If you’ve landed on this page, you’re likely to be keenly aware of the benefits a loyalty program can bring to your business. In a saturated ecommerce market, loyalty programs have never been more important as a way to differentiate your offering from your competitors.
According to the 2016 Bond Loyalty Report, loyalty members buy more often and spend more frequently than non-loyalty members, resulting in a 5-10% revenue increase on average.
Not only does revenue increase through loyalty programs, but customer retention climbs. Shoppers are incentivised to return to your store, thanks to personalised offers and the opportunity to redeem points.
Now that you’ve decided to set up your own loyalty program, we’re here to share some brilliant customer loyalty program examples from the ecommerce industry. From beauty and wellness to cosmetics and fashion, brands from multiple industries have harnessed the power of loyalty to pave their way to increased revenue and customer retention.
This page will cover the following topics:
Before you get started, why not have a read of The LoyaltyLion Hall of Fame – our celebration of the best loyalty programs in the business.
Successful loyalty programs put the customer’s needs and desires at the heart of the program. It’s important to entice the shopper into your brand world and surprise and delight them with immediate benefits.
Here are four examples of big-name brands who have leveraged their loyalty programs to increase revenue and customer retention.
Sephora’s loyalty program is best in class because it pays close attention to the customer experience, the types of rewards that will be attractive to them and longevity.
Members are given the chance to test a variety of “trial-sized” products and one-of-a-kind experiences (such as full-face makeovers) which gives customers tangible benefits in exchange for their loyalty.
Sephora uses its loyalty program to build emotional connections between shoppers in a private community. Its “Beauty Insider Community” is a space where like-minded beauty lovers can find inspiration and seek advice from other members of the community.
Sephora has managed to stay ahead of the curve by getting one pivotal thing right: they continue to transform and tweak their loyalty program to suit the changing needs and desires of their customers – preventing them from losing interest.
For customers to earn loyalty points, they order or pay with the Starbucks app, giving Starbucks the chance to collect personal data on each customer. This includes frequency of purchase, seasonal favourites, go-to drink orders, frequently visited locations… the list goes on.
Only 22% of consumers are satisfied with the level of personalisation they are currently receiving through their ecommerce experience. The Starbucks Rewards program capitalises on data harvesting to deliver a curated service that can offer relevant and desired perks and communications to its customers.
Cosmetic brand Tarte has set up a loyalty program which puts organic growth and referrals at the heart of its mission. Members are primarily rewarded for social sneezing – spreading the word about Tarte and referring friends and family.
Members can earn points through the purchases they make with Tarte, social engagements, email opens and every time they refer a friend or relative.
Tarte’s engagement rewards are a great way to keep the brand at the top of their shoppers’ minds and helps to expand the company’s organic reach.
Loyalty programs aren’t only reserved for the American Expresses and Starbucks of the world. They’re also incredibly important for stores at any stage of growth.
Below are a few examples of stores using LoyaltyLion, across multiple industries, that will hopefully serve as inspiration for your own.
Fashion retail brand Lively use their loyalty program to make their most loyal customers feel special – rewarding them with points on their birthday, for referring friends and for social follows.
It’s easy for members to see the perks because benefits are clearly communicated across their site.
Not only is their loyalty strategy effective, but customers can also see the immediate value of joining. They receive 100 “Lively points” when they sign up – which translates into a $10 discount. This perk provides customers with instant gratification and establishes an emotional connection early on.
Women’s fashion brand Pulse Boutique offers its customers a better opportunity to engage with their brand by becoming part of a trustworthy fashion community.
Their loyalty program called Pulse Perks is designed to encourage customer engagement on social media while increasing UGC, customer reviews and photo submissions.
Curating UGC and reviews is pivotal because 70% of U.S. consumers say that they trust brand and product recommendations from friends and people are four times more likely to buy a product when it is recommended to them by a friend or family member.
Since its launch, the program has delivered a 39% uplift in returning customers, and a 19% increase in average order value. Pulse Perks has driven $200k in earned rewards purchases to date.
Health and wellness website, Ancient Nutrition wanted to elevate their customer experience and encourage more customer participation.
Through implementing In-Cart Rewards, customers could view and claim rewards on-site in their shopping cart leading to a 300% increase in reward redemption.
To keep an ongoing, long-lasting relationship with their customers, Ancient Nutrition implemented a “Subscribe and Save” membership tier where customers that enrolled in their subscription program received more exclusive rewards such as double points on purchases and early access to new products. As a result, they saw their AOV increase by 36%.
Annmarie Skincare wanted to create a loyalty program where members felt part of a community that fostered similar beliefs and values. They created the “Wild and Beautiful Collective” to band together their members.
Fostering a sense of community – especially in the beauty industry – is incredibly important. Beauty shoppers are vocal on social media, sharing their tips and recommendations and have a desire to learn and thrive from each other. The “Wild and Beautiful Collective” nurtures this feeling of inclusion and community with its name and mission.
Annmarie Skin Care’s community approach to loyalty speaks volumes. Members of their collective spend, on average, 140% more than non-members. Annmarie has generated over 1000 reviews and engagement with members is high, with 40% of points being redeemed within three months of being awarded.
Pacifica Beauty’s loyalty program seeks to engage its customers across their journey to purchase. From a branded, easy-to-use loyalty page to a pop-up points balance display to show redeemable points available in the cart, they make it easy for the customer at every stage.
Once the customer is nearing the end of their purchase journey, Pacifica Beauty displays a checkout slider allowing customers to claim the rewards they’ve earned towards their purchase.
Thanks to their loyalty strategy, Pacifica Beauty’s loyalty program members spend on average 130% more than non-members.
Beauty brand Mirenesse have elevated their loyalty program through the implementation of a special paid member tier, known as their “Gold” tier.
In exchange for a $10 monthly membership, customers in this VIP tier get additional perks including two points for every dollar spent, access to secret sales, a tester panel where they can register to trial new products as well as the “Gold treatment” – the ability to jump the queue.
The natural beauty brand, 100% Pure have created an alternative tier-based system that moves members up depending on how much they purchase from and engage with the brand. The higher the engagement, the more exclusive, personalised and experiential rewards they receive.
Since launching “Purist Perks” the brand have generated more than $1m from reward-driven purchases and over 130k members have spent 6.52m points.
The name of your loyalty program is the first thing a customer engages with and needs to be interesting to hook your customers into your brand world.
Nicce Clothing has paid special attention to the name of its program and how they have named their point currency. The “N Coin” is a simple but memorable term. Although the loyalty program clearly has its own brand, Nicce Clothing has also ensured that it complements its overall contemporary and minimalist identity.
A family-run oat bar company, Eat Bobo’s have gotten creative with naming their loyalty program and have gone with “Bobo’s Love Mitts” while their points are called “Love Mitts”. This approach reflects that their products are made by hand and with care. As a result their loyalty program feels coherent and consistent with the rest of their messaging.
According to the Customers 2020 study by Walker Information: “Customer sentiment, or feelings that customers have about their interactions, will increase in value as companies look to differentiate based on the experience they deliver”.
Loyalty programs give you a great opportunity to provide a superior experience for the customer.
Photo entertainment website TheChive have done exactly this, putting community at the heart of their gamified blog by rewarding customers for photo uploads and social sharing.
As a result, they have gained an active community of highly engaged customers. They now attribute 6% of their annual revenue to their loyalty strategy and generate 6,800 referred visits per month. Having given customers a reason to return to the site, they are more likely to purchase again and again.
Sustainable dungarees brand, Lucy and Yak, have made their integrated loyalty page extremely visual. Utilising UGC photographs of customers wearing their products and lifestyle imagery to showcase how customers can earn points, it is fun and on-brand.
Utilising their own brand language, they’ve dubbed rewards “Yak points” and named their loyalty tiers in a similar fashion with “Comfort Lover” “Yak Enthusiast” and “Dungaree Devotee” among the highlights. Let your language be playful and reflect the values or mood of your business.
A “micro drinks” company, Waterdrop have paid careful attention to the look and feel of their loyalty program page, which is synonymous with the website’s overall branding.
The colours are fresh, the imagery is light and the language evokes a feeling of inclusivity. On the loyalty page itself, everything from the actions customers need to take to earn points to information on the free gifts they can acquire is communicated clearly.
Since January this year, Waterdrop’s loyalty program has welcomed 619 new customers who have helped them generate over €58,000 from referrals.
We hope this rundown has given you the inspiration you need to start creating and launching your own loyalty program. If you want to find out why these examples are best-in-class, and how you can match up, have a read of the LoyaltyLion Hall of Fame where we showcase some of the best loyalty programs in ecommerce.
By signing up, you agree to our terms and conditions.