Top 10 E-Commerce Loyalty Program Examples

With so many online stores to choose from, customer loyalty has become more valuable than ever. A strong e-commerce loyalty program can help brands stand out, retain customers, and build lasting relationships. Whether it's earning points for purchases, getting a birthday gift, or enjoying free shipping, shoppers want more than just products they want rewards and recognition.

In fact, over 75% of consumers say they are more likely to stick with a brand that offers a good loyalty program. And it's not just about discounts. Customers also want exclusive perks, better customer service, and early access to deals. Brands that deliver on this front see better customer engagement, increased customers spending, and stronger brand loyalty.

Let’s explore what makes e-commerce loyalty programs so powerful and how some of the biggest brands are doing it right.

What Are E-Commerce Loyalty Programs?

An e-commerce loyalty program is a loyalty strategy that rewards online shoppers for their repeat business. These programs are designed to retain customers by offering them exclusive benefits for actions like making purchases, sharing on social media, writing reviews, or referring friends.

Unlike one-time promotions, loyalty programs are long-term tools that grow value over time. The goal is simple: keep customers coming back. Whether through a points based loyalty program, tiered rewards, or free products, the focus is always on improving the customer experience.

For e-commerce brands, loyalty programs don’t just improve retention they also help reduce customer acquisition costs (CAC). It's cheaper to reward a loyal shopper than to constantly attract new ones. This makes a well-structured loyalty program not just a bonus, but a smart investment in sustainable growth.

Types of E-Commerce Loyalty Programs

E-commerce businesses use various types of loyalty programs to keep customers engaged, encourage repeat purchases, and ultimately increase sales. By offering rewards, exclusive perks, and other incentives, these programs foster customer loyalty. Here are some of the most popular types of e-commerce loyalty programs:

Points-Based Programs

One of the most common types of loyalty programs is the points-based program. In this system, customers earn points with each purchase, which can later be redeemed for discounts, free shipping, or even free products. Points are typically awarded based on the total amount spent, such as 1 point for every $1 spent.

A key benefit of this system is that it encourages customers spending since shoppers are motivated to make larger purchases to earn more points. Many brands also integrate bonus points for specific actions, like signing up for the program or referring a friend.

Popular examples of points based loyalty programs include Sephora’s Beauty Insider program, where members earn points on every purchase and can redeem them for exclusive beauty products, and Walmart+, which offers members access to special discounts and perks like free shipping.

Value-Based Programs

In value-based programs, rewards are tied to the value rather than the quantity of purchases. These programs focus on giving customers tangible benefits like exclusive access to new products, early sales, or special services like personalized customer support.

The key difference with points-based systems is that the reward structure is more aligned with the actual value a customer brings to the brand, rather than the number of purchases. For example, a customer who makes fewer but higher-value purchases could receive more exclusive benefits than someone who buys frequently but at lower prices.

H&M’s Membership Program offers a good example of a value-based loyalty program, where customers receive exclusive discounts, early access to sales, and a birthday gift based on their spending and engagement, rather than just the number of transactions.

Membership Programs

Membership programs create a sense of exclusivity by charging customers a recurring fee for special benefits. These programs are usually subscription-based, offering a fixed set of benefits that members can access for as long as their membership remains active.

Amazon Prime is a leading example of a membership program. For an annual fee, customers get access to free two-day shipping, exclusive deals, streaming services, and other perks. By paying upfront for the membership, customers are more likely to return to Amazon for their future purchases, knowing that they’re already paying for exclusive perks.

Tiered Programs

Tiered loyalty programs add another level of sophistication by offering rewards in multiple levels or tiers. As customers spend more or engage more with the brand, they move up to higher levels, unlocking even more exclusive benefits and rewards.

This system is effective for increasing customer engagement, as it motivates members to reach the next tier to access better perks. For example, Sephora’s Beauty Insider program has three tiers: Insider, VIB (Very Important Beauty), and Rouge. The higher the tier, the better the rewards, such as free products, special events, and birthday gifts.

Tiered programs work particularly well for large brands that want to recognize their best customers and reward them with premium benefits for their continued loyalty.

Subscription-Based Programs

A subscription-based program is similar to a membership program, but the focus is often more on regular delivery of products rather than access to a set of services or benefits. Customers sign up to receive their favorite products on a recurring basis, often at a discount or with special incentives like early access to sales or loyalty points.

For example, Dollar Shave Club offers a subscription service where customers receive shaving products at regular intervals, often with added perks like discounts on other products or access to limited-edition items. This creates a strong bond with customers, who are incentivized to remain subscribed due to the savings and convenience.

Why Are E-Commerce Loyalty Programs Important?

E-commerce loyalty programs are not just a trend; they are a crucial component of any successful online business strategy. These programs offer significant benefits for both brands and customers, helping companies increase customer retention, grow their customer base, and build a positive reputation. Here's why loyalty programs are so important:

Retention

The most obvious benefit of a well-designed loyalty program is its ability to improve customer retention. Research shows that retaining a customer is far more cost-effective than acquiring a new one. According to a study by Harvard Business Review, increasing customer retention rates by just 5% can boost profits by 25% to 95%.

Loyalty programs create a strong bond between brands and customers. When shoppers know they can earn points for purchases or receive exclusive perks like free shipping, they are more likely to return. This sense of belonging encourages repeat business, which helps businesses build a loyal customer base.

Acquire New Customers

While loyalty programs are primarily about keeping existing customers happy, they also play a role in acquiring new customers. Many programs, such as referral-based systems, incentivize current customers to refer friends or family by offering both the referrer and the new customer rewards.

For example, a customer who refers a friend might receive bonus points or a discount on their next purchase, while the referred friend gets a welcome offer. This creates a mutually beneficial situation where both parties are incentivized to join the program, expanding the customer base and increasing brand visibility.

Reinforce Your Reputation

A well-structured loyalty program can significantly reinforce your reputation as a brand that values its customers. Offering exclusive benefits like personalized rewards, early access to sales, or a birthday gift shows customers that they are more than just a transaction they are appreciated and cared for.

Brands with strong loyalty programs often generate positive word-of-mouth and social media buzz, as customers who feel valued are more likely to share their experiences with others. This organic promotion helps elevate the brand’s reputation and increase trust, both of which are key for long-term success in the competitive e-commerce space.

Enhance Customer Support

Loyalty programs can also enhance customer support. By tracking a customer’s purchasing behavior and interactions with the brand, companies can offer more personalized support. For example, loyalty members could receive priority customer service, faster response times, or dedicated support agents.

This personalized touch can make customers feel more valued, and they are more likely to remain loyal to brands that offer excellent customer service. By using loyalty programs to reward engagement, businesses can ensure that their customers have a seamless experience both before and after a purchase.

Reduce Customer Acquisition Costs (CAC)

One of the most significant advantages of loyalty programs is their ability to reduce customer acquisition costs (CAC). It is generally more expensive to acquire a new customer than it is to keep an existing one. With a strong loyalty program, businesses can rely on repeat customers, significantly lowering the need to spend as much on ads or promotions.

Loyal customers also tend to spend more over time, so businesses are not only reducing CAC but also increasing their average customer lifetime value (CLV). This makes loyalty programs a key part of sustainable growth, helping brands maintain a steady revenue stream without relying heavily on costly customer acquisition strategies.

E-Commerce Loyalty Program Examples

Many leading e-commerce brands have successfully implemented loyalty programs that offer exclusive perks and rewards, making customers feel appreciated and encouraging repeat purchases. Here are two prominent examples of e-commerce loyalty programs that showcase the effectiveness of such strategies:

Walmart+

Walmart+ is Walmart’s subscription-based loyalty program designed to compete with Amazon Prime. For a monthly or annual fee, members get access to a wide range of benefits, including free shipping on most items, same-day delivery on groceries, and discounted fuel prices at participating Walmart and Murphy stations.

Walmart+ aims to enhance the customer experience by providing value beyond just discounts. The program offers exclusive perks like free delivery from local stores, helping Walmart maintain a competitive edge in the e-commerce space. Members can also take advantage of early access to sales and special deals on specific items, making the program attractive for both frequent and occasional shoppers. The added convenience of free shipping and same-day delivery is a significant draw for customers who want fast and reliable service without additional costs.

The program has been instrumental in boosting customer retention by providing tangible benefits, making it a great example of how a well-structured membership program can increase customer loyalty while offering customers an excellent value proposition.

Flipkart Plus

Flipkart Plus is Flipkart’s loyalty program that offers a variety of benefits to its customers in India. Much like Walmart+, Flipkart Plus is a free-to-join program that rewards customers for making purchases on the platform. Members receive a range of benefits, including free shipping, early access to sales, and exclusive offers. Members also earn reward points for every purchase, which can be redeemed for discounts on future orders.

Flipkart has also partnered with brands to offer exclusive perks like special deals and access to exclusive events. One of the standout features of Flipkart Plus is its exclusive access to Flipkart's Big Billion Days Sale, where members can shop earlier than non-members, allowing them to grab the best deals before they sell out. This creates a strong incentive for shoppers to join the program, not only for the ongoing perks but also for the limited-time offers available during major sales events.

The program’s simplicity and the immediate value provided to customers make it an effective tool for increasing customer engagement and retaining loyal shoppers. Flipkart Plus showcases how reward points, free shipping, and exclusive sales can significantly enhance the customer experience and foster long-term loyalty.

Aldo Crew

Aldo Crew is Aldo's loyalty program that offers members exclusive rewards, discounts, and personalized experiences. By joining Aldo Crew, customers can earn points on every purchase, which can be redeemed for future discounts, gift cards, and exclusive offers. The program operates in a straightforward points-based loyalty system, where customers earn one point for every dollar spent.

A key feature of Aldo Crew is its focus on personalization. Members are treated to tailored offers based on their purchasing history and preferences, which enhances the overall customer experience. Aldo Crew also offers birthday rewards, so customers receive special recognition and discounts around their birthday, creating a personal connection with the brand.

Aldo Crew members also get access to early access to sales and exclusive events, making them feel like part of an exclusive community. Additionally, members can unlock tiered benefits as they accumulate more points, encouraging further engagement and repeat purchases. The program emphasizes customer service, with Aldo Crew members receiving faster support and priority when it comes to special promotions or limited-stock items.

Shein Bonus Points

Shein, a popular fast-fashion e-commerce platform, utilizes a bonus points system that rewards customers for purchases, social media engagement, and other activities. Shein’s loyalty program allows customers to earn bonus points with every purchase, as well as for writing product reviews, sharing their purchases on social media, or inviting friends to join the platform. These bonus points can be redeemed for discounts or used to access special promotions.

The beauty of Shein’s loyalty program lies in its ability to encourage customer engagement across multiple touchpoints. For example, customers can earn bonus points by sharing their fashion finds on social media, which helps increase Shein's visibility while rewarding loyal shoppers. This integration of social media into the loyalty experience creates a sense of community, as customers can share their style with others while reaping the rewards.

In addition to earnings for purchases, Shein also offers exclusive perks to top-tier members, such as early access to sales or special offers that are not available to non-members. This makes the program particularly attractive for frequent shoppers who want to stay ahead of the latest trends.

Sephora Beauty Insider

Sephora Beauty Insider is one of the most well-known and successful loyalty programs in the beauty industry. This program is a points-based loyalty system that rewards customers for their purchases, providing access to exclusive rewards, events, and offers. Customers earn one point for every dollar spent, and these points can be redeemed for a wide variety of rewards, from free products to special experiences.

The program has three tiers: Insider, VIB (Very Important Beauty), and Rouge. Each tier offers its own set of exclusive perks. For example, VIB members get early access to Sephora sales, while Rouge members receive free shipping, special gifts, and invitations to exclusive beauty events. As customers spend more, they unlock greater rewards, making the program highly motivating and rewarding.

One of the most appealing aspects of Sephora Beauty Insider is its personalization. Members can choose their rewards based on their preferences, whether it's makeup, skincare, or tools. This level of customization enhances the customer experience, making it feel as though the rewards are tailored specifically for each individual.

Alibaba Membership

Alibaba Membership offers various benefits to users of Alibaba’s vast e-commerce ecosystem, ranging from bulk buyers to individual shoppers. The Alibaba Membership Program is designed to incentivize engagement with the platform, offering exclusive offers, discounts, and priority access to Alibaba's wide range of services.

One of the standout features of the program is its discounted rates on bulk purchases, making it especially valuable for business buyers looking to save on large orders. Members can access special promotions and early access to sales, ensuring they have the best chance of securing the products they need at the best prices.

In addition to purchasing perks, Alibaba members also receive access to premium services like dedicated customer support and business solutions, making the platform more attractive for professional buyers. For those using Alibaba for e-commerce and product sourcing, the program provides exclusive perks such as free or discounted shipping on select items and priority delivery options.

Zappos VIP

Zappos VIP is a standout loyalty program that focuses on providing exceptional customer service and unique perks for its members. Unlike many other loyalty programs that are points-based, Zappos VIP offers an exclusive membership experience with a strong emphasis on personalized service and free benefits.

For Zappos VIP members, the primary perk is free shipping both ways, which is a huge benefit for online shoppers. This makes the shopping experience seamless, as customers can order products, try them on at home, and return them without worrying about additional costs. This free shipping offer is available with no minimum purchase, making it a highly attractive feature for frequent shoppers.

In addition to free shipping, VIP members receive exclusive access to sales, early access to limited-time promotions, and birthday gifts. The program also prioritizes customer engagement by offering a personalized shopping experience, with members being treated to recommendations based on their previous purchases and preferences.

H&M Membership

H&M Membership is a popular loyalty program that offers customers a combination of points-based rewards, discounts, and exclusive offers. The program is available to shoppers both online and in-store, making it convenient for customers who prefer to shop in various ways.

Members of the H&M Membership program earn points for every purchase, and these points can be redeemed for discounts or special offers. The program also includes exclusive benefits such as birthday gifts, early access to sales, and special loyalty program offers. H&M members are often the first to know about sales events and new collections, giving them a sense of exclusive access and connection to the brand.

One of the key features of the H&M program is the tiered system. As customers accumulate more points, they move up to higher levels, unlocking additional perks such as extra discounts, free shipping, and priority access to new products. This tiered system creates an incentive for customers to shop more often, knowing that their loyalty will be rewarded with bigger savings and more exclusive offers.

IKEA Family

IKEA Family is IKEA’s loyalty program designed to reward customers with exclusive discounts, special offers, and personalized services. Unlike traditional loyalty programs that focus solely on purchases, IKEA Family goes above and beyond by providing members with a variety of benefits that improve their overall shopping experience.

One of the standout features of the IKEA Family program is the exclusive discounts members receive on a wide range of products, from furniture to home decor. Members can enjoy special offers and discounts that are not available to non-members, often at a significant percentage off regular prices. In addition to these discounts, IKEA Family members are also granted access to members-only promotions, allowing them to take advantage of deals before they’re available to the general public.

Another key perk of the IKEA Family program is the extended return period, which gives members more time to change their minds on purchases. This enhanced customer service ensures that members feel more confident in their purchases and more comfortable with the brand.

Foot Locker Rewards

Foot Locker Rewards is a comprehensive loyalty program that aims to reward customers for their loyalty and encourage them to keep shopping at Foot Locker. The program offers multiple levels of rewards, allowing members to earn points with every purchase and unlock exclusive benefits as they continue to shop.

Foot Locker’s loyalty program is based on a points system, where members earn points for every dollar spent. As customers accumulate more points, they can redeem them for discounts, exclusive perks, and access to special promotions. Members are also rewarded with birthday gifts and can earn bonus points for engaging with the brand on social media or through special promotions.

One of the standout features of the Foot Locker Rewards program is its tiered structure, which encourages customers to spend more in order to unlock higher levels of rewards. Higher-tier members enjoy early access to sales, VIP events, and additional discounts on new releases, ensuring they feel like valued members of an exclusive community. The program also offers members access to exclusive product drops, giving them a chance to purchase limited-edition sneakers and apparel before they sell out.

Conclusion

E-commerce loyalty programs are powerful tools for building lasting customer relationships, increasing engagement, and driving repeat purchases. By offering exclusive perks like discounts, free shipping, early access to sales, and personalized experiences, brands can enhance the customer journey and improve retention.

Programs like Walmart+, Sephora Beauty Insider, and IKEA Family demonstrate how diverse loyalty strategies from points-based systems to membership tiers create significant value for both customers and businesses. As e-commerce continues to grow, investing in a well-structured loyalty program will remain essential for businesses aiming to foster long-term customer loyalty and success.