Have you ever wondered which consumer packaged goods (CPG) loyalty programs truly stand out and go the extra mile to make their customers feel special?

In a market brimming with choices and fierce competition on the store shelves, loyalty programs have become a secret weapon for brands to establish a direct connection with the end customers, capture people's hearts and ensure their unwavering allegiance.

But let's be honest: not all programs are created equal. Some offer exceptional benefits that make people feel like valued VIPs. That's why we're here — to reveal the crème de la crème of the top 7 CPG loyalty programs that genuinely grasp the art of treating clients like royalty.

In this article, we'll delve into the strategies, perks, and experiences that set these leading programs apart. From astonishing discounts and personalized rewards to seamless digital interactions and meaningful engagement, they've mastered the craft of fostering enduring connections with their customers.

Key takeaways

• A loyalty program strengthens brand attachment and positively feeds marketing channels. They bring fantastic benefits to both consumers and companies.
• Personalization is a big winner in successful consumer loyalty schemes. These programs use transactional data to customize rewards and offers, making the whole experience more engaging and relevant.
• Mobile loyalty software and digital platforms are essential in CPG loyalty program schemes. They give brands direct touch with end customers and allow them to proactively shape the relationship between buyer and brand.
• Social responsibility matters. Loyalty schemes that give back to the community, support charities, or promote environmentally-friendly practices really strike a chord with consumers — this is especially true for certain groups, such as Gen Z. It's all about feeling good about the CPG brands you're loyal to.
• The top FMCG brands constantly innovate and adapt their loyalty programs to changing trends, technology, and consumers' expectations. They're created to keep people excited and engaged in the long run.

What is CPG loyalty marketing?

CPG, which stands for consumer packaged goods, refers to products consumed daily by the average consumer. These include food, beverages, personal care products, cleaning supplies, and household items. CPG companies are typically large-scale manufacturers and distributors of these goods.

When we talk about CPG loyalty marketing, we're discussing a marketing strategy used by CPG companies to encourage repeat purchases and foster brand allegiance among consumers. The goal is to establish long-term customer relationships, ensuring they consistently choose and prefer a particular brand or product within the CPG category.

CPG loyalty programs involve implementing various initiatives to reward and incentivize customers for their continued patronage. These programs often feature elements such as:

• Scan and earn mechanics
• Personalized recommendations
• Exclusive, limited-time offers
• Rewards points and prizes
• Educational content related with the products
• Other catchy benefits

By providing added value to clients, CPG companies aim to enhance customer retention, drive sales, and gain a competitive advantage in the market.

CPG loyalty programs can be implemented through different channels, including physical stores, online platforms, mobile apps, and more, in what’s called the multichannel or omnichannel approach. The choice of channels depends on brand preferences, the company's specific marketing and loyalty program strategy, and the target audience.

To sum up, CPG loyalty programs are designed to entice customers, reward them for their allegiance, and encourage them to stick with a particular brand or product.

Top three challenges faced by the CPG industry in retaining customers

In the direct-to-consumer sector, several substantial challenges are to consider when keeping clients happy and loyal. Let's explore them!

1. Ever-awake competition

The CPG brands are constantly competing and striving to be the best — they come up with new ideas and improve their products to attract and retain customers. It's a tough game out there because it's not just about having a great offer anymore but also about creating additional value. As such, organizations need to invest in understanding their audience to stay ahead.

And let's face it, recipients in the CPG sector are always on the lookout for the best deals. If they find a better price somewhere else, they might switch brands. So, brands must offer competitive prices and promotions to show customers they get the best deal possible.

One way to do this is through a loyalty program. It's like a special club for people, with exclusive promotions and rewards for sticking with a brand. It's a win-win situation because clients feel appreciated, and companies can encourage them to buy more or try new products. 

2. Changing tastes and preferences

People's preferences are constantly changing. They might switch products/services or brands based on new needs, health concerns, or even just a desire to be more environmentally friendly. Businesses must keep up with these trends and adapt their offerings to keep their clients happy.

That's why feedback from the audience is so important. One way to gather this valuable information is through a loyalty program. By implementing a scheme, you can not only offer incentives and rewards to your members but also create a channel for them to share any thoughts. Such a two-way interaction lets you gain insights into what customers like, dislike, and desire for the future. With this continuous feedback loop, organizations can stay attuned to the evolving preferences of their recipients and make well-informed decisions regarding their offerings, marketing strategies, and overall customer experience.

3. Effective communication and marketing

Good communication is crucial for keeping people around. Brands must inform everybody involved about new offers, promotions, or improvements clearly and engagingly. By keeping clients informed, they can increase customer loyalty and satisfaction.

But sometimes, it can be challenging to communicate directly with end users, especially if businesses sell their products through resellers. That's where a loyalty program can come in handy. It acts as a direct line of communication between the company and its clients. Brands can gather valuable data, preferences, and feedback directly from their target audience by incentivizing customers to join the loyalty program. This direct communication helps organizations understand what their recipients need and want, so they can tailor their offerings to meet those needs. It's all about building a solid relationship with the audience and giving them a voice.

The seven reference examples of CPG loyalty programs

CPG companies have come up with some pretty creative and effective loyalty programs to build strong connections with customers, encourage repeat purchases, and ultimately foster brand allegiance.

Let's dive right in and explore "lucky seven" standout examples of consumer packaged goods loyalty programs.

1. Pampers Rewards - Actively supporting caregivers

Pampers Rewards is a scheme offered by Pampers, a well-known brand specializing in baby care products, including diapers and wipes. Designed to reward parents and caregivers for their purchases, the program provides various benefits and incentives.

To join the Pampers Rewards program, customers simply need to create an account on the Pampers website or download the Pampers mobile app. When registering, participants are asked to provide basic information such as name, email address, and sometimes additional information about the child.

Once registered, members can earn points immediately by purchasing eligible Pampers products. Each participating Pampers item has a unique code printed on the packaging, which can be easily entered on the Pampers Rewards website or app to earn points. The number of points earned depends on the product and any ongoing promotions.

Accumulating points is a gradual process. As members continue to purchase and register Pampers products, their point balance increases. Additionally, Pampers occasionally offers bonus points on select items or during special promotions, giving members even more opportunities to earn points.

Once members have accumulated a certain number of points, they can redeem them for a variety of rewards, including:

• Donations to various charitable organizations
• Discounts on future Pampers product purchases
• Gift cards from popular retailers or online platforms
• Sweepstakes entries for a chance to win top prizes
• Exclusive Pampers merchandise and baby care items

Pampers Rewards members also receive personalized content and tips based on their child's age and development stage. This includes useful information about baby care, parenting advice, and special offers tailored to their child's specific needs.

What do I like most about the Pampers Rewards?

• The point accumulation system is simple and easy to understand, leading to increased sales and repeat sales
• By offering personalized content and tips based on a child's age and development stage, the business demonstrates its dedication to supporting parents and caregivers in their child's growth journey
• Offering diverse reward options include donations, discounts, gift cards, sweepstakes, and exclusive merchandise. Such versatility helps in driving engagement, repeat purchases, and word-of-mouth referrals, ultimately boosting the company's bottom line

2. PepsiCo Tasty Rewards - Engaging the community

PepsiCo Tasty Rewards, the scheme offered by PepsiCo, stands out as an enticing opportunity for consumers to engage and receive rewards from one of the world's leading food and beverage companies. By purchasing PepsiCo products like Pepsi, Lay's, Doritos, Mountain Dew, Gatorade, Quaker, Tropicana, and more, participants can earn points and unlock a world of benefits.

Joining the program is entirely free and available to US residents at least 13 years old at the time of account creation. Once signed up, members can receive points by purchasing eligible PepsiCo products, each with its specific point value. Individuals can refer to the packaging, the program's website, or the mobile app to determine the point values.

To ensure points are credited, members must submit their purchase receipts within a specific timeframe, usually 14 days after the purchase. This simple process involves photographing the receipt and uploading it through the user-friendly PepsiCo Tasty Rewards website or mobile app.

Besides earning points through product purchases, the program frequently provides additional opportunities to earn bonus points. These special promotions encompass limited-time offers, participation in activities such as surveys or watching promotional videos, and more. Members can accumulate points quicker and enhance their overall experience by engaging in these opportunities.

The points acquired can be redeemed for exciting rewards, ranging from discounts, digital coupons, and exclusive merchandise to sweepstakes entries and digital downloads. The available rewards may evolve, allowing members to choose options that align with their preferences and points balance.

What's more, PepsiCo Tasty Rewards occasionally conducts exclusive sweepstakes and contests for its members, where participants have the chance to win remarkable prizes such as vacations, electronics, and VIP experiences. These captivating promotions add extra excitement to the program, enticing members to actively participate and enjoy the possibility of winning big.

Finally, members are encouraged to share their achievements, rewards, and experiences with the PepsiCo Tasty Rewards on various social media platforms. This interactive feature fosters engagement and enables members to proudly demonstrate their allegiance to the brand, creating a vibrant and enthusiastic community of like-minded individuals.

What do I like most about the PepsiCo Tasty Rewards?

• Pepsi attracts a wide user base by ensuring registration is hassle-free
• Points can be easily earned by submitting purchase receipts within a specific timeframe (this results in an increased customer base, more user data for targeted marketing efforts, and potential opportunities for upselling and cross-selling Pepsi products)
• By holding exclusive sweepstakes and contests where members can win exciting prizes, they're motivated to choose Pepsi products over competitors' products
• Sharing achievements and experiences on social media fosters engagement and community. This fosters engagement and builds a vibrant community of like-minded individuals

3. Kellogg's Family Rewards - Accompanying daily shopping

Kellogg's Family Rewards, a scheme offered by Kellogg's, one of the world's leading cereal and snack brands, aimed to reward existing customers with enticing incentives and benefits for purchasing Kellogg's products.

To join this program, people signed up for a free account on Kellogg's Family Rewards website or through the user-friendly mobile app. During registration, participants were asked to provide basic personal information such as their name, email address, and date of birth.

Once successfully enrolled, members could get points immediately by purchasing eligible Kellogg products. Each product had a unique code printed on the packaging, which could be easily entered on the website or app to accumulate points. Additionally, engaging in activities like quizzes, promotions, or referring friends to join the program could get members extra points.

Accrued points could be redeemed for a diverse range of rewards. Kellogg's offered an extensive rewards catalog, regularly updated to provide members with a wide selection of options. Members could choose from merchandise, partner gift cards, coupons, sweepstakes entries, and even make charitable donations.

Periodically, Kellogg's introduced bonus point promotions to enhance the rewards experience further. Members could earn extra points by purchasing specific products or participating in designated activities. These promotions were communicated through email newsletters, the program's website, or the mobile app, ensuring members stay informed.

Apart from the rewards, the program granted members access to exclusive content. By being a part of Kellogg's Family Rewards, members could explore a wealth of recipes, cooking tips, and nutritional information. This valuable resource enabled them to discover innovative ways to incorporate Kellogg's products into their meals and snacks.

Kellogg's offered a dedicated mobile app for iOS and Android devices for added convenience. With the app, members could effortlessly scan product codes, track their points balance, access personalized offers, browse the rewards catalog, and stay updated on the latest promotions. This user-friendly app ensured members could easily engage with the program anytime, anywhere.

Unfortunately, the company has decided to terminate Kellogg's Family Rewards program effective January 15, 2023, but it's still noteworthy.

What did I like most about the Kellogg's Family Rewards program?

• Members had access to exclusive content like recipes and nutritional information, which allowed the business to more effectively engage and retain their clients
• Availability of a dedicated mobile app for iOS and Android demonstrated the company's commitment to providing a modern and convenient customer experience
• Members could accumulate points immediately by purchasing eligible products and entering unique codes found on the packaging. This motivated clients to choose Kellogg's products over competitors, opening doors for new stream opportunities

4. P&G Good Everyday - Focusing on a sustainable future 

P&G Good Everyday, a scheme offered by Procter & Gamble (P&G), stands as a testament to the company's commitment to their recipients. As one of the world's largest consumer goods companies, P&G has designed this program to reward customers not only for purchasing their products but also for actively participating in social and environmental activities.

To become a part of this free program, clients can easily sign up on the P&G Good Everyday website or through the mobile app, both of which provide a seamless registration process.

Once registered, participants can gain benefits while buying eligible P&G products, encompassing a wide range of popular brands such as Tide, Pampers, Crest, Gillette, and Pantene. Each product carries a specific point value, further enhancing the incentive to participate.

The accumulation of points is not solely limited to purchases — members can also earn bonus points by engaging in various activities designed to educate and inspire. These activities include watching videos, reading articles, taking quizzes, and participating in surveys, all of which revolve around essential topics such as sustainability, health, and well-being.

This loyalty scheme enables members to convert their accumulated points into charitable donations. By choosing from a carefully curated list of supported causes, including education, clean water, disaster relief, health, and environmental sustainability, members can align their contributions with their personal values. P&G then matches the member's donation and contributes to the selected charity.

Above all, P&G Good Everyday places a strong emphasis on environmental sustainability. By actively promoting recycling, energy conservation, and reducing water usage, the program strives to educate and empower their members to make more sustainable choices in their daily lives. Through this approach, P&G aims to foster a lasting positive impact on the environment while encouraging responsible consumer behavior.

In summary, P&G Good Everyday is a remarkable loyalty program that rewards customers for their purchases and provides a platform for meaningful engagement in social and environmental initiatives. Members can contribute to charitable causes by participating in this program while simultaneously adopting a more sustainable lifestyle.

What do I like most about the P&G Good Everyday loyalty program?

• Offering a user-friendly sign-up process through both the website and mobile app. This ease of registration can boost registration numbers
• Allowing members to convert their accumulated points into charitable donations adds a philanthropic dimension (the business can clearly indicate its commitment to social responsibility and supporting charitable causes)
• By promoting recycling, energy conservation, and water usage reduction, the program educates and empowers members to make more sustainable choices (this improves the brand image when it comes to reducing its environmental footprint)

5. Yeo Valley Yeokens - Consuming dairy that adds value

Yeo Valley Yeokens loyalty scheme, offered by the renowned British organic dairy company Yeo Valley, is a customer rewards initiative that allows customers to collect points called Yeokens. 

To participate in the Yeokens program, clients must create an online account on the Yeo Valley website or mobile app. This account serves as a central hub for collecting and managing Yeokens. Once earned, points are stored in the customer's Yeokens bank within their online account, keeping track of the total number of Yeokens collected.

To earn points, customers simply need to purchase Yeo Valley products. Each product is assigned a specific number of Yeokens, which may vary based on the product's size or value. Additionally, some Yeo Valley products come with unique codes printed on the packaging. By entering these codes on the website or mobile app, customers can earn extra Yeokens.

Periodically, Yeo Valley runs promotional campaigns that offer bonus Yeokens to customers. These campaigns may involve purchasing specific products or participating in special events.

In addition to Yeokens earned through purchases, Yeo Valley also rewards customers with activity points for engaging in certain actions, such as completing surveys, referring friends, or sharing their experiences on social media. These activity points can be converted into Yeokens, further enhancing the scheme.

The company offers a catalog, where members can choose from a wide range of options in exchange for their Yeokens. It includes exclusive merchandise, vouchers, discounts, Yeo Valley experiences, recipe books, and even the opportunity to make charitable donations. This ensures that clients have a variety of appealing rewards to select from, enhancing their overall experience with the program.

What do I like most about the Yeo Valley Yeokens loyalty program?

• Strengthens branding via relevant points name, "Yeokens"
• Applying and using the program is easy, increasing retention
• Makes customers feel socially responsible by donating to charity
• Generates engagement and social proof by motivating users to spread the word

6. e.l.f. Cosmetics - Attracting loyal beauty fans

e.l.f. Cosmetics is a popular and affordable beauty brand that offers a wide range of high-quality makeup products and skincare essentials. Known for their inclusive approach to beauty, company strives to empower individuals of all backgrounds to express themselves and enhance their natural beauty. With their cruelty-free and vegan-friendly formulations, e.l.f. Cosmetics is committed to providing accessible beauty options that cater to diverse needs and preferences.

The brand introduced "Beauty Squad," a loyalty program designed to reward our valued members for their purchases and commitment to the brand, regardless of where they made their purchases.

Joining is free of charge. A beauty fan must download the mobile app and scan a receipt with e.l.f product to receive reward points.

The best part is that e.l.f. Cosmetics has integrated a native receipt scanning feature into their app as a key component of their loyalty program. This feature allows members to conveniently submit receipts from both online and in-store purchases made at various retailers that carry e.l.f. Cosmetics products, including Ulta, CVS Pharmacy, Walmart, Target, and Amazon.

Members can simply take a screenshot of their digital receipt or upload a photo of a receipt from an in-store purchase. Members are rewarded with bonus points in exchange for their participation, while the brand gains valuable insights into their members' purchasing habits.

The e.l.f. Beauty Squad program consists of three membership tiers based on annual spending: Fan, Pro, and Icon.

Each tier offers unique benefits and rewards, allowing members to unlock additional perks as they progress through the tiers.

Members of the Beauty Squad receive points for their purchases, with the number of points earned determined by the amount spent. For example, members earn 10 points for every $1 spent on e.l.f. Cosmetics. These points can be redeemed for rewards or discounts on future purchases.

All Beauty Squad members can receive a special birthday gift during their birth month. The specific gift may vary based on the year and program offerings, ensuring a delightful surprise for our loyal members.

Beauty Squad members gain exclusive access to offers, promotions, and early product launches. These privileges enable members to enjoy special discounts and be among the first to try out new e.l.f. Cosmetics products. Depending on the member's tier, they're eligible for free shipping on orders. This benefit provides cost savings on shipping fees and enhances the convenience of online shopping.

Members can also participate in a referral program by inviting friends or family to join e.l.f. Cosmetics, earning additional rewards or discounts when those individuals make a purchase using a referral code. It's a fantastic opportunity for members to share their love for the brand while enjoying extra benefits.

What do I like most about the e.l.f. Beauty Squad program?

• Customers can easily register e.l.f. products purchased in the biggest retail chains by scanning the receipts
• By offering tiered benefits, e.l.f. Cosmetics encourages customers to stay engaged and invested in their brand
• Members can invite friends or family to join e.l.f. Cosmetics (it can lead to new customer acquisition and increased brand awareness)

7. MSI Rewards - Involving gamers from around the world

MSI is a well-established and renowned brand in computer hardware and technology. Known for its high-performance gaming laptops, desktops, and components, this brand has built a strong reputation among gamers and PC enthusiasts worldwide. With a focus on innovation, quality, and cutting-edge design, MSI consistently delivers products catering to modern gaming and computing demands.

MSI Rewards is a scheme offered by MSI, a leading gaming and computer hardware brand. The program is created to reward and provide exclusive benefits to loyal customers who purchase MSI products and engage with the brand.

The program has multiple membership tiers, including: Bronze, Silver, Gold, Diamond.

‍The tier level depends on the total amount spent on MSI products and the number of points earned, encouraging people to buy more via a competitive gamified scheme. Higher tiers offer more excellent benefits and rewards.

Members of MSI get points through various activities, such as purchasing MSI products, writing reviews, completing surveys, and attending events. The points earned are directly proportional to the price of the product. Additionally, bonus points can be obtained during special promotions and campaigns.

With the accumulated points, members can redeem a diverse range of rewards. These rewards include MSI merchandise, gaming peripherals, digital games, exclusive discounts, and even MSI products themselves. The specific rewards available may vary depending on the member's tier level.

In addition to the attractive rewards, MSI Rewards members can access exclusive discounts and promotional offers. These discounts can be applied to select MSI products, enabling members to purchase their desired hardware at discounted prices.

What's more, members often benefit from quicker access to new product launches and pre-order opportunities. By being among the first to experience the latest gaming technologies, members can secure their desired products before they become widely available.

To further enhance the member experience, MSI frequently organizes special events, contests, and giveaways exclusively for MSI Rewards members. These exciting events can range from online gaming tournaments to physical gatherings, where members can win prizes and actively engage with the vibrant MSI community.

Discover how MSI leveraged Open Loyalty services to achieve a swift and seamless transition to a centralized loyalty app within three months.

What do I like most about the MSI Rewards?

• Using a competitive scheme with different membership tiers to encourage more purchases and engagement
• By providing diverse avenues for customers to accumulate points, the brand demonstrates its commitment to meeting customers’ needs and preferences that reinforce "brand stickiness" and foretell future interactions
• Organizing exclusive meetings, contests, and giveaways for members aims to increase sales and revenue, contributing to overall profitability and sustainability

What are the best practices when implementing a CPG loyalty program?

Implementing an effective loyalty solution is now crucial for companies wanting to cultivate customer loyalty and increase their brand presence. However, launching a scheme is only the first step. 

To truly engage and retain customers, following best practices is essential. Let's take a look at the key strategies and elements that contribute to the effectiveness of CPG loyalty schemes. Understanding and deploying these practices can increase customer satisfaction, foster lasting relationships, and gain a competitive advantage in the dynamic CPG landscape.

1. Set clear program goals

Start by defining what you want to achieve with your loyalty program. Whether it's boosting customer retention, driving repeat purchases, or gathering valuable customer data, having well-defined goals will guide your program.

2. Understand your customers

Get to know your audience inside out! Conduct thorough market research to uncover their preferences and shopping habits. This valuable insight will help you tailor your loyalty scheme to their needs and deliver a more personalized experience.

3. Keep it simple and user-friendly

Make sure your loyalty scheme is easy to understand and participate in. Keep the enrollment process straightforward, and ensure the terms and conditions are clear. You want your clients to easily grasp and engage with the program.

4. Personalize rewards

Show your audience some love by offering rewards that resonate with them. Segment your customer base and create tailored physical or digital rewards based on their preferences and purchase history. This personalized touch will make them feel valued and keep them coming back.

5. Offer enticing rewards

Make your rewards worthwhile! From discounts and cashback to exclusive product access and partner offers, choose rewards that your customers will find appealing. Provide them with valuable incentives that make them feel appreciated.

6. Add a touch of fun

Gamify your loyalty scheme to make it more engaging. Incorporate elements like point systems, levels, challenges, and friendly competition. Adding a bit of excitement and enjoyment will keep your clients entertained and motivated.

7. Ensure seamless integration

Make sure your solution seamlessly integrates across different channels. Whether it's your website, mobile app, or physical stores, your customers should have a smooth experience accessing their loyalty accounts, tracking progress, and redeeming rewards.

8. Communicate effectively

Spread the word about your loyalty program! Craft clear and compelling messages using various channels such as email marketing, social media, in-store signage, and packaging inserts. Let your clients know about the benefits and any special promotions they can take advantage of.

9. Analyze and leverage customer data

Analyzing customer data from loyalty schemes is crucial for understanding behavior and preferences. The data can be categorized as zero-party data (voluntarily shared by clients) and third-party data (collected from external sources). Dive into this data to gain insights, optimize your program, refine marketing strategies, and offer personalized rewards that resonate with customers.

10. Stay agile and adapt

Keep an eye on your loyalty program's performance and gather feedback from participants. Be ready to make adjustments and improvements as needed. Staying flexible and responsive will help you keep your program fresh and effective.

By following these tips, loyalty experts can be well-equipped to implement customer loyalty programs in the CPG industry that strengthens customer relationships and drives business growth.

Summary

In short, the world of CPG loyalty programs is constantly evolving, and let's face it, it's all about giving customers the best return on every penny invested. In this article, we've delved into the top 7 CPG loyalty programs that go above and beyond to maximize benefits for their loyal consumers. And boy, these programs are impressive.

These solutions have completely changed the way consumers interact with CPG brands. It's no longer just about getting discounts and catching good deals. It's much more than that!

‍It's about creating meaningful connections between us and our favorite brands. Moving forward, every CPG brand will continue to push the boundaries, finding innovative ways to keep us engaged, satisfied, and loyal.