We all know that selling to existing customers is several times cheaper than acquiring new ones. That’s why reward programs are currently such a hot topic. Companies compete with one another in a variety of creative ways to come up with ideas on how to shape reward programs. Many of them use points that can be redeemed for different rewards, some of them establish tiers or segments to encourage more purchases, and yet others partner with other companies to deliver all-inclusive offers.
However, the best programs aren’t only about rewards. They’re about the whole experience that the brand delivers to its clients. For exactly this reason, we decided to gather 40 of the best rewards programs for customers in one place.
From this report, you’ll learn how brands deal with loyalty issues, how the most popular customer loyalty programs are built, and how the key elements look in particular programs. At the end of this report, you’ll find a bonus of a bunch of insights with the most popular statistics regarding loyalty and customer loyalty programs. They’re based on Nielsen’s “Get with the program” report.
The report consists of nine industries:
- Beauty/Pharmacy: Sephora, Pampers, Walgreens, Lancome, Elf Cosmetics
- Food: Tesco, Starbucks, JCPenney, Walmart, Dunkin’ Donuts
- Services/B2B: Uber, Verizon, Sprint, Citi, Miles and More
- Apparel/Fashion: Swarovski, Nordstrom, Carter’s, H&M, Payless
- Sport: Decathlon, Muscle & Strength, Nike, Zappos, Rewards4Golf
- Home/Decoration: Ikea Family, Kohl’s, Pottery Barn, Home Depot, Bed Bath & Beyond
- Automotive/Gas: Shell, Tesla, Speedway, BP, Canadian Tire
- Entertainment: Toys “R” Us, Disney, Marvel, Hilton, Nintendo
Examples of the best reward programs mentioned in the report
The rewards program inside CitiBank
Citi ThankYou is a customer loyalty program run by CitiBank, the consumer division of the financial services multinational Citigroup. They’re an American multinational investment banking and financial services corporation. Citigroup is one of the largest banks in the United States with over 200 million customer accounts, 230,000 employees, and a global reach. They operate in more than 160 countries with revenue of 69.87 billion dollars (2017).
Citi ThankYou is available online and offline. Members can earn points using their Citi account by taking part in promotional offers and purchasing points through service call centers. Points can be redeemed for different prizes. The program offers unique, limited-time offers for various occasions.
- Availability to use ThankYou points to shop at participating online partners
- Availability to pay with ThankYou points at participating online partners
- Redeeming points for merchandise and gift cards
- Transfer points to participating travel loyalty programs
- Use ThankYou points for statement credits to cover the cost of recent purchases in select categories, like dining, entertainment, utility bills, gas, grocery, clothing and department stores, and drug stores, made with the Citi credit card
- Use points, or a combination of points and cash, when using CitiBank’s Online Bill Pay option
- Turning points into cash ($50 and multiplicity)
- Donating points as money for charities
Bed Bath & Beyond runs a reward program based on tiers and credit cards
The Bed Bath & Beyond credit card is a loyalty program run by Bed Bath & Beyond. They’re an American-owned chain of domestic merchandise retail stores in the United States, Puerto Rico, Canada, and Mexico. Today, Bed Bath & Beyond has a reach of approximately 1,024 stores served by 65,000 employees and revenue of about 12.215 billion dollars in 2016.
Bed Bath & Beyond’s loyalty program is available online and offline. It includes signing up for a credit card. The brand decided to award credit card holders with special discounts. Members can earn discounts by shopping at Bed Bath & Beyond and partners like buybuy BABY, Christmas Tree Shops andThat!, Cost Plus World Market, and Harmon Face Values.
To join the rewards program, customers have to join online through the Bed Bath & Beyond website. There’s also a mobile app available for iOS and Android where customers can access online and in-store offers, create their own registry, and scan products. After registration, a customer receives a regular credit card.
- Discounts like, for example, a $25 off coupon on a $100 purchase when receiving the credit card
- Rewards from Bed Bath & Beyond, buybuy BABY, Christmas Tree Shops andThat!, Cost Plus World Market, and Harmon Face Values
- Percentage of money back in rewards
A rewards programs for a sporting good retailer: How Decathlon increases the number of loyal customers
My Decathlon is a rewards program run by Decathlon, a French designer and retailer of technical, attractive, and simple sports products. Decathlon is one of the world’s largest sporting goods retailers with a global reach of approximately 1,176 stores in around 38 countries, more than 78,000 employees, and revenue of about €10 billion euros in 2015.
My Decathlon is available online and offline. The brand decided to use points for their loyalty program. Points can be redeemed for vouchers to spend at Decathlon stores. The program includes My Decathlon cards that are available as an actual card and in virtual versions in their mobile app for Android.
Members can choose their favorite sports and activities in order to receive special personalized offers.
To join the rewards program, customers have to join online through the Decathlon website or offline in one of the Decathlon stores. There’s a mobile app available for iOS and Android where members can do shopping and manage their account. The app also contains a member card which can be used while shopping.
- Free participation in the Decathlon Sport Series
- 365-day returns without a receipt
- Free next day click and collect for purchases made before 12 p.m.
- Tips and advice from sports experts
- Product traceability for warranty support
- Program is valid in every Decathlon store
Ikea Family is one of the most popular rewards programs in the home and decor industry
Ikea Family is a customer rewards program run by Ikea, a multinational group headquartered in the Netherlands. They design and sell ready-to-assemble furniture, kitchen appliances, and home accessories. Ikea is the world’s largest furniture retailer with a global reach of approximately 370 stores in around 47 countries, more than 14,000 employees, and a revenue of about $13.5 billion in 2017.
Ikea Family is available online and offline. The brand decided to provide special benefits and coupons for Ikea loyal customers. The rewards program includes Ikea Family Cards that are available as an actual card and in virtual versions via the Ikea mobile app. To join the rewards program, customers have to register online through the Ikea website mobile app, available with iOS and Android, or offline in Ikea stores.
- Coupons and special monthly in-store offers
- Members-only prices on the Ikea Family Range
- Free tea or filter coffee from Monday to Friday
- Special food offers
- Extra 10% off sale prices
- Free product insurance
- Win a prize while swiping an Ikea Card
- Inspirations that include the latest products news, step-by-step help for home projects, or seasonal inspirations
Disney Rewards is a great example of a customer rewards program in the entertainment industry
Disney Rewards is a loyalty program run by Walt Disney Company, an American diversified multinational mass media and entertainment conglomerate. Disney employs approximately 195,000 employees in more than 1,500 locations with revenue of about $55.632 billion in 2016. Disney also has six Walt Disney Parks and Resorts which employ about 130,000 of the company’s 195,000 employees.
The Disney Rewards loyalty program is available online and offline. The program is divided into two segments. One is for Disney Premier Visa card owners, and the other is for Disney Visa card owners. Members can earn rewards points by paying with Disney cards, and then redeem them for special perks at Disney online and offline stores and at Disney Parks and Resorts.
The Disney Rewards program is available online and offline. The program is divided into two segments. One is for Disney Premier Visa card owners, and the other is for Disney Visa card owners. Members can earn rewards points by paying with Disney cards, and then redeem them for special perks at Disney online and offline stores and at Disney Parks and Resorts.
To join the rewards program, customers can register online through the Disney website. The brand also offers a mobile app for iOS and Android) where members can manage their time in Disney Parks and Resorts.
- Possibility to redeem reward dollars at Walt Disney Parks and Resorts
- Access to special limited-time offers
- Perks throughout the year
- Special Disney-themed perks in different locations
- Access to Disney Vacation Club
- Access to Disneyland Resort vacation packages
- Disneyland private card member phone line
- Exclusive Disney Visa cardmember events at the Disney Store
- 10% off every day on select merchandise purchases in online and offline stores
- Access to VIP packages for the Lion King or Aladdin on Broadway including: premium seating, non-alcoholic beverage in a keepsake cup, souvenir lanyard with a pin, commemorative photograph
Canadian Tire introduced the Triangle Rewards™ Program
Canadian Tire Money is a loyalty program run by Canadian Tire, a Canadian retail company which sells a wide range of automotive, sports, leisure, and home products. Canadian Tire employs approximately 58,000 employees in approximately 50 locations with a revenue of about $12.46 billion in 2014.
The brand decided to provide special benefits and coupons to Canadian Tire customers. It consists of coupons that can be redeemed for Canadian Tire in-store shopping prizes. The program includes Canadian Tire cards that are available as actual cards and in virtual versions via the mobile app.
- Exclusive offers and special events
- Possibility to redeem points on over 90,000 items in-store
- Receive personalized offers via email
- Early access to their weekly flyer
- Digital coupons
- Shopping lists
- Easy returns
- Paperless receipts