7 Best Customer Retention Examples From Top Brands

Customer retention is no longer a nice-to-have. Acquiring a new customer costs five to seven times more than keeping an existing one, yet most marketing budgets still tilt heavily toward acquisition. The brands that consistently grow are the ones that have cracked the code on keeping customers coming back. In this post we break down seven of the best customer retention examples from companies across retail, hospitality, food service, and subscription industries. Each example highlights the mechanics behind the program, what makes it work, and where it falls short, so you can draw practical lessons for your own retention strategy.

Best customer retention examples at a glance

• Starbucks: Best for gamified mobile engagement: Starbucks Rewards turns everyday coffee purchases into a points-and-star game that drives daily app opens.

• Amazon: Best for subscription-led retention: Amazon Prime bundles so many benefits into one annual fee that cancelling feels like a loss.

• Sephora: Best for tiered VIP recognition: Beauty Insider segments customers into spend-based tiers that reward the most loyal shoppers with exclusive access.

• Nike: Best for community-driven loyalty: Nike Membership connects product perks with fitness challenges and a running community to build identity-level loyalty.

• The North Face: Best for values-aligned retention: XPLR Pass rewards outdoor adventures and sustainable choices, not just purchases.

• Marriott: Best for cross-brand hotel loyalty: Marriott Bonvoy links over 30 hotel brands and a partner ecosystem into one points currency.

• Domino's: Best for frictionless repeat ordering: Domino's Rewards keeps the redemption bar low and the ordering flow fast to maximise order frequency.

1. Starbucks, Starbucks Rewards

Starbucks is probably the most cited customer retention example in the world, and for good reason. Starbucks Rewards has over 34 million active members in the United States alone, and those members account for more than 57 percent of total US revenue. The program awards Stars for every dollar spent, but what elevates it beyond a basic points scheme is the gamification layer: bonus Star challenges, Double Star Days, and personalised offers delivered through the app. Members feel like they are playing a game every morning, which makes opening the app a habit rather than a chore.

Program highlights:

• Earn 2 Stars per dollar spent with a registered card or app payment

• Personalised bonus challenges sent via push notification (e.g., "Earn 50 bonus Stars this week")

• Milestone rewards at 25, 150, 200, 300, and 400 Stars

• Birthday reward unlocked automatically on your registered birth date

• Mobile order and pay reduces friction and increases visit frequency

• Gamified streaks and limited-time Double Star events create urgency

Best for:

• Brands with high purchase frequency that want to convert casual buyers into habitual ones

• Businesses ready to invest in a mobile app as the primary loyalty interface

• Companies that want personalisation at scale through behavioural data

Pros:

• Exceptionally high engagement rates driven by the app-first experience

• Personalisation engine means each member receives relevant, not generic, offers

• Stars-to-reward structure is transparent and easy to understand

• Programme data feeds product innovation (new drinks are tested against member preferences)

Cons:

• Requires significant tech investment; small brands cannot replicate this without a platform

• Stars have no cash value, which frustrates some customers who prefer straightforward discounts

• Over-reliance on the app excludes non-smartphone users

2. Amazon, Amazon Prime

Amazon Prime is the gold standard for subscription-based customer retention. Launched in 2005 as a free two-day shipping perk, it has grown into a bundle covering fast delivery, Prime Video, Prime Music, Prime Reading, Amazon Photos, early access to Lightning Deals, and more. The retention mechanic is what behavioural economists call "loss aversion": once a member uses two or three of the benefits regularly, cancelling the subscription feels psychologically costly even if the price increases. Amazon reported over 200 million Prime members globally in 2021, and the program is widely credited with locking in a disproportionate share of US household e-commerce spending.

Program highlights:

• Annual or monthly subscription fee unlocks the full benefit bundle

• Free same-day or two-day delivery on millions of items reduces the decision cost of each purchase

• Prime Video and Prime Music provide daily value independent of shopping

• Early access to Prime Day and Lightning Deals rewards loyalty with exclusive savings

• Amazon Family and Amazon Student sub-tiers extend retention into life-stage segments

• Seamless Alexa and device integration deepens the ecosystem lock-in

Best for:

• Brands with a broad product or service catalogue that can bundle multiple value propositions

• Subscription businesses looking to reduce churn through ecosystem depth rather than discounts alone

• Retailers that can compete on convenience and speed as a core differentiator

Pros:

• Subscription fee creates predictable recurring revenue and a strong financial incentive for the customer to stay

• Bundle breadth means members find value in at least one benefit even if they do not shop frequently

• Network effects grow with device ownership, making switching increasingly painful

Cons:

• The model requires enormous infrastructure investment (warehouses, streaming content, cloud services) that most brands cannot replicate

• Annual price increases test member tolerance and can trigger churn spikes

• Some members perceive the value as uneven if they primarily want shipping but pay for the full bundle

3. Sephora, Beauty Insider

Sephora Beauty Insider is one of the most studied customer retention examples in specialty retail. The program uses a three-tier structure: Insider (free), VIB (Very Important Beauty Insider, unlocked at $350 annual spend), and Rouge (unlocked at $1,000 annual spend). Each tier delivers progressively richer rewards: extra points, exclusive events, early product launches, and free beauty services. The tier structure is transparent, aspirational, and social. Members know exactly what they need to spend to reach the next level, and many share their tier status on social media, giving Sephora organic brand advocacy as a side effect of retention.

Program highlights:

• Three clearly defined spend-based tiers with visible upgrade thresholds

• Points earned on every purchase, redeemable for deluxe samples or full-size products in the Rewards Bazaar

• Tier-exclusive birthday gifts that increase in value at VIB and Rouge levels

• Exclusive access to in-store and online beauty events and masterclasses for upper tiers

• Seasonal bonus point events (Spring Savings Event, Holiday Bonus) drive burst spending

• Community features including Beauty Insider Community forum for product recommendations

Best for:

• Retailers with a wide product assortment where experiential rewards (samples, events) add margin-efficient value

• Brands whose customers have a strong identity connection to the product category

• Companies that want to use tier status as social currency to drive word-of-mouth

Pros:

• Tiered structure creates natural upsell pressure without requiring discounts

• Experiential rewards (events, services) differentiate the program from pure points-and-cash schemes

• Strong community integration amplifies word-of-mouth at scale

• Data collected across tiers enables highly targeted product recommendations

Cons:

• The $1,000 Rouge threshold is aspirational but irrelevant for occasional buyers, leaving the base tier feeling thin

• Points expire annually, which frustrates lower-frequency shoppers

• Heavy focus on beauty enthusiasts means the program does less for gift purchasers or infrequent buyers

4. Nike, Nike Membership

Nike Membership (formerly NikePlus) is a masterclass in community-driven retention. Rather than centering the program on discounts, Nike ties membership to identity: being a runner, an athlete, a person who pushes limits. Members get early access to product drops, exclusive colorways, and invitations to local run clubs. The Nike Run Club and Nike Training Club apps integrate directly with membership, rewarding activity with challenges, badges, and personalised coaching plans. This turns loyalty from a transactional exchange into an emotional relationship with the Nike brand as the enabler of personal achievement.

Program highlights:

• Free membership with access to the Nike Run Club and Nike Training Club apps

• Exclusive member-only product releases and early access to limited drops

• Personalised workout plans and coaching content tied to member activity data

• Challenges and milestone badges that reward fitness consistency, not just purchases

• Birthday reward and personalised anniversary messages to deepen emotional connection

• Member Days with dedicated access to deals not available to non-members

Best for:

• Brands where lifestyle and identity are as important as product quality

• Companies that want to use non-purchase behaviours (app use, physical activity) to deepen loyalty

• Retailers with a product scarcity angle (limited releases) that can reward loyalty with access rather than price cuts

Pros:

• Community and fitness content create daily engagement touchpoints that do not require a purchase

• Exclusive product access rewards loyalty in a way that money cannot simply replicate

• Activity-linked rewards align the brand's values with customer behaviour

• Strong emotional resonance reduces price sensitivity among core members

Cons:

• Program benefits are most compelling for fitness-active members; casual buyers see limited value

• Exclusive drops can create frustration when demand exceeds supply, even among loyal members

• Significant investment in content and community management is required to maintain engagement

5. The North Face, XPLR Pass

The North Face XPLR Pass is one of the most distinctive customer retention examples because it rewards behaviours that align with the brand's outdoor and sustainability ethos, not just purchases. Members earn points for buying products, but they also earn points for checking in at national parks and trails, attending North Face events, and downloading the app. A sustainability layer rewards purchases of recycled or repaired products. This values-alignment approach attracts and retains customers who share The North Face's worldview, creating a loyalty base that is ideologically as well as commercially committed to the brand.

Program highlights:

• Points earned for purchases, trail check-ins, event attendance, and app downloads

• Bonus points for buying products made with recycled materials or using the Renewed (repaired gear) program

• Member-exclusive product access and gear testing opportunities

• Experiential rewards including adventure trips and guided experiences for top earners

• Tiered status (Member, Pro, Summit) with progressively richer benefits

• Partner rewards with brands like Headspace and REI Co-op that share outdoor and wellness values

Best for:

• Brands with a strong sustainability or lifestyle mission that want loyalty to reflect those values

• Companies whose customers engage with the brand beyond the purchase (outdoor activities, events)

• Retailers that want to reduce reliance on discounts by offering access and experiences instead

Pros:

• Values-aligned mechanics attract high-affinity customers who are less price-sensitive

• Non-purchase earning (trail check-ins, events) deepens engagement between buying cycles

• Sustainability rewards create positive PR and reinforce brand positioning

• Experiential top-tier rewards are highly differentiating and difficult for competitors to copy

Cons:

• Check-in and event-based earning requires physical effort, limiting participation among urban or less active customers

• The program is most compelling for outdoor enthusiasts; gift buyers or one-time purchasers see little benefit

• Adventure trip rewards at the top tier are only attainable for very high spenders

6. Marriott, Marriott Bonvoy

Marriott Bonvoy is the largest hotel loyalty program in the world by membership, with over 196 million members across more than 30 brands including The Ritz-Carlton, W Hotels, Sheraton, and Courtyard. The program's retention power comes from its breadth: a member earns points whether they stay at a budget Fairfield Inn or a luxury St. Regis, and those points flow into one currency redeemable across the entire portfolio. Bonvoy also operates an extensive co-branded credit card ecosystem and partnerships with airlines and car rental companies, making it a points currency that touches nearly every part of a member's travel life.

Program highlights:

• Six status tiers (Member, Silver, Gold, Platinum, Titanium, Ambassador) based on nights stayed per year

• Points earned at every brand in the portfolio at rates that increase with elite status

• Free night awards, room upgrades, and late check-out as elite benefits

• Co-branded Marriott Bonvoy Amex cards allow points earning on everyday spend outside hotels

• Airline mile transfer partnerships with over 40 airlines add redemption flexibility

• Homes and Villas by Marriott Bonvoy extends the program into vacation rental inventory

Best for:

• Multi-brand hospitality or retail groups that want to unify customer loyalty across a diverse property or product portfolio

• Companies whose customers travel frequently for business and want their loyalty recognised across every trip

• Brands that can build or join a partner ecosystem to increase the everyday relevance of their points currency

Pros:

• Portfolio breadth means members can earn and burn points without needing to change travel habits

• Co-branded credit card drives daily engagement and incremental points outside the core hotel context

• Ambassador status (100+ nights per year) creates an ultra-loyal segment with deeply personalised service

• Partner ecosystem makes points feel like a versatile currency rather than a brand-specific coupon

Cons:

• Program complexity (six tiers, dozens of brands, hundreds of partner redemption options) is confusing for casual members

• Points devaluations over the years have eroded trust among high-value members

• Small independent hotel operators within the system sometimes deliver inconsistent elite benefits, damaging the program's promise

7. Domino's, Domino's Rewards

Domino's revamped its loyalty program in 2023 with a deliberate focus on lowering the barrier to redemption. The original program required accumulating 60 points (six orders) before a member could redeem a free item. The new Domino's Rewards lets members start redeeming at just 10 points (one order), with a tiered reward menu where bigger points balances unlock bigger free items. The strategy is rooted in a simple insight: in quick-service restaurants, order frequency is everything, and any friction in the reward journey reduces frequency. By making the first reward feel immediately within reach, Domino's increased both sign-ups and order cadence.

Program highlights:

• 10 points earned per qualifying order regardless of order size

• Redemption starts at 10 points for a free item (dips, bread twists) and scales to 60 points for a free pizza

• Points balance and reward options visible in the Domino's app at all times

• Domino's Rewards members can also receive exclusive member-only offers and limited-time promotions

• Easy digital ordering via app, website, or voice assistant integrates seamlessly with the points flow

• No blackout dates or order minimums for redemption on qualifying items

Best for:

• Quick-service or fast-casual restaurants that compete on frequency and want loyalty mechanics to reinforce habitual ordering

• Brands whose customers are price-sensitive and respond more to immediate, tangible rewards than aspirational tiers

• Businesses that want a simple, low-maintenance program that drives repeat orders without complex segmentation

Pros:

• Low redemption threshold (one order) removes the "point purgatory" frustration common in other programs

• Simplicity means low customer education cost and high enrolment conversion

• Scaled reward menu (small items to free pizza) gives members a sense of progression without requiring large spend

Cons:

• Low redemption threshold can increase cost per retained customer if order values are small

• Simplicity limits personalisation; all members receive broadly the same experience regardless of lifetime value

• Program does not reward loyalty to specific product lines or upsell behaviours, missing a revenue optimisation opportunity

Decision Framework

Choosing a retention approach is not about copying the biggest brand. It is about matching the mechanism to your customer relationship, purchase cadence, and operational capacity. Here are the four key dimensions to consider.

Purchase frequency: daily habit vs. occasional purchase

Starbucks Rewards and Domino's Rewards are built for high-frequency, low-consideration purchases. The gamification (bonus Stars, challenges) and low redemption thresholds make sense when customers buy multiple times a week. If your customers buy once a month or less, a subscription model like Amazon Prime or an aspirational tier structure like Sephora Beauty Insider creates retention between purchase cycles by delivering ongoing value (content, status, benefits) rather than waiting for the next transaction.

Identity and values: transactional vs. emotional loyalty

Nike Membership and The North Face XPLR Pass work because their customers see the brand as an expression of who they are. If your brand occupies a similar identity position in a lifestyle, wellness, sustainability, or sports category, consider rewarding non-purchase behaviours (activities, check-ins, challenges) as XPLR Pass does. If your relationship with customers is primarily transactional, start with a clear points-and-rewards structure before layering on community features.

Portfolio breadth: single brand vs. multi-brand ecosystem

Marriott Bonvoy derives its retention power from portfolio breadth: members stay loyal because the program covers every price point and travel occasion. If you operate multiple brands, product lines, or service categories, consider a unified points currency that works across all of them, just as Bonvoy links 30-plus hotel brands. For single-brand operators, Sephora's tier model is more instructive: use spend-based tiers to create an aspirational ladder within your own catalogue.

Reward type: discounts vs. access vs. experiences

Domino's and Amazon deliver value primarily through direct financial benefit (free food, free shipping). Sephora and Nike increasingly reward with access (exclusive events, early drops) rather than discounts. The North Face goes furthest with experiential top-tier rewards (adventure trips). As a general rule, discount-led programs attract price-sensitive segments but also attract coupon hunters who leave when the deal disappears. Access and experience rewards build deeper loyalty at lower margin cost, but they require more programme design effort. For a deeper look at loyalty structures that move beyond discounts, the NeoDay loyalty platform covers gamification-led approaches including milestones, challenges, and tier mechanics.

For more context on how loyalty programs are categorised across industries, see our guide to loyalty program examples in various industries.

Want to build a retention program that actually works for your business?

NeoDay helps B2B and B2C brands design loyalty programs powered by gamification: points, tiers, milestones, and challenges that keep customers engaged between purchases. Unlike generic discount tools, NeoDay gives you the mechanics to reward the behaviours that matter most to your business. Talk to the team to see how it fits your retention goals.

Sources: Starbucks Investor Relations, Amazon Annual Report 2021, Sephora Beauty Insider Program, Nike Membership, The North Face XPLR Pass, Marriott Bonvoy, Domino's Rewards, Harvard Business Review: The Value of Keeping the Right Customers

FAQ

What is a customer retention example? A customer retention example is a real-world case where a brand uses a specific strategy, typically a loyalty program, subscription model, or community initiative, to keep existing customers buying rather than switching to a competitor. The seven examples in this post (Starbucks, Amazon, Sephora, Nike, The North Face, Marriott, and Domino's) each illustrate a different mechanic for achieving this.

What makes a customer retention program successful? Successful retention programs share three traits: they deliver genuine and recurring value (not just one-off discounts), they make the next purchase feel easier or more rewarding than switching, and they collect behavioural data that enables personalisation over time. Programs that treat all customers identically tend to underperform compared to those that differentiate by tier, behaviour, or lifecycle stage. For a foundational overview, see our post on what is a loyalty program.

How do points-based loyalty programs improve retention? Points create a soft switching cost. Once a customer has accumulated points with your brand, they are less likely to buy from a competitor because doing so means abandoning the value they have built up. The effect is strongest when redemption thresholds are achievable (as Domino's demonstrated with its 2023 redesign) and when points have clear, desirable reward options.

What is the difference between customer retention and customer loyalty? Retention is a behaviour: the customer keeps buying from you. Loyalty is an attitude: the customer prefers you over alternatives even when a cheaper or more convenient option exists. The best programs drive both, but they usually start with retention mechanics (points, tiers, rewards) and evolve toward loyalty by adding emotional and identity elements (community, values alignment, exclusive access). Our article on customer retention: what it is and why it matters unpacks this distinction in more detail.

Can small businesses apply the lessons from these large-brand examples? Yes, with appropriate scaling. You do not need Starbucks-level tech to run a gamified points program, or Amazon-level infrastructure to offer a subscription bundle. The principles (reduce friction, reward frequency, make the next reward feel achievable, align rewards with your brand values) apply at any size. Platforms like NeoDay are specifically designed to give smaller and mid-market brands access to these mechanics without enterprise-scale development costs.

Which customer retention strategy works best for restaurants? For quick-service and fast-casual restaurants, low-threshold points programs (like the Domino's model) work well because they reward the high purchase frequency that already exists. For full-service or experiential dining, tier-based programs with event access and personalised offers (closer to the Sephora or Starbucks model) tend to build stronger emotional loyalty. Our dedicated guide covers the best restaurant loyalty program examples in more detail.

How do I measure whether my retention program is working? The four core metrics to track are: customer retention rate (the percentage of customers who return within a defined period), purchase frequency (how often retained customers buy), average order value among program members vs. non-members, and program redemption rate (a low redemption rate often signals that rewards are too difficult to earn). Comparing these metrics before and after program launch gives you a clear picture of incremental impact.

What role does gamification play in customer retention? Gamification uses game mechanics (challenges, milestones, streaks, tier progression, badges) to make the loyalty experience intrinsically motivating rather than purely transactional. Starbucks Rewards is the most prominent example: bonus Star challenges and Double Star Days create urgency and habit. Nike Membership rewards physical activity with badges and coaching unlocks. Research consistently shows that gamified programs generate higher engagement rates and longer retention periods than flat discount programs, because they tap into customers' desire for progress, recognition, and achievement. For retail-specific applications, see our overview of best retail loyalty program examples.