Blog
Product Updates
7 Best Loyalty Program Examples Across Industries (2026)

Ronald Meeuwissen

Loyalty programs are one of the most proven tools for keeping customers coming back, but not all programs are built the same. The best ones combine the right reward mechanics with a deep understanding of what motivates their specific audience. Whether you run a retail chain, a restaurant group, or a B2B service business, studying real-world examples can reveal exactly what works and why. In this post, we break down seven of the best loyalty program examples across industries, highlight what makes each one effective, and share a practical decision framework to help you design your own. For more context on the fundamentals, see what is a loyalty program.
Best loyalty programs at a glance
Starbucks Rewards: Best for high-frequency retail coffee buyers: a gamified stars-and-tiers model that drives daily visit habits.
Sephora Beauty Insider: Best for beauty retail with multi-tier status: tiered rewards that scale with spend and create aspiration.
Amazon Prime: Best for e-commerce subscription loyalty: a paid membership that bundles convenience benefits to lock in repeat purchases.
The North Face XPLR Pass: Best for outdoor and lifestyle brand communities: experience-based rewards that reinforce brand identity.
Marriott Bonvoy: Best for hospitality and business travel: a points-and-tiers program spanning hotels, airlines, and credit cards.
Nike Membership: Best for sports and apparel brand engagement: a free membership that rewards engagement and community, not just spend.
LoyaltyLion client: Astrid & Miyu: Best for independent jewelry e-commerce: a points program that converts first-time buyers into repeat customers.
Brand | Program name | Key feature | Industry |
|---|---|---|---|
Starbucks | Starbucks Rewards | Gamified stars with bonus challenges | Food and beverage |
Sephora | Beauty Insider | Three-tier spend-based status | Beauty retail |
Amazon | Amazon Prime | Paid subscription with bundled benefits | E-commerce |
The North Face | XPLR Pass | Experience and adventure rewards | Outdoor apparel |
Marriott | Marriott Bonvoy | Cross-brand points and elite tiers | Hospitality |
Nike | Nike Membership | Engagement-based free membership | Sports and apparel |
Astrid & Miyu | Rewards by Astrid & Miyu | Points for purchases and social actions | Jewelry e-commerce |
1. Starbucks, Starbucks Rewards
Starbucks Rewards is widely regarded as the gold standard of food-and-beverage loyalty. Launched in 2009 and continually refined, it uses a stars-based currency where customers earn two stars per dollar spent. Stars unlock free drinks, food, and merchandise at five reward tiers. The mobile app sits at the center of the experience, enabling mobile ordering, personalized offers, and bonus-star challenges that encourage customers to try new products. With over 34 million active members in the US alone as of 2024, it accounts for more than 57 percent of US company-operated revenue.
Program highlights:
Earn two stars per dollar on digital orders
Five redemption tiers starting at 25 stars
Personalized bonus challenges issued via the app
Gamified streak rewards for consecutive visits
Birthday reward redeemable for any menu item
Integration with the Starbucks mobile payment wallet
Best for:
High-frequency, low-ticket purchases where visit cadence is the primary driver
Brands that can invest in a proprietary mobile app experience
Businesses that want to use personalization to increase average order value
Pros:
Extremely high engagement driven by gamified challenges
App-based data collection enables granular personalization
Stars currency creates perceived value beyond simple discounts
Drives mobile payment adoption, reducing transaction costs
Cons:
Requires significant technology investment to replicate at scale
Stars can only be earned through digital orders, excluding cash customers
Complexity of the tier system confuses some occasional users
2. Sephora, Beauty Insider
Sephora Beauty Insider is one of the most-studied examples of tiered retail loyalty. Members are automatically enrolled for free and move through three status levels (Insider, VIB, and Rouge) based on annual spend. Each tier unlocks progressively better perks: early access to sales, exclusive product launches, free beauty classes, and a birthday gift. Points earned on purchases convert into a rewards bazaar where members choose their own redemptions. The program has more than 34 million members in North America and is credited with a significant share of Sephora's repeat purchase rate. For more retail loyalty inspiration, see best retail loyalty program examples.
Program highlights:
Three spend-based tiers: Insider (free), VIB ($350/year), Rouge ($1,000/year)
Points convert to product samples and full-size items in the rewards bazaar
Early access to sales and product launches for higher tiers
Birthday gift redeemable during the member's birthday month
Free in-store beauty classes for VIB and Rouge members
Exclusive Rouge events and brand experiences
Best for:
Retailers with a wide product catalog where discovery is part of the experience
Brands where aspirational status tiers can motivate higher annual spend
Businesses that want to reward loyalty with experiences, not just discounts
Pros:
Tiered structure creates a visible aspiration ladder that increases spend
Rewards bazaar gives members agency in choosing their own perks
Experiential rewards (classes, events) deepen emotional brand connection
Cons:
High spend thresholds for top tiers exclude casual shoppers
Points-to-value ratio can feel opaque to newer members
Program is difficult to replicate without a broad product assortment
3. Amazon, Amazon Prime
Amazon Prime redefined what a loyalty program can be by making customers pay for membership. At roughly $139 per year in the US, Prime bundles fast shipping, video and music streaming, cloud storage, exclusive deals, and grocery discounts. The paid model creates a sunk-cost dynamic: members shop more on Amazon because they have already paid for the privilege. Prime members spend an average of $1,400 per year compared to $600 for non-members. Rather than rewarding past behavior with points, Prime shifts the loyalty relationship upstream by making membership itself the reward.
Program highlights:
Annual or monthly subscription fee unlocks a bundle of benefits
Free two-day (and often same-day) shipping on millions of items
Included access to Prime Video, Prime Music, and Amazon Photos
Exclusive Prime Day sales events twice a year
Whole Foods Market discounts for Prime members
Early access to Lightning Deals and new product launches
Best for:
Businesses with enough product or service breadth to justify a paid membership fee
Brands that want to increase purchase frequency through a subscription lock-in
Companies with existing ancillary services that can be bundled into a membership
Pros:
Paid membership creates strong commitment and higher average spend
Bundled benefits reduce churn by making the program hard to cancel
Revenue from memberships partially offsets program costs
Creates a self-reinforcing flywheel: more Prime members attract more sellers
Cons:
Paid model creates a higher barrier to entry that may exclude price-sensitive customers
Requires a very broad value proposition to justify the fee
Members who primarily use streaming, not shopping, may undervalue the retail benefits
4. The North Face, XPLR Pass
The North Face XPLR Pass (formerly VIPeak) is a standout example of loyalty built around brand values rather than discounts. Members earn points on purchases and through experiential actions: attending North Face events, checking in at national parks, and downloading the app. Points can be redeemed for discounts, but the most coveted rewards are experiences like hiking trips, climbing camps, and early access to limited-edition gear. This positions the program as an extension of the brand's outdoor identity rather than a simple cashback scheme. It resonates strongly with the adventure-oriented customer who wants to feel part of a community.
Program highlights:
Points earned on purchases and through non-transactional actions (park check-ins, events)
Experiential rewards including adventure trips and athlete meet-and-greets
Early access to new product drops and limited-edition collections
Birthday bonus points
Access to exclusive North Face events and athlete-led experiences
App-based check-in at outdoor locations to earn bonus points
Best for:
Lifestyle and outdoor brands where community and shared values are central to identity
Businesses that want to reward engagement and behavior beyond purchases
Brands with an experiential component they can offer as premium rewards
Pros:
Experience-based rewards reinforce brand identity more powerfully than cash back
Non-purchase earning actions increase touchpoints and app engagement
Differentiates the brand from discount-driven competitors
Cons:
Experiential rewards are difficult to scale to a large membership base
Points earned through check-ins and events are less predictable for program budgeting
Customers primarily motivated by price may find the reward structure less compelling
5. Marriott, Marriott Bonvoy
Marriott Bonvoy is one of the largest travel loyalty programs in the world, with over 210 million members across more than 30 hotel brands. Members earn points per dollar spent on stays and can redeem them for free nights, room upgrades, airline miles, and experiences. Five elite tiers (Silver, Gold, Platinum, Titanium, and Ambassador) unlock benefits like complimentary breakfasts, lounge access, and dedicated customer service lines. The program's power lies in its breadth: points transfer to over 40 airline partners, and co-branded credit cards let members earn points on everyday spending outside Marriott properties. For those building loyalty in hospitality, the lessons from Bonvoy are extensive. See also loyalty program examples in various industries for cross-sector perspective.
Program highlights:
Points earned on hotel stays, dining, spa spend, and co-branded credit card purchases
Five elite tiers with meaningful incremental benefits at each level
Free night certificates available through credit card partnerships
Points transferable to over 40 airline frequent flyer programs
Experiences marketplace for redeeming points on events and activities
Guaranteed room type and enhanced room upgrades for elite members
Best for:
Large hospitality businesses or hotel groups that serve both leisure and business travelers
Organizations that can partner with airlines or credit card issuers to extend the program ecosystem
Brands where repeat stay frequency among business travelers justifies an elite tier structure
Pros:
Ecosystem breadth keeps members engaged even between stays
Elite tier benefits create strong retention among high-value business travelers
Credit card partnerships generate enrollment at scale and everyday spend capture
Points transfers to airlines increase perceived flexibility and redemption value
Cons:
Program complexity is overwhelming for infrequent or leisure-only travelers
Point devaluations have eroded member trust over the years
Very resource-intensive to administer without a large dedicated loyalty team
6. Nike, Nike Membership
Nike Membership (formerly NikePlus) takes a fundamentally different approach: it is free, and it does not rely on points or tiers. Instead, Nike rewards members with access: exclusive products, personalized training plans, priority access to limited drops, member-only workout content, and early entry to Nike events. The program integrates with the Nike Run Club and Nike Training Club apps, making activity data a central part of the membership experience. This model works because Nike's most valuable customers are engaged enthusiasts who want to feel closer to the brand, not just earn a discount on their next pair of trainers. With over 160 million members globally, it demonstrates that loyalty does not require a transactional reward currency.
Program highlights:
Free enrollment with no points or tiers required
Member-exclusive product drops and colorways not available to the general public
Integration with Nike Run Club and Nike Training Club apps
Personalized product recommendations based on activity data
Access to member events, training sessions, and Nike by You customization
Free standard shipping and extended return windows for members
Best for:
Strong lifestyle brands where community belonging and exclusivity outweigh financial rewards
Businesses that can generate loyalty through content, access, and experience
Companies that want to build a proprietary first-party data asset through engagement
Pros:
Zero-cost enrollment removes all friction to joining
Exclusivity-based rewards drive desire and brand heat without discounting
App integrations create rich behavioral data that powers personalization
Community and content keep members engaged between purchases
Cons:
Without transactional rewards, less frequent or less passionate customers may disengage
Requires significant investment in exclusive product inventory and content production
Harder to attribute direct revenue lift compared to points-based programs
7. Astrid & Miyu, Rewards by Astrid & Miyu
Astrid & Miyu, a London-based jewelry brand, is a compelling example of loyalty done well at an independent, direct-to-consumer scale. Using LoyaltyLion, the brand built a points program that rewards purchases alongside social and community actions: leaving a review, following on Instagram, referring a friend, and celebrating a birthday. Points convert into discount vouchers at checkout. The program was instrumental in increasing repeat purchase rate and is regularly cited as a best-practice case study by LoyaltyLion. It proves that even smaller brands without enterprise budgets can build meaningful loyalty programs. This example pairs well with insights from customer retention: what it is and why it matters.
Program highlights:
Points earned on every purchase, with bonus points for reviews and referrals
Social engagement actions (Instagram follow, birthday entry) earn points
Points redeem as discount vouchers applied directly at checkout
Referral rewards for both the referrer and the new customer
Birthday bonus points issued automatically each year
VIP tier for top spenders with exclusive early access perks
Best for:
Independent or mid-market e-commerce brands looking for an accessible entry point into loyalty
Businesses that want to combine transactional rewards with community-building actions
Brands that rely heavily on word-of-mouth and social proof for customer acquisition
Pros:
Low barrier to implementation using third-party loyalty platforms
Social and referral actions extend the program's marketing value beyond retention
Voucher-based redemption is simple and directly attributable to revenue
Cons:
Discount-heavy redemption can train customers to wait for vouchers before purchasing
Points for social actions can attract low-quality engagement from reward hunters
Less differentiated than experience-based programs in a crowded market
Decision framework
Choosing the right loyalty program model depends on your industry, customer frequency, and available resources. Use the following framework to identify which approach fits your business best.
If your customers buy frequently at low ticket sizes
High-frequency, low-value transactions are the natural home for gamified points programs like Starbucks Rewards. The key is making earning feel fast and rewarding, and introducing bonus challenges that shift behavior (trying new products, visiting at new times). If you run restaurants, see our dedicated post on best restaurant loyalty program examples for sector-specific mechanics. The critical design principle here is cadence: your program must reward the behaviors that map directly to visit frequency.
If your customers buy infrequently at high ticket sizes
For high-value, infrequent purchases (think luxury retail, travel, or specialty goods), aspirational tiers like Sephora Beauty Insider and Marriott Bonvoy are more effective than points that expire before they accumulate. Focus on status benefits, early access, and personalized service that make top customers feel genuinely valued between purchases. Points expiry and minimum spend thresholds are design tools that encourage customers to consolidate spend with your brand rather than spreading it across competitors.
If your brand identity is central to the loyalty proposition
For lifestyle and values-led brands, the Nike Membership and North Face XPLR Pass models demonstrate that loyalty does not require a points currency. Access, community, and exclusivity can outperform cashback for customers who are genuinely enthusiastic about what your brand stands for. The risk is that without financial rewards, the program is less sticky for occasional buyers. Consider a hybrid approach: free community membership with optional points earning on purchases.
If you are building loyalty at an independent or mid-market scale
The Astrid & Miyu example shows that meaningful loyalty is achievable without an enterprise budget. Start with a simple points-for-purchases model, layer in social and referral actions, and use a third-party platform to reduce development costs. As you grow, consider adding tiers or experience-based rewards. Whether you are in retail, e-commerce, or services, a well-designed points program is a strong foundation. Explore how membership card software can support a physical or digital card layer on top of your points structure.
Build your own loyalty program with NeoDay
If you are ready to move from inspiration to execution, NeoDay makes it straightforward to launch a loyalty program tailored to your business. The platform covers points, tiers, milestones, and challenges, giving you the gamification mechanics that make programs like Starbucks and Sephora so effective. Whether you need coupon software to drive redemptions or a full-featured loyalty suite, NeoDay is built for B2B teams that want results without enterprise complexity. Explore the NeoDay loyalty platform or get in touch to see how it fits your industry.
Sources: Starbucks Q1 2024 Earnings Report, Sephora Beauty Insider Overview, Amazon Prime Member Statistics, Statista 2024, The North Face XPLR Pass, Marriott Bonvoy Program Overview, Nike Membership, LoyaltyLion Astrid & Miyu Case Study
FAQ
What makes a loyalty program successful? The most successful loyalty programs combine a clear value proposition (members understand what they earn and why), frictionless enrollment, and rewards that genuinely motivate the target audience. Programs like Starbucks Rewards succeed because the earning mechanic (stars per dollar) is simple, the app makes participation effortless, and personalized challenges keep engagement high over time.
What types of loyalty programs are most common? The most common types are points-based programs (earn currency per purchase), tiered programs (status levels unlock better benefits), paid membership programs (Amazon Prime), and community or access programs (Nike Membership). Most modern programs blend two or more of these models. For a full overview, see what is a loyalty program.
Do loyalty programs actually increase revenue? Yes, when designed well. Sephora reports that Beauty Insider members spend significantly more per year than non-members. Amazon Prime members spend more than double what non-Prime members spend annually. The key driver is not the reward itself but the behavioral habit the program creates: members think of your brand first because the program gives them a reason to return.
How much does it cost to run a loyalty program? Costs vary widely depending on the model. Points-based programs typically cost between one and five percent of revenue in reward liability. Paid membership programs like Amazon Prime offset costs through subscription fees. Technology costs range from a few hundred dollars per month for platforms like LoyaltyLion to several million per year for fully custom enterprise systems. Smaller businesses can start effectively using a SaaS platform like NeoDay without large upfront investment.
What is the difference between a loyalty program and a rewards program? The terms are often used interchangeably, but technically a rewards program refers specifically to the mechanism of issuing rewards (points, cashback, vouchers), while a loyalty program is the broader strategy of retaining customers over time. A loyalty program may include rewards but also encompasses tiers, community, experiences, and personalized communication.
Are paid membership loyalty programs better than free ones? Neither is universally better. Paid programs like Amazon Prime create stronger commitment and higher average spend among enrolled members, but the fee creates a barrier that excludes some customers. Free programs like Nike Membership maximize reach and enrollment but require a compelling non-financial value proposition to maintain engagement. The right choice depends on whether your target customers will perceive the paid benefits as worth the cost.
How do I choose the right loyalty program model for my industry? Start with your purchase frequency and average transaction value. High-frequency, low-ticket businesses (coffee shops, grocery, fast casual) suit gamified points programs. Low-frequency, high-ticket businesses (travel, luxury retail, jewelry) suit aspirational tiers or paid memberships. Lifestyle brands with passionate communities can thrive on access and exclusivity models. Use the decision framework in this article as a starting point, and review loyalty program examples in various industries for more sector-specific guidance.
What loyalty program mistakes should businesses avoid? The most common mistakes are making rewards too hard to earn (members disengage before they ever redeem), making redemption too complicated, over-relying on discounts (which trains customers to wait for promotions), and failing to personalize communications. Programs that treat all members identically miss the opportunity to deepen relationships with high-value customers. A strong program recognizes different customer segments and tailors the experience accordingly.

