We often discuss the strategies, mechanics, theories, benefits and outcomes of loyalty programmes in our articles. But I think the best way to truly understand how they work is to see them in practice. I’m going to show you ten loyalty programme examples, each of which has a lesson to teach, including one or two that are our clients.
But first, it’s important to understand which industries are perfect for loyalty programmes. It’s often more the case than not that loyalty programmes are ideal for a sector. However, there are nuances we need to consider. Pairing these up with the key takeaway from each example, should inform your decisions around your own loyalty programme e.g., the type of programme, reward models and engagement tactics – when you come to design one for yourself.
By the end of this article, you’ll have a clearer view of what makes a loyalty programme effective.
Contents
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Why Are Loyalty Programmes Important for Customer Engagement?
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Customer Loyalty Programme Examples
1) HelloFresh - Always On (Instant Rewards)
2) Pret A Manger - Always On (Instant Rewards)
3) Starbucks and Spotify - Loyalty Partnerships
4) Marriott Bonvoy and Uber - Loyalty Partnerships
5) Airbnb - Referral Programme
6) Duolingo - Gamified Loyalty
7) Panera Bread - Gamified Loyalty
Key Takeaways
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The best loyalty programmes create genuine value exchanges where customers get what they actually want while brands build deeper relationships and gather insights that matter.
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Instant rewards beat delayed gratification every time. HelloFresh proves that when customers get immediate value without jumping through hoops, engagement naturally follows and friction disappears.
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Smart partnerships multiply your programme's appeal without multiplying costs. When Starbucks teams up with Spotify or Marriott partners with Uber, both brands tap into each other's audiences while offering more compelling rewards.
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Turn routine interactions into something customers want to repeat. Duolingo and Panera Bread show how adding game-like elements can boost engagement by 30% because people naturally love progress and competition.
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Tiered programmes work particularly well in aspirational sectors like beauty and luxury, where status and exclusivity motivate customer behaviour.
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Premium loyalty programmes can generate significant revenue - as seen with JD Gyms' 5700% increase in premium subscriptions.
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Industry-specific customisation is crucial - what works in retail differs from travel or pet supplies sectors.
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Mobile integration and personalisation are no longer optional - they're essential components of modern loyalty strategy.
Why Are Loyalty Programmes Important for Customer Engagement?
At one time, customers were happy with solely transactional interactions with brands. Good customer service and convenience were cherries on top. Nowadays, in the age of digital software, at the advent of novel experiences and unparalleled personalisation, the modern consumer expects more in their interactions with your brand.
Enter loyalty programmes. These digital mechanisms function behind the scenes to deliver deeper, unique and personalised experiences for your customers. Effectively, what loyalty programmes do is connect your brand and customers into an ongoing dialogue. With the language they’re speaking being rewards and benefits in return for the customer’s loyalty.
Over half of customers said they felt better understood by brands with loyalty programmes. Why wouldn’t they? After all, loyalty programmes can automate reward offerings, send birthday emails, incentivise advocacy at the golden hour, and gamify the customer experience.
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Which Industries Benefit from Loyalty Programmes?
Honestly, the question should be, which industries don’t benefit from loyalty programmes. That might sound blatantly biased coming for a loyalty software provider – but it’s true! If there’s one thing we’ll have in common, it’s that we’ve both in the customer seat.
Most of us know how it feels when a business makes the effort to send you a special offer on your birthday. Or even your preferred shopping market giving you in-app discounts on your favourite products in the weekly shop. Truth is, most sectors can make loyalty programmes work in a way that makes sense to their customers and clients. It’s not a matter of programme flexibility but the limits of imagination.
That said, I think if your business is in any of the industries below, a loyalty programme of some sort (whether built in-house or outsourced to a third party platform) should be on your to-do list.
D2C Industry
Direct-to-consumer brands already offer the convenience of cutting out the middle-man. It’s convenient for the customer, and widens the margins of the D2C brand. However, there’s one thing that’s essential with a capital E for D2C brands. What Start Up Magazine calls currency for the D2C label…and that’s data.
Products must meet certain regulations and industry standards. A D2C brand can cast a wider net by boosting their credibility with feedback loops. In return for advocating the quality of the products on website reviews, for example, the customer could receive a discount on their next order.
Food & Beverage Industry
Adoption of loyalty programmes is widespread in the Food and Beverage sector. Most chain restaurants now have a customer loyalty programme in place. Subscription-based meal kit services like HelloFresh also offer incentives to their customers.
In fact, quick-service restaurants were early pioneers of the very concept of customer loyalty. McDonald’s introduced their Monopoly game in 1987! Perhaps one of the world’s oldest examples of gamified loyalty. Now, look at the prominent role mobile apps have taken in today’s gamification…it’s taken it to a whole other level.
Fashion Industry
Loyalty programmes are also an excellent tool for helping brands evolve in changing times. Take the Fashion industry. Sustainability is practically semantic in a world that was all about excess, furs and consumerism. As the values of the 21st Century fashionista shifted, the industry as a whole needed a wardrobe change.
Now the biggest fashion brands have adorned every aspect of their business with all things sustainable. Part of this image revamp are loyalty programmes. Savvier brands understand that 25% of Millennials and Gen-Z won’t shop with brands that don’t align with their personal values. Green loyalty programmes reward customers for being sustainable. For many that’s a big draw.
Luxury Industry
There’s a curious dichotomy in the modern world. Many people struggle to fulfil personal aspirations (like buying their first home). Yet, nearly all of us in the Western World possess smartphones and drive cars with features that were once considered luxury.
It’s a shift that shows how the globalised economy has delivered what were previously exclusive products to wider demographics. Luxury brands understand that aligning their loyalty programmes with themes of exclusivity removes barriers of entry for aspirational customers while maintaining that air of prestige for higher income audiences. In this instance, the loyalty programmes broadens the scope of acquisition, and deepens the pull of customer retention.
Beauty & Cosmetics Industry
During your research about loyalty programmes, no doubt you’ve come across Sephora's Beauty Insider – and for good reason! Their loyalty programme has become a flagship example of what one should look like in the Beauty and Cosmetics industry.
For one thing, it tells loyalty experts that experiential rewards are a match made in heaven for Beauty & Cosmetic loyalty programmes. Sephora have gone the extra mile, implementing incentives that just make sense to their audience. For example, the virtual try-ons in exclusive masterclasses are simply genius. But let’s not forget they’ve also mastered the basics, such as personalised product recommendations based on purchase history.
Home & Household Industry
Home and household brands are in prime locations for building loyalty programmes that align with life’s major milestones. Whether it’s first-time buyers or homeowners tackling seasonal renovations, loyalty programmes have something to offer for everyone.
Timely, relevant rewards that feel like natural progressions in everyday household decisions help drive repeat purchases. Given that the nature of household purchases are often recurring, that’s an ideal spot for any business in this sector.
Sports Industry
Sports brands like JD Gyms are teaching their wider sector a lesson or two in gamification and achievement-based rewards. The way they use their loyalty programme is a masterclass in understanding your audience.
Gym-goers are competitive and it’s that drive which JD Gyms’ leverages to turn regular activities into engaging challenges. It’s a killer combination of digital tracking, personal goals, and tangible rewards that together bind customers into an utterly compelling engagement loop.
Travel & Tourism Industry
The travel sector by and large understands the power of loyalty. For many years now, airlines and hotels have been leading the way. We’ve seen how modern travel loyalty programmes have gone beyond traditional loyalty points and miles, bringing partner rewards and experiential benefits into the loyalty experience. The high transaction value in travel makes loyalty programmes the next logical step for convincing customers to press that ‘book holiday’ button.
And that’s why I think tiered loyalty programmes are the perfect match for this industry. When people are going on holiday they want to treat themselves. So it only makes sense for the loyalty programmes to make travelling customers feel like VIPs. That can be achieved through different status levels. Up to 73% of travellers are willing to increase spend by 30% for room upgrades, for example.
Consider rewards like priority boarding, lounge access, room upgrades. All these perks turn routine travel into something truly special, even if the flights are delayed, customers can rest assured sipping a glass of champagne.
Pet Supplies Industry
With pet industry spending reaching $136.8 billion in 2022 (APPA, 2023) and 66% of US households owning pets, pet suppliers can capitalise on both emotional connections and routine purchases. Successful programmes here combine practical rewards like autoship discounts with engaging elements such as pet birthday clubs and VIP grooming services.
Always On loyalty programmes work brilliantly here because pet care never stops. Monthly flea treatments, weekly food deliveries, seasonal toys;there's always something pets need. When loyalty programmes seamlessly integrate into these ongoing care routines, they become as essential as the morning dog walk.
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10 Loyalty Programme Examples
We'll explore ten standout loyalty programmes across different industries, examining how each programme type - from Always On rewards to Premium memberships - drives customer engagement. These real-world examples demonstrate the strategic thinking behind successful loyalty programmes and show why certain approaches work better for specific business models.
1) HelloFresh - Always On (Instant Rewards)
Industry: Online food delivery services - meal kits
HelloFresh, one of our flagship clients, has fine tuned the technique of instant rewards. Their subscription-based loyalty walks hand in hand with their service of personalised meal plans delivered to their customers’ front doors. Each meal is tailored to dietary preference, vegetarian diets and family-friendly options.
All of this, tailored to preferences, convenience, variety and personalisation makes HelloFresh a perfect fit for customer loyalty. They opted for an "Always On" loyalty programme.
Unlike traditional points-based systems that make customers wait to access benefits, HelloFresh's programme offers immediate value 24/7 around the clock.
The inclusive accessibility opens the door for engagement with all customers, in spite of how much they may spend. It’s for this reason the programme has been so successful. HelloFresh has removed common friction points that we typically see in loyalty initiatives. Together, we’ve eliminated complex earning criteria and made rewards instantly accessible.
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2)Pret A Manger - Always On (Instant Rewards)
Industry: Food distribution and food manufacturing - meal kits
Pret A Manger's subscription service shows how Always On rewards can transform routine coffee purchases into compelling customer loyalty. Their ClubPret programme offers unlimited coffee, tea, and select drinks for a monthly fee, essentially turning daily caffeine habits into instant gratification.
What's brilliant is how they've made every visit feel rewarding. Members are getting instant value every single time they walk through the door. It's the kind of programme that makes you rethink your route to work just to grab that "free" flat white.
This type of loyalty programme excels at offering customers tangible benefits they can feel immediately. When you're saving money on something you'd buy anyway (like your daily coffee) the value proposition becomes crystal clear. Always On programmes work because they deliver instant gratification without making customers jump through hoops or wait for points to accumulate.
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3) Starbucks and Spotify - Loyalty Partnership
Industry: Retail coffee and audio streaming & podcasting
Starbucks shows us how with the right technology a brand can create immersive experiences through partnerships. Their partnership with Spotify allowed customers to curate playlists in their local Starbucks cafe. Aside from an integrated digital ecosystem, Starbucks loyalty programme should be lauded for the suitability between partners.
Rather than just personalising a customer’s morning coffee, the partnership essentially personalised the entire experience of grabbing a cuppa joe on the morning commute. Surveys show that 63% of marketers agree that one of the top benefits of personalisation is increased engagement.
And for both of these brands high engagement rates are absolutely critical. Given that Spotify boasts 60 million users and Starbucks has 10 million reward members. It’s a strategic collaboration that in addition to amplifying engagement probably also boosted acquisition.
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4) Marriott Bonvoy and Uber - Loyalty Partnership
Industry: Hospitality services and Transportation
Here’s another example of a fantastic partnership. You’ll notice a running theme here; relevancy. Successful brand partnerships always make sense to each brand’s respective audiences. The service must be complementary. Therefore it makes sense for Marriott, with its 7,800 properties worldwide, and Uber, operating in over 900 metropolitan areas, to come together.
Their loyalty programme is a points-based system. Customers are rewarded throughout their travels. So a customer earns points for grabbing a Uber ride or ordering through Uber Eats at a Marriott property, or dining at eligible restaurants. You can look at this as an integration of every day customer behaviours for each brand. Brining hospitality and convenience together to enhance the customer experience across all touchpoints.
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5) Airbnb - Referral Programme
Industry: Hospitality & travel services
Next we come to an example of ultimate loyalty; a referral programme. Airbnb's approach to loyalty focuses on the power of peer-to-peer recommendations. Their referral programme, wisely a dual-benefit system, rewards both existing users and newly referred customers with travel credits. These are allocated upon completion of the newcomer's first stay.
The brilliance of any referral programme is trust. See it as the engine of your referral programme. If you break it, the machine stops moving, brand advocates will no longer recommend your brand, and new leads will dry up.
Whilst Airbnb leverages natural pathways for growth, their referral-based loyalty strategy is not solely focused on acquisition. The Airbnb community is promoted amongst advocates – which again fuels the engine of trust. Customers are more receptive to reviews and feedback than any form of advertising.
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6) Duolingo - Gamified Loyalty
Industry: Educational technology
Duolingo's gamified loyalty programme encourages users to continue learning new languages. Their loyalty programme introduced gaming elements such as XP points, daily streaks, and competitive leaderboards into the core learning experience.
Gamification technique instils a sense of accomplishment and progress. As a result, users want to return regularly to maintain streaks and earn points. Through challenges and competitive elements, Duolingo maintains engagement while supporting their primary mission of language education.
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7) Panera Bread - Gamified Loyalty + Points
Industry: Retail coffee & retail chain bakery
MyPanera exemplifies how gamification can refresh traditional retail loyalty. With over 2,000 locations across North America, Panera uses gamified challenges to drive engagement. As their Chief Digital Officer notes, they focus on "disruptive value and personalised rewards."
With gamification delivering a 30% lift in customer engagement and loyalty, MyPanera's taps into that success by building anticipation through time-limited challenges and surprise rewards.
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8) Ulta Beauty - Tiered Loyalty
Industry: Beauty & cosmetics retail
Ultamate Rewards is a prime example of a well-designed tiered loyalty programme. Their multi-tiered structure lays out a clear path towards exceptional benefits depending on their rank, varying from basic points earning, to premium perks like exclusive events, and priority access to product launches.
The programme's effectiveness stems from understanding their market psychology. For beauty and cosmetics consumers, the combination of practical rewards with status-driven benefits justifies further spend with Ulta. The tiered structure naturally encourages increased engagement as members strive to reach and maintain higher tier levels.
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9) Chase Bank - Earn and Burn
Industry: Finance
Chase's Ultimate Rewards programme shows how flexibility turns everyday spending into something more rewarding. They've cracked the code by connecting credit card purchases to a versatile rewards system that actually adapts to what customers want. This flexibility means routine transactions suddenly feel more valuable, and that keeps people engaged long-term.
What's clever is how Chase makes everyday spending feel strategic. The tiered benefits structure lets users be smart about their point usage, especially when it comes to travel redemptions and exclusive experiences.
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10) JD Gyms- Premium Loyalty
Industry: Fitness
Another one of our clients JD Gyms has revolutionised fitness loyalty through their Plus Membership programme. Their premium approach combines membership upgrades with gamification and referral incentives to drive engagement. Subscription uptake increased by a seriously impressive 5700%!
With 60% of consumers spending more with brands offering paid or premium loyalty programmes, JD Gyms proves that customers will invest in premium loyalty when the value proposition is clear. Their success shows that when a loyalty programme genuinely enhances the customer experience, members are willing to pay more for additional benefits.
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Ready to Set an Example with Your Own Loyalty Programme?
And there we have it. You should now be in a prime position for making your own loyalty programme work. The loyalty programme examples we’ve shown you highlight how businesses in different sectors leverage loyalty initiatives to enhance customer experiences, boost engagement, and build advocacy.
You may be drawn to the instant gratification of Always On rewards, or tiered systems might appeal to you – but remember – the key is choosing a loyalty programme type that fits your customers' behaviours and your business goals.
Every successful programme regardless of its types makes customers feel valued, appreciated and seen. If you think now’s the right time to get your loyalty programme in motion, contact our team today, and we’ll see how we can make loyalty work for your brand.
FAQs
What makes a loyalty programme successful in driving customer engagement?
Loyalty programmes make customers feel valued, appreciated and seen. Successful programmes combine instant gratification with personalised experiences. Usually there’s mobile app integration, relevant rewards, data-driven personalisation, and rewards that enhance convenience like free shipping.
How do tiered loyalty programmes differ from points-based programmes?
Tiered programmes focus on status and progression. For example, as we see with airlines with structured frequent flyer levels that unlock VIP perks as customers spend more. Points-based programmes focus on earning and burning points for rewards.
What role does gamification play in modern loyalty programmes?
Gamification turns everyday interactions between customers and brands into fun, enhanced experiences. Daily streaks, achievement badges, challenges add a level of interactivity that are quite simply difficult for customers to resist engaging.
How can businesses measure the ROI of their loyalty programme?
Track redemption patterns and mobile app engagement too. The real win is when loyal customers become your biggest advocates and spend significantly more over time. You can use Propello’s ROI calculator to predict the outcomes of your investments in loyalty.
What's the difference between premium and standard loyalty programmes?
Premium programmes ask customers to pay upfront for better benefits – think Amazon Prime. Standard programmes are free but often have limitations. Here's the kicker: 60% of consumers actually spend more with brands offering paid loyalty programmes because they feel more invested in getting their money's worth.
How important is mobile app integration for loyalty programmes?
Absolutely crucial. Your loyalty programme needs to live where your customers do – on their phones. Mobile apps enable real-time point tracking, instant reward redemption, and those personalised offers that actually work. Without mobile integration, you're basically asking customers to jump through hoops.
What are the benefits of loyalty partnerships between brands?
Smart partnerships expand what you can offer without expanding your costs. Think of our Starbucks rewards and Spotify example. Collaborations between brands lead to unique experiences, which improves differentiation and expands audience reach.
How often should loyalty programme rewards be updated?
Keep things fresh with quarterly reviews of your reward offerings and seasonal promotions. Monitor what people are actually redeeming and listen to customer feedback.
What makes Always On rewards different from traditional loyalty programmes?
Always On programmes skip the waiting game entirely. Instead of collecting points for months, customers get instant value every time they engage. Think HelloFresh's approach – immediate benefits without complex earning requirements. It's instant gratification that actually drives higher engagement.
How can brands personalise their loyalty programme effectively?
Use the data you already have smartly. Purchase history, browsing patterns, redemption preferences, as this tells you what customers actually want. Offer member-only discounts on products they've bought before, early access to items in their favourite categories.
Mark Camp | CEO & Founder at PropelloCloud.com | LinkedIn
Mark is the Founder and CEO of Propello Cloud, an innovative SaaS platform for loyalty and customer engagement. With over 20 years of marketing experience, he is passionate about helping brands boost retention and acquisition with scalable loyalty solutions.
Mark is an expert in loyalty and engagement strategy, having worked with major enterprise clients across industries to drive growth through rewards programmes. He leads Propello Cloud's mission to deliver versatile platforms that help organisations attract, engage and retain customers.
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