To answer this question, we have compiled a list of top loyalty programs for you to choose from.

But first, the basic: what is Customer Loyalty Program?

The idea behind loyalty programs is to reward customers who repeatedly engage with your brand and encourage them to keep buying from you rather than your customers. Needless to say, loyalty programs play a pivotal role in increasing customer retention and repeat purchase rate.

By the way, if you’re a total newbie, we’ve got a guide covering the main things you need to know about loyalty programs and why they are vital.

Points-Based Loyalty Program

Points-based loyalty program is the most popular type of rewards programs. This type of loyalty programs allows your customers to earn points with every purchase they make from your brand, whether on the app, the website, or in person. These points can be later redeemed for cash back, discounts, other perks, or even a free product. Kind of pay first, benefit later service. In addition, points-based loyalty programs are not limited to earning points when customers make purchases, but also they can get rewarded when they share on social media, take a survey, have a birthday, or through gamification.

Tiered loyalty programs

Tiered loyalty programs are similar to points-based loyalty programs, except that they're based on loyalty ranks. A customer earns different perks depending on their ranking with your brand. So, the higher their tier is, the more rewards and benefits they will redeem from your brand on an ongoing basis. Usually, these ranking system depends on their engagement with your brand and the amount of money they spend on you. Unlike points-based loyalty programs, where customers earn points for a one-time benefit, tiered loyalty programs are continuous; as they spend on you, their tier will move up higher, and they can even get to choose how to redeem their points.

Uber rewards program is one of the most successful loyalty programs that exist. Customers can earn points and move to a higher loyalty level as they spend more on the rides. Then, they're eligible for exclusive perks depending on their tier.


Value-based loyalty program

The "value" in the loyalty program refers to your customers when they feel that your brand stands up for your values as them. This type doesn't actually reward customers directly, but it makes them participate in supporting charities or NGOs that make a great impact on society or causes they care about. Value-based programs are also a great way to bond with your customers and let them know that your relationship with them is not just about the money and making profits.

The body shop leverages this value-based loyalty program and builds it around allowing their customers to donate their earnings to charity.


Paid/Membership loyalty programs

In a paid membership loyalty program, customers pay a one-time subscription fee that can be made monthly, quarterly, or annually for access to highly beneficial advantages that outweigh the cost of membership. For example, early access to your products, personalized rewards tailored to them, and special offers. Brands that opt for paid loyalty programs have to offer unique and appealing rewards for their customers in exchange for the membership fee.

Gamified loyalty programs

Gamification works best when you want to attract millennials and Gen Z to your customer pool. By making them participate in a game on-store or through the app, they can earn incentives and rewards in a fun and trendy way. This program has proven effective in increasing customer engagement and referrals among young and tech-savvy customers.

Bottom line

Before choosing the customer loyalty program type that fits your brand, you have to think first about your business objectives and make sure that prioritizing your customer experience is at the heart of what you do, this will give you a goal to work towards.

Not sure what customer loyalty program type you need to go for? You can easily find out by asking your customers what they want from a loyalty program by running a survey or talking to our sales at Zeal, they have the expertise to design a loyalty program that’s tailored to your business objectives and amplify your brand reach. 🚀

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