The best examples of 3 loyalty programs examples for customer retention in 2025

Why start with real examples of 3 loyalty programs examples for customer retention?

Marketers don’t need more theory; they need models they can copy and adapt. When you study examples of 3 loyalty programs examples for customer retention—points, tiers, and subscriptions—you see three different ways to answer the same question:

How do we give customers a compelling reason to come back again instead of drifting to a competitor?

These three models cover most of the loyalty landscape:

• Points-based programs that reward frequency and spending.
• Tiered programs that reward status and milestones.
• Subscription or paid loyalty programs that reward commitment up front.

Let’s walk through each with detailed, real‑world cases and what you can steal from them.

Example of a points-based loyalty program: Starbucks Rewards and beyond

When people ask for the best example of a modern points program, Starbucks Rewards usually tops the list. It’s one of the most cited examples of 3 loyalty programs examples for customer retention, and for good reason.

Starbucks Rewards: points as a habit engine

Starbucks Rewards turns everyday coffee runs into a sticky digital habit:

• Customers earn Stars for every dollar spent (more if they pay with a Starbucks card or app).
• Stars can be redeemed for free drinks, food, and customizations.
• The app pushes personalized offers like “2x Stars on your favorite drink this week.”
• Mobile ordering and payment are tightly integrated with the loyalty program.

What makes it one of the best examples isn’t just the points. It’s the behavior design:

• The app becomes the default way to order.
• Personalized offers nudge customers to visit during slower hours.
• Limited‑time bonuses encourage higher spend (“earn 50 bonus Stars when you try 3 different bakery items this week”).

Starbucks has reported that Rewards members drive a large share of its revenue; in the U.S., Rewards members accounted for over half of company-operated revenue in recent years, illustrating how a well‑designed points program can anchor repeat behavior.

Sephora Beauty Insider: points plus perks

Sephora’s Beauty Insider is another high-performing example of a points-based program with a twist:

• Members earn points on every purchase.
• Points can be redeemed for deluxe samples, gifts, or experiences.
• Members get birthday gifts, early access to products, and exclusive events.

The insight here: points are only part of the story. Sephora uses loyalty data to personalize recommendations and marketing, which aligns with broader findings that personalization can significantly increase customer engagement. Research from sources like the National Institutes of Health has consistently highlighted the power of tailored interventions in behavior change; in marketing, the same principle applies—personalized offers change how people act.

Smaller business example: local coffee shop with digital punch card

You don’t need Starbucks’ budget to use this model. Imagine a local coffee shop using a simple app‑based punch card:

• Buy 9 drinks, get the 10th free.
• Double points during slow hours (2–4 p.m.).
• Occasional “members only” flavors or discounts.

This is a lean example of how a small business can create a loyalty loop:

• Incentivize frequency.
• Smooth out demand across the day.
• Capture customer data (email, preferences) via the app.

When to use a points-based program

Among the examples of 3 loyalty programs examples for customer retention, points-based programs make sense when:

• You have frequent, repeatable purchases (coffee, groceries, quick-service restaurants, beauty).
• Margins can support recurring small rewards.
• You want to track behavior and experiment with targeted offers.

If your product is bought once every few years (e.g., mattresses, major appliances), this is probably not your primary loyalty lever.

Tiered loyalty programs: real examples that turn status into retention

If points are about frequency, tiers are about status. Customers climb levels based on their spending or engagement, unlocking better benefits as they go.

Tiered models are powerful examples of 3 loyalty programs examples for customer retention because they:

• Encourage customers to consolidate their spending with one brand.
• Tap into the psychology of progress and loss aversion (no one wants to drop a tier).

Sephora Beauty Insider tiers: Insider, VIB, Rouge

Sephora shows up again here because Beauty Insider is both a points and tiered program. Tiers are based on annual spend:

• Insider: Free to join, basic perks.
• VIB: Higher spend, better discounts and early access.
• Rouge: Top spenders, biggest perks, exclusive events.

This hybrid model is one of the best examples because it demonstrates how tiered recognition keeps high‑value customers engaged.

Delta SkyMiles and airline status

Airlines have been running tiered loyalty programs for decades, and they’re textbook examples of status‑driven retention.

With Delta SkyMiles, for instance:

• Members earn miles and Medallion Qualification metrics.
• Higher tiers (Silver, Gold, Platinum, Diamond) unlock priority boarding, upgrades, fee waivers, and lounge access.

Once customers reach a tier, they:

• Are more likely to route flights through that airline or alliance.
• Often accept higher prices to maintain or reach the next level.

Behavioral economics research, including work summarized by institutions like Harvard University, has long shown that people are motivated to avoid losing status. Tiered programs turn that into a retention strategy.

Hotel chains: Marriott Bonvoy example

Marriott Bonvoy uses tiers (Silver, Gold, Platinum, Titanium, Ambassador) to lock in frequent travelers:

• Higher tiers get room upgrades, late checkout, bonus points, and welcome gifts.
• Members often choose Marriott over cheaper alternatives to maintain status.

This is another strong example of how tiers reshape customer decision-making.

When to use a tiered loyalty model

Among the examples of 3 loyalty programs examples for customer retention, tiered programs are ideal when:

• You have high lifetime value customers (travel, luxury, B2B SaaS, premium retail).
• Your customers have choices but can concentrate most of their spend with you.
• You can offer status-based perks that don’t always cost cash (priority service, early access, upgrades).

You can also combine tiers with points, as Sephora and many airlines do, to appeal to both casual and heavy users.

Subscription and paid loyalty programs: Amazon, Walmart, and smaller brands

The third category in our examples of 3 loyalty programs examples for customer retention is subscription or paid loyalty. Instead of earning rewards slowly, customers pay up front to unlock ongoing benefits.

This flips the psychology: once customers pay, they feel a need to justify the membership, which drives repeat use.

Amazon Prime: the flagship paid loyalty example

Amazon Prime might be the most famous example of a paid loyalty program:

• Members pay an annual or monthly fee.
• They get fast shipping, streaming, exclusive deals, and more.

Once someone is a Prime member:

• They tend to default to Amazon for everyday purchases.
• They’re more likely to check Amazon first, even if competitors are cheaper.

Prime is often cited as a major driver of Amazon’s growth, and it’s a clean illustration of how a paid program can reshape shopping habits.

Walmart+ and the retail subscription race

Walmart+ is another modern example of a subscription-based loyalty program:

• Paid members get free delivery on orders, fuel discounts, and mobile scan & go in stores.
• The program is designed to keep price‑sensitive shoppers in the Walmart ecosystem.

Both Amazon and Walmart demonstrate how paid loyalty can:

• Increase purchase frequency.
• Grow share of wallet.
• Provide a recurring revenue stream on top of product sales.

Smaller brand example: subscription for perks

You don’t need to be a retail giant to use this model. Consider a mid‑size DTC brand that sells pet food:

• Customers pay a small monthly fee for membership.
• Members get discounted auto‑ship, early access to new formulas, and a free vet Q&A webinar each quarter.

This is a realistic example of how a niche subscription program can:

• Lock in recurring orders.
• Create switching costs (members think twice before moving to another brand).

When to use a subscription or paid loyalty program

Among all the examples of 3 loyalty programs examples for customer retention, paid loyalty works best when:

• Your offering has ongoing, repeatable value (shipping, content, services, consumables).
• You can bundle benefits that feel worth more than the fee.
• You want to signal seriousness: members are your “inner circle.”

You can also layer a paid tier on top of a free program, giving power users a way to unlock more value.

How to pick from these examples of 3 loyalty programs examples for customer retention

By now you’ve seen multiple examples of 3 loyalty programs examples for customer retention across industries. The real question: which model fits your business?

1. Look at purchase frequency and margin

• High frequency, moderate margin (coffee, groceries, fast fashion): points make sense.
• Moderate to high spend, emotional attachment (beauty, travel, premium retail): tiers and hybrid models shine.
• Recurring need or ecosystem (marketplaces, subscription boxes, consumables): paid loyalty or subscription is compelling.

2. Map customer behavior and friction

Ask:

• Where do customers drop off after the first purchase?
• What would make them think twice before switching?
• Could a simple reward nudge them to come back one more time this month?

The CDC’s work on behavior change programs, while focused on health, consistently shows that small, repeated incentives and prompts can reinforce desired habits over time (CDC.gov). The same behavioral mechanics apply when you design incentives for shopping or app usage.

3. Start small, measure, and iterate

Whatever model you choose from these examples of 3 loyalty programs examples for customer retention, avoid overbuilding on day one. Instead:

• Launch a minimal version (e.g., points for purchases plus a simple welcome offer).
• Track key metrics:
  • Enrollment rate
  • Repeat purchase rate
  • Average order value
  • Churn among members vs. non‑members
• Add tiers, paid options, or personalized offers once you see traction.

Academic research from institutions like Harvard Business School has emphasized the value of experimentation and A/B testing in marketing. Treat your loyalty program the same way: a living product, not a one‑time campaign.

2024–2025 trends shaping loyalty program examples

To keep these examples of 3 loyalty programs examples for customer retention relevant, pay attention to a few current trends:

Personalization and AI-driven offers

Brands are using AI to:

• Predict which customers are at risk of churning.
• Serve micro‑targeted offers (e.g., a personalized discount on the one product you always buy).

This is where loyalty data becomes a strategic asset. Points and tiers are just the front end; the real value is in understanding behavior.

Paid tiers and “loyalty as a product”

More brands are experimenting with:

• Free base programs plus paid premium tiers.
• Bundling services (shipping, content, support) into a membership.

This hybrid approach combines the reach of free programs with the stickiness of paid loyalty.

Privacy and trust

Customers are more aware of data privacy. To keep your program attractive:

• Be transparent about how you use data.
• Offer real value in exchange for information.
• Follow guidance from reputable organizations like the Federal Trade Commission on privacy and consumer protection.

FAQ: examples of loyalty programs and practical questions

Q1. What are some real examples of 3 loyalty programs examples for customer retention?
Real‑world examples include Starbucks Rewards (points-based), Sephora Beauty Insider (points plus tiers), Delta SkyMiles and Marriott Bonvoy (tiered status), and Amazon Prime or Walmart+ (subscription/paid loyalty). Smaller businesses often mirror these models with digital punch cards, simple tiered VIP clubs, or paid memberships that offer shipping and service perks.

Q2. What’s a simple example of a loyalty program a small business can launch quickly?
A straightforward example of a quick launch is a digital punch card: customers sign up with email or phone, earn a stamp or points for each purchase, and get a free item after a set number of visits. Layer in occasional “double points days” during slow hours and a birthday reward to keep engagement high.

Q3. Are paid loyalty programs like Amazon Prime always better than free ones?
No. Paid programs work best when the perceived value of benefits clearly exceeds the fee and customers buy frequently enough to notice the savings or perks. Free programs usually have broader reach and are easier for new customers to join. Many of the best examples combine both: a free base program plus an optional paid tier for heavy users.

Q4. How do I know if my loyalty program is actually improving retention?
Compare behavior of members vs. non‑members over time. Look at repeat purchase rate, time between purchases, and average order value. If members significantly outperform non‑members, your program is likely contributing to retention. If not, revisit your rewards, tiers, and communication strategy.

Q5. Can I mix different loyalty models from these examples?
Yes. Some of the strongest programs in our examples of 3 loyalty programs examples for customer retention are hybrids. For instance, you can combine points (for every purchase) with tiers (for annual spend) and add an optional paid VIP tier with extra perks. The key is clarity: customers should instantly understand how to earn and what they get.