Here’s 5 Loyalty Programs To Get You Inspired

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The world as we know has seen many transitions in the past two decades. With regards to businesses, we’ve seen many companies come and go, with a good chunk reigning strong in their fields. Taking a trip down the memory lane, every one of the top organisations have one thing in common — good loyalty programs.

The best loyalty programs are all about rewarding customers for sticking with respective business, but which rewards and incentives will work best for a brand’s loyalty program? This article will assist you with the rundown of iconic and innovative loyalty program incentives that inspire in this day and age.

Looking at statistics, consumers hold a staggering 3.8 billion memberships in the customer loyalty programs in the US alone, and 51% of retailers with premium loyalty programs consider program members to be at least 4x valuable as non-members. A whopping 90% of retailers said that enhancing their loyalty programs was a priority in 2021 as 86% of customers, according to a survey done by CitiGroup, are more loyal to the brands where they get to participate in loyalty programs.

Here is a list of five innovative loyalty programs, and what brands can learn from them.

The North Face XPLR Pass

Activewear and outdoor sports gear brand North Face’s new XPLR Pass loyalty program has a one dollar spent-one point earned system. Shoppers can earn points when they shop online and in store. Every 100 points gets them a $10 reward to use on gear they love.

In addition to that, members get early and exclusive access to limited-edition collections and collaborations, an option of members-only field testing to see how the gear performs, expert help when needed with members-only Customer Service line, and personalised birthday shout-outs and gifts — the brand has thought deeply about their clientele.

Previously, the brand has also offered for clients to redeem their points for adventures and expeditions around the globe, aligning with North Face’s focus on the outdoors and exploration in extreme conditions.

H&M Loyalty Program

Swedish multinational clothing company H&M has a rewards system of its own kind.

H&M Membership is a free digital loyalty programme accessible via the H&M app or at hm.com, where members collect points on every purchase and enjoy exclusive benefits. There are three ways to collect points when it comes to this membership. One, shoppers earn points every time they shop; second, when a shopper completes filling out their profile; third, by inviting friends to become members.

H&M also has a system called conscious points where shoppers earn points by recycling clothes they no longer use (recycling will also give them a digital Bonus Voucher), by bringing their own bags when they shop in-store and for every Conscious purchase they make. For every 200 points they collect, they unlock bonus vouchers that they can use for their next purchase! This program supports a positive approach towards sustainability and helps start a conversation about conscious ways of living.

H&M’s membership perks include free standard delivery on orders, a chance to shop now and pay later using Klarna and in-store pre-access to sales, special member prices, birthday offers, shopping events just for members and exclusive offers and discounts.

Additionally, when a member collects 500 points in the US, they get advanced to a plus member, giving a shopper access to even better offers and perks.

Sephora’s Beauty Insider

French multinational retailer Sephora runs its Beauty Insider Program. It is a free rewards program in the US and Canada that lets  customers earn points on their purchases and redeem those points for rewards. In fact, it is one of the best examples of tiered, point-based loyalty programs as members can earn one point for every dollar they spend in the store and climb the ladder from “insider” to “VIB” and to “rouge.”

Sephora’s loyalty members can redeem their points as discounts, store credit, or giveaway entries (of upto $50,000).

By giving their clients multiple options to redeem their loyalty points, Sephora keeps them engaged. If there’s one thing to take away from this type of a loyalty program, it is the variety of options available for members — both in terms of earning and redeeming rewards.

American Express Membership Rewards

American Express’ loyalty program lets Card Members earn, save, and redeem points in ways that match their spending styles. Each Amex Credit Card offers different ways to earn points, where points values vary depending on the type of Amex card a person holds. For example, with the American Express Gold Card, a member earns 4 points per dollar spent on restaurant purchase, while the American Express Green Card offers 3x points on eligible transit purchases.

The most important thing to learn from Amex loyalty programs is that they provide welcome bonuses, category multipliers, travel upgrades, and enrollment in another insider reward system — Amex rewards — that lets a person earn extra rewards such as points, miles, and cashback, depending on the card.

Uber Rewards

Uber’s loyalty program is a very simple program that allows a member to earn points on Uber rides and UberEats orders, which are later available to redeem for rewards. For every dollar a member spends with Uber, they’re rewarded 1 to 3 points depending on the service.

In addition, Uber Rewards members are also eligible for elite status (Blue, Gold, Platinum and Diamond) — offering exclusive benefits such as priority customer service or waived cancellation fees.

When a member joins the program, Uber places them at a status level according to their Uber and Uber Eats spending history in the last six months, starting from when they first created their Uber Rewards account. Once they earn the required level points to reach a certain level, they’ll get to keep their status for the remainder of the current cycle and the subsequent six-month cycle.

When a member hits a minimum threshold of 500 rewards points, they’re able to redeem them for Uber Cash (a credit associated with a member’s account) or Chosen Reward — where each reward point is worth 1 cent.

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