16 Best loyalty program examples to build customer loyalty in 2026

The best loyalty programs give customers a clear reason to come back, reward them early, and make them feel like insiders instead of coupon hunters.

Most programs run on one of a few models. Points, tiers, paid memberships, or community and engagement rewards. Plenty of brands mix two.

Below, I break down real customer loyalty program examples from each model. For each brand, you’ll see how the program works, what makes it different, and one idea your store can borrow.

You’ll also get the metrics to track once your program goes live.

How does a loyalty program work?

Loyalty programs follow a basic process. Customers generate value when they purchase or engage; they receive better incentives as they remain, and they use this value to make another purchase.

It is a mutually beneficial cycle: customers provide information and loyalty in return for incremental value, while companies boost customer lifetime value (LTV) and revenue predictability.

Most customer rewards program setups follow the same five steps:

1. Join: Customers sign up, usually for free, at checkout or in an app.

2. Earn: They collect points, stars, stamps, or coins for purchases and sometimes for actions like reviews, referrals, or app logins.

3. Climb: In tiered programs, spending or activity moves them to a higher status with better perks.

4. Redeem: They trade their balance for a discount, a free product, or an experience. People in the industry call this “earn and burn.”

5. Repeat: The brand learns what each member buys and uses that data to send better offers next time.

A first-time buyer has about a 27% chance of coming back. After a second purchase, that jumps to 49%, and after the third it passes 62%.

So a good customer retention strategy aims to move people from the first to the third purchase as quickly as possible.

Reward the review, not just the purchase

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Main types of loyalty programs

Four main types of loyalty programs exist, plus hybrids that combine them. Here’s how they compare:

Not sure where to start? Most small ecommerce stores begin with points, then add tiers once they have enough repeat buyers to fill them.

16 Loyalty program examples from real brands

Programs change often, so treat the numbers as a snapshot. The ideas behind them last much longer. Here are the customer loyalty program examples that’ll inspire you.

Points-Based Loyalty Program Examples

These loyalty rewards program examples all run on “spend, earn, redeem.” The difference is in how fast the first reward lands and how the points feel to collect.

1. Starbucks: Starbucks Rewards

Starbucks rebuilt its program in March 2026 with three tiers. It had about 35.8 million active US members by its Q3 fiscal 2026 earnings call.

How this program works: Members earn 1 Star per $1 at Green, 1.2 at Gold (500 Stars a year), and 1.7 at Reserve (2,500 Stars). Stars redeem from 25 for a drink customization up to 400 for merchandise

What makes it different: The reward ladder starts tiny, so a new member gets a win within a couple of visits. Reloading the app wallet also earns bonus Stars, which pulls cash in before the purchase even happens.

Lesson: Add a low first redemption threshold, like a free add-on or small discount. People who redeem once are far more likely to keep collecting.

2. Ulta Beauty: Ulta Beauty Rewards

Ulta reported 47 million active members in its Q2 fiscal 2026 results. It’s one of the biggest beauty programs in the US.

How this program works: Members earn 1 point per $ 1, including on salon services. Platinum members ($500 a year) earn 1.25 points per $1, and Diamond members ($1,200 a year) earn 1.5.

What makes it different: Points get more valuable the longer you save them. 100 points are worth $3, but 2,000 points are worth $125, more than double the value per point.

Lesson: Use a redemption chart that pays more per point at higher balances. Customers keep buying to reach the next step instead of cashing out early.

3. Boots: Boots Advantage Card

The UK pharmacy chain has around 17 million cardholders. It changed its member perks in May 2026.

How this program works: Members earn 3 points per £1, and each point is worth 1p. They also get Price Advantage, member-only prices on about 1,000 products a month, marked with pink shelf labels.

What makes it different: Boots dropped its blanket 10% own-brand member discount and replaced it with personalized app offers that refresh weekly. Shoppers over 60 earn 8 points per £1 on Boots own-brand products.

Lesson: Show a member price next to the regular price on product pages. Shoppers see the savings before they join, which makes signing up feel obvious.

4. PetSmart: Treats Rewards

PetSmart rebuilt Treats Rewards with tiers in 2024. It’s free, with no membership fee.

How this program works: Members earn 10 points per $1 on products and services like grooming and boarding, and 1,000 points equal $2 off. Bestie ($500 a year) earns 12 points per $1, and VIPP ($1,000) earns 14.

What makes it different: Pet parents who adopt get top VIPP status right away. Donations to PetSmart Charities earn double points.

Lesson: Reward life moments tied to your product (a new pet, a new baby, a first home) with a status jump instead of a one-off coupon.

Tiered and VIP Loyalty Program Examples

A VIP loyalty program gives your best customers something the rest can’t get yet. These four use loyalty tiers to make climbing feel worth it.

5. Sephora: Beauty Insider

Beauty Insider had about 46 million members at the end of 2025, according to Forbes. It’s often called one of the best retail loyalty programs.

How this program works: Members earn 1 point per $1. VIB status starts at $350 a year and Rouge at $1,000. Points can be redeemed for cash off (500 points for $10) or products from the Rewards Bazaar.

What makes it different: The yearly Savings Event discount scales with tier: 10% for Insiders, 15% for VIB, 20% for Rouge. Beauty Insider Challenges add gamification, and about 30% of members play.

Lesson: Tie your biggest sale of the year to tier status. Higher tiers get a bigger discount and earlier access, which gives members a reason to climb before the sale.

6. adidas: adiClub

adiClub is free and runs across the adidas app, website, and stores.

How this program works: Members receive 10 points for every $1, as well as points for such activities as writing a product review (50 points) or filling in their profiles. Four levels are unlocked at 1,000, 3,000, and 9,000 points.

What makes it different: You can level up through exercise, not just by purchasing. The adidas Running app’s tracking feature and Strava integration qualify, and rewards include access to events and exclusive products.

Lesson: Give points for a product review. You get fresh social proof for your product pages, and the customer moves closer to their next level.

Points for purchases, proof for your pages

Pair your loyalty program with verified reviews from every order, so repeat buyers also build the trust that wins new ones.

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7. Nordstrom: The Nordy Club

The Nordy Club is free to join, with higher tiers built around yearly spend.

How this program works: Members earn 1 point per $1, and 1,000 points become a $10 Nordstrom Note. Tiers start at $500 (Influencer), $5,000 (Ambassador), and $15,000 (Icon, for Nordstrom cardmembers only).

What makes it different: Great incentives are services, not discounts. Complimentary alterations for up to $200 or $300, unlimited at Icon, along with free home styling and exclusive Double Points Days.

Lesson: Keep your VIP incentives as services. Things like complimentary tailoring or even a phone styling call don’t cost much but make you feel special.

8. Marriott: Marriott Bonvoy

Marriott Bonvoy passed 295 million members as of June 30, 2026.

How this program works: Participants earn 10 points per dollar spent at most hotels. Elite levels depend on nights: Silver with 10 nights, Gold with 25 nights, Platinum with 50 nights, Titanium with 75 nights, and Ambassador with 100 nights and $23,000 in spending.

What makes it different: The “soft landing” policy until 2026 lets members who fail to requalify slip just one level instead of falling to the lowest. Elite members earn an additional 75% of points.

Lesson: Don’t drop slipping VIPs to zero. Move them down one level and show them how to get back, because losing all status at once is how churn starts.

Paid and Subscription-Based Loyalty Program Examples

A paid loyalty program flips the model. Customers pay upfront, then shop more to get their money’s worth.

9. Amazon: Amazon Prime

Prime is the program most people think of first when they hear “paid membership.”

How this program works: US members pay $14.99 a month or $139 a year. They get free fast shipping, Prime Video with ads, Prime Gaming, and a long list of bundled extras.

What makes it different: The bundle is so broad that shipping savings alone can cover the fee. In April 2026, Amazon also added Prime Video Ultra, a $4.99 monthly upgrade on top of Prime.

Lesson: If you run a subscription loyalty program, lead with one benefit that pays back the fee fast, like free shipping. Treat everything else as a bonus.

10. Walmart: Walmart+

Walmart+ is built around everyday errands, not just online orders.

How this program works: Members pay $98 a year or $12.95 a month for free shipping with no minimum, same-day delivery over $35, and 10 cents off per gallon of fuel. Paramount+ or Peacock is included.

What makes it different: Walmart+ Assist offers the full membership at half price ($49 a year) for people on qualifying government assistance.

Lesson: Offer a lower-priced membership for one clear group, like students or first responders, instead of discounting your main plan for everyone.

11. REI: REI Co-op Membership

REI says it has 26 million lifetime members. It’s one of the few retail programs where members are also owners.

How this program works: Members pay $30 once, for life. Each year they get a Co-op Member Reward, typically 10% back on eligible full-price purchases, plus free shipping and member pricing on rentals and shop services.

What makes it different: Members get a vote in REI’s board elections. The annual reward also lands at the same time each year, which creates a built-in shopping moment.

Lesson: Try a one-time lifetime fee instead of a yearly one. It lowers the fear of committing, and you still get the “I paid, so I’ll shop here” effect.

12. Barnes & Noble: Premium Membership/ lululemon: lululemon Membership

Barnes & Noble relaunched its membership in 2023 with a free tier and a paid tier side by side.

How this program works: Premium costs $39.99 a year for 10% off every day, free shipping, café drink upgrades, and a free tote. The free Rewards tier gives 1 stamp per $10, and 10 stamps equal $5.

What makes it different: Premium members still earn stamps on top of their 10% off, so the paid tier stacks value. The free tier works as a feeder for the paid upsell.

Lesson: Run a free points tier and a paid tier together. The free tier grows your member list, and the paid tier is where your most loyal buyers end up.

Turn loyal fans into your best marketers

Reward photo reviews, referrals, and social posts, then display that fan content as a review wall that sells for you.

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Referral, Community, and Engagement-Based Examples

These rewards program examples care less about points per dollar. They reward access, participation, and the things fans do beyond the checkout page.

13. Nike: Nike Membership

Nike Membership is free, and it has no points at all.

How this program works: Members get free delivery on orders over $50, a 60-day “wear test” return window, member-only products, SNKRS drops, a birthday reward, and access to the Nike Run Club and Nike Training Club apps.

What makes it different: The value is access, not savings. Members get first shot at drops and products non-members can’t buy at all.

Lesson: Give members early access to a launch or a limited product. It costs nothing in margin and makes joining feel like getting on a list.

14. LEGO: LEGO Insiders

LEGO Insiders replaced the old LEGO VIP program and is free to join.

How this program works: US members earn 6.5 points per $1, and 650 points are worth a $5 voucher (about 5% back). Points also go toward exclusive sets, collectibles, digital downloads, sweepstakes, and events.

What makes it different: Many rewards can’t be bought anywhere. Since August 2026, members can add physical rewards straight to their bag, up to three per order.

Lesson: Offer a reward that only members can get, like limited merch or a special edition. Collectors chase those harder than any coupon.

15. OUAI: OUAI Obsessed

OUAI’s haircare program runs inside TYB, a community app built for brand fans.

How this program works: Members earn coins from purchases and from challenges, like leaving reviews or joining community moments. Coins work like cash on future orders, and members get a surprise package on their birthday.

What makes it different: It’s community first. Members get early product access, events, and a say in what OUAI makes next.

Lesson: Reward actions that create user-generated content, like photo reviews and social posts. Pair that with referral rewards (see these referral program examples) and your fans start doing your marketing.

16. IKEA Family

IKEA Family is free, and in the US it had 25 million members in fiscal 2025. Members drove 56% of IKEA US sales.

How this program works: Since May 2025, US members earn 1 point per $1, plus points for creating a profile, logging in, and attending events. 65 points get free restaurant food, and 175 points get $5 off.

What makes it different: The cheapest reward is food, which pulls people back into stores. Members also get free coffee or tea, 90-day price protection, and member-only prices.

Lesson: Make your first reward something small and fun to use, like a free sample or gift wrap. It brings people back sooner than a discount they’ll save “for later.

What These Loyalty Program Examples Have in Common

Line up all 16 and a few patterns repeat. These customer loyalty examples come from very different industries, yet the same rules keep showing up.

1. The first reward lands fast: 49.1% of unhappy members said rewards take too long to earn. The programs above fix that with cheap early rewards.

2. Status matters more than discounts: Early access, free alterations, exclusive sets, and member-only prices keep coming up. They feel special and cost the brand far less than a blanket discount.

3. They reward more than purchases: Reviews, workouts, logins, events, and community challenges all earn points. Each action also gives the brand zero-party data, information customers share on purpose.

4. The math fits in one sentence: “1 point per $1, 500 points gets you $10.” If you can’t explain your program that simply, customers won’t bother learning it.

5. They change with their customers: Starbucks added tiers, Boots swapped a flat discount for personal offers, and Marriott softened its status drop. The best brand loyalty programs get adjusted every year or two.

Loyalty Program Metrics to Track

A program you don’t measure turns into a discount line on your P&L. These are the numbers that tell you whether it’s working.

Customer Lifetime Value (LTV): The total revenue a customer generates over their relationship with your business. High-performing loyalty members should show an LTV 2x to 4x higher than non-members.

Repeat Purchase Rate (RPR): The percentage of customers who buy more than once within a specific timeframe. Customers with 2+ orders ÷ total customers x 100.

Redemption Rate (RR): The percentage of issued points that customers actually use. Points redeemed ÷ points issued.

Active member rate: Members who earned or redeemed in 90 days ÷ total members

Participation Rate: The baseline metric showing how appealing your program is to your overall customer base. Active program members ÷ total unique customers x 100.

Breakage Rate: The percentage of points that expire or go completely unused.

Return on Investment (ROI): The net profit generated by loyalty members compared to the total cost of program software, rewards, and marketing.

Measure loyalty by the proof it creates

Track how many repeat buyers leave reviews, then turn those ratings into on-site social proof that lifts conversions.

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Wrap up

The best loyalty programs are not necessarily the ones that offer the most rewards. The best loyalty programs are the ones that customers instantly understand and can appreciate right away.

You don’t need Starbucks’ budget for your program to succeed. Just pick an example program, offer an affordable initial reward, include at least one unique non-monetary benefit, and reward customers for doing what they do anyway.

Then track the numbers above and adjust every few months. That’s how the brands in this list keep their programs worth joining.