9 great loyalty programs to study

1. The North Face (XPLR Pass Loyalty Program)

The North Face uses a points loyalty program called XPLR to reward its customers. Customers who join the program can access exclusive gear, birthday gifts, birthday gifts, personalized customer experience, 10% off their first online purchase, and other amazing perks.

Every dollar a shopper spends with the retailer earns them points. Customers earn extra points when they download the North Face App, refer a friend, or check in at a national park.

This program is successful because it offers customers many ways to earn points, including when they participate in outdoor activities. Ideally, members earn 5 points for checking in at a U.S. National Park or National Monument with their iOS mobile app.

2. DoorDash's DashPass

DoorDash is a delivery service that enables customers to receive deliveries from local restaurants, convenience stores, and grocery stores to their doorstep. The company has a subscription service called DashPass ($9.99/month or $96/year) that gives members free unlimited deliveries from eligible restaurants for orders over $12. The small fee members are required to pay to enjoy exclusive benefits is one of the reasons this program is successful.

This program has many benefits for DoorDash. Firstly, DoorDash uses free deliveries and other valuable perks to encourage customers to stick with them and not switch to competitors. Secondly, members' subscription fees provide a predictable income source for DoorDash. Lastly, the subscription provides DoorDash with valuable data they can use to refine their marketing and customer experiences.

3. Sephora Beauty Insider Program

Sephora has built one of the most popular loyalty programs, with over 17 million members. Like other points programs, Sephora’s Beauty Insider reward program allows customers to earn points for each dollar they spend.

However, this system allows members to choose benefits that suit them, including standard rewards such as gift cards and higher-value perks like $50,000 giveaways. Another reason why customers love Sephora’s program is its exclusivity and privilege—members have access to limited edition products and exclusive discounts unavailable to regular shoppers.

4. The Body Shop’s Love Your Body Club

Not all loyalty programs include discounts. For example, The Body Shop runs a mission-based program called Love Your Body Club that allows customers to donate their rewards to charitable missions.

This program gives shoppers $10 for every 100 points to donate to charitable organizations like Black Lives Matter, Born Free USA, No More, and more. Mission-based programs not only allow the customers to contribute to a noble cause but also help strengthen the brand’s ethical values.

5. Famous Footwear Rewards

Famous Footwear is an online retailer that runs a cash back program. This program gives customers 5% reward cash for every 100 points. Customers earn one point for each dollar they spend. The maximum reward cash a customer can get is $250 a year.

The best part is that participants of Reward Cash programs are not excluded from other offers, including coupons and bonus points offers, and sales. Other benefits include free shipping and birthday rewards.

6. LIVELY

Lively is a clothing and accessories brand that runs a tiered rewards program. Tiers include the insider, inner circle, and VIP, with customers earning 1, 2, and 3 points for each dollar spent. Customers can also earn 10 points by following LIVELY on TIKTOK and 30 points when they purchase an item in-store.

LIVELY is clear about the annual spend for each tier—Insider ($1-$124), inner circle ($125-$324), and VIP ($325+). VIP members receive the best perks, including upgrade offer discounts, free expedited shipping, and VIP customer care text service. The company uses this program to incentivize customers to spend more to reach new levels, leading to a higher average order value. Also, the idea of giving top-tier members access to more exclusive perks motivates customers to remain engaged and keep buying from the retailer, which increases profits for the business. 

7. Dollar Shave Club

Dollar Shave Club has a subscription program where customers automatically become members after their first purchase. Instead of enticing customers to spend more to earn more points and rewards, Dollar Shave Club has a community-like approach that gives members automatic access to new and exclusive products, free shipping, personalized experiences and recommendations without paying anything extra.

Dollar Shave Club’s free subscription program is successful because it prioritizes customers’ interests instead of being driven by customer spending, which is key in building customer trust.

8. Alo Yoga

Alo Yoga has a free membership program called Alo Access that allows customers to earn 1 point per spent dollar and gives them access to exclusive benefits and rewards. Alo Access is a tired program with three levels: VIP (0-299 points), A-list (300-999 points), and All Access (1000+ points).

Members of the VIP tier have access to members-only sales and exclusive access to new drops and special limited capsules. A-list tier members enjoy surprise giveaways and bonus point days. On the other hand, All Access members have access to VIP events & studio classes, invite-only benefits, and concierge service.

Alo Yoga uses this program to enhance customer engagement and encourage customers to buy more to reach higher levels and unlock exclusive benefits. Also, the program gives the company access to valuable customer data it can use to improve its targeting and product offerings. Lastly, the program helps Alo Yoga build a community around its brand, which helps improve brand loyalty and advocacy. 

9. REI Co-op

REI Co-op has a unique lifetime subscription membership program, REI Co-op Membership. This program requires customers to pay a one-time fee of $30 to become life members. Member benefits include an annual 10% back on all eligible purchases, members-only offers on outdoor products, access to unique local events, and more.

REI uses the one-time membership fee to give members a sense of belonging and make them feel part of a community. This motivates them to continue buying from the retailer and refer others, which helps increase profits.

Additionally, REI uses exclusive member benefits to attract non-members to join the program, creating more revenue streams through subscriptions and purchases. Also, the annual dividends on purchases encourage members to keep shopping from the retailer over competitors.

A Unique Loyalty Program is Key to Success

Loyalty programs offer a unique way for retailers to build customer trust, get more repeat purchases, and benefit from word-of-mouth marketing. Retailers should analyze their businesses and customer base to create unique loyalty programs that will deliver results.

Every retailer should aim to provide customers with a more personalized and satisfying loyalty experience that aligns with brand values. Also, understanding and managing customer expectations is key to maintaining existing customers, which opens doors for word of mouth and other growth opportunities.