makes Prime more than just a free shipping program. It's a complete package. It keeps customers engaged with Amazon's services. Think about it. A customer might join for the free shipping. Then, they start using Prime Video. Next, they try Prime Music. All these touchpoints strengthen their connection with Amazon. This leads to more purchases and higher customer lifetime value. Amazon boasts a 95% renewal rate for Prime, showing how much customers value the service.
The free shipping alone can pay for the membership fee for frequent shoppers. This clear return on investment (ROI) is a key reason for Prime’s success. Imagine a clothing brand owner offering similar perks. Free, fast shipping on new styles could entice customers to join a loyalty program. Exclusive access to online styling advice could further enhance the value.
While Amazon Prime excels, it does have some drawbacks. The annual fee can be too high for some customers. People who don't shop on Amazon often may not see the value. The sheer number of features can also feel overwhelming to some users. A skincare brand, for instance, might offer a simpler loyalty program with tiered rewards. This could avoid confusion and appeal to a wider customer base.
Think about how you can use the ideas from Amazon Prime in your own business. You don't need to copy everything. Instead, pick and choose what makes sense for your brand and customers. Perhaps you could offer exclusive content to loyalty program members. Early access to new products could be another perk. Think about what your customers value most. Then, build a loyalty program around those values.
Setting up a loyalty program like Prime requires planning and resources. You'll need a system to track member benefits and purchases. You'll also need to promote your program to your customers. Explain the benefits clearly. Make it easy to join. The key is to provide real value to your customers. This will encourage them to join and stay loyal to your brand. By studying successful customer loyalty program examples like Amazon Prime, you can create a program that works for your business and helps you build long-term customer relationships.
4. Sephora Beauty Insider
Sephora Beauty Insider is a top customer loyalty program example. It shows how a tiered system can boost sales and keep shoppers coming back. This program gives beauty lovers points, special products, and VIP perks. Every purchase earns points. Shoppers can trade these points for small samples, full-size products, or special events. This makes it fun for beauty fans.
Sephora uses a three-tier system. This encourages shoppers to spend more. The first tier, Insider, is free to join. You earn one point for every dollar you spend. The second tier, VIB, requires $350 in yearly spending. The top tier, Rouge, requires $1,000 in yearly spending. As you climb the tiers, the perks get better. This creates a sense of exclusivity and motivates customers to reach the next level.
Think of it like a game. Everyone starts at level one. As you buy more, you level up. Higher levels get better prizes. This simple system works well. It makes customers want to spend more to unlock the best rewards.
Sephora's program excels because the rewards relate directly to beauty products. Customers earn points to buy more beauty products. This keeps them engaged with the brand. Free beauty classes and early access to sales sweeten the deal. These perks build a strong sense of community among beauty lovers.
The Beauty Insider program also provides a useful mobile app. This app lets users test makeup virtually and get personalized product ideas. This makes shopping easier and more fun. It also helps customers find products they love. This boosts sales and strengthens customer loyalty.
Sephora Beauty Insider offers several advantages for businesses looking to build customer loyalty:
- Targeted Rewards: The program gives rewards that beauty lovers want. This encourages them to try new things.
- Community Building: Events and classes create a loyal group of beauty fans.
- Motivation to Spend: The tier system encourages customers to buy more to reach the next level.
- Limited-Edition Access: Exclusive access to rare products creates excitement and drives sales.
Despite its strengths, Sephora's program has a few drawbacks:
- High Spending Limits: Reaching the top tiers, VIB and Rouge, requires significant spending. This can exclude budget-conscious shoppers.
- Point Expiration: Points expire after 18 months of inactivity. This can frustrate occasional shoppers.
- Limited Appeal: The program mostly attracts beauty product buyers. It may not suit brands outside this area.
Implementing a tiered loyalty program like Sephora's requires careful planning. First, decide on the rewards for each tier. Make sure the rewards are valuable to your target audience. Next, set clear spending requirements for each tier. Balance exclusivity with accessibility. Finally, promote your program clearly. Make it easy for customers to join and understand the benefits.
Sephora’s Beauty Insider program is a great customer loyalty program example. Other beauty brands, like Ulta Beauty with their Ultamate Rewards program, offer similar programs. However, Sephora's program stands out due to its strong brand recognition and focus on exclusive experiences. Ecommerce, skincare, and clothing brands can learn valuable lessons from Sephora's success. By offering relevant rewards, creating a sense of community, and motivating increased spending, businesses can build strong customer loyalty. You can visit the Sephora Beauty Insider program website here: https://www.sephora.com/beauty/loyalty-program-beauty-insider
5. Target Circle
Target Circle stands out as a strong customer loyalty program example. It's free to join and gives shoppers value right away. This program helps Target build stronger ties with its customers. It does this through personalized deals and by letting customers help their community. Target Circle benefits both the shopper and the store.
Ecommerce, skincare, and clothing brands can learn a lot from Target Circle. This program shows how a simple rewards system can make customers happy and loyal. Let's look at how it works. Every time a customer shops at Target, they earn 1% back. They can use this 1% on future Target trips. Target Circle also gives customers deals based on what they usually buy. This makes the deals more useful. Plus, members get early access to sales. They can also help pick local groups that get money from Target.
Think about how these ideas could help your brand. Imagine giving your customers personalized skincare deals or early access to your new clothing line. These tactics create happy customers who are likely to return. Target Circle excels because it's easy to understand and use. There are no hidden fees or complicated rules. This simplicity makes the program appealing to everyone.
Target Circle's community giving feature adds a special touch. Customers vote for local groups they want Target to support. This lets customers make a difference in their community. This feature helps shoppers connect with Target on an emotional level. It's a smart way to build brand loyalty that goes beyond simple discounts. Learn more about Target Circle and how automation can build similar experiences.
Setting up a loyalty program like Target Circle doesn't require complicated software. Many platforms offer easy-to-use tools. These tools help you track purchases, give personalized deals, and manage rewards. There are no technical skills needed.
Key Features of Target Circle:
- Earn 1%: Get 1% back on every Target purchase. Use this on future purchases.
- Personalized Deals: Get coupons and deals based on your shopping habits.
- Early Access to Sales: Shop sales before everyone else.
- Community Giving: Vote for local groups to get money from Target.
- Birthday Offer & Surprise Deals: Get special offers on your birthday and throughout the year.
Pros:
- Free and Easy: No cost to join, and easy to understand.
- Helps Your Community: Makes you feel good about shopping at Target.
- Useful Deals: Offers are tailored to your needs.
- Simple Rewards: Easy to earn and use rewards.
Cons:
- Low Earnings: 1% back is less than some other stores offer.
- Only for Target: Rewards can only be used at Target.
- Not for Everyone: May not be worth it if you rarely shop at Target.
Target Circle is a great customer loyalty program example. It's simple, offers real value, and connects with customers on a personal level. These qualities make it a smart model for any business wanting to build strong customer relationships. Consider these features when creating your own loyalty program. Think about how you can make it valuable and easy to use for your customers. Personal touches, like birthday rewards or a community focus, can create lasting loyalty.
6. Southwest Rapid Rewards
Southwest Rapid Rewards is a great customer loyalty program example. It shows how a simple program can build strong customer ties. It lets members earn points on flights and with partners. You can use these points for future flights. A big perk? No blackout dates! This makes it easy to use your points. The program is known for being easy to use. Your points don't expire. This makes it a favorite among airline loyalty programs.
Earning points is straightforward. You get 6-10 points for every dollar you spend on Southwest flights. The number of points depends on the type of ticket you buy. The program has four levels: Member, A-List, A-List Preferred, and Companion Pass. The Companion Pass is a huge benefit for frequent flyers. It lets you choose one person to fly free with you for a whole year. Imagine the savings!
Think about how this applies to your e-commerce, skincare, or clothing brand. Could you offer a similar tiered system? Perhaps you could offer free shipping or a free product to your most loyal customers. Southwest's simplicity is key. Customers understand the program easily. This makes them more likely to use it. The no-expiration policy also reduces frustration. Customers don't feel pressured to use their points quickly.
Here's a closer look at the pros and cons:
Pros:
- No Expiration: Your points remain active as long as you use your account. This removes stress for customers.
- No Blackout Dates: Book reward flights any time. True flexibility makes customers happy.
- Companion Pass: An amazing perk for frequent flyers. Free travel for a friend or family member adds huge value.
- Simple Structure: Easy to understand and track your points. Simplicity encourages use.
Cons:
- Limited Network: You can only fly to places Southwest serves. This limits options for some travelers.
- No Transfers: You can't move your points to other airlines. This reduces flexibility for some customers.
- Fewer Premium Perks: Southwest doesn't offer the same perks as some other airlines. Think fewer lounge options or upgraded seats.
Implementation Tips:
Think about how these ideas could work for you. Could you reward customers for every dollar they spend? Could you offer bonus rewards for certain actions, like leaving a review or referring a friend? Could you create a VIP program for your top customers? Consider offering free shipping, exclusive discounts, or early access to new products.
Southwest provides a strong customer loyalty program example. Focus on simplicity and real value. These are key to making your program a success. Offer clear rewards. Make earning and redeeming points easy. Address potential customer frustrations. These steps can help build a loyal customer base for your brand.
Visit the Southwest website for more information: https://www.southwest.com/rapidrewards/
7. CVS ExtraCare
CVS ExtraCare stands out as a strong customer loyalty program example. It’s free to join and offers many ways to save. This program works well for stores selling health and beauty items. Think of it as a great model for ecommerce brands in similar markets. This program gives personalized coupons, ExtraBucks rewards, and special deals on health products. Members earn ExtraBucks each quarter based on how much they spend. They also get special offers on things they buy often. This makes it a good choice for people who buy medicine and other health items regularly.
For example, imagine you own a skincare brand. You could create a program like CVS ExtraCare. Give loyal customers points for every purchase. Let them use those points to buy more products. This encourages repeat business and builds a strong customer base. Clothing brands can also use this model. Offer special discounts and early access to new items for members.
The free ExtraCare program offers many benefits. You earn 2% back in ExtraBucks on CVS Health brand products. You also get ExtraBucks rewards every three months based on your spending. The program gives personalized coupons at checkout and through email. These coupons match your buying habits. The Beauty Club offers more rewards for makeup purchases. For $5 a month, CarePass members get free delivery and special prices.
Looking for ecommerce content marketing inspiration? Learn more about CVS ExtraCare and similar loyalty programs for ideas.
Setting up a similar loyalty program for your brand is simple. Many ecommerce platforms offer built-in tools or integrations with loyalty program providers. Choose a system that fits your needs and budget. Clearly explain the rules to your customers. Make it easy for them to join and earn rewards.
CVS ExtraCare provides a great example for other brands. The program focuses on relevant rewards. It gives customers many ways to earn and save. This helps create loyal customers. Consider using this model to build your own successful program. Offer valuable rewards, personalized offers, and maybe even a premium membership tier.
While ExtraCare has many good points, there are a few drawbacks. ExtraBucks expire, and you can’t use them on everything. Keeping track of different reward types can be confusing. Also, you can only use the benefits at CVS stores and on CVS products. This limitation is less of a concern for online brands. They can offer rewards across their entire product line.
Comparing CVS ExtraCare to other programs shows its strengths. Many store loyalty programs only offer basic discounts. CVS ExtraCare gives personalized offers and bonus rewards. This makes it more appealing to customers. This personalized approach creates a better shopping experience. It also helps customers save more money. This builds a strong connection with the brand.
Implementing a similar system for your ecommerce business offers clear advantages. It encourages repeat purchases. It gives you valuable data about customer behavior. You can use this data to improve your marketing efforts. It also helps you build stronger relationships with your customers. Strong customer relationships lead to more sales and a more successful business.
8. Best Buy My Best Buy
Best Buy's My Best Buy program is a great customer loyalty program example. It shows how a big store can make a program that fits its shoppers. This free program gives special prices, early access to sales, and points for buying stuff. It's great for people who love tech. It gives longer return times and free tech help. These perks fit what tech shoppers want. My Best Buy is a smart way to keep shoppers coming back. This makes it a good example for other businesses looking to build customer loyalty.
My Best Buy has a free tier and a paid tier. The free tier gives you points when you shop. You earn between 0.5 and 2 points for every dollar you spend. This depends on your membership level. You also get special member prices and early access to sales. Need more time to return something? Members get 30 days, not just 15. Plus, you get free shipping on orders over $35 and access to special sales events. The paid tier, My Best Buy Totaltech, costs $199.99 per year. This gets you unlimited help from their Geek Squad tech support team.
Let's look at how My Best Buy stacks up against other programs. Many stores offer more points per dollar. But Best Buy focuses on tech perks. Think longer returns and free tech support. This makes it a good fit for their customer base. Other stores might offer wider rewards, like discounts on gas or groceries. Best Buy's program stays focused on tech.
Setting up My Best Buy is simple. Just go to their website and sign up. You’ll need to give some basic information. Then you can start earning points and using your perks right away. Want Totaltech? You can upgrade your membership online or in a Best Buy store.
This program is a good customer loyalty program example for several reasons. First, it is easy to join and use. Second, it gives real value to shoppers who love tech. The free tech support and longer return window offer peace of mind. Third, it's easy to see how this model can work for other types of stores. A clothing store could offer free tailoring or early access to new styles. A skincare store could offer free skin consultations or samples with every purchase.
Think about what your customers value. Best Buy knows its customers want help with tech and easy returns. They built their program around these needs. This makes My Best Buy a powerful tool to keep customers happy and coming back. It’s a great model for any business owner looking to start a customer loyalty program.
Here's a quick look at the good and the bad:
Pros:
- Focus on Tech: The benefits match what tech buyers want.
- Longer Returns: Get more time to decide if you like your purchase.
- Early Access: Get the newest tech before it sells out.
- Totaltech Support: Get all the tech help you need.
Cons:
- Low Point Value: You earn fewer points compared to some other stores.
- Totaltech Cost: The yearly fee for Totaltech might be too much for some.
- Tech Only: Rewards only work for Best Buy and tech purchases.
Visit the Best Buy website (https://www.bestbuy.com/site/my-best-buy/my-best-buy-memberships/pcmcat309300050007.c) to learn more.
Top 8 Customer Loyalty Program Comparison
Brand | Core Features ✨ | User Experience ★★★★☆ | Value Proposition 💰 | Target Audience 👥 | Unique Selling Points 🏆/✨ |
---|---|---|---|---|---|
Trace 🏆 | Complete email & SMS system, content-driven strategies | High repeat purchase uplift, streamlined UX | Predictable revenue growth, refund guarantee | E-commerce $500K+ brands, skincare, clothing | 90-day results guarantee, tailored to retention & scaling |
Starbucks Rewards | Points-based, mobile ordering, personalized offers | Seamless app experience, personalized perks | Free drinks/food with Stars | Coffee lovers, frequent Starbucks customers | Mobile app skip-line, tiered rewards |
Amazon Prime | Free 2-day shipping, Prime Video/Music, exclusive deals | Wide ecosystem engagement, strong ROI | Multi-service value for $139/year or $14.99/mo | Frequent Amazon shoppers | Extensive services, early deal access |
Sephora Beauty Insider | Points for purchases, beauty classes, tiered rewards | Engaging beauty community, personalized recommendations | Exclusive beauty samples & experiences | Beauty enthusiasts | Virtual try-on app, tier progression |
Target Circle | 1% back, personalized deals, charitable giving | Simple, free to join, relevant offers | Rewards on all Target spend | Target shoppers, community-minded customers | Charitable donations voting |
Southwest Rapid Rewards | Points on flights, no blackout dates, points never expire | Flexible, simple program | Companion Pass & no expiring points | Frequent Southwest flyers | Companion Pass, no blackout dates |
CVS ExtraCare | ExtraBucks rewards, personalized coupons, CarePass tier | Frequent savings, health-focused | Personalized rewards, free or paid tier | Pharmacy and health shoppers | Quarterly rewards, CarePass premium benefits |
Best Buy My Best Buy | Points on tech purchases, early sale access, tech support | Tech-focused, extended return and support | Exclusive pricing and tech support | Tech enthusiasts | Totaltech support tier, extended returns |
Make Your Own Loyalty Program Today!
This article showed you 8 great customer loyalty program examples. Programs like Starbucks Rewards, Amazon Prime, and Sephora Beauty Insider help keep shoppers coming back. They work for big brands and small brands. You can build one for your store, too!
Think about what makes these programs work. Free stuff? Points? Special perks? Pick what fits your store best. Think about your shoppers. What do they want?
The right tools can help. Do you sell online? Trace might work well for you. Do you want a simple points system? Maybe look into something like Target Circle uses. Do you sell beauty products? See how Sephora does it.
Pick a tool that’s easy to use and easy for your shoppers to understand. A good program makes buying fun! It helps people save money. A simple program is often the best program.
Start small. Build something good. Watch your shoppers (and sales) grow!